Guide to the Italian Buying Process
1. Making the Offer to Purchase (Offerta)
Once you have found the property you wish to purchase you will start the process by making a formal offer to the vendor, the estate agent will act on your behalf and put forward the offer, a deposit will be made available, generally around (10,000 - 20,000 EUR). Once the vendor has accepted the offer it will be formalised in writing to the vendor in both English and Italian. If this is accepted the deposit (Caparra Confirmatoria) will be paid to the vendor. This will form a legally binding contract. Neither party may withdraw at this point, the sale can be forced by either party or a claim for damages can be made. If the purchaser withdraws their deposit will be lost, if the vendor withdraws the purchaser can claim twice the deposit in compensation.
2. Signing the Preliminary Contract (Compromesso or Contratto preliminare)
The next step will take place between 1 and 3 months after the offer has been accepted, this is a formal agreement between the vendor and purchaser to sell and buy the property, this agreement is the Preliminary Contract and will contain the conditions and terms of the sale. It is important at this stage that you have a full understanding of all the details contained in the contract. We would strongly recommend that you appoint a Notary who is fluent in English. This document will include the purchase price, a detailed description of the property including completion date and will cover any obligations placed upon the buyer and the vendor. All information relating to the property including any planning permissions for the property and the cadastral details (a public record, survey, or map of the value, extent, and ownership of land as a basis of taxation). Once the Preliminary Contract (Contratto preliminare) has been signed a further deposit (Caparra Confirmatoria) will be paid, this will generally be 10% - 20% of the purchase price. There will also be an estate agents Commission Fee (Provvigione) which will need to be paid at this point.
3. Signing the Final Deed of Sale (Rogito or Atto Notarile)
The purchaser must have a bank account in order to make the purchase on completion. The signing of the final deed of sale which will authorise the transfer of the property must be overseen by a Notary (Notaio). The buyer will select and hire the Notary, but they are members of an independent body of public/professionals who will draft the purchase deed, they will oversee the passing of the title legally from the vendor to the purchaser. The Notary will also verify the legality of the documentation and registration with the Conservatoria dei Registri Immobiliari and the Local Land Register.
4. Formalities to be observed after Completion
Foreign buyers should obtain a certified copy of the Purchase Deed (Rogito), which the Notary will have lodged with the authorities. Generally this will be available to collect around 2 – 3 weeks after completion. The Notary will also give you a form to complete for the the local authority (Questura) who will have been given formal notice of the purchase. Your Notary will help you to complete this form. You will need to contact the utilities companies to set up new contracts (power, water, telephone, gas etc.). If the property is a flat, the condominium manager (Amministratore del condominio) should be informed of change of ownership of the property.
Various taxes must be paid on purchases. Registration tax / stamp duty (Imposta di Registro) is calculated on the government’s valuation of the property (Valore catastale). This will vary according to whether the property is being purchased as a holiday home, or as your primary residence. For a holiday home stamp duty will be 10% of the valuation. If you are intending to use the property as your primary residence and apply for residency (Prima casa), providing this is done within 18 months of the property transfer then stamp duty will be reduced to 3% for an existing property and 4% for a new build. This will be paid to the Notary on completion of the purchase.
Land registration, mortgage and cadastral taxes also need to be paid to the Notary on completion. These are one-off payments and are around €168 each.
Once the property has been purchased further taxes must be paid. There is a local council tax ICI/IMU property tax (Imposta Comunale sugli Immobili) of 0.4% to 0.9% of the property’s cadastral value. The rate for this is calculated annually by the council and paid bi-annually in June and December. This rate will be reduced if the property is the primary residence (Prima Casa).
If you are not resident in Italy you will have to declare any income gained from activities in Italy to the Italian Tax authorities. This income will also have to be declared in your country of residence, you will need a double taxation agreement to mitigate against paying twice. This declaration will apply to any income you might obtain from letting a property in Italy. Some expenses incurred on the property may be off-set against the income you derive from letting out the property. This can include management expenses, local taxes, repairs etc.
There is one tax which applies only to holiday homes, there will be a 20% Capital Gain on the difference between the buying price and the selling price if the property is sold prior to 5 years ownership.
IMPORTANT - Disclaimer :
All information provided is believed to be current and provided free of charge. No liability can be accepted for the reliability of the information and statements made as this is obtained from 3rd parties. We always recommend you take legal advice from a fully qualified Lawyer or Notary before buying a property overseas.
Magnificent 12 bedroom fairy-tale style stone built villa, ideally situated in a quiet setting within lush landscaped gardens with a swimming pool, in a quiet setting in the hills close to Lucca. ...
- Floor Size: 900 square metres
- Plot Size: 40,000 square metres (4.00 hectares / 9.88 acres)
- Bedrooms: 12
Enjoying wonderful 360 degree panoramic views from its peaceful, elevated location near Lucca, is this beautifully renovated, fully furnished 3 storey, 5 bedroom luxury villa nestling in half an ac...
- Floor Size: 630 square metres
- Plot Size: 2,000 square metres (0.20 hectares / 0.49 acres)
- Bedrooms: 5
Full of character and charm, this lovely 2 bedroom stone built farmhouse is ideally situated in a quiet setting amongst the Buti hills, yet within walking distance to services. Buti is a charmi...
- Floor Size: 200 square metres
- Plot Size: 6,000 square metres (0.60 hectares / 1.48 acres)
- Bedrooms: 2
Exceptional grand and elegant 17th century, 9 bedroom Tuscan villa with pool, set in nearly 25 acres of glorious land situated close to the heart of Lucca. The Villa Arianna stands as one of Tu...
- Floor Size: 1,000 square metres
- Plot Size: 100,000 square metres (10.00 hectares / 24.71 acres)
- Bedrooms: 9
Superb 2 bedroom penthouse apartment ideally situated within a central and strategic location in Viareggio, just a few steps from the pinewood, promenade and the beach. Situated on the 5th an...
- Floor Size: 130 square metres
- Bedrooms: 2
Newly built 4 bedroom villa, ideally situated within an exclusive residential area just 950m from the beach and from the main facilities in Marina Pietrasa, This newly build property, which i...
- Bedrooms: 4
Grand and spacious 7 bedroom villa, ideally situated within on the most prestigious areas of Viareggio, just 50m from the promenade and the sea. With its origins dating back to the early 1900s ...
- Bedrooms: 7
Full of character and charm, this historic and totally restored 10 bedroom villa, which was built in 1740, has been superbly renovated with great care, with respect of its original character. ...
- Floor Size: 1,120 square metres
- Plot Size: 5,000 square metres (0.50 hectares / 1.24 acres)
- Bedrooms: 10
Superb 6 bedroom villa located in a quiet and highly sought after and green residential area with maximum privacy, on the border between Marina di Pietrasanta and Forte dei Marmi, close to the sea, on...
- Floor Size: 280 square metres
- Plot Size: 2,700 square metres (0.27 hectares / 0.67 acres)
- Bedrooms: 6
Elegant, spacious and beautifully presented, this luxurious 4 bedroom villa is ideally situated within an exclusive and highly sought after residential area of Forte dei Marmi, just 1.4km from the sea...
- Floor Size: 355 square metres
- Plot Size: 2,500 square metres (0.25 hectares / 0.62 acres)
- Bedrooms: 4