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Foreign
Currency Exchange: Click
here for details on how to save money
NB:
Any monies imported into Italy for property purchase should
be documented and receipted
Capital Gains
tax does not exist for certain properties - check with your Solicitor/Laywer
for your particular property
There are
no restrictions on Foreign Ownership.
Real Estate
Prices in Italy
Range Varies, for example:
From £20,000 / €28,000 for a small property in need
of extensive development.
From £35,000 / €70,000 for an apartment.
From £70,000 / €120,000 for a rural home.
Generally speaking, Italy is fast becoming popular as an alternative
to the likes of Spain/France and as a result property in Italy
is starting to increase quite quickly in certain areas especially
in Tuscany and the coastal areas.
Location
Italy
There is a great deal of variety in the landscape in Italy, although
it is characterized predominantly by two mountain chains: the
Alps and the Apennines. The former extends over 600 miles from
east to west.The Alpine foothills are characterized by large lakes:
Lake Maggiore and the lakes of Como, Iseo and Garda. The principal
islands are Siciliy, rising up to the great volcanic cone of Etna
(10,860 feet) and Sardinia.
Living
Costs in Italy
The northern and central regions are quite expensive while the
southern part of Italy is generally less expensive to live in.
The major cities are similar in terms of costs of living to Britain.
Luxury goods like cars and white goods can be expensive. Wines
and alcohol are relatively cheap throughout the country.
Buying
Property in Italy
The majority of residential property in Italy is freehold and
generally a 10% deposit is sufficient to secure your property.
When buying
real estate in Italy, you will first sign a preliminary contract,
this can be drawn up by the vendor, agent or a solicitor/lawyer.
The preliminary contract may be preceeded by a binding 'buying
proposal' called a compromesso, where the buyer is legally bound
to buy, but the vendor and agent are free to consider other offers.
The preliminary
contract contains the details of the sale like the purchase price
and financing, plus the completion date which is normally six
to eight weeks. The sale will be completed before a public notary
when the final deed or conveyance of transfer is signed. The notary
issues a certified copy of the deed of sale and registers the
original document with the land registry, which makes you the
legal owner of the property. There are two kinds of deeds in Italy;
a private deed and a public instrument, this provides more protection
and costs slightly more. When a property is bought by private
deed and is subsequently found to have a charge against it, such
as a mortgage, the notary isn't responsible. When buying by public
instrument you can seek legal action against the notary for professional
misconduct.
Solicitor
/ Lawyer
Wherever possible, try to enlist the services of a local Lawyer
or Solicitor to act on your behalf, preferably one who speaks
English. They will be responsible for drawing up your contracts,
contacting the Notary, paying any taxes and registering the property
with the land registry in Italy. They will normally charge between
1 - 2% of the sale value of the property.
Fees
Total fees for buying a property in Italy are usually between
10-15% of the purchase price. Registration tax/stamp duty should
be 10% of the declared price for urban property, up to 17% for
agricultural property, with a reduced rate of around 4% for first
time buyers. If you're planning on becoming a resident, you should
to do so before purchasing your home in Italy.
The declared
property sale figure should also agree with the official value
in the Land Registry, which is usually over half of the purchase
price. Notary fees vary depending on the price of a property and
are higher as a percentage on cheaper properties. They are generally
about 4% of the declared price. Legal fees are usually around
2% of the purchase price. A surveyor's fee will vary according
to the price of the property and will be upwards of 150 euros.
The real estate agent's fee and who pays it varies considerably,
although it's usually shared between the vendor and buyer, a buyer
contributing about 2% of the purchase price, the vendor about
the same. VAT(Value Added Tax) is payable on new homes from 9-19%
depending on the registries rating and is included in the price.
It's important
to deal only with a qualified and licensed agent, and to engage
a local lawyer, before signing anything or paying a deposit. A
local surveyor may also be necessary, particularly if you're buying
an old property or a property with a large plot of land. Your
lawyer or surveyor will carry out the necessary searches regarding
such matters as ownership, debts and rights of way. Enquiries
must be made to ensure that the vendor has a registered title
and that there are no debts against the property like mortgages
or taxes and check the property has the relevant building licences,
conforms to local planning conditions and changes have been authorised.
Check for selling consent of all family registered owners and
water supplies for countryside properties.
Property
Tax
Income tax (IRPEF) is high in Italy and ranges from 10%-60%.
Non-residents must submit a tax return stating the details of
their Italian property, even though there's no tax to pay if no
income is derived from rental etc. The standard rate of VAT is
19%, with reduced rates to a minimum 4%. VAT is payable on new
properties at 9% for non-luxury property and 19% for luxury property.
The local community tax or rates, ICI, ('Ichy') is paid by anyone
who owns property or land in Italy, whether they are a resident
or non-resident. This is levied at between 0.4% - 0.7% of a property's
value, the actual rate being decided by the local authority depending
on the size of the property, location, class and category. If
a property is unfit for habitation it could qualify for a 50%
reduction. ICI is paid in two instalments in June and December.
Mortgages
These are available from Italian banks but can be lengthy
to approve, and usually you can obtain better terms from foreign
financial institutes with borrowed amounts against purchase price
of up to 80%. Remember to declare any funds brought in to your
Italian bank. Maximum loans from Italian banks on property are
usually 50-60% of buying price for second homes and nearer 75%
for your main residence, usually up to 15 years. For more details
visit our Mortgages Page
For more information
on a guide buying property in Italy, please visit our parent website
Property
Abroad - Italy.
www.esteri.it
This guide
is not meant to represent a full guide on buying property in Italy
but it will give you an insight to the procedures to follow.
Italian
Property Search
Italian Embassy
Embassy of Italy in the United Kingdom
n. 14, Three Kings' Yard
London W1Y 2EH
Tel: +44 (0)207 312 2200
Fax: +44 (0)207 499 2283
Website: http://www.embitaly.org.uk/
Email: emblondon@embitaly.org.uk
Embassy of
Italy
Whitehaven Street
Washington, DC 20008
Tel: (202) 612-4400 3000
Fax: (202) 518-2154
Email: italyemb@yahoo.com
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