a guide to buying a property in
Italy
- Buying Property in Italy
- Area: 116,303 square miles
- Population: 57,018,000
- Population density: 487/sq. mile
- Capital: Rome (2,805,000 inhabitants)
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 / 40,000 for a small property in need of extensive development.
- From €45,000 / €100,000 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.
For a full listing of the locations
in Italy that we cover on our website please visit our locations page
living costs in italy
Living costs in Italy are fairly steady across particular regions of the country
with variations in more popular tourist and sought after areas of the country.
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 and take it off the market .
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 shTotal 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
Property Taxes 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
more information
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 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