How to buy a property in Italy
The purchase process in Italy is simple, organized and extremely well regulated. The process can be divided into steps, which you will follow once you have found your ideal home and have decided to buy a property in Italy.
Now that you have decided on the property to buy in Italy the next step is to make an offer. The estate agent will be able to give you advise on what could be an acceptable offer however, you are free to make any offer you see fit. The offer will take place in a written form by signing a “Proposta Irrevocabile d’Acquisto” an Irrevocable Purchase Agreement.
Once both parties have signed the contract and the deposit has been paid, it becomes a formal contract. This is also referred to as a “Compromesso”. Once the offer is accepted you will pay a deposit, which can range between 10 and 30% of the agreed price. The deposit, along with all aspects of the contract, can be agreed between the parties before any funds are exchanged.
If you decide to withdraw after the offer has been accepted and the deposit paid, then you forfeit your deposit. However, if the selling party withdraws or has declared anything that isn’t true within the contract, then they must repay double the deposit.
The preliminary contract establishes the terms and conditions of the final contract (Rogito). The essential details include price, date for completion, deposit and guarantees regarding the property made by the selling party. This is very important when you buy a property in Italy as these guarantees include whether there is an outstanding debt on the property, whether there are any building irregularities etc. It may also include any other relevant legal details.
You should not feel pressured at any point during the process, you can ask for time to consider your decision. You may also ask for all the costs involved, which you must pay, including taxes, when you buy a property in Italy.
Step 2 Rogito – Final Completion
This is the final stage of the process and transfers ownership of the property from the seller to the buyer. The date of the Rogito is agreed within the Purchase Agreement and is usually 1-3 months after the Agreement is signed. The final document to be signed is drawn up by the Notary (Notaio).
The Notary is a representative of the Italian State. The Notary represents the interests of both parties and his role is that of a lawyer to ensure that everything is conducted as per the laws of the land. The buyer, seller and estate agent are all required to be present for the signing of the contract at the Notary’s office. If either the buyer or the sellers are unable to be present, then a Special Power of Attorney may be given to an individual to act on your behalf.
The Notary is essential when you buy a property in Italy and his role is to guarantee that all the parties who have a claim on the property are present. The Notary will carry out checks into the property on the day of the final signing to ensure that there are no outstanding mortgages or debts.
At this stage you will pay the outstanding sum of the purchase price to the selling party and the property is yours. At this point there is also the purchase tax and the Notary to pay. This is generally given as a single figure and is paid on the cadastral value of the property and not the purchase price. The cadastral (tax value) of the property is almost always lower than the market values.
All the information to calculate how much you pay when you buy property in Italy is available so you can have a price before you sign any contract. The amount you pay will depend on whether you transfer your residency to your new home within 18 months of the purchase. In this case you will receive a tax benefit, paying only 3% tax rather than 10%.
Once the purchase has been completed we will be on hand with our post purchase service.