Things to keep in mind when buying or selling property in Italy

To begin, we highly recommend working with an accredited notary. Your guide should lead you through every stage.

 

Obtaining a tax identification number is the first step for a foreign national who wants to buy property in Italy (codice fiscale). At any government financial agency or at an Italian consulate or embassy, you can request this type of information. A photocopy of one’s national passport should be attached to this request. A proxy established by an Italian notary or by an Italian consulate or embassy can also be used to submit the request. Please keep in mind that while making this request, married women should only use their maiden names. It is vital to have a Codice Fiscale or tax identification number:

 

Initiating negotiations with the seller to acquire the property ( “Contratto Preliminare” or “Compromesso” )

Requesting a loan from a bank

Finalizing the purchase agreement with a notary public

Buying a vehicle

Contracts for public utility services (gas, water, electricity, telephone)

Preparing and submitting official declarations to the appropriate authorities at all levels of government

In most cases, there are three processes to purchasing a property:

Proposal of purchase or “Proposta Irrevocabile d’acquisto” is the first step in the process.

 

When a buyer has visited a property, he wants to make a binding offer expressing his requirements about the timing of the transaction, financing, guarantees, etc… This document is a written offer on property. As part of the agreement to acquire the property, he is expected to sign a non-negotiable bank check or transfer a small fraction of the purchase price to the seller’s bank account, which becomes binding if the offer is accepted. The Agent can draught this proposal because it is straightforward and doesn’t need the involvement of a Notary.

 

“Contratto preliminare” means “preliminary purchase contract” in Italian.

 

Both parties are bound by this contract, which specifies that the seller will sell to the buyer, who will buy. Despoit already paid for the “Proposa d’acquisto” must be deposited in a “caparra confirmatoria,” which is often 10% to 20% of the purchase price. As a result, the Notary will need some time to do all the appropriate inquiries, such as checking to see if there are any legal issues or mortgages, and putting together all the paperwork needed to complete a document.

 

Steps 1 and 2 can sometimes be completed at the same time.

The final purchase agreement or rogito notarile

The Notary’s office serves as the final signing location for this agreement. The remaining balance of the purchase price is paid to the seller, and upon final signing, the buyer becomes the legal owner of the property and receives the deeds and keys.

There are additional fees to consider when purchasing a home in Italy:

Foreign customers sometimes inquire, “…but how much are the additional services?” It’s not always possible to get a precise answer on this one. The following, on the other hand, should make it more obvious to the customer why this is the case.

According to the Italian state, all properties in Italy are registered at the local land-registration office (catasto) and assigned a certain value, depending on the district, number of rooms, and other factors. If the property has recently been renovated, or if it’s located in a desirable location, this value may be significantly higher than the property’s commercial value.

The sale of a home necessitates its registration. The registration tax (imposta di registro) is 3% for the first property and 7% for the second. Not just foreigners are affected by this. Registration taxes are assessed based on the value shown in the land registry, which may be significantly lower than the market value. Here is an easy-to-read graph:

Taxes levied by the government on property purchases:

  • VAT* 4% on the first house
  • Ten percent to twenty percent of the second property
  • 10 percent of the time
  • 3 percent of the first house’s registration
  • 7 percent of the second property’s market value
  • 3 percent of the population has been accounted for in the past.
  • Combined Mortgage and Catasto (Euro)
  • The first home has 168+168 square feet of space.

In the second property, 3% + 1%

listed in the past In addition to the 2% and 1%,

 

In any case, you’ll have to pay taxes. VAT is imposed on purchases made by a business, whereas registration tax is imposed on purchases made by individuals.

After a preliminary contract has been signed, the agency fee is typically 3 to 5 percent + VAT (IVA).

The buyer must select a notary public for all property transactions. The cost of a notary’s services might vary slightly, although not much. For a property valued at Euro 250,000, the notary costs would be between Euro 1,800 and Euro 2,200. Notary costs tend to rise in tandem with the value of the property being sold for. In Italy under Italian Law the buyer pays the commission and notary fees.

 

Contact us today to buy or sell property in Italy fast online.

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