Buying process in Italy
Information On Purchasing A House In Italy There are no restrictions placed upon a non-resident wishing to purchase a house in Italy, either from Europe or elsewhere.
When searching for a house in Italy it is strongly recommended that you use an estate agent fully licensed by the Chamber of Commerce.
1st – The offer - Proposta irrevocabile d'acquisto – an irrrevocable purchase agreement – which is signed by the buyer and seller when you have agreed the price, and which identifies both parties, the property in question, and gives an expiry date for signing the Compromesso. When you sign, you pay a deposit for the equivalent of 10% (this can vary) of the agreed price, this can is cashed by the vendor and used as part of payment on the property.
If you change your mind you will forfeit the deposit, as the owner will have effectively taken the property off the market for a certain period of time. If the sale does not go ahead in the specified date through no fault of your own, then your deposit will be returned to you.
2nd – Compromesso The preliminary contract (Compromesso) commits both parties to the sale. This contract establishes the terms and conditions of the final contract (Rogito) and details price, date for completion, the nature of the property and guarantees from the seller. It may also include any other relevant legal details.
3rd – Rogito This is the final stage of the process and transfers ownership of the property from the seller to the buyer (usually 1-3 months after the Compromesso). The document is drawn up by the Notary (Notaio), who represents both parties. The buyer, seller and estate agent are all required to be present for the signing of the contract at the Notary's office. You can sign the Rogito in person or we may be able to appoint a Power of Attorney in your absence. You will be expected to transfer funds to the vendor and the Notary at this stage It is recommended that you have funds available before the completion and in some cases payment can be made either the day before or just before signing.
If you can't be present at the Rogito - Special Power of Attorney
A power of attorney agreement which is emailed/faxed/sent to you and you need to print it off and sign it in the presence of a solicitor/consulate. You then need to send or take it to the Foreign Office in your country to have it ratified with an "Apostille" and send back to Italy. The agent of other party can then sign for the property at notary on your behalf.
Other costs when purchasing a property.
Running costs of your property will include:
Ownership/ Costs
In summary, the overall costs of purchasing property in Italy depends on the stamp duty and purchase tax rates applicable to the asset. These costs consist primarily of property taxes, notary fees and agency fees.
As a very general indication this can be expected to amount to circa 10 to 12 % of the purchase price.
Income tax is payable in Italy by all property owners on the theoretical rental income of the property during the year; non-residents in Italy are subject to this tax only if the income exceeds a certain threshold.
IMU: Council tax (Imposta Municipale Unica) is a property tax based on the land registry value of the property and is collected by the local authority twice a year.
There is currently no Capital Gains Tax in Italy for private individuals if the disposal of a property takes place more than five years after the purchase.
The easiest way to pay utilities is by direct debit,other can be paid in person or a local service can be used to pay these for you..
Information On Purchasing A House In Italy There are no restrictions placed upon a non-resident wishing to purchase a house in Italy, either from Europe or elsewhere.
When searching for a house in Italy it is strongly recommended that you use an estate agent fully licensed by the Chamber of Commerce.
1st – The offer - Proposta irrevocabile d'acquisto – an irrrevocable purchase agreement – which is signed by the buyer and seller when you have agreed the price, and which identifies both parties, the property in question, and gives an expiry date for signing the Compromesso. When you sign, you pay a deposit for the equivalent of 10% (this can vary) of the agreed price, this can is cashed by the vendor and used as part of payment on the property.
If you change your mind you will forfeit the deposit, as the owner will have effectively taken the property off the market for a certain period of time. If the sale does not go ahead in the specified date through no fault of your own, then your deposit will be returned to you.
2nd – Compromesso The preliminary contract (Compromesso) commits both parties to the sale. This contract establishes the terms and conditions of the final contract (Rogito) and details price, date for completion, the nature of the property and guarantees from the seller. It may also include any other relevant legal details.
3rd – Rogito This is the final stage of the process and transfers ownership of the property from the seller to the buyer (usually 1-3 months after the Compromesso). The document is drawn up by the Notary (Notaio), who represents both parties. The buyer, seller and estate agent are all required to be present for the signing of the contract at the Notary's office. You can sign the Rogito in person or we may be able to appoint a Power of Attorney in your absence. You will be expected to transfer funds to the vendor and the Notary at this stage It is recommended that you have funds available before the completion and in some cases payment can be made either the day before or just before signing.
If you can't be present at the Rogito - Special Power of Attorney
A power of attorney agreement which is emailed/faxed/sent to you and you need to print it off and sign it in the presence of a solicitor/consulate. You then need to send or take it to the Foreign Office in your country to have it ratified with an "Apostille" and send back to Italy. The agent of other party can then sign for the property at notary on your behalf.
Other costs when purchasing a property.
- Purchase tax – this will dictated by the government
- Notary fee – payable when you sign the final contract;
- estate agent fee – the estate agent will check all the documents for the house are up-to-date and legal, that buildings have fully registered title and that the house complies with planning regulations.
Running costs of your property will include:
- Annual Tax IMU– The (Imposta Municipale Unica) is an annual council tax calculated on the value of the property. It is payable twice a year in June and December but if it is possible to pay it once in December for non residents;
- Rubbish tax – it is payable in four installments or all at once if you prefer;
- Utilities – electricity, water, gas
- Condominium expenses – if you buy a property which is part of a group of properties which share some communal areas – gardens, driveway, swimming pool, tennis court etc. then you will be required to pay condominium expenses;
Ownership/ Costs
In summary, the overall costs of purchasing property in Italy depends on the stamp duty and purchase tax rates applicable to the asset. These costs consist primarily of property taxes, notary fees and agency fees.
As a very general indication this can be expected to amount to circa 10 to 12 % of the purchase price.
Income tax is payable in Italy by all property owners on the theoretical rental income of the property during the year; non-residents in Italy are subject to this tax only if the income exceeds a certain threshold.
IMU: Council tax (Imposta Municipale Unica) is a property tax based on the land registry value of the property and is collected by the local authority twice a year.
There is currently no Capital Gains Tax in Italy for private individuals if the disposal of a property takes place more than five years after the purchase.
The easiest way to pay utilities is by direct debit,other can be paid in person or a local service can be used to pay these for you..
