Country Guides Country Guide: Italy

Date Published:

30/05/2008

Buying Guide

There are no restriction to non-nationals buying property in Italy.

Andrew Hawkins, Associate Head of International at Chesterton, said: 'The process is rather straightforward for buying property in Italy and you should allow about two months for the whole process. By buying through a registered agent, you will be taken through the process, ensuring that all the different steps are explained fully.'

The Procedure

'Firstly, you must obtain a tax identification number (codice fiscale) from the Italian authorities. Then three steps follow.

1. The buyer makes an offer, committing them to a purchase. If it is accepted, a deposit is paid, usually 10 per cent.

2. Both parties sign a compromesso di vendita, a legally binding document that outlines the details of the transaction including the scheduled completion date. A further payment of 20 to 30 per cent is usually paid at this time. Should the seller withdraw, they must pay the buyer double the deposit. If the buyer pulls out, they lose the deposit.

3. The last step involves both parties signing a rogito, or final contract, in the presence of a notary, who then issues deeds and notifies the land registry to transfer ownership. The remainder of the property price, including all taxes, must be paid at this point.

Taxes & Fees

Buyers should normally put aside 15 per cent of the purchase price to cover costs (taxes and fees). If the property is bought from a private citizen, registration tax and a land registry tax needs to be paid by the buyer. If the property is bought from a company, IVA (the equivalent of VAT) must be paid instead of land registry tax.

Land registry tax for non-residents various from 10 per cent for those properties deemed as urban to 17 per cent for rural properties. Residents or those planning on moving permanently to Italy will pay about 4 per cent more in tax.

Mortgages

Italian mortgages are available for non-nationals, but are usually offered on a repayment basis and interest only mortgages are generally not available. The standard repayment term is 15 years.'

The views represented in this article are those of the author and not of Channel 4. The purpose of the article is to provide general information only and does not constitute financial, investment, legal or other advice.You should not rely on any information provided in this article and you should always seek out independent professional advice relevant to your own particular circumstances. All prices & figures correct as of late 2008. Exchange rates correct as of March 2009