A guide to buying property in Italy

Buying property in Italy is normally a straightforward process. However, there can be a lot of Italian red tape and bureaucracy - and it does tend to move slowly.

As with many countries, one must first obtain a tax identification number (condice fiscale) from the authorities. Next step would be making an offer on the property one is interested in securing. This commits the buyer in purchasing the property at the given price.

When the seller accepts, a deposit of 10% is required (in most cases). It follows that a legally binding buying proposal is signed between the buyer and the seller (compromesso di vendita). The document outlines the details of the purchase, including the completion date. If the seller withdraws, he/she will be required to pay the buyer the amount double the original deposit. However, if the buyer withdraws he/she will loose the deposit.

On completion, both buyer and seller will sign the final contract (rogito) in the presence of a notary, who will then issue the deeds and inform the land registry to transfer ownership. The remainder of the balance should then be paid along with all taxes.

In total buyers should expect to pay around 15% of the purchase prices in costs. The stamp duty varies between 10% and 17% depending on the property’s location (10% is typical for most properties classified as urban, while 17% is expected for rural properties). If one is intent on moving to Italy permanently, he/she is required to pay a 4% stamp duty.

Value Added Tax (VAT) on new properties varies from 10% to 20% depending on weather the property is considered luxury. If one builds his/her own property, a 4% reduction in VAT is availed. Estate agent fees are between 3% and 5%. Notary fees are normally 3%. Legal costs are typically 2% of the purchase price. Local taxes (ICI) are between 0.4% and 0.7%

Posted on: Italy

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A guide to buying property in Italy

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