The hows of securing Italian property

In securing Italian property, it is important to obtain a tax identification number or what is called a condice fiscale. This is applicable in other European countries as well.

As soon as this is accomplished, securing the property one is interested in buying will not be a problem. When the selling and the buying parties agree to a price, an initial deposit of 10% is required. This is then followed by drawing up a legally binding contract between the two parties, which details the responsibilities or the requirements each party ought to deliver.

However, in cases wherein the seller does not fulfill his or her obligation, the amount due is twice the amount of the initial deposit. If it would be the buyer who does not live up to the end of the bargain, the deposit made is not refundable.

When both parties are able to settle and complete the requirement needed to close the purchase, a final contract is drawy and signed in the presence of a notary. Only then will the deeds be issued to the new owner of the property. Afterwards, the land registry office will be informed of the new property owner.

New property owners should be prepared: they will have to pay around 15% of the purchase price cost. Aside from this, stamp duties are also required and the rates depend on the property’s location; urban tax rates are pegged at 10% while those in the rural areas are at 17%. Foreigners are mandated to pay a 4% stamp duty when they decide to reside in Italy.

For additional taxes such as the Value Added Tax (VAT), it varies as well. If the property purchased is new and falls in the category of luxury spots, the range is from 10% to 20%. The advantage of building the property instead of buying it, taxpayers avail of a reduction in the VAT by 4%.

Please note that real estate agents charge professional fees between 3% and 5%. Some fees to prepare for are notary fees (3%), legal fees (2% of the purchase price), and local taxes (.04% to .07%).

Posted on: Italy

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The hows of securing Italian property

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