Casambiente - Real Estate Agency in Italy - Property Purchasing Information

PURCHASING A HOME IN ITALY

Having decided to buy a house or estate in Italy, the purchase process will require a number of steps to be taken:

1. PRELIMINARY CONTRACT ("Compromesso" or "Contratto Preliminare"):
The preliminary contract specifies the items and points of agreement made in the offer and turns it into a legally binding private contract. This contract also details all the relevant data of the property, fixes the purchase price, the payment method and sets a date for the final contract.

As from January 1st, 2007 each preliminary contract needs to be registered at the Tax Office - Ufficio delle Entrate within 20 days. The costs are 168 Euros for each copy and a 'marca di bollo'(stamp) of 14,62 for every 4 pages and for each attachment. The Buyer has also to pay 0.5% registration tax that will be deducted from the taxes paid at the signing of the Deed.

A point of particular interest is the "Caparra Confirmatoria", an Italian peculiarity that secures the preliminary contract through a prepaid deposit of between 15% and 50% of the purchase price. This deposit is paid to the seller at the signing of the preliminary contract. If the purchaser withdraws from the contract, the deposit is forfeited. Conversely, if the seller withdraws from the contract, he is obliged to pay double your initial deposit.

However, before the signing of the final contract, the purchaser of a property in Italy must have an Italian tax number ("Codice Fiscale") as well as a bank account in Italy. Obtaining these is usually a simple process and we are more than happy to help you with this.

2. FINAL CONTRACT ("Rogito" or "Atto di Compravendita"):
In spite of the legal validity of the preliminary contract, the public registration of the purchase through a final contract attested by a notary, is decisive. The notarized final contract serves to evidence a chain of uninterrupted ownership required to effect a sale. Furthermore, the final contract forms the basis for all tax computations and must therefore be signed in front of a notary public. The notary will determine that no third party mortgage or liens encumber the property, verifies all relevant data and checks the existence and validity of all legally required licenses and permits. The seller and purchaser must personally attend the signing or be represented by someone with an official power of attorney. Prior to signing the final contract, the remaining balance of the purchase price must be paid to the seller. Once the notary has countersigned the documents, the final contract is entered into the official land/building registry ("Conservatoria dei Registri Immobiliari"). Furthermore, the final contract forms the basis for all tax computations.

3. PURCHASE TAXES (if the seller is a private person):
The taxes that are due with the purchase of your property ("imposta di registro, ipotecaria, catastale") must be paid at the notary:

buildings: 10% on the value set by the Building Registry Office - "valore catastale"
agricultural land: 18% of the declared price
However, there are reduced tax rates in the case of Italian residency: if within 18 months after the purchase, your new house is established as your primary residency in Italy, the property purchase taxes are reduced from 10% to 3%
(imposta di registro), plus the imposta ipotecaria e catastale of € 168 each. The taxes for the land don't change.

If the seller is a building company and the sale takes place within 4 years after the end of the works instead of the registration tax, VAT must be paid.

10% VAT (20% if it is a luxury property)
plus the imposta ipotecaria e catastale of € 168 each

Power of Attorney:
If a purchaser does not have sufficient language abilities in Italian to comprehend the contents and stipulations of the final contract, the presence of an official interpreter is legally required. Alternatively, many buyers endow a trustworthy person of their choice with a special power of attorney ("procura speciale all'acquisto"). This document can be issued to the purchaser locally by the notary public or by the Italian consulate in his country of residence.
Two/three weeks after signing the new owner can pick up a certified copy of the final contract at the notary's office.

In addition to taxes, the following expense items are payable at the time of the final contract:

Notary's fees: Approx. 2% of the price of the property, with a minimum of about € 1.200,00, due at the signing of the final contract.
Surveyor's fees: varies according to the services rendered
Agency Commission: Casambiente charges 3% of the purchase price (subject to a minimum of € 3000,00 for properties valued below €100.000,00) plus VAT.
Translator's fees: variable, subject to rate and hours worked.

You are welcome to download the information package in PDF format or contact us directly via email!