Every country has its own system for property purchase so here are the main stages for buying property in Italy:
Stage one
Having found your house in Italy, viewed it (maybe several times) and decided it is 'the one,' then it is time to formalise things. Whereas in the UK it is common to offer well below the asking price, this is not often the case when you buy Italian property. It has been known for the vendor to walk away if the offer is considered insulting! Your agent will advise you on whether your offer is a realistic one. You may be asked to sign an agreement which shows you are serious about the property and want to reserve it (known as the Prenotazione), and this is accompanied by a small deposit. This is the time when the survey is organised as well as local land registry searches and checks with the local authorities (Comune) to see that the property complies with local planning and building regulations. Normally this work is carried out by a local surveyor (geometra) and public notary (notaio). If you wish you can have these and additional searches and a structural survey organised by an independent firm of Italian specialist solicitors These checks and searches can take up to three weeks and the completion of the sale cannot go ahead without them.
Stage two
This is the exchange of written contract (compromesso) which is a binding legal agreement, signed by both parties or their legal representatives, to complete the purchase at a pre-agreed date at the offices of a named local public notary, chosen by the buyer. The price agreed is stipulated plus the agreed deposit which is between 10 and 30 percent of the purchase price. Italian law stipulates that if you pull out of the agreement you lose your deposit, so it is vital all checks and documentation are in order at this stage. If there are problems or if paperwork is on its way (eg planning documents) then a timetable should be drawn up for the completion of this. If the vendor withdraws from the sale then s/he has to pay you double the deposit back. At this stage the agents who have handled the sale usually requires their fee, normally three percent of the purchase price.
Stage three
This is where the sale is completed at the offices of a local notary. This process is often referred to in Italian as the 'atto'. It is normal for all parties to attend this in person and the details of the contract (rogito) are read aloud by the notary. If you don't speak Italian then a translator is made available by the agents handling the sale. It is the job of the notary to draft the purchase deed and to ensure the proper execution, registration, and payment of all Italian taxes relating to the completion. Although it can take up to an hour and perhaps longer to complete the formalities required to buy your Italian property, there is a real feeling of achievement at the end!
Taxes and fees
- Registration Tax. This is 11% for non-residents, 4% for residents. When purchasing land this is 18%; note that this includes Stamp Duty (Bolli) which is 1% of the cadastral value - ie the value of the property as declared by the land registry.
- The notary's fees amount to approximately 2.5% of the total cadastral value plus 20% IVA (VAT).
- Translator Fees - for formal translation of the rogito, typically around €350
- The geometra's fees vary depending on the work carried out.
- Agency fees - 3% of the purchase price of the property plus 20% IVA (VAT).
- Any legal fees if you have used your own solicitor.
- Bank Charges, if a money transfer is involved.
If your appetite has been whetted, then you can begin your search here by looking at our selection of properties.
If you have more questions about buying Italian property or anything else we can help you with then please get in touch by email or we can call you.