Buying process in Italy
FIRST STEP: MAKE AN OFFER
Once you have found your home, the first step is to sign an offer. The offer is a written document prepared by a real estate agent, which describes the property, sets the price and the terms of payment (for example if you need a loan) and includes also the identification of the owners and of the purchaser and the obligations of both parties. This document, once signed by the seller, it becomes binding for both parties. At the signing of the offer you are required to leave a small amount of money, and is also established the agency commission. â€¨
SECOND STEP: PRELIMINARY CONTRACT
Once the seller has accepted the offer, the next step is to sign a preliminary contract in front of a Notary, usually after about 30 days. The Notary is a public officer, chosen by buyer, who will carry out further checks on the property, and will ensure that everything is in order at the time of signature, in particular he checks that the property is free from legal encumbrances. â€¨At this time you will pay an additional amount of money to the seller, usually 30% of the purchase price, but this percentuage can vary according to buyers needs. â€¨At the signing of the preliminary contract you will also pay the real estate agent commission.
THIRD AND FINAL STEP: ROGITO
The Rogito, always to be signed by a Notary, is the official contract that transfers ownership. A this time you will pay the balance of the price, which can also be paid by a loan, and you will receive the keys of the house. At the same time you will pay to the Notary the taxes for the sale and his fee. The Notary will register the property on your behalf and pay the taxes to the tax authorities, as well as to enroll a mortgage on, in case you have taken a loan to pay for the property.
The Notary is the professional authority to execute legal sale. He must control and guarantee the property title and take care of any problem pertinent to the property.
Taxes and costs
WHEN YOU BUY
Imposta di registro:
- Purchase made as a "first house" (if you do not own any other house in Italy - in this case you are required to ask for the residence whitin 18 months): 2% tax calculated on the fiscal value of the property (with a minimum of 1000 euro), 50 euro mortgage tax and 50 euro land registry tax.
- Purchase made as a "second house": you have to pay the 9% calculated on the fiscal value of the property (with a minimum of 1000 euro), 50 euro mortgage tax and 50 euro land registry tax.
The agency commission is normally 3% plus Vat (22%).
Please note, contrary to buying procedure in the UK or USA, Italian estate agencies charge commission to both the vendor and the purchaser.
The Notary fee will vary depending on the price of the house. (Just to give an idea, on a property of Euro 200.000 it would be 1.300/1.400 ca. Euro + Vat 22%).
ONCE YOU HAVE PURCHASED - ANNUAL TAXES
Tasi (first house) or Imu (second house) is an annual Council tax and vary depending on the size and the land register value of the property. It will be possible to dermine the exact amount only after having found the house you are interested in and checked its land register value, but we can say that it is not high comparing to other European countries.
Garbage Tax. It can vary depending on the metrature of the property. For example, for a 100 square metres flat it can be 100 euros ca. per year.
Of course we are at your disposal for any kind of consulency regarding any aspect of the transaction, from fiscal queries, to the procedure for obtaining a mortgage, to open a bank account and all any other queries you may have.
Remember, buying a property in Italy is not that much more complicated than buying one in the United States or U.K., but we can assure you that with our help you will see very little burocracy.