PURCHASING A PROPERTY IN ITALY.

This is a little guide aiming to help you to understand the procedure of purchase of a property in Italy. It will be useful to understand the meaning of the legal terms and give you an idea about what to expect once that you have chosen your dream property. The procedure of purchase in Italy is safe and based in strict rules.

It is very important to be supported by a good Real Estate Agency, fully licensed at the Chamber of Commerce. Better Property is a registered agency that will guide you on the proccess. Its registration number is 9151. You can check it with the Chamber of Commerce of Chieti or if you desire a copy of the license we will forward it to you.

This guidelines are elaborated by the legal firm ACTIO. Their lawyers are at your disposal to answer any question. A free first meeting or videoconference is free for Better Property's clients. They will be pleased to solve your doubts. Better Property is aware that a good legal advising provided by a lawyer is always the best option.

WHAT DO YOU NEED

CODICE FISCALE: It is a personal reference number issued by the Italian Tax Office (Agenzia delle Entrate). You can apply for it at the consulates or embassy, or well we will apply for it on your behalf. It is only a statistic number, needed for any investment, contract, or legal procedures in the country.

BANK ACCOUNT: A bank account in Italy will be necessary to pay the balance at the notary, when deeds of purchase will be signed, and to set direct debit's payments for the utility bills and council taxes in its case. Ask us about how to open it.

PASSPORT OR IDENTITY CARD: There are no restrictions placed upon a non-resident, from Europe or elsewhere, purchasing a property in Italy. You must be always provided of an identification document.

DOCUMENTS OF THE PROPERTY

Better Property checks the legal situation of the property and provides a detailed documentation of it, like the “Visura” (land registry certificate of ownership and charges), “Pianimetria Catastale” (official plans of the property), and any other relevant document of the property. The data contained in this documents will be carefully explained.

A survey can be carried out by a Geometra (technical architect) if required. It is advisable but not obligatory.

CONTRACTS AND DEEDS

THE OFFER (“Proposta d'acquisto”): It starts the buying proccess. It is a document where you formally propose a price for the property and offer a deposit in guarantee. If it is accepted by the selling part, buyers and vendors are binded. If the owner will not accept the offer, or if the sale cannot go on, the deposit will be fully reimbursed.

THE PRIVATE CONTRACT OF PURCHASE AND SALE (“Preliminare di Compravendita” or “Compromesso”): At this stage you will be expected to pay also a deposit known as “Caparra” (escrow, guarantee deposit) If the seller pulls out he must reimburse the deposit plus an equal amount as penalty. If Buyer pulls out, he loose the deposit as compensation of damages.This contract has to be registered within one month of it signature (paying some taxes) to be valid. If it is not registered it will have not enough legal strength to be executed in case of conflict.

THE PURCHASE TITLE DEED “Rogito” or “Atto di compravendita”

The public title deed of purchase will be signed in completion of the sale at the notary’s office. An Italian Notary does not give legal advice to either the Buyer or the Seller. His purpose is to witness the signature of the title deed and other administrative functions. He or she is a public trustee, not a solicitor. He checks the legality of the agreement and the capacity of the parts.

Buyers become the sole owners and the property is immediately registered in their name. It Rogito can be signed in your absence by means of a Power of Attorney, appointing a representative.

In this moment the balance of the price of the property must be paid, and also the tax funds must be issued.

The original deed is kept always at the Notary's files. The Notary will issue copies of the act to the parties, once that the act is registered at the land registry, but he will never gives the original deed to anybody. Further copies can be requested in any moment.

If you do not speak Italian you must be assisted by an official interpreter. We forward a perfect notarial assistance made by an official interpreter. Please be aware that it is not safe to be assisted by “someone speaking English”.

Deed of purchase is necessary to register the ownership publicly. Purchase can be made directly at the Notary, offer or contracts are not compulsory.

COSTS: TAXES, FEES AND COMMISSIONS

TAXES:

BE AWARE:

In the case that you want to enjoy the grants for the purchase of a first home (main residency) consider that it obliges you to be resident and registered at the town hall where the property is sited, or to publicly declare the intention to become resident within 18 months from the purchase.

“Official value of the property” is not the market value or the price of purchase. It is an administrative value. Generally it is lower than the price of the property. Taxes are calculated on the basis of the official value of the property which depends on the local town hall, category and size of the property, and its consideration as first or secondary home. Taxes are different for new or second hand properties, commercial, urban or rural properties, and also if the seller is a private/agency, or a company.

Italian taxes for the acquisition of a property from a private or an agency are:

Imposta Catastale: The “Catasto” (Cadastre) is the government’s records of the plans, juridical status and owners of each of the plots and buildings of the territory, linked with the registry of ownership and charges of every property. This tax is payable to the tax office (Agenzia delle Entrate), and it is collected by the Notary.

First home (main residency) …….168, 00 €

Secondary Property……………... 1% over the official value of the property. (minimum 168, 00 €)

Imposta Ipotecaria: This is a tax guaranteed with the property. This is the only point that is similar to the direct translation of “Ipoteca” (mutuo ipotecario) – Mortgage (Mortgage loan). The term does not mean that there is an existing mortgage on the property, it is just referred to the juridical kind of the tax. It is due for each purchase, transfer, inscription of rights on a property and inheritances. The amount of the tax is given to the notary that grants the payment to the tax office.

First home (main residency) …….168, 00 €

Secondary Property ……………...2% over the official value of the property. (minimum 168, 00 €)

Imposta Di Registro: Land Registry Tax. It is the main tax, and it is related to the change of ownership due to a purchase and sale agreement.

First home (main residency) ……. 3% over the official value of the property.

Secondary Property……………... 7% over the official value of the property.

Imposte di Bollo

Stamps on the official documents. Their value depends on each document.

FEES AND COMMISSIONS:

You may have to pay the Estate Agent commission for the intermediation. It is 3% of the value of the property. The minimum fee is 3.000 €.

You will also pay the Notary's fee. This amounts to approximately 2.5% of the total declared value of the property, with a minimum charge of approximately €1,500.

If you engage a Geometra (technical architect) to issue a technical rapport on the property, the fee can vary between €700 and €2,000 depending upon what work is involved in the conveyance.

If you use a lawyer to deal with the purchase procedure: Solicitor’s fee depends on the price of the property (approx. 1% for a normal documented property, with a minimum fee of 1200 € for a complete assistance from first deals to completion) In any case fees will be studied previously case by case. Actio applies a discount on the fee for clients coming from Better Property Italy Real Estate Agency.