FAQ's Italy

What documents do I need to buy a property in Italy?

1. Codice fiscale – this is your Italian tax code, something that, generally speaking, is very straightforward to obtain from the local offices of the Ministero Delle Finanze: it means you can give them money and they have no problem with that.
   
   
2. A Passport

1. Once you have reached verbal agreement on a property purchase the Compromesso or contratto preliminare di vendita is drawn up.  This document sets out what has been agreed between buyer and seller, and on signing the buyer pays a deposit, typically 10% of the agreed sale price, but it can be as much as 30%, making the deal binding. The seller is required to sell the stated property at the stated price to you, the stated buyer, under the terms and conditions set out. It also binds you, the property buyer to buy, and if you change your mind you lose your deposit. If the seller backs out then he will be liable to pay you double the deposit. It avoids gazumping, and is taken very seriously by Italian sellers, once it’s signed and the deposit transferred, very seldom does anyone back out. With The Property Finders on your side you can be sure that when selecting a property from those short-listed we will have thoroughly examined each one, giving you the confidence to sign the compromesso.
   
   
2. Rogito. Deed of sale, usually an atto pubblico, i.e. signed in the presence of a notary, when the outstanding balance of payment on the property is made and all necessary taxes and fees, e.g. the notary, the estate agent, are settled. In January 2006, the law changed regarding the sale of residential property between private individuals, so the actual amount paid can be declared in the rogito (deed for sale) while the taxes due are calculated on revised cadastral values, in an attempt to reduce ‘black’ money circulating. After signing the rogito (buyer, seller and estate agent all have to be present), and after all taxes due have been paid, the next step is to obtain a certificate from the Land Registry that declares the title has been registered. This is vital as registering you as the title protects you from any 3rd party claims.

What taxes am I liable to pay to the Italian authorities when buying a property and does it make a difference if I become an Italian resident?
A summary of taxes due either as a resident or non-resident are shown in the table below for a property being sold between two private individuals:

Taxes for non-residents to pay when signing the rogito (deed of sale) for a property.

Discounts available for someone resident or becoming resident within 18 months of signing the rogito:

Once I have a property, whatkind of annual costs do I need to budget for?

1. Imposta Comunale sugli Immobilil (ICI) – an annual council tax, usually paid in two stages, in June and December, on property owned by residents and non-residents alike.  The actual rate is fixed by the local Comune or municipality, and, although it does vary, ICI is quite low.


2. Tassa Rifiuti (Rubbish tax)  – the comune (local town or city hall) decides when it’s paid, for example 4 instalments through the year, some comuni include it with the gas bill when the same company is responsible for both.  It’s based on the size of your property, as, the thinking goes, the bigger your house the more you throw out, the comune decides the exact amount.


3. Utility bills: gas, electricity, telephone: bear in mind that if you haven’t made the move to become a full-blown Italian resident living in your prima casa (main residence) you will be paying more for gas and electricity, but telecom Italia make no such difference.If you are only going to be in Italy from time to time on holiday, make sure you have arrangements in place to pay these bills in your absence.
   

I heard inheritance tax has been abolished, is this true?
For 2007 the Prodi government has re-introduced the tassa di successione (inheritance tax) eliminated by Berlusconi.  The rate depends on the relationship, direct inheritance, for example grandparent to grandchild or parent to child, has an allowance of up to €1,000,000, after which the tax is equal to 4% plus imposta ipotecaria and catastale taxes of 3%.


What about capital gains if I sell my property?
Since October 2006, if you sell your property within five years you’ll be liable to capital gains tax at a flat rate of 20%. 


Can I get a mortgage from an Italian lender?
Yes, but bear in mind the following:
The products available to non-residents are more limited than those offered by Italian lenders to Italians (for example a 100% loan will be very difficult if not impossible to track down), but the following can be obtained, bearing in mind the exact offer will vary from lender to lender:           
Fixed rate
Adjustable rate (indexed off Euribor)
Flexible repayment mortgage
Loan purpose: purchase or refurbishment of residential properties (no land, rural buildings or commercial real estate) located in Italy.
Loan-to-value: maximum 70% of appraised property value.
Debt-to-income: maximum ratio of 35%, also counting existing debt payments.

If you have a specific question about buying property in Italy that we haven’t covered here please fill in the form and we’ll get back to you