Buying Property in Italy

Once you have found your perfect Italian property, agreed your purchase price and Worldwide Lawyers has found your English speaking Italian property lawyer you are ready to move forward with the buying process.

You will need an Italian tax code called codice fiscal to purchase a property in Italy. This can be obtained in Italy at a local tax office or at an Italian consulate. Your lawyer or estate agent can assist you with this.

The buying process in Italy consists of three stages. The process starts with an initial contract known as a Proposta d’acquisto which documents a formal offer made by the buyer. Signing this contract and paying a small deposit of up to 5% (held by the estate agent or lawyer) usually ensures your chosen property will be removed from the market for around 2-4 weeks while basic checks are carried out by your Italian property lawyer. The deposit will usually be repaid if the purchase does not continue due to legal problems or if the seller does not accept your offer.

Once the buyer and seller have agreed to go ahead with the transaction, they will enter into a preliminary contract called the Contratto Preliminare di Vendita. This contract includes the selling conditions such as a description of the property, rights of way, ownership rights and dictates the essential elements of the transaction. Usually a deposit of around 10-20% is payable by the buyer when signing this binding contract. Once signed this deposit will not be refunded if you back out without valid legal reason. Your lawyer should explain the obligations of each party as a result of entering into this contract before it is signed.

Once the Contratto Preliminare di Vendita has been signed an Italian notary (Notaio) is appointed. The notaio will usually draft the deed of sale known as the Atto di Vendita (also known as Rogito). This is the conveyance document that transfers the legal ownership of the Italian property and represents the final stage. The Atto di Vendita is prepared by the Italian notary and is signed in their presence at the notaio’s office.

The main function of the notaio is to certify Italian documents and agreements ensuring that they fulfil certain legal criteria and to collect the relevant taxes. The notaio does not provide advise or protect the interests of the buyer or seller who should both be separately advised by an experienced and qualified Italian property lawyer.

You can either sign the Italian title deeds document in person in front of the notaio or arrange a Power of Attorney for someone else, usually your lawyer, to sign on your behalf. Should you require a Power of Attorney, your Italian lawyer should be able to prepare this for you. You can put the Power of Attorney into effect by signing this in Italy in the presence of a Italian Notary, through the Italian consulates in the UK, or through a British notary public with a Hague Apostille.

If you do sign in person and are not fluent in Italian then, according to Italian law, the deed of sale must be drafted in both Italian and English. On the completion date the notaio will read the contents of the deeds aloud in Italian and the buyer will be able to read the English version. You should be supported by your English speaking lawyer at this meeting in any event so that you can ask any questions of the notaio through your solicitor to ensure your fully understand all aspects of the transaction.

At the signing, the balance of the purchase price, notaio’s fees and all relevant taxes will need to be paid and then the keys to the property will be handed to the new owners.

Once the Atto di Vendita is signed, the Notaio will send the purchase deed to be registered with the Italian Land Registry. A copy of the deeds will usually be sent to the buyer one month after the signing.

The next step is to enjoy your new Italian property happy in the knowledge that your independent Italian lawyer has taken care of all legal formalities and your interests have been protected. Congratulations!

The additional costs of buying a property in Italy will vary considerably depending on the value of the property and whether the property is to be your main residence. On average this will be between 10-20% of the purchase price.

The cost will include:

The property purchase price

As agreed between you and the vendor.

Tax

When buying a “new build” property from a developer you have to pay IVA tax to the seller. This is 10% (or 22% for luxury properties).

For “second hand” properties you do not need to pay IVA but will need to pay the registration tax. This is 2% for a main residence, 9% for a second home.

Legal Fees

Lawyer’s fees are usually charged as a percentage of the purchase price- typically 1-2% plus IVA.

There may be an additional cost if a Power of Attorney is required. Your lawyer will advise you of their fees for this.

Notary Fees

The Notary fees depend on the sale price. A lower sale price equals a higher percentage charge. This is typically between 1-2.5% of the purchase price.

If you have a Atto di Mutuo (mortgage contract) there may be an additional fee to register this

Land Registry Fees

The Land Registry tax is 1%-2.5% of the purchase price.

Estate Agents Fees

The estate agent’s fee is usually spilt equally between the buyer and the seller. Estate agents fee can range from 3-10% of the sale price plus IVA (Italian VAT).

Instructing an independent English speaking Italian property lawyer to provide advice and reassurance that the legalities are checked on your behalf is essential.

You should protect yourself by instructing a lawyer as soon as possible and before any formal steps have been taken to purchase an Italian property or before any mortgage has been formalised. This will allow your lawyer to advise you properly on all aspects of the transaction to ensure your position is fully protected.

Contact us on 01244 470 339 or email info@worldwidelawyers.co.uk to obtain a free no-obligation quote from an independent, recommended, English-speaking Italian property lawyer to assist you with buying a property in Italy.