Buying a property in Italy
The purchase process in Italy is quite straightforward but there are a few steps on the way to pay attention to. We are your partner throughout the complete purchase process, and beyond.
Italian bank account and Fiscal Code (Codice Fiscale)
To be able to buy property in Italy you need to have an Italian bank account and an Italian Fiscal Code (Codice Fiscale). To apply for an Italian bank account you need to be here in person and the fiscal code can be applied for either here in Italy or at the Embassy/Consulate in your resident country. We recommend that you arrange both the bank account and the Fiscal Code in the beginning of the house hunting process. We have close partnerships with banks and are happy to assist you with the process of opening a bank account and the application for the Fiscal Code.
House hunting in Italy
According to your specifications, wishes and budget we present houses for you to evaluate. We carefully choose the properties that we believe are best suited for your specifications and intentions. We are also able to advise you on areas, locations etc for the properties to avoid making the wrong decision. In addition to the properties we have on our website we also have many properties for sale where the owners wishes to be more private and where only private viewings are done.
It is not obligatory in Italy to get a survey of the property and it is always the buyer who pays for an eventual survey. If you want to execute a survey on the property we will be happy to put you in touch with a surveyor, called a geometra, who will assess the property for you. If you are planning on doing any construction or renovation work, the geometra will also be the professional you hire for the complete project. In Italy you always buy the properties “as is” and therefore it is very important to do any checks of the property and negotiate the price accordingly before signing the first contract (compromesso).
The first contract – Compromesso
Once the price and terms for the purchase are agreed with the seller it’s time to sign the first contract (Compromesso). This is a contract that stipulates the sale price, when the final contract will be done etc. Once the contract is signed, the compromesso binds both you and the seller to the sale. At this stage you are expected to pay a deposit (usually 10-15% of the sale price of the property) and our commission of 3 % + VAT (Minimum fee is € 3.000 + VAT). If you pull out after signing the compromesso you lose your deposit and commission payment.
The final contract at the Notary
The final deed is drawn up by the notary (Notaio). Italian law states that the deed of sale needs to be carried out at a Notary. The Notary will also make checks before the contract is signed: that the house is free of mortgages, that the due tax is paid, that the house is owned by the people that are selling it etc. The final money transfer to the seller is now due, you also need to pay a fee to the notary for his services and the purchase tax. These payments are usually done by a check called, Assegno Circolare (issued and guaranteed by your bank). If you don’t speak fluent Italian it is also necessary for an authorised translator to make a translation of the contract and to be present to translate during the signing of the contract at the notary.
Cost of buying a property in Italy
As a guideline you need to calculate 10 % to the sale price of the property for the buying costs in Italy. The purchase tax will vary depending on if you will be a resident in Italy (Prima Casa) or if you plan to buy as a second house (Seconda Casa). If you buy a property as Prima Casa you pay a purchase tax of 2% of the tax value of the property and if you buy as Seconda Casa you pay 9%. This differs in case you buy a new build from a contractor, then you will pay 4% VAT as Prima Casa and 10% VAT as Seconda Casa.
The buying costs include:
- Purchase tax
- VAT in case of a new build
- Agency commission
- Notary fee
- Registration fee
- Translation fee
Find out more about your property purchase in Italy:
Before, during and after the purchase of your property in Italy
We will be at your side throughout the complete purchase process and if you are planning to renovate we can also connect you with all necessary professionals and assist with project management during the renovation and subsequent property management once the property is completed. Find out more about our services.