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Italy has so much to offer with romantic
cities, beautiful countryside and breathtaking
coastlines, it’s no wonder that many of us return year
after year.
Foreign
nationals have the right to buy property in Italy
without restrictions. |
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The buying process in
Italy. |
Making an offer.
The process for buying in Italy is regulated. Once
you’ve found your new property an offer should be made
through the selling agent.
Once a price has been agreed a preliminary contract is
drawn up. The contract can be preceded by a Compromesso,
which legally commits the buyer to the purchase.
Consider instructing a surveyor at this stage.
Instructing a solicitor.
A Government official (Notaio) is responsible for the
legalities of the purchase itself and acts on behalf of
both the buyer and seller. Most purchasers feel it
essential instructing an English-speaking solicitor to
act solely on their behalf to oversee the whole process.
Exchange of contracts.
The Compromesso should contain clauses to allow you to
exit the transaction. Clauses could relate to the
ability to obtain a mortgage, property condition or
title. If in doubt seek advice from a solicitor before
signing the contract.
Once the details of the Compromesso have been agreed
both parties can sign the contract and the purchase can
proceed. A deposit of between 10-30 percent is required
at this stage.
Completion.
After preliminary contracts have been exchanged local
earsches are completed and the results returned to the
purchaser via their solicitor. The sale will be
completed before the Notaio when the final deed (Rogito)
is signed. Your solicitor will oversee the balance of
the purchase being to the vendor and ensure
The details of the property are recorded in the local
land registry office.
Most of us
will need to raise some finance to complete the purchase
of our Italian home. Nowadays both international lenders
and local banks are willing to consider mortgage
applications from foreign nationals hoping to buy a home
in Italy.
Lending criteria.
Mortgages for property in Italy are normally available
for up to 80 percent of the purchase price. This
generally means you’ll need to find a 20 percent deposit
and be able to prove your income. Self certification
mortgages in Italy are not normally available.
Lending criteria & rates vary between
mortgage companies so it’s worth contacting an
overseas mortgage broker for advice.
Mortgage term.
Italian Mortgages are
available over 5-30 Years and lenders will not normally
take into account rental income when calculating an
applicants level of borrowing.
Compared
to other countries, property transaction costs in Italy
are moderate. You should set aside around 12-14% on top
of the property price for fees.
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Summary of
costs. |
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Buying
costs. |
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1. |
Mortgage fee
(including
valuation) |
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2. |
Property
Registration
Tax |
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3. |
Notaio's
Fee |
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4. |
Solicitor's
Legal fees |
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Total cost
budget |
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Selling
costs. |
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1. |
Agent's
commission |
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Total cost
budget |
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Legal costs for buying property in Italy.
Notary fees vary depending on the property price and are
higher as a percentage on cheaper properties. An Italian
Notaio’s fee will be related to the declared value of
the property being purchased. Italian solicitors cost
will be in addition to the notaio's fee and their duties
will include drawing up the contracts, contacting the
notary, paying any taxes and registering the property.
Property registration tax in Italy.
Italian land registration tax, will be between 3% to 7%
and relate to declared value and reason for purchase. A
non resident will typically pay around 7%.
Italian estate agent’s fees.
Estate agents fees in Italy can vary, and the buyer
normally pays between 1 and 3 percent. A typical Italian
estate agent's fee is negotiable and can even be split
between buyer & seller.
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