Buying in Italy

Buying in Italy does not have to be an experience that leaves you stressed (see our tips on buying section). We advise clients to always appoint an independent Lawyer to represent them during the purchase process. Although buying in Italy is inexpensive, buyers should bear in mind that the purchase process can add up to 15% to the property price. As you would expect, Italy has a different process of buying which we have summarised as follows:

The offer

Aquarius or our associates can initiate the buying process by making the initial offer on your behalf. A deposit (Deposito di Garanzia) will ensure that you are given preference over other potential buyers and the property is generally removed from the market. You are not committed at this point. The deposit ranges from 3-5% of the agreed purchase price. We can arrange for a surveyor (Geometra) to organise a survey on the property and carry out the searches.

Preliminary contract

The sale starts with a preliminary contract (Compromesso), which is prepared by the Lawyers or Estate Agents in Italy. This agreement commits both parties to the sale. This should be be checked by your lawyer before you sign as this contract establishes the terms and conditions of the final contract (Rogito) and details price, date for completion, the nature of the property and guarantees from the seller. You will be expected to pay a deposit at this stage (Caparra), which can range from 10 - 30%. It is important to note that if you withdraw from the sale after signing the Compromesso, you lose your deposit. However, if the seller withdraws, he must pay you double your deposit! The Italian way of selling ensures that buyers are not gazumped in the marketplace and that all parties work towards an established completion date from the outset.

Contract of sale

This is the final stage of the process and transfers ownership of the property from the seller to the buyer (usually 1-3 months after the Compromesso). The document is drawn up by the Notary (Notaio), who represents both parties. The buyer, seller and estate agent or Lawyer are all required to be present for the signing of the contract at the Notary's office. You can sign the Rogito in person or we may be able to appoint a Power of Attorney in your absence - your lawyer will advise you on the appropriate action. You will be expected to transfer funds at this stage - we advise the best way of transferring funds is either via Swift at your own bank or by using a specialist currency dealer, which may be able to offer you better rate of exchange.

Closing costs

Each property has a 'statutory value,' which is usually much lower than the real value -- sometimes 50% less. At the closing, you'll pay 10% of the statutory value as a registration tax. If you plan to be a full-time resident within 18 months, you may declare your purchase as a 'prima casa' -- first house -- and pay just 3%. Your only additional cost is approximately 700-1500 Euro to the notary for deed preparation and Agents commission of between 3and 4%.

Annual taxes

Property taxes are quite low right now in Italy. The taxes will depend on the property you purchased. There are also small local taxes and services to pay to the "commune" where a property is located. Owners can set up payments through their bank accounts in Italy. Services. Water is typically billed twice a year, electricity and telephone every other month. These, plus gas and refuse collection can also be paid directly at the post office or through a standing order at the bank. Mortgages. Mortgages are now available in Italy an you can meet the bank representative during your viewing visit if required.

The above rules and costs may vary from time to time. It is important to use the services of and independent lawyer. Please Request your lawyer to supply you with the up to date situation on purchasing property

Mortgage and Finance

When using a mortgage to purchase in Italy it is important to find out the actual valuation of the property in comparison to the selling price. This value is approximately 70% of the sales price. Thus, if one is getting an 80% mortgage on the property, one is only getting 80% of the actual valuation. So essentially you are getting a mortgage that is 55-60% of the sale price and will have to make up the difference through an alternative financial avenue.