The buying process in Italy is simple, but there are a few steps to watch out for.

INDEX

 
 
  
Index n. 1 - WHAT THE ARRIGO BRANDINI REAL ESTATE OFFERS
  • Assistance and completion of paperwork in all phases of the sale up to the deed.
  • Drafting of preliminary sales contracts and leases.
  • Legal, notary and tax advice.
  • Credit assistance, also to foreign customers, for the request for medium-long term loans (mortgages).
  • Assistance in researching building practices and cadastral documents.
  • Verification of building practices and cadastral documents.
  • Due diligence assistance.
  • Our collaborators will be at your disposal throughout the purchase process. Once you have purchased your home we will be happy to assist you in the post purchase if you wish to renovate or make changes to your property. We put at your disposal the professionals of the sector (architect, interior designer, construction company) and we also offer project management services during the renovation, the management of the property and the possible income.
  
Index n. 2 - WHO CAN BUY A HOUSE IN ITALY?

There are many foreigners who dream of buying a real estate property in Italy, however it is important first of all to know the laws that regulate matters relating to the purchase of real estate or land by foreigners in Italy. The current legislature provides for the following conditions and distinctions for foreign citizens who intend to purchase real estate in Italy:

  • Foreigners who do not reside in Italy can purchase real estate if there is an international treaty that allows a condition of reciprocity between their country of origin and Italy. The Ministry of Foreign Affairs establishes that reciprocity is not required under the following conditions:
    • If the foreigner is a citizen of the European Union
    • For a “foreigner resident" in Italy
    • If there is a treaty between Italy and the foreigner's country that allows activities requested by both parties.

  • Foreigners who legally reside in Italy, their family members and stateless persons who have lived in Italy for no less than 3 years can purchase a property without the need to verify a condition of reciprocity if they are in possession of a residence permit.

  • There are no special requirements for citizens of EU countries, EEA countries such as Iceland, Liechtenstein and Norway, and for stateless persons or refugees who have resided in Italy for more than 3 years and who wish to purchase a property in Italy.
  
Index n.3 - TAX BENEFITS FOR FOREIGNERS
Special tax regimes have been introduced in order to create incentives for individuals to become fiscally resident in Italy and the tax regime for retirees. For all further information on the topics, they will be provided by the tax consultant of Arrigo Brandini Real Estate, by appointment only, both in person and online, after sending the required documentation.
Index n.4 - THE PHASES OF PURCHASING A PROPERTY IN ITALY
  
4.1 Property appraisal
It is not mandatory in Italy to obtain an appraisal / due diligence of the property and it is always the buyer who pays for any appraisal. If you want to carry out an appraisal / due diligence on the property we will be happy to put you in contact with a certified technician who will evaluate the property for you. If you are planning to carry out construction or renovation works, we have our team of qualified professionals (technicians, architects, interior designers, construction companies) who will be able to follow you throughout the initial phase of the property evaluation, and in all the after-sales phases, in regards to the design, renovation and furnishing.
  
4.2 - The purchase proposal
Once you have chosen the property, it is time to sign a purchase proposal indicating the price offered and paying a sum (usually about 5-10% of the price offered) as a non-interest-bearing trust deposit as a real commitment to purchase. A purchase proposal is binding only for the days indicated in the proposal itself, a period in which the owner of the property must give a written reply of acceptance or not of the offer. Usually the period varies from 5 to 10 days. Once the term has elapsed without the proposal having been accepted by the Seller, it will automatically be deemed to have lapsed and the amount paid as a fiduciary deposit will be returned to the buyer. The Arrigo Brandini Real Estate will take care of preparing and assisting you during this first phase of the purchase.
  
4.3 - Financing the purchase of a property in Italy
When we start the search for your home in Italy with you, we need to know your specific requests and your budget or if you already have any financing ready (this can be an advantage in negotiating the price with the seller). If you intend to take out a loan on the property we will be happy to introduce you to our partner banks and to assist you in the financing process. In fact, the Arrigo Brandini Real Estate makes use of important contacts with the management of prestigious National and International Credit Institutions for the request of subsidized loans for foreign and Italian clients at competitive conditions on the market. Dr. Arrigo Brandini is also a consultant for the Unicredit Group through the Unicredit Subito Casa company. This privileged link between our agency and the credit institution creates a preferential, direct and exclusive channel for obtaining loans with privileged rates for medium-long term operations. By virtue of this mutual collaboration, the Arrigo Brandini Real Estate guarantees its customers absolute priority in the elaboration, processing and resolution of the financing procedure. It is possible to obtain a mortgage for part of the necessary amount even if you do not intend to be resident in Italy; these loans can cover up to a maximum of 80% of the value of the property purchased.
  
4.4 - The preliminary contract
The preliminary contract is a first official act signed with the Notary and the seller, but it is not mandatory; by choice of the parties, it is possible not to sign the preliminary contract by going directly to the final Notarial contract.
  • What is it about?
    The preliminary sale agreement is the instrument that legally obliges the seller and the buyer, respectively, to sell and buy the property; it is a real contract that obliges both parties to sign the definitive contract (notarial deed).
  • The preliminary contract can be concluded
    • Through a private agreement drawn up between the parties without the help of professionals
    • By public deed or deed authenticated by the Notary
    However, to ensure maximum protection for the future buyer, we always suggest that the preliminary contract be stipulated by the Notary, by means of an authenticated private deed or public deed, so that it is transcribed in the Real Estate Registers.The transcription in the Real Estate Registers is the greatest guarantee for the buyer; it is no longer just a private agreement between buyer and seller but is legally valid for anyone (so-called third parties), the seller, consequently, will not be able to sell the property to others, nor grant a mortgage on the property, nor constitute an easement passive or any other prejudicial right. From the moment of the transcription of the preliminary contract, the property is "reserved" for the future buyer, and any transcription or registration would have no effect on him.
  • What the preliminary contract contains
    This document must contain all the agreements regarding the future sale, that is: the sale price, the amount to be paid as a deposit, the payment methods, the completion date (in the case of a property under construction ), the manifestation of the will of the parties to sell and buy the house, the boundaries of the property, the cadastral data and the description of the property, the date of signing the final contract and in any case all the pacts and agreements between the seller and the buyer. Upon signing the preliminary contract, payment of a share (usually 15-30%) of the sale price of the property is envisaged, including the amount already paid as a fiduciary deposit mentioned in point 3.2 by way of deposit. This amount can also be paid directly to the Notary on a dedicated account, as the "guarantor" of the sale, and will be delivered to the seller after the Notary has completed the registration and transcription of the preliminary contract.
  • Preliminary of buildings to be built and surety
    The Italian law has provided for special rules governing the hypothesis in which the preliminary contract concerns the purchase of a property not yet built. In this case, upon signing the preliminary contract, the manufacturer is obliged, under penalty of nullity of the contract which can only be asserted by the buyer, to deliver to the buyer a surety (issued by a bank, an insurance company or a authorized financial intermediary), for an amount corresponding to the sums and value of any other consideration that the manufacturer will collect before the transfer of ownership. The surety guarantees the buyer for the sums paid in the event of bankruptcy or default of the manufacturer.
  • In case of default, what happens to the deposit paid?
    If the party who paid the deposit is in default, the other party can withdraw from the preliminary contract by retaining the sum received; whereas, on the contrary, if the party who collected the deposit is in default, the other party can withdraw from the preliminary contract and demand the payment of double the deposit. In any case, the non-compliant party can demand further compensation for damage if it can prove it. The confirmatory deposit also provides that the party who is in compliance (both the buyer and the seller) can ask the party who is in default to define the sale in any case.
  
4.5 - The final contract with the Notary
Italian law establishes that the final deed of sale must be drawn up by a Notary. The Notary is responsible for the contract being a Public Official and protects the interests of both the buyer and the seller. Before signing the contract, the Notary will check: that the house is free from mortgages, that the previous taxes due have been paid, that the house is owned by the seller, the cadastral compliance, and in any case everything that is required by Italian law. on the transfer of real estate. At this point, the final balance is paid and the final deed of sale or contract (certified by the Notary) is signed. This requires the presentation of a valid identity document and tax code. We then proceed with the transfer of money to the seller for the balance of the property price and the payment to the Notary for his services and purchase taxes. Payments are usually made by cashier's check (issued and guaranteed by your bank) or bank transfer. The balance of the property price can also be paid to the Notary who in turn will transfer the sum to the seller. If the buyer does not speak Italian fluently, an authorized translator must carry out a translation of the contract and be present at the Notary at the signing of the contract. The Notary will issue you a notarial declaration of the contract and after about 20 days you will be issued an authentic copy of your deed of purchase.
  
Index n.5 - DOCUMENTS REQUIRED FOR THE NOTARIAL CONTRACT
In order to prepare the Notarial contract, several documents are required but don't worry, our agency supports you until the day of the contract. To be able to buy a property in Italy it is advisable:
  • OPEN AN ITALIAN BANK ACCOUNT: To request an Italian bank account, you can make use of the assistance of our financial advisor. If you opt to pay the fiduciary deposit (point 3.2) to the Notary, it will not be necessary to open a bank account. However, it is recommended to have a current account in an Italian bank.
  • HAVE THE ITALIAN TAX CODE:The Italian tax code, on the other hand, can be requested directly from the consultant of Studio Immobiliare Brandini. Eventually, the Italian tax code can be requested directly at the Embassy / Consulate of your country of residence. The Italian tax code is also necessary for handling all future post-sales practices (e.g. for the registration of electricity, water, etc.)
  • DOCUMENTS REQUIRED TO BE PROVIDED TO THE NOTARY:
    • Documents for natural persons:
      • photocopies of identity document and tax code;
      • if the document does not show current residence, a residence certificate on plain paper;
      • extract for a summary of the marriage certificate on plain paper;
      • certificate of marital status in plain paper;
      • valid residence permit.
    • Documents for legal entities:
      • Certificate from the competent Register of Companies and company statute translated into Italian, certificate of Good Standing or Affidavit, drawn up by a Notary and / or equivalent professional level, reporting all the data of the company and the directors (with the relative powers of signature) and of the shareholders, as well as, for the purposes of anti-money laundering legislation, the data of the beneficial owner, a natural person, who has a shareholding in the company greater than 25%, all translated into Italian and duly certified by translation; the declaration relating to the "beneficial owner" may also be issued directly by the directors of the company;
      • Power of attorney granted to whoever intervenes on behalf of the company, by public deed or authenticated by a Notary (if the public deed is not necessary), in the forms provided for by the law, which must also include the ascertainment of the full signatory powers of the person granting power of attorney, translated into Italian, apostilled and / or legalized.
      • Italian tax code
      • Photocopy of the identity document of the legal representative and related powers of signature (Report of attribution of powers or special power of attorney)
      • Recipient code or certified e-mail address for billing.
    • o Price and payment brokerage:
      • Photocopies of checks for payment of the price;
      • Photocopies of checks paid for mediation and data of the mediation company (name, headquarters, VAT number, REA registration of the company, complete personal data, tax code of the legal representative)
      • Preliminary recorded (if done) complete with Model F23.
  
Index n.6 - TRANSLATIONS
If you do not speak Italian it is necessary that the purchase / preliminary sale proposal and the final deed of sale be translated into your language. The purchase / preliminary sale proposal will be translated free of charge by our agency, while for the defined deed of sale the notary will appoint an authorized professional for the translation. The cost to be paid by the buyer for the translation of the deed can amount on average to 500 Euros + VAT, to be paid to the notary at the time of signing the deed.
  
Index n.7 - TAXES AND CHARGES FOR THE PURCHASE OF A PROPERTY IN ITALY: AT THE TIME OF THE NOTARY DEED + MUNICIPAL FIXED TAXES
As a rough guideline it is necessary to calculate about 15% of the sale price of the property for the purchase costs in Italy. When signing the Notarial contract, the purchase costs are as follows:
  
7.1 Taxes: VAT / Registration tax, mortgage tax and cadastral tax
These are the 3 main taxes to pay when buying a property, as well as other minor taxes and fees. The cadastral value declared in the Notarial contract represents the tax base on which these three taxes are applied and which could currently be lower than the market value of the property. But the "cadastral value" rule is not applicable to all sales; in fact, for example, if the buyer buys not as a "private person", but as a "company", the tax base of the taxes will be given by the commercial price of the property. The amount of these three taxes to be paid varies according to the type of property and the "characteristics" of the buyer and seller:
  • o Sales subject to registration tax
    (i.e. those in which the selling party is a private individual, or a company that has not built or renovated the property, or a company that has built or renovated the property for over 5 years and in deed does not exercise the VAT option):
    • Registration tax
    • First house: 2% (always to be calculated on the cadastral value);
    • Second home: 9% (to be calculated on the cadastral value if you buy a private individual or to be calculated on the price declared in the deed if it is a company or a natural person who buys as the owner of a sole proprietorship or as a professional);
    • Fixed mortgage tax: 50 euros;
    • Fixed cadastral tax: 50 euros;
  • Sales subject to VAT
    (i.e. those in which the selling party is: the company that has built or renovated the property for less than 5 years, or the company that has built or renovated the property for more than 5 years and in deed exercises the VAT option):
    • VAT
    • first home: 4% (always to be calculated on the price declared in the deed);
    • second home: 10% (always to be calculated on the price declared in the deed);
    • luxury building: 22% (to be calculated on the price declared in the deed);
    • Fixed registration tax: 200 euros
    • Fixed mortgage tax: 200 euros
    • Fixed cadastral tax: 200 euros
  
7.2 - Agency commissions
The agency commissions are equal to 3% of the sale price + VAT (22%) to be paid at the time of signing the preliminary contract or, in the absence of it, at the time of the definitive contract.
  
7.3 - Notary fees
Notary fees, Cadastral surveys, Price deposit, Deed translation, plus 22% VAT on the taxable amount of professional services.
  
7.4 - Loan deed costs
Notary's fees, necessary documentation, Deed Translation (if necessary), plus 22% VAT on the taxable amount of professional services.
  
7.5 - Fixed municipal taxes
  • IMU: property tax
  • TARI: tax on waste collection
  • TASI: is the local tax for services such as street lighting, etc.
Only primary homeowners are exempt from IMU and TASI for properties that are not classified as luxury homes. However, they will have to pay the TARI based on the square meters of the house. Conversely, if you buy a second home, you will have to pay IMU, TASI and TARI. In any case, we recommend that you carefully check the exact percentages of taxes that you have to pay for your property in Italy since, being municipal taxes, they are or may be different between the various municipalities.This summary scheme is valid as a general rule but, before purchasing a property, it is advisable to check with the Notary the exact amount of taxes to be paid.
  
Index n.8 - POST PURCHASE WITH ARRIGO BRANDINI REAL ESTATE
Any urban planning issues, the definition of the taxes due, the connection of utilities, the making of income with rent will be carried out and / or assisted by our staff, relieving the customer of all organizational and management burdens and ensuring the rapid resolution of all issues relating to maintenance and more generally to everything concerning the efficiency in economic terms and performance of each individual property.