Buying a Home In Italy
Italy has a unique system for purchasing property.
There are several standard steps that are necessary in order to complete that purchase:
Step One:
Once you have found the house of your dreams, it's time to make an offer. While it's common in other countries to try to strike a bargain well below the asking price, that is not advisable in Italy. It's considered inconsiderate to make too low of an offer, and many sellers will not even consider an offer they think is insulting.
You will be asked to sign a 'Prenotazione,' an agreement which shows your intent to purchase the property that must be accompanied by a deposit. After that step is completed, a survey is done and local land registry searches are completed with the local Comune (local government agency) to determine whether or not the property complies with local planning and building regulations. This work is usually done by a local surveyor who is known as a 'Geometra' and a public notoary/attorney known as a 'Notaio.' Many buyers decide to have these surveys done by an independent firm of specialist attorneys. This process can take several weeks to accomplish and nothing can proceed until this step is completed.
Step Two:
Step two involves an exchange of written contracts known as a 'Compromesso', which is a binding legal agreement that is signed by both parties or their legal representatives. A date is set at this point to complete the purchase at the office of a Notaio, who is chosen by the buyer. The final price is agreed upon, and a deposit of between 10-30% of the purchase price is due at this time. If you decide at any time after signing this agreement that you do not wish to buy the property, Italian law stipulates that you will lose this deposit. You must therefore be certain that all the checks and documentation are in order.
If problems occur or paperwork is not yet completed, then a timetable for completing everything must be agreed upon. At this point in the transaction, if the seller withdraws from the sale, then he or she must pay back you back twice the amount of your original deposit. This is also the point at which the agent(s) who have handled the sale are paid their fee, which is usually 3% of the purchase price.
Step Three:
The sale is completed at the offices of the Notaio, a process referred to in Italian as the 'atto'. All involved parties must attend this meeting in person and the details of the contract (rogito) are read aloud by the Notaio. If you don't speak Italian, then a translator is made available by the agents handling the sale. The Notaio's role includes drafting the purchase deed and ensuring the proper execution, registration, and payment of all Italian taxes relating to the completion.
Taxes and Fees
* Registration Tax. This is 11% for non-residents, 4% for residents. When purchasing land this is 18%; note that this includes Stamp Duty (Bolli) which is 1% of the cadastral value - ie the value of the property as declared by the land registry.
* The Notaio's\s fees are approximately 2.5% of the total cadastral value plus 20% IVA (VAT).
* Translator Fees - for formal translation of the rogito, typically around €350
* The geometra's fees vary depending on the work carried out.
* Agency fees - 3% of the purchase price of the property plus 20% IVA (VAT).
* Any legal fees if you have used your own attorney.
* Bank Charges, if a money transfer is involved.