Introduction - Purchase & Living cost - Buying guide
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Introduction

Italian property is available to all EU citizens with no restrictions on foreign ownership. Why not attend one of our personal viewing trips to find your ideal home and then let Aquavista guide you through every step. Please take the time to read through this information and if you have any questions do not hesitate to give us a call.

Purchase & Living Cost

Real estate agency fees of 4%, this is typical throughout Italy

Notary fees are fixed by law and are charged according to the price of the property, ranging from 1-2%

Translator fees for formal translation of the contract are approximately €350

The Geometra's (local surveyor) vary according to the purchase price.

Legal fees vary depending on the amount of work involved, however, generally cost approximately 2%

If a money transfer is required, bank charges will also be payable. Aquavista has a specialist foreign currency partner who gives far better exchange rates and commission free transfers compared to UK banks. This can save thousands of pounds on a property purchase, please contact us for further details.

 

Personal & Property Tax

The Italian Authority responsible for the collection of taxes is the Intendenza di Finanza (Intendenza). This is organised on a local basis, with each commune having an office of Intendenza.

Purchasers are responsible for obtaining and completing a tax form and calculating the amount of taxes owed to the state. The tax form must then be submitted to the tax office together with the appropriate amount of tax.

Imposta di Registro (registration tax) and Imposta sul valore aggiunto (VAT) is payable when purchasing a house, apartment or building plot and is calculated at 3%-10% of the declared value of the property as expressed in the Rogito. The tax does vary depending on the purchaser's residency, 3% if the owner is a resident and 10% for non-residents.

ICI is the main local property tax and is calculated by reference to the "rendita catastale" (official value of the property), which is the register of all properties in Italy.

Local taxes will cost less than taxes on a similar property in the UK and will usually be between 0.4 - 0.9% of the estimated value of the property, which is determined by government tables.

If you do not wish to rent out your property you will be liable to pay tax on the notional rental value of your property. This is based on the official rendita catastale and is generally a small amount. This tax does not apply if you are resident in Italy and the property is your main home.

All purchasers are required to have a Codice Fiscale (tax code), which is an identification number for use in Italy and is obtained from your local tax office.

Capital gains made on the sale of Italian real estate is classed as taxable income, however, gains on real estate owned by individuals for over five years (or if inherited) are exempt from capital gains tax. Main residences are also exempt from capital gains tax providing another main residence is purchased within one year of the sale.

Residents in Italy are entitled to certain relief depending on the composition of your family and the level of your income.

 

Purchasing Process

1. Viewing Trip

Aquavista and our associate can arrange a three-day (two night) tour of the Tuscany region, tailored to fit your requirements. Viewing trips include flights (to Pisa or Florence); return airport transfers and 4 or 5 star accommodation on a half-board basis. The cost of a personal Inspection trip varies according to your requirements but it is calculated at cost, with no profit margin.

Alternatively if you are travelling to Italy under your "own steam" i.e. via a package holiday deal or making your own accommodation and transfer arrangements, then we will be happy to arrange appointments for you with our associate before you depart.

2. Reservation Contract

Signing a reservation contract will take the property off of the market for 30 days and freeze the purchase price. A fee of 10,000 Euros is paid to the vendor/developer.

3. Preliminary Contract

The preliminary contract (Compromesso) is the full contract to buy the property and binds the buyer and vendor to the purchase. The contract will state the selling conditions such as the exact details of the property, payments and time of possession.

At this stage 30% of the purchase price, real estate agency fees and VAT is payable.

Should the purchase fail to complete the deposit would be forfeited, however, should the vendor fail to complete, the purchaser will receive double their deposit from the vendor.

4. Final Contract/Title Deed

This contract transfers the right of ownership to the purchaser. The final contract is signed in the presence of a Notary (Notaio), who's duty is to check the status of the property, record that the contract has been signed in the presence and is understood by both parties concerned. Once the full contract/deed of sale has been signed, either the purchase price is handed over to the vendor, or the vendor confirms that the money has already been received. The Notary arranges for the transfer of title to be registered in the land registry office (Ufficio del Registro or Catasto).

The purchase price does not include taxes, agency commission, land registration fee and utility connections.

Other Expense

Living costs vary greatly between the Northern, central and southern regions of Italy. Costs in the major Italians cities are likely to be similar to major British, French and German cities, although generally Italy does have a slightly lower cost of living than other northern European countries.

Buying Guide

Who can buy

All EU Citizens

Tenure of Property

Almost all property in Italy is "Freehold"

Mortage / Financial Advice

Mortgages are available to the majority of nationalities for purchasing a property or re-financing for home improvement purposes via Italians banks or specialist overseas mortgage companies in the UK.

The minimum amount is currently €50,000 with a maximum of 80% of valuation or purchase price (whichever is lower) over a period of 5 to 30 years up to the age of 75.

Proof of income is required in all cases and can be made up of earned income, pension, investment or rental income; however, the lender will not always take all or part of these incomes into account when determining the maximum loan available. Non-status loans are not currently available.

Current interest rates are from approximately 4.05% variable - discounted and fixed rate loans are also possible.

Legal Documents

We would always advise that you use a notary to complete your purchase and we can provide the names of several Italian/English lawyers on request, although our associate has access to lawyers.

Letting

The Tuscany region is highly desirable all year round as a tourist destination and as such achieves good rental yield. Rental yields vary from location to location and types of property, however, you can expect between 800-1000 Euros per week for approximately 20 - 25 weeks a year.

Rental income in Italy is subject to a tax that is on average 25% of the rental income received, however, the tax is scaled and does vary depending on annual income and tends to change annually. Further expenses cannot be deducted from this.

Offer Information

The purchasing procedure generally takes between six to eight weeks.

Medical Insurance

Italy has a national health service that is very similar to the NHS in the UK, however, not all services are available for free. With this in mind Aquavista does recommend British clients to carry an E111 card and arrange suitable medical insurance.

Tax regulations

Any earnings from property lettings in Italy are subject to tax in Italy. For international tax issues and double taxation relief and for information on your UK tax liabilities visit www.inlandrevenue.gov.uk

Italian Embassy

Embassy of Italy in the United Kingdom
N. 14, Three Kings Yard
London W1Y 2EH
Tel: +44 (0) 207 312 2200
Fax: +44 (0) 207 499 2283
Email: emblondon@embitaly.org.uk

 

To view previously asked questions on purchasing property in Italy, or to ask your own question click here

 

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