Italy Buyer's Guide |
 |
 |
From dramatic coastal resorts to iconic cities with fine regional cooking and classy designer goods in the mix, the Italian lifestyle is very alluring. Less alluring are the stories of the country’s torturous bureaucracy. Forewarned is forearmed so here’s what you need to know before you head off for la dolce vita, says Cathy Hawker.
|
| |
| |
Nothing happens too quickly in Italy but the home buying process itself is fairly straightforward. To ensure your purchase goes smoothly, Fastro have employed our own bilingual, fully experienced legal advisor. The notary (notaio) is an independent and impartial agent who oversees the conveyancing.
First obtain a codice fiscale (a tax identification number) from the authorities. Without this number you will be unable to open a bank account, buy a car, sign up for utilities or buy a house.
|
|
|
Once your offer is accepted you will fill in a reservation form and be asked for a reservation fee of 2%. The notary draws up the preliminary sale contract, the compromesso di vendita and this is signed 30 days later where a further 18% deposit is paid. This is a legally binding contract, signed by both parties, and outlines the sale price and the completion date. Should you pull out of the purchase the deposit is forfeited, but if the vendor pulls out they must pay you twice the amount of the deposit.
The final contract, the rogito, is signed in front of the notary by both the buyer and seller, at which point the outstanding balance plus all fees and taxes must be paid. The notary issues the deeds and registers them at the land registry. |
| |
| |
As with most of mainland Europe, buying costs in Italy are considerably higher than in the UK. As a rule, buyers are advised to budget for about 15 per cent of the purchase price. The main costs are:
Estate agent’s fees: These are normally between three and five per cent. This is not Payable as you will be buying direct from the developer.
Notary’s fees: 2.5%.
Surveyor (Geometra): average €300 - €600.
Additional charges may include mortgage fees.
VAT on new properties is 10%.
Lawyers Fees: Usually of purchase price 2% however Fastro have negotiated a discounted fee of 1%. |
| |
|
| |
An Italian property with a purchase price of €200,000 may have a Declared Land Registry value of €120,000. The purchase tax (or VAT in the case of new properties), notaio's fee and stamp duty (Bolli) are all be calculated on the Declared Land Registry value and not the purchase price.
Mortgages: Generally, the Italian banking system is much less flexible than the UK system, with most Italian mortgages only available on a repayment basis. Banks generally from 60 - 80 per cent of the purchase price over a 15-year period. We have negotiated an 80% LTV loan on an interest only basis with Banca Popolare Di Sondrio. |
| |
|
| |
Once you stay in Italy for more than 183 days in any one year you will be considered an Italian resident for tax purposes (the Italian tax year starts on 1 January), and will be liable for Italian taxes on your worldwide assets and income.
As a non-resident you are liable for tax only on any income and assets in Italy, such as rental income or interest from an Italian bank account, so you should still file an Italian tax return.
Income tax is 23 to 45 per cent.
There is no wealth tax in Italy.
Inheritance tax was abolished in 2001 if property is left within a family. Those inheriting will have to pay transfer and acquisition tax on the property. |
 |
