How to buy a real estate in Italy
Buying real estate in Italy is perfectly safe, if you follow a few rules.
But you must understand the real estate system to do so.
1. As a first step you need to find the property you
like or need.
If you are serious about buying, you better start asking your
“Codice fiscale” (tax payer number). It is not difficult
to do so. Just go with your passport to one of the local tax
authorities “Agenzia delle Entrate”. Once you have this (and the
money...) you are ready to buy.
Unless you already know the property and its owner,
you usually go to a real estate agency. They must be licensed, and
can be a great help in finding what you really want. But they cost
money. There isn't a rule about their fee. Usually they charge a
small percentage of the final price of the estate both to the seller
and to the buyer. Just ask it before proceeding... It may be up to
2% each, but it may vary from place to place.
The real estate agency fee is due when an agreement is made between
seller and buyer, whatever it may later happen. You owe nothing if
no deal with their contacts is made.
2. Perfect, an agreement! You both say ok, the price
is right. Hands shaken.
But still you have nothing under the Italian law, since any
agreement/contract regarding real estate is void if not written and
signed.
So, the use is to sign just after agreeing on every aspect of the
purchase a preliminary
contract, called in the legal jargon exactly "preliminare".
Tipically, the seller wants a deposit, at that point.
The “preliminare” must be filed to the local tax authorities, and
has to pay a tax on the amount of the deposit, but it is just an
anticipation of the total taxes that you will have to pay later (see
below), so we can skip the detail.
Anyway, this is not the final step of your purchase (read below),
but it is very important. You won't easily (if at all) change what
you signed at this point.
It is EXTREMELY important that you understand what you are going to
sign, and since it will be in Italian, unless you master our
language, you really need some serious help from someone that speaks
your language. But not any interpreter may be the best for you,
since the "preliminare" that the seller or the agency is going to
draft
will be quite long, and filled with technical legal expressions.
Most of them will be "regular" and usual paragraphs, but a few of
them will be vital.
A legal help from an Italian Lawyer may be the best BEFORE signing
this contract, since only a lawyer will have the skills and
experience to understand not only what was put in the draft of the
contract, but more important, if
something that should be there is not. And
maybe to run a first check on the public registry to see if the
seller really owns what you want to buy or if the property is
charged by undeclared mortgages (This expecially if you are
requested to pay something at this point).
3. The “preliminary” contact, as the word itself
suggests, is not the final step, the one that will transfer the
property to you. It usually is just a (legally enforceable) promise
to transfer the property once all the formalities are set.
The final step is to go
to a notary ("notaio":
in Italy they are self-employed professionals, but at the same time
public officers, that have the power to give public faith to a
contract).
Your chosen “notaio” will be charged to verify and report to you
that the promised real estate is free and in the full property of
the seller. He is also charged by the state to verify that the
property is regular under a lot of profiles (building permits, taxes,
etc.).
He will finally collect the taxes on behalf of the State (usually
11% of the declared price, that should decrease to a 9-10% since
2014) and his fees, and will record the sale to the public real
estates registry, giving effectiveness to the sale in front of
anyone.
You are now safely owner of a real estate, and you will have a copy
of the contract with the proof of taxes payed and of the record at
the public registry in about 30 days.
The "notaio" is usually chosen locally (they can work only in their
region) by the buyer, and payed by him.
There is a logic in this: since his role in the final public
contract is vital, he must be trusted by
the buyer. When you buy, it is important that you choose him by
yourself, not necessarily accepting the name suggested by the
seller, as it may happen if you are new to the area. He works mainly
in your interest, as a buyer. You choose him!
4. I mentioned the taxes, generally 11% (for houses, or less if you will transfer in the house as your permanent home, once again expected to lower a little since the news starting in 2014) of the price declared for taxation purposes. It may sometimes be a little lower than the real price, but of course you have the right to declare the full real price. Those taxes are usually on the buyer, so it is very important, when you compare the price of a real estate with your budget, that you consider that your final cost may be some 15/17 % higher than the price.
In any of these steps, we can assist you. All over Italy.
Avv. Francesco Tregnaghi
Disclaimer: this is only a general explanation, touching just the main issues of the problems, not intended to be itself a guide to a real purchase.
For more info, read this document on the U.S. Italian consulate of New York