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

 

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