Purchasing property in Italy

The buying process in Italy is straightforward.

Once you have found your ideal property, you be required to sign a Reservation Contract.  This removes the property from the market for a period 30 days and freezes the purchase price.  A deposit of €10,000 is paid to the vendor or developer at this time.

The next stage is the Preliminary Contract (Compromesso).  This is the full contract to buy the property and binds the buyer and vendor to the purchase.  It will define the selling conditions, such as the exact details of the property, payments required and date of possession.  At this stage the buyer pays 30% of the property price less the deposit of €10,000.

If a property is under construction or acquired at the off-plan stage, payments are made, at set times, until the final contract is signed. 

On completion of the property both parties sign the Final Contract (Rogito) in the presence of a notary (notaio).  The notary’s role is to make various checks to confirm the status of the property.  The notary also records that the purchase has been signed in their presence and that the transaction is understood by the parties concerned.

The notary then issues the deeds and informs the land registry to transfer ownership of the property.  The reminder of the purchase price plus all taxes must be paid at this point.

FEES AND TAXES

Property which is being bought directly from the developer or constructor, and which is purchased within 4 years from the start of construction, is subject to 4% IVA for a resident and 10% for a non-resident or second home owner in Italy.

A property considered a "luxury home" is subject to 20% IVA plus €504 to cover Registro, Ipotecaria and Catastale.

Property which is bought directly from developer or from a tax registered company which is sold 4 years after the start of construction is subject to 3% IVA plus €336 to cover Ipotecaria and Catastale and 10% for a non resident or second home owner in Italy.

Property sold by a private seller or non-tax registered company is subject to 3% IVA plus €336 to cover Ipotecaria and Catastale and 10% for a non-resident or second home owner in Italy.

Notary fees average around 3% and legal costs amount to around 2% of the purchase price.

Local taxes (ICI) of between 0.4% and 0.7% also apply.