How to buy a property in Italy: complete guide
Buying a house in Italy is just as or more complicated than in other European countries. New language, new rules, it is important to learn about the process of buying real estate beforehand so as not to be surprised. Many expatriates have rushed in believing they had found the right deal and have found themselves in complicated situations. From the search for the property to the signature, through the accompaniment, I have listed all the steps to acquire a property in Italy. I’m Lisbob, the expat assistant, and I’m going to tell you how to buy a house in Italy.
Choice of location and visits
This is perhaps the most enjoyable part of buying a home in Italy: visiting properties and making your choice. Nevertheless, it is important to take advantage of these visits and their preparation in order not to waste time and to be sure to find a property which corresponds to you. Determine what you are looking for by first identifying the area(s) you are interested in and the type of property you are looking for. A retirement home will be very different from a vacation home or a downtown apartment. We will also need to ask ourselves questions such as
- Are you planning to have guests?
- Do you want to be close to an airport?
- A hospital?
- Do you plan to use your car regularly?
- Would you like to meet other expatriates?
These are obvious questions, but they are often forgotten by future expatriates, and they can change the search results. By explaining exactly what you want, the real estate agent will find it easier to find the ideal property.
Obtain the Italian tax number (Codice Fiscale).
The Codice Fiscale is the Italian tax number. It is mandatory to buy a property in Italy. Not only will you need it when you make your purchase, but you will also need it when you open a bank account, buy insurance, purchase a car or deal with the tax authorities. Many expatriates fail to ask for it before starting the real estate purchase process, and deadlines for the sale agreement are missed because of the delay in obtaining it.
I advise you to ask for the Codice Fiscale before your departure in Italy for the visits. It can be obtained online, directly on our website or app. This way, you will already have what you need and will not risk losing your deposit.
Study and evaluation
As in other countries, it is strongly advised to obtain a survey and appraisal on a property that interests you. Make sure that you are not paying too much for the property in question and that you check the condition of the property. Also, the intended use is important, as is the possibility of doing work it.
Property research
You can instruct your attorney to ensure that the seller actually owns the property, that the property is properly registered and has the proper building permit, and that all encumbrances on the property are fully disclosed. In Italy the notary will carry out these checks at the end of the process, just before the signing of the title deed, but it is essential that these searches are also carried out before the contract is signed and a deposit is paid in order to avoid any unpleasant surprises.
Buying a house in Italy will not have any secret for you
Purchase contract (Compromesso) and deposit (Caparra confirmatoria)
The research is positive? Perfect, a contract must then be drawn up, equivalent to a sales agreement. This is signed between the parties and a deposit is paid. This commits the current owner of the property to sell to the buyer, and it commits the buyer to purchase the property on the agreed upon terms. If the buyer withdraws then he loses his deposit. If the seller withdraws, the buyer may receive double the deposit.
The Compromesso must specify the conditions of purchase (price, down payment, what is included in the price, date of signature of the title, etc.).
Prepare a power of attorney if necessary
In Italy the signing of the title deeds is done before a notary public. This must be done on Italian territory. If the buyer cannot physically attend the signing before the notary public, it is possible to give a power of attorney to another person. The signed power of attorney confirms that the person has been authorized to do certain things on behalf of the buyer - in this case, sign the deeds.
Signing the title deeds (Rogito)
This is the big moment: the signing of the title deeds between the buyer and seller (or their representatives via a power of attorney) before a notary public. The two parties physically meet in front of the notary to sign the new deeds. Just before doing so, the notary must do some last-minute research to ensure that the property is still registered in the seller’s name and to identify any encumbrances on the property. This is a last-minute check to avoid scams and other disappointments.
You can now purchase a property in Italy
Register the property and pay the taxes
Now you have a property in Italy! Once the title deed is signed, the purchase must be registered with the Italian Land Registry and the corresponding real estate taxes paid. The taxes to be paid vary depending on the type of purchase (first-time buyer or reseller), the value of the property, and also whether the property will be your permanent residence or not. This is discussed in a separate chapter.
Making an Italian will
It makes sense at this point to make an Italian will to ensure that your wishes are respected in the event of your death. In August 2015, a European directive came into effect. This means that the laws of the country of residence apply to all assets, not the law of nationality. That is unless a will was made to cover the assets in this country. This is a point I will address in another chapter.
You now know the main steps to acquire a property in Italy. Don’t forget that the support of a professional who speaks your language will be an essential asset in order not to fall into the most common traps. It is unfortunately common as an expatriate to come across unscrupulous people who will not hesitate to try to rob you, as in other countries.
You can consult our professional directory to find real estate agents, lawyers or notaries who can help you with the process of buying a property in Italy.