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BUY  REAL ESTATE IN ITALY

Introduction

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To buy  property in Italy must first of all obtain a tax identification number ( codice fiscale).  This can be requested to italian's financial office or at an Italian Consulate or Embassy.

 
USA

> See address of Italian Consular Jurisdictions in your Country <

 

OTHER COUNTRYES

>> See address of Italian World Embassies and Consulates <<

 

In italy this request should be submitted on the relevant forms along with a photocopy of one's national passport. 

>> married women should only use their maiden names <<

 

A Codice Fiscale  is essential for :

 

  • Signing the preliminary purchase agreement ( compromesso)

  • Requesting bank financing , Loan , Mortgages

  • Opening bank accounts

  • concluding the final purchase agreement with notary

  • Purchasing a car , motorcycle, boat, jet…

  • Arranging public utilities contracts (gas, water, electricity, telephone)

  • Presenting declarations as needed to public offices ,communal, regional or state

 

If you are interested in financing  the purchase of  your living  dream  in Italy

you can go to 

 

 

BUY  AN EXISTING BUILDING OR PLOT  TO BUILDING

 

In order to purchase property, the first step is to sign a preliminary sales agreement (compromesso) which is subsequently followed by a public sales act drawn up by a notary.

The>> compromesso  << is a private agreement between the buyer and seller (which can be done without the help of a notary), to which the "promising" buyer and the "promising" seller (indicated as the "parties" to the contract) subscribe.  This preliminary agreement will contain the following info :

  • Identification of the parties (full names, place and date of birth, passport number, nationality, codice fiscale ;  in the case of companies which are selling, they must provide their  " partita IVA " , and their legal registration number).
  • Indication of the location of the property in question (town and province).
  • Identification in the national register of lands (NCT) or urban areas ( NCEU) : this identification is achieved by citing the register sheet, the units of property or parts thereof.  In the case of segments (frazionamento) of property, it's necessary to obtain  their identification in the national register .  Such action must take place before the final sales agreement with the notary .
  • In the case of land and/or for portions of buildings, the agreement must be accompanied by a map from the register, which will be signed by both parties;
  • Verification of the seller's title to the property .
  • Verification of whether any limitations exist to the title, for example judiciary or bank obligations, inheritance or property rights, rights to first choice of purchase, or any other limitations that reduce or in some way curtail the right to full title of the property.  The seller must commit him/herself to eliminating such limitations prior to, or simultaneously with, the final sales act.
  • Particular attention should be paid to the agrarian preemption,if the house is in a rural together and if with the house is purchased farmland . For furter information on this subject , you should read this document , drawn up by the italian Notary Association <The Prelazione Agraria>  
  • Identification of all servitudes that might weigh on the property (roads, trails, pipelines etc that transit through the property to be purchased) and those from which the property should benefit (access to water from nearby natural sources or wells, rights of passage, and rights to access to pipelines etc) .
  • Building licenses issued after 1967.
  • Building licenses in the process of being issued:  in the case of purchase of a plot to be build , it's necessary to make an particularly  >> agreement to purchase << where the total payment must be conditional on the issuance of the required license .
  • The sales price, indicating the amounts paid at signature (or at various successive moments) and the balance to be paid at the time of the final sales act.  The initial payment ( anticipo ) should be identified as the down payment (caparra confirmatoria).  In case that the seller decides that he/she no longer wishes to sell, he/she will compensate the damaged buying party with a sum equal to twice the initial down payment .
  • The date established for the final sales act.  This must be at least 30 days after the private sales agreement.
  • From July 1, 2010 year , came into force of the requirement to verify the correctness of the register made before the notary deed, before the signing of deeds of sale of buildings, or other acts with which they move or real rights (for example  mortgages) are on the same must verify that the property is regularly surveyed in land on behalf of the owner (or holder of rights in rem), which must state that the cadastral data and maps are stored in the register state of the building.  The lack of these statements results in the nullity of the act, and therefore void the sale or the Act concerning the property. It is no longer possible, therefore, sell a building, or enter a mortgage to secure a loan, if it is not consistently stated in the land registry, but even if the header register is not true, if the plan filed in the land registry does not show exactly the state of the property, or other characteristic data of the property (stocks, category, class and cadastral income) are not updated. For more info, please click on the following links :

          Circolare_Agenzia_Territorio_203-2010

         Circolare_Agenzia_Territorio_202-2010

 

 

Notes

1. Both the purchaser and the seller can delegate someone to act on their behalf at the time of the preliminary purchase agreement or for the final sales act, or in both instances.   In  this case,  a special >> proxy <<  will be needed signed  at an Italian Notary or Consulate or Embassy 

2. In case the buyer is unable to read Italian, he or she must be accompanied for both the preliminary agreement and the final act, by an interpreter registered with an Italian court, or alternatively a trusted person can be given a proxy to act on behalf of the buyer.

3. Payment must be made in the place and currency requested by the seller.

4. In order to simplify payments, it is recommended that the buyer  open a bank account in Italy.  

5. At the time of the preliminary purchase agreement, the buyer must pay the commission to the agent and/or intermediary.

6. At the time of the final sales act, the buyer will have to pay:

  • The notary's honorarium
  • The purchase tax  : 9% for buildings and plots ,  12% for lands . With a minimum of 1000-euro
  • The ipotecaria tax    : 50 euro
  • The cadrastal tax     : 50 euro 
  • The costs of title verification undertaken by the notary, on average costing some Euro 420.

The purchasing  "of particular historic interest buildings " benefits from some tax reductions :

1. Purchase taxes are reduced to 2% with a minimum of 1000-euro 

2. Restored buildings benefit from 10 years of exemption of the tax on the income from property (IRPEF or imposta sul reddito degli immobili).

All these percentages will be calculated on the valore catastale issued by a Ufficio del territorio on the property certificato catastale ( as in financial law 2006 year)   

 

TAX DISCOUNTS FOR PURCHASING IN ACCORDING WITH  First Home ITALIAN'S LAWS 

  NOTE : discounts are NOT applicable to property cadrastally scheduled as   A/1 , A/8 , A/9 -

  • The imposta sul valore aggiunto (IVA-VAT) : 4%  for buildings and plots 
  • The ipotecaria tax    : 50 euro
  • The cadrastal tax     : 50 euro 

Please note : the discounted tax is ONLY for maximum 5000 square meters around the building , all more land purchased , to be pay tax of  12% 

All these percentages will be calculated on the valore catastale issued by a Ufficio del territorio on the property certificato catastale ( as in financial law 2006 year)   

 

The foreign national will need to establish residence in Italy for this purpose , for guideline to  establish Italian residence , please download here the :

Italian Residence Making Process EU Citizens

 

Italian Residence Making Process No EU Citizens

 

Foreign Info

 

Real Estate taxes

previous files are in Acrobat  in you don't have it, click here   

 

Application for Shenghen visa , here

 

Additional information

  1. Within 48 hours of the public sales act, the seller must present in the relevant commune or in any police office, a declaration of >>> transfer of the property<<< indicating complete information about the buyer.
  2. All of the pre-existing utility services (water, light, gas, telephone) must be transferred from the seller to the buyer.  Please note that entering into new contracts is particularly costly, and therefore the transfer of existing contracts is recommended.  For this purpose it is important to obtain copies of the previous bills paid by the seller.  The purchaser, or whoever is entrusted with the task, should go to the various public utility offices or contact them via the toll free numbers listed in the telephone directory, communicating the full name, tax identification number, and address where the bills should be sent.  In order to obtain reduction benefits for the "First Home" it is necessary to provide a certificate the residence within 180 days of the request for transfer of the accounts.
  3. Within 30 days the buyer, with a copy of the final purchase act, a photocopy of his/her passport and of the tax identification number, should provide the tax office of the community concerned with:

                 a) The declaration IUC - the value of the act to determine the tax base varies from municipality to municipality, we strongly encourage every buyer, contact an accountant to fulfill this obligation. The ICI tax is applicable to all properties and land given to the land registry. 

                  b)  The declaration for the removal of household and urban waste.

Please note, for both of the above it is advisable to provide a copy of the payment bills used by the previous owner.

If the purchaser obtains a mortgage for the purchase , the purchaser can detract on his/her income tax return the interest and related charges.

Restoration or construction

In order to proceed with the restoration or the construction of a building, it is necessary to obtain the services of a licensed technician (Geometra), or an Architect or a Civil Engineer.

In Italy, all types of construction or restoration works , require the presentation of a request for authorization to the towns offices , signed by the owner of the property and a licensed technician.

In order to obtain authorization to begin these works, a tax must be paid to the town offices ; it normally takes 90 working days to receive the authorization from the time the request is presented.

Only in the case of light restoration works (painting, floors, window and door frames and wiring) may the technician present a particular request called DIA, for which it will not be necessary to pay any tax and the works can initiate in a brief time period .

 

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