Real Estate Lawyers in Italy

Buying a property in Italy involves several steps, and it’s essential to understand the legal and administrative processes to ensure a smooth transaction. Here’s a detailed guide on how to buy a property in Italy:

1. Research and Planning

• Determine Budget: Consider not just the purchase price but also additional costs like taxes, legal fees, and renovation costs.
• Choose a Location: Research regions and towns to find the area that best fits your needs and lifestyle.
• Property Type: Decide on the type of property you want (apartment, villa, farmhouse, etc.).

2. Legal and Financial Preparation

• Hire a Real Estate Agent: A local agent can help you navigate the market and find properties that meet your criteria.
• Engage a Lawyer: Hire a lawyer who specializes in Italian real estate to guide you through the legal aspects. At Lexidy, we can help you with all the process involved. Contact us now for a free consultation.
• Get a Fiscal Code (Codice Fiscale): This is required for any property transaction in Italy and can be obtained from the Italian tax office or through the Italian consulate in your home country.
• Open a Bank Account: Necessary for transferring funds related to the purchase.

3. Property Search and Viewings

• Property Listings: Use real estate websites, local agents, and property exhibitions to find potential properties.
• View Properties: Schedule visits to properties of interest. Take notes and photos for comparison.

4. Making an Offer

• Proposta di Acquisto: Make a formal written offer. If accepted, this is usually accompanied by a small deposit.
• Preliminary Agreement (Compromesso): Once the offer is accepted, both parties sign a preliminary contract and the buyer pays a deposit (usually 10-20% of the purchase price). This contract outlines the terms and conditions of the sale.

5. Due Diligence

• Legal Checks: Your lawyer will check property titles, ensure there are no outstanding debts or legal issues, and verify planning permissions.
• Survey: It’s advisable to have a structural survey conducted to assess the condition of the property.

6. Finalizing the Purchase

• Deed of Sale (Rogito): The final contract is signed in front of a notary. This is when the remaining balance of the purchase price is paid. The notary ensures all legal aspects are covered, and the deed is registered.
• Transfer of Ownership: The notary registers the deed with the land registry, transferring ownership to the buyer.

7. Post-Purchase

• Registration: Ensure the property is registered in your name with the local land registry (Catasto).
• Utilities: Transfer or set up utility accounts (electricity, water, gas, internet).
• Insurance: Consider property insurance to protect your investment.

Additional Tips

• Currency Exchange: If you are transferring money from another currency, consider using a currency exchange service to get a better rate.
• Residency Requirements: Understand the visa or residency requirements if you plan to stay long-term.
• Tax Implications: Be aware of the property taxes and ongoing costs such as IMU (municipal tax), TARI (waste tax), and TASI (services tax).

When buying a property in Italy, several taxes and fees need to be considered. Here’s a breakdown of the primary taxes and costs associated with purchasing and owning property in Italy:

1. Registration Tax (Imposta di Registro)

   • First Home: If the property is your primary residence, the registration tax is reduced to 2% of the cadastral value.
   • Second Home: For second homes or non-primary residences, the registration tax is 9% of the cadastral value.
   • Note: Minimum payment is €1,000.

2. Value Added Tax (IVA)

   • Applies to new properties purchased from a developer.
   • First Home: 4% of the purchase price.
   • Second Home: 10% of the purchase price.
   • Luxury Homes: 22% of the purchase price (for properties classified as luxury by cadastral categories).

3. Cadastral Tax (Imposta Catastale)

   • First Home: €50 fixed fee.
   • Second Home: 1% of the cadastral value.

4. Mortgage Tax (Imposta Ipotecaria)

   • First Home: €50 fixed fee.
   • Second Home: 2% of the cadastral value.

Ongoing Property Taxes

1. IMU (Imposta Municipale Unica)

   • Municipal tax on property ownership.
   • Applies to second homes and luxury primary residences.
   • Calculated based on the cadastral value of the property multiplied by a coefficient and a rate set by the local municipality.

2. TASI (Tributo per i Servizi Indivisibili)

   • Tax for indivisible services (e.g., street lighting, maintenance).
   • Usually combined with IMU.
   • Rate set by the local municipality.

3. TARI (Tassa sui Rifiuti)

   • Waste collection tax.
   • Based on the size of the property and the number of occupants.
   • Rate set by the local municipality.

Other Costs

1. Notary Fees

   • Notary fees are mandatory and vary based on the property’s value.
   • Typically range from 1% to 2.5% of the purchase price.

2. Legal Fees

   • Fees for legal assistance, usually around 1% to 2% of the purchase price.

3. Real Estate Agent Fees

   • Typically 3% to 6% of the purchase price, split between buyer and seller.

4. Survey Fees

   • Cost for a property survey, if undertaken.
   • Varies depending on the survey’s scope and the property’s complexity.

Example Calculation for a €200,000 Second Home

1. Registration Tax: 9% of cadastral value (assuming cadastral value is €50,000): €4,500.
2. Cadastral Tax: 1% of cadastral value: €500.
3. Mortgage Tax: 2% of cadastral value: €1,000.
4. Notary Fees: Approximately 1.5% of purchase price: €3,000.
5. Legal Fees: Approximately 1% of purchase price: €2,000.
6. Agent Fees: 3% of purchase price (buyer’s share): €6,000.

Total Approximate Additional Costs: €17,000.

Conclusion

Purchasing a property in Italy involves several taxes and fees that can significantly add to the overall cost. It’s essential to budget for these additional costs and seek advice from professionals to ensure compliance with all legal and fiscal obligations.