The Property Buying Process in Italy

The property buying process is broadly similiar to that in the UK. The differences are mainly cultural. In this section we will explain the process and the steps involved.

The Contract

After agreeing a price, the specific terms of the agreement will usually be contained in a private contract - The Contratto Preliminare di Vendita or Compromesso di Vendita. This contains the purchase details such as:

• Price
• Deposit
• Payment schedule (if purchased off plan
• Completion date

Any extras which you have agreed to purchase should be included in the contract. You should also have clauses detailing permissions for any restoration work and ensuring that completed work prior to completion is in line with regulations.

Property Checks and Searches

Before any sale can be completed there are a number of searches and checks to be carried out on the property. Those responsible for these checks are the Geometra (Local surveyor) and the Notaio (Public Notary). If these searches reveal any problems regarding the sale of the property then the sale cannot be completed. Usually these checks and searches take two to three weeks to carry out.

Checks carried out by the Geometra

• The property matches the Land Registry definition
• The property was not built without planning permission
• Any work or extensions done, have received approval and have had the relevant taxes paid
• The owners as Land Registry Office are the same as stated by the vendor

Upon completion of formalities before the Notary, the Scrittura must be delivered to the Stamp Duty Office for tax purposes, and then to the Land Registry for title to be recorded in the Register of Property.

Paying for the Property

There are no restriction money being imported into Italy but to ensure that the proceeds of any resale can be repatriated, it is recommended that the purchaser obtains official documentation of the importation of the purchase money and incidental costs. The funds should be deposited in an Italian Bank and this can easily be arranged through any main bank.

Resales involving payment of the purchase money outside Italy are permissible between non residents but rights to repatriation of funds should be expressly included in the conveyance.

Purchase Expenses

Purchase expenses typically average 12 % of the final purchase price and can be allocated broadly as follows:

• Notary: A fee is charged by the Notary to prepare and legalise the Scrittura. This is a scale based fee calculated on the declared value.
• Stamp Duty - Imposta di Registro: There is no stamp duty/purchase tax threshold and you will therefore be required to pay at the appropriate rate. If the property is bought as a second property in Italy or by a nonresident the rate is 10% for the house and 18% for the land. If the property is the first property bought in Italy by an Italian resident, the rate for the property is 4%, the land remains at 18%. A foreigner must become resident within 18 months of final contract in order to take advantage of this system. If this does not occur, a fine will be imposed. The value of the property assessed is not necessarily the purchase price but a figure assessed by the local tax office from official tables.
• Land Registry: The fees of the Property Registrar for registering your Scrittura in the register will be assessed on a scale fee according to the value, as in England.

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