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Italy is a popular location for owning property.
The following represents a summary of the various stages involved in purchasing a residential property.
Your
first priority is to employ a Real Estate Agent. These agents typically receive a commission from both the buyer and the seller. They must be registered with the chamber of commerce - this registration protects both the buyer and seller in case of malpractice.
Once a potential buyer decides he wants to
purchase the property, a preliminary contract ("compromesso" or "contratto preliminary") is signed. This is where the parties agree in writing to enter into a future final real property purchase deed.
Once the preliminary
contract is signed, the security deposit ("caparra confirmatoria") is made. This down payment of the purchase price is intended to bind both parties to enter into the final agreement. The seller always requires a security deposit.
If the buyer pulls out of the purchase after this stage, the
deposit will be forfeited. If the seller does not sign the final agreement, he is obliged to pay double the amount deposited by the buyer.
A penalty deposit ("caparra
penitenziale") may also be required by both parties and is intended as a predetermined penalty to be paid by the party that does not fulfill the obligations provided for in the
preliminary purchase contract.
For the buyer, the last step in acquiring property is the signing of a
final deed ("rogito") and this document is the legal instrument by which the property is legally transferred from the seller to the buyer. The deed will be prepared by a notary and it is customary that the buyer is granted the right to choose the notary public that will notarize the deed.
It is normally the
notary's responsibility to notify the police authorities of this transfer of property, and he must do so within 48 hours from the signature via a standard form that can either be sent by registered mail or delivered directly to the local police headquarters.
Taxes to be Paid
A number of minor taxes may need to be paid upon the purchased of a property.
These include:
Registration Tax 8%
Mortgage Tax 2%
Cadastral Tax 1% (These rates may vary depending on circumstances).
The majority of nationalities can apply for a loan, either for house purchase or re-financing for home
improvement purposes only. These are commonly in the form of a repayment mortgage.
The minimum amount permitted is $36,000 +/- and the maximum amount being 75%
of the valuation or purchase price, whichever is the lower. The term of the loan must be between five and 20 years, up to the age of 70 years.
The lender will require proof of income in all cases. This can be made up of earned income, pension, investment or rental income.
The lender may take all or part of these incomes into account when determining the maximum loan available.
Currently, non-Status loans are not available.
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