How to purchase a property in Italy
Buying guide: what to know if you want to purchase a property in Italy
A collection of useful advices to help you understand how buying and selling of real estate works in Italy.
It is important that a professional or Real Estate Agency, regularly registered at the Chamber of Commerce, can support you.
Move to Sardinia is a brand of Francesco Mele, regularly registered with N°1145 in Sassari’s Chamber of Commerce.
1)”Codice Fiscale” – Fiscal Code.
An identification number used for all the interactions with government agencies and public administration in Italy. This univocal code consists of letters and numbers, based on your first name, family name, date and place of birth information.
The authority which issue Codice Fiscale is the Italian Revenue Agency (Agenzia delle Entrate) of the Ministry of Economy and Finance.
All those living in Italy need to have their own. It is similar to the National Insurance number.
How to get it?
> Make an application at the local office of “Agenzie delle Entrate”. Documents Required are a valid ID card, passport or residency permit for foreigners. The day of your application you will receive a form with a number. You will receive the official card by postal service.
How do I apply if I live abroad?
> Make an application at the Italian Embassy or Consulate of your country.
2) Passport or ID card.
There are no restrictions for foreigners who want to purchase a property in Italy. The only requirement is to always provide a valid ID document.
“Proposta d’acquisto” – Purchase offer:The document that officially starts the buying process. With a purchase offer you formally propose a price for the property and offer a deposit as a guarantee. If the property’s owner accept the offer, an official contract bonds both buyer and vendor. If the owner doesn’t accept the offer or the sale cannot go on, the buyer has the deposit reimbursed.
“Contratto Preliminare” – Arbitration agreement: the so called “Compromesso di vendita”. Once the parts agree upon the price, they sign an arbitration agreement and deposit 10%-20% of the property’s price.
With the signed contract, if the buyer change his mind and doesn’t want to go ahead with the terms of the contract, he will lose the entire deposit; Similarly, if the vendor doesn’t respect the terms of the contract, he has to pay back double the deposit.
For all these reasons and in order to protect your interests, it is recommended to rely on a professional realtor.
“Rogito Notarile” – Property deed: the legal document that transfers the ownership of a real estate from a vendor to a purchaser. Firstly it has to state the name of the buyer and the vendor. Secondly, it has to describe in detail the property that is being transferred. Thirdly, it must include the signature of the parties, executed in the presence of a public notary.
Except for different agreements, the buyer has to pay property registration fee, land registry tax, notary fee and the remaining part of the agreed purchase price.
The notary has to check that all documents are correct, verify the identities of the parties and collect the tax on the sale due to the Italian government. Finally, he has to ensure that the land registry will be updated with the name of the new owner.
The agency fee is usually 6% plus V.A.T., based on the agreed price. It splits equally between vendor and buyer (3% each) + V.A.T. .
According to the Italian law, the parties have to pay this commission at the sign of the arbitration agreement. If there are other agreements, they can discuss it directly with the agent.
The purpose of this article is mainly to give an overview of the buying and selling process in Italy. If you’re looking for a property to sell or to buy and you need a professional support, click here!
Move to Sardinia and Homes in Sardinia (Italian version) are trademarks by Francesco Mele, real estate agent registered with the Sassari chamber of commerce operating since 2005.
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