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In the generality of cases, there are no restrictions on foreigners owning property in Italy. However, while the buying process is relatively straightforward it does differ to many other countries. Be prepared by obtaining an Italian tax code number, codice fiscale, from local authorities and then opening an Italian bank account.
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Conveyancing will be overseen by a notary, notaio. The notary is a public official who is independent and impartial; they will register the sale, make sure that conveyancing is taken care of according to law and will also collect the relevant taxes on behalf of the Government.
The buyer is able to choose a notary they wish to work with. Although all the paperwork required for a property transaction is undertaken by the estate agent and the notary, many buyers will choose to appoint their own lawyer as well to ensure the paperwork is in order and all the correct searches have been done. A surveyor, geometra, will conduct a survey and all searches on the property.
A survey is not a legal necessity in Italy but highly recommended, and choosing a surveyor with good knowledge of the local planning area and Council is advisable.
Purchase costs
Buying costs in Italy differ depending on whether the purchase is a holiday/investment home or a primary residence.
As a very general rule, budget for up to 15% of the purchase price, though the costs could be considerably lower. Some fees are fixed while others are a percentage of the purchase price or cadastral value.
In Italy both the vendor and the buyer pay estate agency fees, which are usually 4% + VAT of the purchase price for each side.
The stamp duty is either 2% or 9% of the cadastral value, and if the property is in a new development the VAT would be payable in the amount of either 4% or 10% of the purchase price.
Notary fees are variable and depend on the location of the property, its value and the complexity of the transaction. It is therefore advisable to agree the notary’s fees in advance; if you are using an independent solicitor the fees can be between 1% and 2%.
There are also some small administrative fees to add, and if you are getting financing, a mortgage arrangement fee will be payable. The purchase of land is taxed differently depending on whether it is for building or agricultural use, and whether or not the buyer is a farmer.
Please note that the content of this document is meant to provide a general guideline only and does not constitute legal advice.