If you have purchased your dream home in Italy you may find yourself uncertain about the post-sales responsibilities that follow the successful transaction. Managing essential utilities, comprehending local tax obligations, and handling administrative tasks can appear daunting, especially for non-Italian speakers. Fortunately, there are practical solutions available to simplify this process and ensure a seamless transition into your new Italian abode. Let’s explore the most crucial post-sale responsibilities, including setting up utilities and paying taxes, as well as the services offered by Italian Real Estate Lawyers to ease these processes.
Setting Up Utilities
Once you have signed the final deed of purchase and have become the owner of your new property, one of your initial tasks is usually to set up utilities for electricity, heating and water or to transfer the accounts into your name. The process of transferring utilities to your name is made easier when it is possible to gather previous utility bills from the former property owners. Liaising with various service providers for electricity, water, and heating can be complex. In fact, it is important to note that each utility company may have distinct procedures and requirements. Additionally, you may wish to explore options such as renewable energy sources or energy-efficient upgrades for your property. However, navigating these choices, especially in remote locations, can be challenging. In these cases, the expertise of professionals like Italian Real Estate Lawyers can come in hand.
Understanding the Required Taxes
Property ownership in Italy carries two annual tax obligations: IMU (Imposta Municipale Unica) and TARI (Tassa sui Rifiuti). These taxes are determined by the specific municipality in which your property is located. IMU is a municipal tax calculated based on your property’s characteristics and the municipality’s criteria. Importantly, IMU is applicable only to non-primary residences. If you have purchased a home in Italy and plan to reside there permanently, IMU will not be levied. However, if your property serves as a vacation home, you will be liable for IMU. On the other hand, TARI is a waste collection tax that varies depending on the town, city, or village of your residence, taking into account the number of occupants in your property. Generally, more residents lead to higher waste collection taxes.
IREL’s Various Available Packages
Recognizing the potential challenges that can arise following a property purchase, Italian Real Estate Lawyers offers a range of comprehensive packages designed to assist property buyers in a seamless transition. These packages are competitively priced and can be tailored to meet your specific requirements. All our post-sales services are managed meticulously by a team of highly qualified professionals, ensuring the efficient handling of customer requests and documentation while maintaining a professional and straightforward approach.
Basic: Our basic package focuses on utilities. When it comes to utilities (electricity, gas, and water), our team proactively engages with suppliers, streamlining the entire process and ensuring a smooth transition, including the “voltura” (change of contract holder) or supply activation. We will assist you in identifying the most suitable options for your home and efficiently establish the necessary accounts with the relevant service providers.
Advanced: Our advanced package extends its coverage to utilities and property taxes. Specifically, IMU and TARI taxes are expertly managed on behalf of the client, starting from the day of the property deed and continuing until the end of the respective tax year. IMU taxes are calculated based on the property’s purchase date, and our team ensures clients are well-informed about applicable deadlines and payment methods.
All-Inclusive: For the most comprehensive solution, we recommend our all-inclusive package. In addition to utilities and tax assistance, this package offers a wide array of services designed to facilitate a seamless transition into your new Italian home. Choose from three of the solutions offered, ranging from assisting you in obtaining a home insurance policy to guiding you through the process of opening a non-resident Italian bank account. Our comprehensive offering ensures that every aspect of your property management is meticulously handled, whether you have plans for home improvements, renovations, or you’re bringing pets from abroad, our team is ready to assist. Moreover, this package can be individually tailored to your unique requirements, providing you with a single point of contact for all your property-related needs. While the actual costs of services provided by professionals or companies will be your responsibility, the peace of mind and convenience our all-inclusive package affords make it the ultimate choice for a worry-free property ownership experience in Italy.
With the dedicated support of our professionals at Italian Real Estate Lawyers, you can fully immerse yourself in enjoying your new property while leaving administrative hassles behind. Your dream of owning a piece of Italy can now become a reality without the typical headaches associated with new home ownership tasks. Allow us to guide you through the post-sale process, ensuring a swift settlement so you can fully embrace the dolce vita lifestyle you envisioned.
For questions about post sale responsibilities or to reach out to us for our services, please contact us at info@italianrealestatelawyers.com
Exploring the world of property acquisition in a foreign country involves navigating legal intricacies and logistical challenges. Italy, renowned for its picturesque landscapes and cultural treasures, represents an attractive destination for property investments. In the interest of streamlining the property acquisition process, especially for those unable to be physically present in Italy, the power of attorney (POA), or “procura” in Italian, emerges as a solution. A power of attorney enables an individual to designate another person, usually a trusted legal representative or family member, to act on their behalf in legal affairs. This article delves into the concept of power of attorney and its acquisition process, offering tailored insights for potential property buyers.
Understanding the power of attorney (POA)
A power of attorney is a legal mechanism that authorizes an individual (the “principal”) to delegate decision-making authority to another person (the “agent” or “attorney-in-fact”). The agent, acting within the terms stipulated in the POA document, represents the principal’s interests. In the context of property acquisition in Italy, a power of attorney emerges as a strategic tool, allowing buyers to overcome geographical or linguistic constraints and engage in real estate transactions. In this way, the POA saves buyers time, financial resources, and the complexities of international travel. The appointed attorney-in-fact can execute essential decisions swiftly, including negotiating terms, completing transactions, and signing contracts, such as the final deed of sale. The ability to have an individual available for quick actions contributes to timely property acquisition without unnecessary delays.
Moreover, even those who have the opportunity to visit Italy on a regular basis find significant advantages in utilizing a power of attorney. This is especially true for individuals who do not speak Italian, particularly in situations that require their signature in the presence of an Italian notary public (notaio), such as property sales contracts. Italian law requires the translation of documents into the language of the non-Italian party, along with the involvement of a notarial interpreter during proceedings. This often leads to extended timelines and increased expenses. On the contrary, choosing to utilize a power of attorney, in conjunction with the expertise of a bilingual real estate lawyer, expedites the property acquisition process while enhancing cost-effectiveness.
At Italian Real Estate Lawyers, our expertise resides in Italian property law. We have extensive experience in drafting power of attorney documents tailored to our clients’ distinct needs. Our practice prioritizes the use of a bilingual POA, drafted both in English and Italian. This duality not only facilitates its comprehension for both the Italian notary and foreign authorities but also eliminates the need for separate and often costly translation procedures.
Drafting and legalizing the POA
It’s important to note that one must abide by Italian legal requirements when drafting a power of attorney. Ensuring the document’s adherence to local laws and regulations is vital to validate the property transaction and protect the interests of both parties involved. Furthermore, the versatility of a POA allows the principal to customize the powers granted to the agent. While the agent takes on the role of the principal’s representative, the scope of authority can be meticulously tailored, ensuring that their interests are duly represented. The document also stipulates details such as the duration of the POA’s validity.
Following the initial draft, the document is presented to a selected notary in Italy for examination and eventual endorsement, guaranteeing that the document aligns with the notarial interpretations. In Italian legal proceedings, the notary plays an indispensable role, particularly in property transactions. Their contributions encompass confirming the transaction’s legitimacy, verifying parties’ identities, and supervising the formalization of legal documents, including a power of attorney. Following the Italian notary’s endorsement of the drafted POA, the approved document is presented to the client for approval. The client then proceeds to notarize the POA within their home country, thereby affirming their identity and explicit consent.
The final step entails subjecting the POA to a process of legalization, usually executed through securing an apostille. This internationally recognized certificate validates the document’s authenticity, particularly for cross-border use. The apostille verifies both the document’s origin and the credibility of the issuing authority. After receiving the original POA with the apostille certification via postal mail in Italy, the document is valid for official use in Italy. The entire process can take from 2 to 6 weeks.
Conclusion
The power of attorney is a useful tool for international buyers navigating the Italian real estate market. This article has sought to explain the role of the power of attorney in property acquisition as well as give insight on its acquirement process. Beyond the realm of real estate, a power of attorney can be used in a variety of scenarios, ranging from mediation, legal disputes, banking, inheritance, and property management.
If you seek further information on the power of attorney for your property purchase, and on how the process of obtaining a POA might vary based on your country of origin, please feel free to contact us via email at info@italianrealestatelawyers.com.
The company’s foundation, its offices and professionals
Italian Real Estate Lawyers (IREL) was founded shortly after its sister company Italian Citizenship Assistance (ICA). As a matter of fact, many clients who obtained dual citizenship often expressed the desire to truly enjoy the possibility they had to stay in Italy without time constraints by purchasing a property in the country. Over the years IREL has helped many foreign citizens (regardless of whether they held an Italian residency visa) to overcome the challenges they faced when purchasing a property, ranging from unresponsive real estate agents to legal concerns stemming from unfamiliarity with the market’s intricacies.
ICA co-founder, Fabrizio Permunian, drawing on extensive experience in real estate spanning decades, realized that these impediments could be surmounted with the right guidance. Driven by the aim of providing optimal assistance, he embarked on aiding trusted clients in acquiring their dream homes. This involved having conversations with real estate agencies, negotiating prices, and offering advice on prudent purchases. A pivotal realization was that the entire process could be seamlessly managed from a distance. Typically, property viewings and notarial transactions were coordinated around the client’s commitments based on travel schedules, resulting in delays. By incorporating video tours and executing contracts via Power of Attorney, these hindrances were effectively mitigated. Fabrizio’s inaugural transaction on behalf of a foreign client enabled her to secure her dream property in Monteverde, Rome.
From these initial experiences, a quick survey among IREL’s clients revealed that most were interested in the opportunity to buy a property in Italy with comprehensive legal safeguarding, unwavering communication, remote support, and translation services. This revelation led to the birth of Italian Real Estate Lawyers, helmed by its CEO and founder, Fabrizio Permunian.
In a short time, the demand for IREL’s services surged, prompting the team’s expansion. Linda Balboni joined as Fabrizio’s indispensable right-hand, leveraging her prior real estate consultancy experience. The Italian Real Estate Lawyers team has since evolved into a versatile and adaptable unit, boasting a robust network of trusted notaries, surveyors and agencies. The firm stands as a prominent entity aiding U.S. and other foreign citizens in acquiring Italian properties. Operating from its headquarters in Rovigo, Italy, the team orchestrates deals spanning the entire Italian territory.
The team
IREL takes pride in its team’s diverse skill sets and specialized expertise. While a comprehensive understanding of the Italian real estate domain unites the members, their individual proficiencies synergize to offer optimal client support. Comprising attorney Marco Permunian, associate attorneys, real estate consultants, translators, and legal assistants, IREL’s team boasts linguistic fluency in both English and Italian. Many members have spent time abroad during their educational pursuits or previous employments, equipping them with multilingual capabilities.
Despite being based in Rovigo, Italy, where they work under the supervision and guidance of Marco and Fabrizio Permunian, one of IREL’s strength lies in their ability to operate throughout the entire Italian territory. Thanks to their experience in the field and to the large number of previous purchases that they have been able to complete, they rely on a strong network of trusted professionals, allowing them to expedite the fulfillment of client needs.
A-Z assistance
Prospective buyers can seek assistance irrespective of their current purchase stage. Whether they are at the property identification phase or have just tendered an offer on their dream home, IREL’s adept team evaluates their scenario, assigning the client to the most suitable case worker. The evaluation commences with an exploratory discussion led by the intake team, elucidating the client’s current circumstances and aspirations for the property investment. Typically conducted via email by Linda Balboni, IREL’s client-relations manager, this phase concludes within a few days. If further discussion is warranted, clients can opt for a Zoom or phone consultation with one of the team’s specialists.
Once a strategy is developed and the client decides to proceed with IREL’s services, the assigned case specialist will officially begin the collaboration with them. Although the services can vary depending on the client’s needs, IREL’s most popular package offers A-Z, all-around assistance: if the property has not been identified yet, a real estate search will be made (at no additional cost) in order to identify a few suitable options. Then, if the client is available to visit the properties in person, a viewing itinerary is organized and all the relevant information is translated into English. Being a law firm, as opposed to a real estate agency, gives IREL and their clients a significant advantage during this stage: as their compensation does not derive from a commission fee based on the property’s price (contrarily to real estate agents), they are able to organize tours with unlimited agents and schedule viewings for any property on the market.
Nevertheless, the bulk of the company’s work takes place once a suitable property is identified and a formal offer must be written: in fact, the formal offer states the terms of the transaction and can be modified to protect both the seller and the buyer. To best safeguard the buyer’s interests, IREL always carefully reviews and modifies, where necessary, the formal offer in order to insert all the clauses necessary for their protection: for instance, should a surveyor identify a structural defect in the house, the buyer will be entitled to getting the deposit back.
IREL walks the client through property research and identification, through to a formal offer, all the way up to the drafting and signing of the final deed of sale. In all phases, any contracts are made available in English translations, and if the client is unavailable to sign in person for the final deed, the POA is drafted. IREL works side by side with the client from beginning inquiries until they have the keys to their dream home in hand.
Property tours
For clients deeply involved in property research, IREL offers a VIP Property tour package. Collaboratively, a selection of 10-15 properties is chosen in the preferred area for personal visits. This immersive venture enables firsthand exploration and evaluation of each property, accompanied by local excursions, meals, and an exclusive Real Estate Info Session led by experts. A day of immersive learning at their new office, situated in a 16th-century Veneto villa outside Verona, awaits. Lead attorney Marco Permunian imparts personalized guidance, covering every facet of the purchase process, real estate dynamics, mortgages, visas, and even Italian citizenship. This exclusive one-on-one session guarantees exhaustive clarification of all inquiries.
Post-sale services
The support offered by Italian Real Estate Lawyers extends beyond the culmination of a property purchase. Acquiring a home does not automatically render it ready-to-move-in, so to eliminate obstacles, IREL’s post-sale offerings ensure purchased properties are fully prepared. They assist in utilities setup, bank account establishment, and locating local cleaning services, among other tasks. Additionally, IREL addresses post-sale relocations, particularly for clients transitioning to full-time residency in Italy, including those shipping furniture, vehicles, and pets. The dedicated post-sale team gathers relocation service estimates and coordinates the shipment process.
If you are thinking of purchasing your dream house in Italy and you would like further information, do not hesitate to contact info@italianrealestatelawyers.com for a free consultation!
Italy is an attractive destination for real estate; whether you are considering buying a property in the Bel Paese as your primary residence, a vacation home, or an investment, the opportunity comes with many perks. Italy is also strategically located to travel within Europe and residents enjoy a high quality of living. However, the process can be daunting and raise many questions. For instance, do you have to pay taxes in Italy if you buy a property and rent it? How many days do you need to spend in Italy to qualify as a tax resident?
Codice Fiscale – The Italian Tax ID
Obtaining a Codice Fiscale, or fiscal code, is the first step to purchase a house in Italy. The code is a unique alphanumeric identification number assigned to individuals in Italy for tax and administrative purposes. It is a universal identification code used for official transactions, such as opening a bank account, signing employment contracts, obtaining healthcare services, and filing tax returns. The Codice Fiscale is derived from an individual’s personal information, including their name, date of birth and gender, and is issued by the Italian tax authorities or consulates abroad. It plays a vital role in conducting official and financial transactions in Italy. Individuals born on Italian soil are automatically issued their fiscal code; those who are eligible for Italian citizenship can also get one. The Codice Fiscale is not limited to Italian residents; it is also issued to non-residents for various purposes, including property transactions. Non-residents can obtain a Codice Fiscale at an Italian tax office or through an authorized representative, such as a legal professional or tax consultant. Obtaining a fiscal code does not mean that you automatically become an income taxpayer.
Income taxes and tax residency
When does one have to pay taxes in Italy?
In Italy, taxes are owed by both residents and non-residents who have generated income or own assets within the country. An individual’s tax liability is linked to the number of days spent in Italy. In fact, should an individual spend more than 183 days during a tax year in the country, then his/her worldwide income would be subject to taxation in Italy, whether the individual is registered as a resident or not. In this case, Italy is the person’s legal tax residence, even in case the income is entirely generated outside of Italy.
On the other hand, should the person spend less than 183 days in Italy during a tax year, then the taxation would only apply to the income generated in Italy over that time frame.
In Italy, an individual’s income must be taxed with the “Denuncia dei Redditi” or Tax Report, declaring worldwide earnings, assets, properties, and bank accounts. Depending on your nationality or country of residence, you might be able to avoid double taxation if Italy and your country of origin or residence have a special agreement. Due to the fact that income taxes are tricky to navigate, we recommend consulting an international tax accountant.
Annual property taxes
When you own a house in Italian, aka a “casa di proprietà,” you will have to pay three kinds of annual property taxes, respectively Imu, Tasi, and Tari. They must be remitted to the “Comune” (municipality) where the property is located. Let’s break them down:
- IMU, “Imposta Municipale Propria” or Local Municipal Tax: this tax does not apply to owners of a “first home”, but it needs to be paid for luxury homes, mansions, castles, buildings, farmland, and plots of land. The payment of this tax is remitted in two installments: the first one’s deadline is on June 16th of each year, and the second one is on December 16th of each year.
- TASI, “Tributo per i Servizi Indivisibili” or Tax for Indivisible Services: first homes’ owners are exempt from the Tasi. In January 2020, the Tasi merged with Imu, becoming an “Imposta unica”, a single tax. The Tasi tax is a local property tax imposed by Italian municipalities. Rates vary by municipality and are based on the property’s value.
- TARI: “Tassa sui Rifiuti” or Waste Tax: its payment is required to cover the expenses of waste collection, transport, and disposal. Its amount is set by each municipality, based on the property’s surface (the square meters) and the quantity of waste produced (the number of people living in the property).
Renting your property and earning an income
With Italy being such a substantial market for short and long-term rentals, considering these options can be beneficial. When renting out a property in Italy, several taxes and obligations may apply. Here are some common taxes associated with rental income:
Income Tax: rental income is generally subject to income tax in Italy. The income is added to your overall taxable income, and you must declare it in your annual tax return. The applicable income tax rate depends on your total income and tax bracket. The taxes you owe also depend on the number of properties you own in Italy. The “Imposta di Registro” is the registration tax paid on the rental agreement. The tax rate is typically a percentage of the annual rental value and may vary based on the lease length. The “Imposta di Bollo” is a stamp duty tax that applies to the rental agreement. It applies to certain legal and financial documents, including rental agreements.
Seeking help to make the process smoother
When purchasing a property in Italy, it is essential to remember that there are a few expenses and taxes to foresee. Some are connected to the purchasing process, others are expected as annual costs, and there will also be the regular costs associated with utilities. If you are planning on establishing your residency in Italy, taxes on income are to be evaluated based on the period spent in the country during the tax year. While they are legislations and general rules, each case remains unique and has challenges. Professionals such as Italian Real Estate Lawyers are here to make your dream come true and make the bureaucracy smoother.
If you are thinking of purchasing your future home in Italy and wish to be assisted during each step, do not hesitate to reach out to our bilingual team at info@italianrealestatelawyers.com.
DISCLAIMER: please note that this article aims to provide general information, and it is not to be considered as legal advice as each case may vary based on individual circumstances. Therefore, we always recommend consulting with a dual citizenship taxation specialist.
When it comes to purchasing their first home, Italian citizens are eligible for a range of concessions provided by the state. However, questions surface when individuals residing abroad, registered in the Register of Italians Residing Abroad (A.I.R.E.), seek access to these benefits. In response, on June 13, 2023, Italy amended a new law (D.L. n. 69/2023, Art. 2) regarding the primary-home tax benefits that Italians living abroad may claim. The new legislation marks a departure from the previous regulations, as it grants tax incentives only to certain categories of Italians enrolled in the Register of Italians Residing Abroad (A.I.R.E.). In this article we will explore the key aspects of the law, including the eligibility criteria, and discuss how it impacts Italians living abroad, including dual citizens.
Understanding the Law
The newly revised law specifically addresses the provision of tax benefits for the purchase of a primary residence in Italy by Italians residing abroad who are enrolled in A.I.R.E. Unlike the previous condition, which allowed any Italian enrolled in A.I.R.E. to automatically qualify for primary home tax benefits without additional requirements, the amended law introduces stricter eligibility criteria. Previously, proof of residency in Italy was not required, as long as the purchased property served as the individual’s primary residence in the country. However, the revised law now mandates that individuals meet specific conditions related to previous residency in Italy and work-related connections to be eligible for the tax benefits. These additional requirements are intended to target and support working Italians residing abroad who have established strong ties with Italy through their residential history.
Eligibility Criteria
The new amendment introduces specific eligibility criteria to qualify for primary-home tax benefits for Italians residing abroad. To be eligible, individuals must meet the following conditions:
- Previous residency and work reasons: Italians who have previously lived or resided in Italy for a continuous period of at least 5 years and are currently residing abroad with their tax residency in a foreign country, due to employment / work reasons, are eligible for the tax benefits.
- Location of the home: in order to qualify for the primary-home benefits, the property being purchased in Italy must be situated in the municipality where the individual was born or in the municipality where they previously resided or worked before moving abroad.
In the case of dual citizens, such as an American-Italian citizen who is enrolled in A.I.R.E. but has never lived in Italy, eligibility for primary-home tax benefits under the new law would therefore rule out. However, the law does not explicitly address the specific circumstances of dual citizens who lack residency experience in Italy. It is advisable for dual citizens to consult with legal professionals to discuss their eligibility and any potential exceptions or additional requirements that may apply to their situation.
Importance of the Law
The newly implemented law is specifically aimed at providing primary home tax benefits to expatriated Italians who have left the country for work-related reasons but have maintained strong ties with Italy through prior long-term residency. By extending primary-home tax benefits to eligible Italians residing abroad, the government aims to facilitate the return and reintegration of Italian expatriates. This approach acknowledges the contributions and potential economic impact of Italians living abroad, fostering a stronger bond between them and their home country. However, on the flip side, the new requirements could be perceived as excluding Italian citizens who have obtained citizenship through Jure Matrimoni or Jure Sanguinis and have never resided in Italy or have resided in the country for less than 5 years.
Conclusion
Italy’s recent enactment of a new law granting primary-home tax benefits to Italians residing abroad under specific conditions represents a shift in policy. By providing tax incentives for the purchase of a primary residence, the government aims to specifically support those expatriates who have work-related connections or have previously resided in Italy for an extended period. These tax benefits encourage Italians living abroad to invest in and strengthen their ties to their home country. While the new law granting primary-home tax benefits to Italians residing abroad has officially gone into effect, it is important to note that the Notary Commission of Italy, responsible for overseeing property transactions, has yet to express its official stance on the implications and interpretation of the ruling. Therefore, further clarification from the Notary Commission is eagerly awaited to provide guidance on the practical application of the law for eligible individuals, including dual citizens, and to address any potential ambiguities or exceptions that may arise.
In the last decade a number of enchanting rural villages across Italy have been attracting more and more foreigners interested in investing in Italy’s real estate market. These small towns have been promoting several schemes in order to fight the rural depopulation caused by a number of socio-economic factors which, in turn, have led many young people with aspirations of a successful career to move abroad or to bigger cities in Italy. Among the most successful projects offered in the past few years, for instance, is the 1-euro properties scheme. However, this comes with a number of advantages and disadvantages. In fact, while the purchasing price for these properties is often one euro, the buyer must invest in their renovation and redevelopment thus the final cost to buy the property might be higher than anticipated. In addition to this, the buyer needs to pay for the notary’s fees and the registration of the property. There are also some specific obligations which the buyer must adhere to, such as renovating the property within a set number of months. So, what are the benefits of buying a 1-euro property? What are the disadvantages? This article seeks to provide you with an overview of the most important aspects you need to consider before you decide to purchase a 1-euro house in Italy.
The pros and cons of buying 1-euro houses
Purchasing 1-euro properties offers several advantages, including cost savings, contributing to the revitalization of small villages, and providing an opportunity for foreign enthusiasts of Italy to explore charming remote villages nestled in picturesque landscapes. However, buyers of 1-euro homes also have specific obligations, such as establishing residency in the property they decide to purchase, presenting a renovation project, and paying a security deposit which is retained by the municipality if the buyer does not carry out the renovation works before the deadline established by law. Furthermore, some villages may decide to sell properties through a bid which starts at 1 euro, and they may put restrictions on re-selling the property, which might be a challenge in itself given the rural location of most of the properties.
Are there any alternatives to 1-euro houses?
While a 1-euro property might sound like an appealing choice, it is worth noting that in Italy, you can often find ready-to-move-in properties that typically range from €10,000 to €60,000 and do not necessitate any significant repairs or renovation work. Therefore, these properties may in the long run be cheaper than 1-euro homes. The town of Biccari in Apulia, for instance, is one of the first towns in Italy to have offered innovative real estate schemes as an alternative to 1-euro houses. Biccari is located near Foggia and it is considered to be a corner of paradise with its fresh mountain air and natural surroundings. In the 1950s it had a population of 5,000 people, but the number gradually decreased as more and more people left the town due to the lack of job opportunities. In the past, many properties were owned by families who eventually emigrated and would use them as second homes during the summer, however, as the years passed, many families stopped returning to the town and ultimately abandoned their properties. As a result, Biccari depopulated, almost becoming a ghost town with less than 2,000 residents in 2010.
As Biccari’s mayor pointed out, today the town offers many charming houses and apartments, which are livable and in good condition, especially compared to 1-euro houses. These turnkey houses are available on Biccari’s official website. More information can also be found on the town’s Facebook page.
Other towns in both the north and the south of Italy are following Biccari’s footsteps and are launching projects which aim to attract foreign investment. Among these are Carrega Ligure, Latronico and Troina. Carrega Ligure in Piedmont is a small town which is close to the borders of Liguria and Emilia Romagna. The municipality’s website offers a few listings which feature pictures and relevant details. If potential buyers are interested in one of these properties, they can email the municipality for further information and book a tour to visit the properties. On the other hand, Latronico in Basilicata is known as the “village of wellness” thanks to its thermal baths and its history as a wellness destination. This municipality has launched a website called “Your House in Latronico”, where prospective buyers can view house listings and connect with property owners and real estate agencies. Current listings show negotiable prices ranging from €9,500 to €50,000.
Finally, Troina in Sicily is another enchanting village surrounded by forests and parks. In particular, Troina offers financial incentives up to a maximum of €10,000 to people who relocate to the town’s historic district and establish their residency there.
However, small towns are not the only locations offering alternatives to 1-euro houses. In fact, there are also a few Italian regions which are promoting advantageous initiatives, such as “residency income” for those who purchase a property and relocate there. It is important to note that these schemes are not limited only to Italian citizens – they apply to all individuals regardless of their country of origin. Sardinia, for instance, offers several bonuses to people who relocate to municipalities with less than 3,000 inhabitants. Among these, the so-called “Bonus Casa” is valid until 2025 and it entails a €15,000 grant which covers 50% of the total expenses to purchase and renovate a property. However, individuals who are granted this incentive must establish their residency in the property for a minimum of 5 years. In addition to this, the region has also recently launched the “Bonus bebè”, which offers families who relocate to some specific villages €600 per month for each first child (either newborn or adopted in 2023) and €400 for any additional child. Similarly, in 2022 Emilia Romagna launched the “Bando Montagna 2022”, a project which aims to repopulate and bring new life to municipalities which are spread out across the Apennines.
Final remarks
In conclusion, there are several alternatives to 1-euro houses which include ready-to-move-in homes in small municipalities. There are also a number of bonuses and schemes which are worth considering that are available to both Italian and foreign citizens alike.
Don’t miss out on the opportunity to purchase your dream property in one of Italy’s charming and unspoiled villages! If you are thinking of purchasing a property and you would like more information, feel free to contact us at info@italianrealestatelawyers.com .
In the past few years, the Italian real estate market has been attracting millions of potential buyers and investors who are fascinated by Italy’s culture, landscapes and cuisine, among many other factors. One of the first questions that investors ask when they approach the Italian real estate market is: how much does it cost to purchase or rent a house in Italy today? This article will answer this question and it will also list a few additional costs that you should expect when you purchase a property in Italy.
Average house prices across Italy
Websites such as Immobiliare.com and Idealista.it are very reliable sources that offer precise data regarding prices for properties for sale and rentals. As of April 2023, the average price of a property for sale in Italy is €1,855/m2 – this has increased by 1.9% since April 2022. On the other hand, the average price for a rental property is €12.5/m2 – the figure has risen by 10% since April 2022. Let’s imagine that you are interested in purchasing a 90 m2 property, which is the average size for a house for sale in Italy; in this case, you can hypothesize that the listed price will be around €167,000. On the other hand, if you rent a property for 60 m2 (which is the average size for rental properties) the price will be around €750 per month.
It is worth pointing out that the property’s listed price varies depending on where the property is located. In fact, the retail prices for both properties for sale and for rent change from region to region. This is due to a variety of factors, such as the local economy, the population density, the job market and whether or not the area where the property is located is a popular tourist destination.
The data show that Trentino, and the South Tyrol region in particular, present the highest asking price in Italy, which corresponds to €3,000 circa per square meter. Trentino is followed by Valle d’Aosta, which features a retail price of €2,650/m2 approximately, while Liguria gains the third place with an asking price of €2,500/m2 circa. On the opposite side of the spectrum, Molise and Calabria present the lowest asking prices (€900/m2 approximately). Among the most affordable regions to buy a property in Italy, it is also worth mentioning Sicily, which features an asking price of €1,000/m2 approximately.
On the other hand, the asking prices for property rentals as of April 2023 vary slightly. In order from the most expensive region: Valle d’Aosta, Lombardy, and Tuscany feature the highest prices for rental houses in Italy, with costs ranging from a minimum of €15/m2 to a maximum of €17/m2. On the contrary, Molise is the most affordable region with an average asking price of €6/m2, while both Umbria and Basilicata present asking prices of €7/m2. Therefore, a 90 m2 property would cost €1,530/month in Valle d’Aosta and only €540/month in Molise.
These results demonstrate that, as a general trend, prices for both property rentals and houses for sale vary from the north to the south of Italy. In fact, on average, the data show that houses tend to be more expensive if they are located near the Alps or along the shores overlooking the Tyrrhenian Sea, in the Tuscan countryside, or in Sardinia. Conversely, prices appear to decrease on the coast overlooking the Adriatic Sea, down to Italy’s “heel”, as well as in rural areas in the south of Italy, and in Sicily.
The most expensive properties in Italy
It is worth mentioning that the results outlined above exclude densely populated cities like Milan and Rome where prices are exceptionally high. In fact, as of April 2023, a property for sale in Milan costs €3,000/m2 approximately, while in Rome the asking price is about €2,500/m2. However, the further you are from the city center, the cheaper the property. Additionally, it is important to mention that this analysis does not include luxury destinations, which we analyzed in great detail in one of our previous articles. Forte dei Marmi and Pietrasanta in the enchanting region of Tuscany, Alassio on the splendid Ligurian coast, and Venice were on the top of Idealista’s list rating the most expensive properties to purchase a property in Italy in 2022. Therefore, it comes as no surprise that these highly desirable destinations have been attracting many buyers and renters from all over the world, thereby increasing the demand for properties in these locations.
Additional costs
Finally, when analyzing house prices, it is essential to note that purchasing a property comes with additional costs that you will need to consider when determining your budget. As explained in one of our previous articles, you will need to keep in mind the notary’s fees and the real estate agent’s commission fee, if applicable. The real estate agent’s fee is usually 3% of the purchase price and you should also bear in mind that both the notary’s fees and the real estate agent’s commission fees are subject to VAT – the standard VAT rate is 22%. Finally, you will also have to take into account registration and cadastral taxes.
In conclusion, this article has sought to provide you with an overview of the expenses you should expect to incur if you decide to purchase a property in Italy. If you would like to learn more about the topic, do not hesitate to contact our team of real estate experts at info@italianrealestatelawyers.com.
When you have completed all of the necessary steps to purchase a property, the last stage will be to sign the final deed of sale before a notary. This article will provide you with all of the information you need to know in order to be prepared for this final stage, which will ultimately allow you to become the legal owner of the property you have chosen to purchase.
What is a final deed of sale?
A final deed of sale (rogito notarile, in Italian) is an official document which is used to transfer the ownership of the property from the buyer to the seller, and which is prepared by a notary, a public official who is authorized by the Italian government to authenticate documents, agreements and contracts by inscribing his or her seal and signature. The notary carries out a variety of legal duties in every area of law, including family law and real estate law, among others.
There are several issues that need to be resolved before the final deed of sale is signed. First, the property must be thoroughly investigated to ensure that there are no liens or other obligations against it. Additionally, all the information about the property that is recorded with the town hall and the office of the real estate registry must be current. If the property underwent any structural improvements before going on the market, these must be recorded, and the applicable building permits must be registered. In order to proceed with signing the final deed of sale, these documents are essential. In fact, the notary will not let the buyer and the seller sign the final deed if the property’s layout differs from the layout that is on file at the real estate registry office.
What does a notary do?
A notary is an Italian public official who verifies that the purchasing process complies with real estate laws and regulations. Whether the property is sold by a private individual or by a real estate agent, the notary will be responsible for checking all the documents regarding the sale. It is worth specifying that the notary is a neutral party, therefore, he/she cannot act in favor of the interests of neither of the two parties involved.
Choosing a notary is entirely up to the individual purchasing the property. Generally speaking, individuals choose a notary who operates in the same area where the property is located.
Which documents do you need to submit in order to sign the final deed of sale?
In order to draft the final deed of sale, the notary will need the following:
- Cadastral documentation (visura catastale);
- Mortgage-related documentation (visura ipotecaria);
- Both parties’ IDs and tax codes (codice fiscale);
- A document proving the buyer’s marital status;
- Details regarding the property’s layout, which are held by the real estate registry office;
- The property’s last deed;
- The formal purchase offer.
These documents will need to be emailed to the notary in advance so that he/she can draft the final deed of sale before the date on which the deed will be signed.
Who must attend the final deed of sale?
By law, both the buyer and the seller must sign the final deed of sale. If the parties cannot attend the appointment, they will need to sign a Power of Attorney and delegate a person they trust to sign on their behalf. If a real estate agency is involved in the purchasing process, the realtor may also be present. It is worth pointing out that if one of the parties to the transaction does not speak Italian, an interpreter will need to be present by law.
Expenses
Generally speaking, the buyer pays the expenses related to signing the final deed of sale. These can be summarized as follows:
- The purchase tax, which is equal to 2% of the cadastral value of the property (or 9% if the property is classified as the buyer’s second home in Italy;
- A fixed cadastral tax of 50 euros;
- 4% VAT of the property’s total price if the property is bought from a construction company;
- The notary’s fee (a few thousand euros).
With regards to this, the notary’s fee may vary depending on the area where the property is located and on the value of the property. On average, notary fees generally range from 0.5% to 2.5% of the declared value of the property.
Final remarks
In conclusion, this article has sought to provide an overview of the aspects that characterize a final deed of sale. As understanding all the steps involved can be quite overwhelming, it is important to rely on the help of real estate experts who can guide you throughout the purchasing process. If you would like further information, do not hesitate to contact us for a free consultation at info@italianrealestatelawyers.com or at 1-323-403-5396.
When purchasing a property in a foreign country, it is very important to have a solid understanding of the key words that will be used in the real estate transaction. In one of our previous articles we discussed the main differences between the Proposta (“purchase offer”) and the Preliminare or Compromesso, (“preliminary contract of sale”). This article will focus specifically on the latter and it will explain what it obligates the parties to, and its implications.
What is a preliminary contract of sale?
A preliminary contract of sale is a true contract that obligates the parties involved to sign the final deed of sale. In particular, the parties are named “promissario acquirente” (“prospective buyer”) and “promittente alienante” (“the seller of the property”).
What does a preliminary contract of sale stipulate?
A preliminary contract of sale specifies the sale price, the kind of property being sold, its location, and a thorough description of the property’s grounds. The contract also specifies the property’s cadastral information and the deadline for the sale. Both parties agree on the date that the final deed must be signed, which takes into consideration the time needed for the buyer to obtain a mortgage, if applicable, or, in the case of properties that are still under construction, the period when the property will be available for sale.
The parties can decide to add additional clauses called “clausole accessorie”, which specify important terms and conditions, such as the amount of the deposit to be paid and the deadline by which the payment should be made.
Paying a deposit
When the preliminary agreement is signed by both parties, the buyer must pay a deposit, which ultimately results in both parties committing to signing the final deed of sale. The amount requested by the seller is usually between 10 and 20% of the purchase price. Depending on what the parties agree, the payment made by the buyer can either be an amount which goes towards the payment of the purchase price, in which case the payment is referred to as “acconto”. Alternatively, the parties can specify that the down payment constitutes a “caparra confirmatoria”, which is a deposit that entitles the seller to withhold the amount of money if the parties do not sign the final contract due to circumstances that are attributable to the buyer. More specifically, if the buyer withdraws from the agreement after signing it without a valid reason, he/she will lose the deposit. On the other hand, if the seller decides to withdraw, he/she will be forced to pay the buyer double the amount of the deposit paid.
What is the difference between a public deed or an authenticated private deed?
A preliminary contract of sale must be drafted by a notary in the form of a public deed, or it must be signed by both parties but it then needs to be authenticated by a notary. In both cases the contract will need to be registered at the “Agenzia delle Entrate” (the Italian revenue agency).
Anyone, including the parties to the transaction, the notary or the potential real estate broker who assisted the parties in the sale/purchase process can register the preliminary contract of sale.
It is worth pointing out that the preliminary contract needs to be registered within 30 days from the date on which it is signed.
Is a preliminary contract of sale mandatory in Italy?
It is worth pointing out that entering into a preliminary contract of sale is not mandatory in Italy as a deed of sale can also be signed directly after the purchase offer is accepted. However, the preliminary contract of sale is widely used in Italy because it has the effect of securing the property for the prospective buyer.
Final remarks
In conclusion, the preliminary contract of sale allows both the seller and the buyer to commit to signing the final deed of sale while protecting their rights and responsibilities. If you are thinking of purchasing a property in Italy and you would like further information about all the steps involved in the purchasing process, feel free to contact us at info@italianrealestatelawyers.com.
When people decide to buy their first home, they usually decide to purchase from individuals or building companies. However, in recent years, out of the many real estate market opportunities Italy has to offer, auctions have become a popular choice among many people. In fact, participating in a judicial auction offers the advantage of purchasing a property at a significantly lower price than the standard market price.
The exclusivity of real estate judicial auctions is an old tale. As the Italian Code of Civil Procedures states, everyone can participate in the auction except for the debtor/owner. But let’s start with the basics, what is an auction?
An auction is a judicial process that begins with establishing a minimum price for the property in question, and a set time period within which the participants must present their bids.
There are four benefits when purchasing a property from an auction:
- You are buying a property at a lower price than its market value.
The Court will assess the property and the bidding will start at a fixed price (prezzo base). However, offers will begin from a minimum price (prezzo minimo), which is 25% less than the initial fixed price. Therefore, properties purchased through auctions are sold at a much lower price than they would be on the real estate market.
- No realtor and notary fees
As the purchase occurs directly between the awardee and the Court, not only are there no third parties (such as realtors) involved in the process, but as the Court draws the deed internally, there is no need for a Notary, who charges on average €2,000 per transaction.
- Transparency
As stated previously, the purchasing process through auctions in Italy is managed by the Court. This guarantees maximum security and transparency when checking the property’s legal status and structural conditions.
- You can use a mortgage to purchase a property
While paying in full after being awarded the property is certainly faster, there are also other payment options. As a matter of fact, participation in auctions is not reserved to individuals with high financial assets only. In fact, there are specific types of mortgages one can apply for and some are designed to last short periods of time.
Finally, as in any deal, there are risks to take into account when purchasing a property through an auction, which is why many people rely on professionals to assist them throughout the process. The risk factors which are related to the state of the property, financial coverage and faults can be summarized as follows:
a. Not respecting deadlines
In the auction market, the adage “By failing to prepare, you are preparing to fail” is accurate. Budgeting is important since you will only have a certain amount of time to pay off the entire price after winning the auction. Failing to do so could cost you your brand-new home. As a result, you risk losing your initial deposit (which ranges from 10% to 40% of the minimum price) if you bid an amount that is too high for your budget and do not pay the balance due.
b. Overlooking inconsistencies
Properties in auctions go through a foreclosure process. Therefore, one should keep in mind that there may be several types of issues that could significantly lower the value of the property, such as inconsistencies regarding building permits, occupants refusing to leave, and outstanding debts.
c. Overlooking structural faults
Buying at an auction may sometimes be risky as there might be properties with structural faults, such as properties without a building permit, for instance. Therefore, it is always worth relying on the services of an attorney who can carry out due diligence on the property for you.
In conclusion, real estate auctions come with great benefits but there are also a few risks to consider. This is why relying on the help of the right real estate consultant can make a difference in the type of property you buy.
If you have any questions or you would like a free consultation, do not hesitate to contact us at info@italianrealestatelawyers.com.