Purchasing property in Italy can be exciting and rewarding, but may also raise questions or concerns. We are following up on our FAQ article about the real estate purchase process with more commonly asked questions.
1. What are the steps involved in the Italian property purchase process?
The first step is the purchase offer (proposta d’acquisto). This proposal is submitted by the buyer and once it is accepted by the seller, the deal becomes binding for both parties. Next, the preliminary contract (contratto preliminare) will be drafted. This document is a crucial step as it states that the seller promises to transfer ownership of the property. It will also outline the details of the property, final purchase price, and the terms and conditions of the sale. Once signed, a deposit is made, generally 10% of the value of the sale price, and the contract is registered with the Italian Revenue Agency (Agenzia delle Entrate). While this serves as the legally binding contract between the prospective buyer and the seller, it does not transfer ownership of the property. Once the final deed (rogito notarile) is prepared by the public notary and signed by both parties, then property ownership is transferred from the seller to the buyer.
2. What is the cadastral value of a property?
The term, cadastral value, is commonly seen when purchasing a home in Italy, and can sometimes be confused with the purchase price, or market value, of the home. In fact, the cadastral value is the fiscal value, specifically calculated and used for taxation purposes. This value will determine the property-related taxes, such as property registration tax and IMU (Municipal Property Tax). The cadastral value will be subject to validation by the notary, in combination with the Italian Tax Revenue Agency, during the closing of the property.
3. What is a geometra and do I need one when purchasing a home?
The geometra, or surveyor, is a qualified professional who works to ensure your property complies with local regulations. Oftentimes, their role consists of architect, contractor, and surveyor. They can be utilized for a property inspection before the purchase, conducting a technical survey to assess the property’s construction conformity and maintenance status. They will specifically look for flaws, issues related to ongoing upkeep, and the functionality of the utility systems. They will also ensure that the property is in compliance with current building compliances.
4. What are the 1-Euro homes in Italy and are they worth it? Are there any unforeseen costs?
The 1-Euro houses in Italy are part of a project to repopulate and revive select small towns, mostly throughout southern Italy. There is a requirement that the purchaser carry out renovation work on the property within a set period of time. While the starting price is 1€, many will sell for much more after receiving bids from multiple buyers. In many cases, a deposit or insurance policy must also be paid as a guarantee that you will carry out the renovation work within the set time period. On top of the purchase price and renovation work, there will also be notary fees, registration costs, and utility connections to take into consideration. At the moment, there are no active 1-euro home projects in course.
5. What are the post-sale responsibilities that should I expect after purchasing an Italian property?
Once you are the owner of your new property in Italy, one of the first tasks will be to set up utilities at the property for electricity, heat, and water. This may include simply transferring the accounts into your name from the previous owners. The process will vary depending on the utility company and the type of service provider. You will also need to familiarize yourself with the annual taxes that will be required to pay each year. One is the IMU (Municipal Property Tax), which is based off the cadastral value of the property and is imposed for those who are using their property as a second home, such as a vacation home. Also, the TARI, which is a waste collections tax, will vary depending on the municipality and the number of occupants in the property.
6. How do I go about making renovations to my newly purchased property?
The first step is creating a renovation plan that meets your needs and preferences while also complying with local building and land registry regulations. It is advisable to consult with several local professionals such as a surveyor (geometra), architect (architetto), contractor (muratore), electrician (elettricista), and/or plumber (idraulico) to assist in drafting and executing the plan. Depending on the type of work, permits may need to be requested from the municipality.
7. Can I purchase a property if I’m not an Italian resident and am not able to travel to Italy to sign the contract?
Foreign citizens can purchase property in Italy if there is an international treaty permitting the condition of reciprocity between Italy and their country of origin, such as the United States. Therefore, you do not need to be an Italian citizen or residing in the country to purchase property. In fact, the entire process can be completed remotely. By signing a power of attorney, a legal representative in Italy can execute the purchase process on your behalf, including the final deed of sale.
If you have further questions, don’t hesitate to contact us at info@italianrealestatelawyers.com.
