Living and working in the hills of Tuscany, or perhaps retiring in the sub-tropical climate of Sardinia, is a dream many Italians and foreigners wish to achieve at some point in their lives. It is not surprising, given that Italy has so much to offer: spectacular ancient cities, mountains, lakes, rolling countryside, museums, great beaches, and beautiful natural scenery.
Although buying a property in Italy is similar to purchasing one in your home country, the process can differ significantly and may not be entirely straightforward compared to many English-speaking countries. Moreover, terminology that appears similar in English can have a very different meaning in Italian.
If you’re an overseas resident considering purchasing a property in Italy, there are several key steps you’ll encounter before walking through your new front door with new keys.
Legal Formalities and Documentation
As you may already know from purchasing property in your own country, there are a number of documents required to complete the process. As a non-resident of Italy wishing to purchase property, you will need to produce and fill out various forms, and it is highly recommended to seek legal guidance.
Here is a list of the most common requirements for overseas purchasers of Italian real estate:
- The attorney working on behalf of the buyer will need to obtain many documents related to the property (Property Deed, Certificate of Urban Destination, Authorization for Division into Lots, Town-Planning Conformity, Certificate of Indemnity, Certificate of Habitability, Preemptive Rights, Cadastral documentation, Condominium Regulations, Administrative and Environmental documentation, etc.). These documents, issued by various administrative offices, are often difficult to obtain and interpret without legal assistance.
- The non-Italian resident will need to open an Italian bank account. This can be done in person at an Italian bank (with passport and tax code) or remotely. Some banks specialize in non-resident accounts, but others may only offer basic services, potentially slowing down the purchase process.
- Before opening an Italian bank account, the non-resident must obtain an Italian Tax Code (Codice Fiscale). This alphanumeric code is assigned to all Italians at birth and to anyone living or working in Italy. Foreign citizens can apply for free at any Italian consulate or through a local attorney at a Revenue Agency office.
- All documents related to the purchase must be written in Italian. Italian legal writing is technical and often archaic due to its roots in Roman Law. The difference between civil law (Italy) and common law systems (U.S., U.K.) can create additional challenges for foreigners. Therefore, an accurate understanding of both legal systems is essential for lawyers, translators, and interpreters involved in such transactions.
- Once the documentation, Italian tax code, and bank account are in place, the purchase process can move forward. It involves several professionals and typically follows three main stages:
- Purchase Offer or Reservation Offer – an irrevocable agreement signed by both buyer and seller once the price is agreed, identifying both parties, the property, and the expiration date for signing the Preliminary Contract.
- Preliminary Contract of Sale – a legally binding document stating the agreed sale price, completion date, property details, and deposit to be paid.
- Final Agreement – the definitive document finalizing the sale, confirming the same key details and completing the transfer.
As you can see, there is a lot to cover before you can step into your own Italian home. That’s why it’s crucial to seek the right legal advice and guidance throughout the process.
Our team of experienced Italian lawyers and consultants assists foreign clients with every aspect of buying, selling, or leasing property in Italy. We develop a deep understanding of each client’s needs and identify the properties best suited to them. Our services include consultancy and management of all stages related to property purchases in Italy.
Specifically, our main services include:
- Support in collecting all documentation necessary to buy an Italian property, including reviewing Chamber of Commerce records, public registries, and verifying the seller’s legal right to sell the property.
- Set-up and management of Italian bank accounts, assistance in obtaining a mortgage or loan (mutuo).
- Assistance in obtaining an Italian Tax Code required for real estate transactions.
- Coordination with real estate agents, negotiation of fees, preparation and review of the Purchase Offer, Preliminary Contract, and Final Agreement.
- Advice on handling payments remotely, including notary fees, real estate agent fees, purchase price, and taxes.
If you are interested in buying property in Italy, simply contact us to schedule a free phone or Skype consultation with one of our Italian experts in real estate and dual citizenship.
