Buying Guide Details
Buying Property in Italian Cities
Overview
While the countryside idyll lures many overseas home buyers to Italy, there is no doubt that there is significant interest in purchasing a home in a city, particularly as the country’s cities are so diverse, reflecting the unique histories of the regions that only in the 19th (and in some cases, the 20th) century became united as the Republic of Italy.
Cities such as Florence, Venice, Trieste and Naples demonstrate hundreds of years of culture in their architecture, each very different from the other, though properties in the fashionable areas can be, in some cases, some of the most expensive in their respective regions, if not the country as a whole. Homes purchased for investment and holiday use benefit from a central and popular location, the higher asking price often offset with better rental potential.
Industrial and business centres such as Turin and Milan lack the ancient charm of other Italian urban centres but there is no doubt that the professional and academic populations create demand for rental property.
Rome combines unparalleled historic treasures with being a busy centre for business, study and politics. With tourism all year round, a property in the heart of the city may be priced towards the top of the spectrum of Italian city living but with millions of tourists annually and a healthy market, returns and capital appreciation could make the investment a rewarding one.
Buying Process
- While the amount of Italian red tape is well known, and bureaucracy tends to move rather slowly, buying a property in Italy is actually pretty straightforward – if somewhat time consuming
- Anyone wishing to buy an Italian property must first obtain a tax identification number (codice fiscale) from the Italian authorities
- There are then three main buying stages. The buyer makes an offer, which commits him/her to buying the property at the given price. If the seller accepts, a deposit (usually 10%) is paid
- Both parties then sign a legally binding buying proposal (compromesso di vendita). This outlines the details of the transaction, including the scheduled completion date
- Should the seller withdraw, they must pay the buyer double the value of the deposit. If the buyer pulls out, he/she loses the deposit
- On completion, both parties sign the final contract (rogito) in the presence of a notary, who then issues the deeds and informs the land registry to transfer ownership. The remainder of the balance, plus all taxes, must then be paid at this point.
Homes Overseas Property Club
Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.
The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.
For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com
Fees & Taxes
- Buyers should set aside around 15% of the purchase price to cover costs
- Stamp duty/land registration tax for non-residents (i.e. second-home owners) varies from 10% of the declared price for urban property up to 17% for a rural property. Most homes are considered urban
- Residents or those intending to make a permanent move will pay 4% stamp duty
- VAT on new properties ranges from 10 to 20%, depending on whether the property is considered a ‘luxury home’. This is usually included in the price
- Reduced rates of 4% VAT are available for those who build their own property
- Estate agent’s fees are usually between 3 and 5% per cent, notary fees average around 3% and legal costs tend to amount to around 2% of the purchase price
- Local taxes (ICI) of between 0.4 and 0.7% also apply to anyone owning a home in Italy.
Getting there
There are many scheduled daily flights to the cities of Italy from all over the UK.