Buying Guide Details
Buying Property in Rome
Where to buy property in Rome
Buying a property in the Italian capital is a process quite unlike buying a property in the UK. There is a big difference between the working practices of estate agents in the two countries, and though it is possible to do some research by phone or internet, face to face consultancy is the accepted norm in the city. The process can be labour intensive and frustratingly slow, but that does not stop an increasing number of UK property buyers considering buying property in Rome.
Though property prices are very high, for most people it is in the central districts of the city that they will be looking to buy property. Proximity to the cultural and institutional hotspots is key, whether as a holiday home or, perhaps more importantly, to ensure the maximum investment returns from rental.
There are a number of sources of potential rental income. Tourism is a year-round industry in Rome and with so many of the major sights and places of interest in the centre of the city, most visitors look for a base as close to them as possible. There is a huge student population, so property close to the university buildings will be in demand from them. Politics and business is also concentrated in the capital, so there is a long-term professional market that also needs rented property.
Considering the reason for your purchase and the kind of tenant you are looking for should be key points behind your choice of a property in Rome. Although your property in Rome will certainly not be cheap, there is no reason why the efforts and money put in to buy property should not bring very satisfying results in the long run.
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The Process of Buying Property in Rome
- While the amount of Italian red tape is well known, and bureaucracy tends to move rather slowly, buying a property in Rome is actually pretty straightforward – if somewhat time consuming
- Anyone wishing to buy property in Rome must first obtain a tax identification number (codice fiscale) from the Italian authorities
- There are then three main property buying stages. The property buyer makes an offer, which commits him/her to buying the property in Rome 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 property buyer double the value of the deposit. If the property 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
- Property 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 in Rome up to 17% for a rural property in Rome. Most properties in Rome are considered urban properties.
- 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 in Rome is considered a ‘luxury property’. This is usually included in the price
- Reduced rates of 4% VAT are available for those who build their own property in Rome
- 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 property in Rome.
Getting there
There are many scheduled daily flights to Rome from all over the UK and Ireland by a range of airlines.
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