Italy has a strict process of purchasing any property in their land through proper rules and regulations. In order to ensure secure and verified purchase of property which is free of debts or any restrictions, it is important to hire a lawyer that if also fluent in English as well as Italian to enjoy your own interests. There are two main stages:
Phase 1: Preliminary Contract
If you refer to any agencies for assistance, they might offer you a special purchase deal which bounds the buyer to accept the current terms and amount only in a specific duration; that is usually of 2 weeks or a month. Once the price has been negotiated, the two parties are to sign a contract and the buyer has to make a deposit of 30 to 40 percent of the price. In case the buyer does not continue with the proceedings, the seller has to return the price to the buyer. The process of purchasing property in Italy is comparatively more complicated than in other countries and takes a longer time.
Phase 2: Completion
A native representative of the Italian government called as nataio, is hired to deal with both the seller and the buyer’s process of legal transfer. The buyer has to buy the property registration fee plus all add on taxes besides the already negotiated amount of purchase. All registration and property transactions take place in the presence of the notaio. His job, is to check all the contract documents, double check the identified of both parties, and also collect the tax amount that is due to the Italian government.
Steps to Follow:
- Gather information about loans, Most Italian banks offer easy loans and offers for foreigners, so you can get an idea of how to manage your finances if they are out of hand somehow.
- Always prefer to take the help of a property agent. It is his job to be familiar to the places and keep eye on any openings, and he can also advise you to get the best deal according to your interests.
- Choose a property after thorough research and site visit. After you’ve checked the location, make a good offer to the seller that is convenient for you as well as the seller.
- Prepare a contract that is well drafted and stamped. This can be done by yourself or with the help of the notaio. Both parties are to sign the contract for a documented proof of the transfer.
- The buyer has to pay all the necessary and conditional taxes excluding the real negotiated price.
Notaio’s fee is set from 1-2.5% of the declared property value. Once the deal is finalized, the notaio is paid the amount. The standard registration tax is 3 percent for buying residence for already residing nationals, 7 percent for non-residing individuals or second residence buyers. The percentage varies further if the land is being bought for agricultural or business purposes. Although there are first-time buyer options, that offer reduced purchase taxes, buyers of new properties still have to pay Value Added Tax instead of registration tax.