It is a perception that the legal process for buying a property in Italy is a long winded and bureaucratic process; whilst it does have differences to other European countries it is reasonably straightforward. The main steps of the legal process for buying a property in Italy are;
• Formal Offer
• Preliminary Contract (contratto preliminare or Compromesso)
• Deed of Sale, completion (The rogito)
Formal offer, it is common when buying a property in Italy that an offer is made, however it is rare that this made direct to vendor, it is almost always done via the Agent who will handle the negotiations and once the price has been agreed will ask you for a small deposit, 2-3000 Euro is typical. This is not a legally binding contract as the seller may decide to withdraw, so you must make certain that the Agent has made it clear to the seller that your offer has conditions, the property survey as an example. The Agent should be well acquainted with this stage of the process of buying a property in Italy and will note doubt have documentation that sets out the conditions. If in any doubt ask the Agent to put you in contact with a local solicitor and get their advice before handing over your holding deposit.
The Role of the Notary, the process for buying a property in Italy is not dissimilar to other countries in Europe and centres around a Public Notary (Notaio). The notaio is legally empowered to witness and validate the deeds and contracts. Whilst the Notaio is a public official there are charges for the services. It also common practice for the parties to use the services of an Avvocato (solicitor) who is a legal executive and expects to act for both seller and buyer, if you feel this may lead to a conflict of interest then it is perfectly acceptable to appoint your own legal advisor.
It is the role of the Public Notary (notaio) to witness the legal deed of sale (scrittura private autenticata), and register the sale at the land registry (ufficio dei pubblici registri immobiliari). It is important to note that until this point the sale and purchase contract is not binding on any third party, such as a mortgage lender who may have a charge against the seller's property.
The public Notary also undertakes all the due diligence relating to the property, including the local search, checking on planning permissions, the title deeds, rights of access, that the seller owns the real estate and so on. They also register the sale for tax purposes.
The Public notary process for buying a property in Italy is long established and benefits both parties as they have a duty of care to be independent and impartial. Usually the Public Notary is appointed by the seller which means much of the preliminary work will have been completed and ready for review by the Avvocato, or any independent solicitor advising you.
Surveys by the geometra and/or architello, for buying a property in Italy the survey is undertaken by a geometra or more commonly today a more highly qualified professional known as a architetto. Some care or attention needs to paid to the qualifications of the architetto particularly to ensure that the architello understands or has staff that can investigate matters such as boundary rules, electricity and gas supply for example. If in doubt it is quite acceptable to use both, a geometra for the land and property survey and a architello for the architectural and structural survey work.
The geometra’s extensive checklist spills over from what we would expect of a surveyor into what we’d see as the province of our lawyer or solicitor at home. The selling agent or vendor may well recommend a local geometra.
The Preliminary Contract (contratto preliminare or Compromesso), once the seller has accepted your offer, the next stage is the contratto preliminare or compromesso. This is the contract that binds both parties to agree to buy and to sell the property, The contratto preliminare is typically prepared by the estate agent, who in Italy will have the training, professional qualifications and necessary licence to do so. However it is strongly recommended that you get this document reviewed by an independent Lawyer as it is very difficult to dispute its contents after signing. On signing, the buyer will be required to pay a deposit (as agreed in the contract) typically10 per cent of the purchase price.
The sale is not complete at this stage, but both parties are now bound to proceed, should either party wish to withdraw after signing this document either party can insist on completion. The buyer can seek damages of up to twice the deposit paid whist if the buyer withdraws the seller is entitled to keep the deposit.
It is also very important that you register the compromesso to protect yourself from potential claims from third parties. There is a charge for this but when you consider the third party rights that may effect your purchase, not to register the compromesso would be foolhardy.
There are some particular third party rights that affect buying a property in Italy, there is for example a principal of prelazione, which is third parties’ right to buy, this allows neighbours of adjoining land right of first refusal on the property at the asking price. The principal applies mostly in Rural areas where the goal of the principal is to allow for the expansion of farming and is usually restricted to where the adjoining land is used to grow the same crops, this is known as direct growers or coltivatori diretti land.
Once registered and the compromesso is signed, the contract and your name is sent to all neighbouring farmers, who have 30 days to decide whether to match your offer. You cannot ask them to waive this right.
In Italy, tenants or people conducting a business from the property also have a right to buy, and in some cases it is not unusual to have pay compensation to the occupants to vacate the property.
Tread very carefully if the property you are buying in Italy is under probate, it will probably be the case that the beneficiaries are not in agreement over the sale, this can involve a long and costly process to resolve.
The rogito, the final stage of buying a property in Italy, the rogito stage is the signing of the deed of sale, assuming that none of the above principals have been encountered or resolved, familiar issues of the various searches come into play, it most important to be aware that when a property in Italy is sold it does not automatically mean any third party charges, a mortgage for example, have been discharged.
The completion process takes place before the Public Notary, if you cannot attend for any reason then is perfectly normal to appoint someone, your lawyer to attend in your place providing they have been given your power of attorney.
You will need a Tax Code in order to complete, (codice fiscale) your solicitor or estate agent can arrange this on your behalf. Other documentation needed is your passport or other valid identification, and proof that you have the funds or mortgage in place.
The public notary will read out loud all the documents to those present, and comments will come up, therefore if you are attending without anyone who can translate for you, it would be wise to ask your estate agent to recommend an interpreter.
On completion of the formalities the rogito is signed and the balance of the purchase price is paid to the seller, again this is in front of the Notary. The final payment is best paid by bankers draft and never in cash. The notary will then take responsibility of registering the completion with the land registry.
Fees for buying a property in Italy, as well as paying the balance of the property you will also be required to pay certain fees and taxes:
• Real estate tax (imposta ipotecaria e catastale) of 3%
• Stamp duty at 7%
• Local tax (valore catastale) of between 0.4% and 0.8%
• Any mortgage fees and estate agents’ fees. In Italy both seller and buyer pay the estate agent, usually 3% for each party.
• The geometra, notaio fees
• Any fees for the connection of utilities
To cover all fees and expenses it is sensible to allow a budget of 15% of the purchase price.
On completion the notary will file and register the title deeds, and lodge your taxes immediately. It is only when the deeds are recorded in the land registry that the property is officially yours, this is in effect your title deed.
At the same time the Notary will be obliged to inform the local police (carabinieri) or the questura of the change of ownership within 48 hours and ensure that the utilities have been registered in your name.
If you are thinking about buying a holiday home, investment property or choosing to live permenantly in Italy, we offer a full range of services and we promise to help you every step of the way
View all property for sale in Italy
Italian Regions Calabria Lombardy Provinces Como Sardinia Sicily Tuscany Provinces Grosseto Cities Grosseto Livorno Pisa Cities Pisa Siena Cities Siena
Mortgages for buying a property in Italy, Italian Mortgages for purchasing a property in Italy - rates from approx 5.10% in Euros Includes Italian Residential Property
If you are purchasing a property in Italy, which includes Sardinia, Italian Mortgages are available for the majority of Nationalities for either House Purchase or re-financing for Home Improvement purposes only
Type of Italian Mortgage: Repayment Mortgage only
Minimum: €50,000, maximum 80% of valuation or purchase price (whichever is the lower)
Proof of Income: required in all cases (can be made up of Earned Income, Pension, Investment or Rental Income. Please note however, it is not always the case that the Lender will take all or part of these Incomes into account when determining the maximum loan available). Non-Status loans are currently not available.
Term: 5 to 30 years up to age 75
Currency: Euros only
Current Interest Rate in Euros: from approx 5.10% Variable - Discounted and Fixed Rate loans also possible (details on request)
Example Italian Mortgage: For an Italian mortgage of approx €70,000 over a period of 25 years at an interest rate of approx. 5.10% = approx €418.50 capital and interest per month = a total approximate amount payable over term of €128,410 including capital, interest, arrangement and survey fees.
Banking in Italy, you will need to open a bank account in Italy if you are intending to stay in Italy for a significant amount of time. This said, opening a bank account in Italy can be a difficult process. Most banks will only let you open a bank account if you have a residence certificate (certificate di residenza).
To open a bank account you will need the following documentation…
Valid passport
Valid residence certificate
Proof of address e.g. utility bill, rental contract
Birth certificate
Proof of income e.g. tax return or job contract
Reference from you home bank.
Employment in Italy, as an EU national, you do not need a work permit, but there is some paper work you will have to complete to make sure your taxes are paid and that you are employed legally. You will need
Resident permit.
Workers Registration Card. Check with your employer or the local town hall to see if you need one.
Education and Schools in Italy, the schools available to you will depend on where you live. There are both bilingual and international schools available.
Pre-school education ( Scuola Materna) is for children between the ages of 3 and 6 years old. Pre-school education is widely used though not compulsory.
Primary school education (Scuola Elementare) is for children aged between 6 – 11 years old. Primary school education is compulsory and there are both private and state schools available.
Lower secondary education (Scuola Media) is compulsory for 3 years and this is the minimum level students must reach to complete their compulsory education.
There are many colleges, universities and other facilities available for children who wish to go on to further education. Contact your British Embassy for more information.
Health and Medical care in Italy, the EHIC replaced the E111 form in January of 2006. E111 forms are no-longer valid. You should therefore ensure that you have the EHIC prior to travelling. The EHIC is available free of charge through the department of health’s website…
If you prefer you can telephone 0845 606 2030.
The EHIC is valid within the economic area and Switzerland. The EHIC form will ensure that if you are suddenly taken ill or have an accident during your visit any necessary medical treatment will be provided for free or at a reduced costs. Only state provided treatment is covered and you will be treated on the same terms as any insured nationals of the country that you are visiting. Private treatment is generally not covered, and state provided treatment may not cover all the things that you would expect to receive on the NHS. The EHIC does not cover you for all the medical costs that you can incur or for repatriation. It is not an alternative to travel insurance. It is therefore paramount that have full travel insurance arranged prior to travel.
The Italian National Health Service is run by the Servizo Sanitario Nazinale (SSN). This is the Italian equivalent to the NHS in the UK.
In order to register with a local doctor in Italy you will need to have a residence permit and pay taxes. Be aware that if you need to visit a doctor there is no appointment system and you will have to wait your turn.
Emergency Contact Numbers
113 – Police
118 – Ambulance
115 – Fire
The nationally recognised EU emergency contact number 112
Travel to Italy, if you own a property in Italy it is reasonably inexpensive to travel with plenty of cheap flights available from most UK airports. For more information on travelling to Italy and where to stay visit Italy's Official Tourism web site
The Climate in Italy, if you are contemplating buying property in Italy the Italy Climate and Weather Guide helps provide useful climate information. Italy is made up of three distinct regions, the Alps, the North Italian Plain and Po valley from Turin to Venice, and the long peninsula of central and southern Italy together with the large islands of Sardinia and Sicily. Each of these regions has a distinctive type of weather and climate.
In the Italian Alps, where the higher mountains rise to above 3,000 m, the climate is similar to that of the Swiss and Austrian Alps. Precipitation on the Italian side is rather heavier. The lower slopes and valleys of the Italian Alps are also a little warmer both in summer and winter. Summer tends to be the rainiest season and thunderstorms are frequent in spring, summer, and autumn. The mildest winters and warmest and sunniest summers are found in the region of lakes Maggiore, Como, and Garda. Daily average sunshine is three to four hours in winter and up to nine hours in summer.
The Po Valley and North Italian Plain has a distinctive climate with rain well distributed around the year. The summers are as hot and almost as sunny as those in southern Italy. Winters are surprisingly cold and snow is quite frequent. In the summer and autumn rain falls for only a few days but is often in the form of thunderstorms. Average daily hours of sunshine are between two to three in winter and nine in summer. Milan and Venice are typical of the region.
The long Italian peninsula, from Genoa and Rimini in the north to Reggio di Calabria and Brindisi in the south, has a mountainous interior where the Appennines rise to over 1,800 m. The higher areas are cold, wet, and often snowy. The coastal regions have a typical Mediterranean climate with mild winters and hot and generally dry summers. The length and intensity of the summer dry season increases southwards. Rome, Naples, and Brindisi are typical of the region.
The whole of the peninsular and the islands of Sicily, Palermo is typical, and Sardinia, Cagliari, have settled sunny weather in the summer, but very changeable weather in autumn, winter, and spring. Throughout the winter cloudy rainy days alternate with spells of mild, sunny weather. Sicily, Sardinia and the south part of the mainland have the fewest rainy days and the most hours of sunshine. Daily hours of sunshine average four to five in winter and up to ten or eleven in summer.
View all property for sale in Italy
Italian Regions Calabria Lombardy Provinces Como Sardinia Sicily Tuscany Provinces Grosseto Cities Grosseto Livorno Pisa Cities Pisa Siena Cities Siena
More articles about buying and owning a property in Italy
