How to buy a house in Italy

How to buy a house in Italy

One of the service we do love the most as agency, Tettamanti Re Como Lake Real Estate, is to follow the customer in all the different phases of the sale.
Below, you will find some tips and useful information for those who want to buy a property in Italy, whether it is a luxury villa in Cernobbio or a luxury apartment with an incredible view on Lake Como.

Purchasing Steps 

Looking for the right property for you

Not all that is published on our website  represents all properties for sale we have in our portfolio.
Our goal is to understand the customer needs and thanks to our knowledge of the area in which we live we will try to meet your needs.
For several years we have been present on the market to propose prestigious luxury properties on Lake Como, not only for sale, but also for rent for short or long periods.
If you are looking for a luxurious penthouse in the center of Como, or a charming lake-view villa, of a unique, modern or antique residence, historic villa, or a typical lake house, or want to sell your property you can contact our real estate agency TettamantiRe.

Purchase Offer

Once you decided which property you like, you like, you have to make an offer to the owner, accompanied by a check for approx. 10.000 Euros or up to 5% of the total price.
If the seller accepts your offer, the check can be cashed by the selling party and the purchase document is signed.
When the offer is accepted, the buyer can make the payment by bank transfer.

Compromesso or Private Agreement to Sell

In this second agreement the two parts define more clearly the condition of the sale. If necessary we can provide a translation of this agreement in English or in your preferred language.
Normally a second payment by check or bank transfer is made.
We can skip this step if  the property is ready and the Notary Deed is expected to be done in the short term (less than two months). This can only be done if the seller does not have to look for his own home to buy and the buyer does not have to apply for a purchase loan.

There is the possibility of transcribing the preliminary sale, to protect the buyer from any subsequent action, such as the sale of the property to others, the registration of mortgages or foreclosure of third parties.
The cost of the transcription is:
– Fixed registration fee of € 200.00;
– Fixed fees, equal to € 35.00;
– Stamp duty in the amount of 16 euros every 4 pages, or in any case every 100 lines. If the contract is in the form of a public deed or a certified private deed, the stamp duty is 155.00 euros;
– Notary fees;
– If a payment is envisaged, the proportional registration tax to be paid is equal to 0.50% of the sums envisaged as a deposit or 3% of the sums envisaged as an advance on the sale price. In both cases, the tax paid at the time of the preliminary sale, will be deducted at the time of registration of the final purchase and sale contract.

Notary Deed

The Notary is choose by the buyer and paid for the Definitive Notary Deed.
The Notary works for both the two parties and is legally liable for all documents being checked.
On the day of signing at the Notary’s office, all papers are signed by both parties and the buyer becomes the legal owner.

Costs you have to pay to purchase a house in Italy

The Cadastral Value or Valore Catastale

The “cadastral value” is the value that the Land Registry Office gives to the property and sometimes can be less than the purchase price (even 4/5 times lower).

If you buy a property from a private owner this value is used to calculate the taxes you have to pay.

If you buy a property as:
First home, it’s not a luxury property and you transfer your residence there you can have a discount:

  • Buying from a private: tax on the cadastral value: 2%; contract registration fee (Imposta Ipotecaria/Catastale ) 100 euro total (each one is 50 euros)
  • Buying from a builder: 4% of VAT on the total amount you pay; contract registration fee (Imposta Registro/Ipotecaria/Catastale ) 600 euro (200 euros each one – total amount euros 600,00)

In the other case:

  • Buying from a private: Tax on the cadastral value: 9%; contract registration fee (imposta ipotecaria/catastale ) 100 euro (50 euros each one)
  • Buying from a builder: 10% of VAT on the total amount you pay ( 22% if luxury property ); contract registration fee (Imposta Registro/Ipotecaria/Catastale ) 600 euro

In any case you have to add:

  • Agency fee: 3 / 4 % + Vat 22% on the total amount of the price paid.
  • The official traslator, if required (about 600 euros)
  • for the Notary, according to the purchase price

If you need a mortgage:

Usually around 50/80% of the purchase cost of the property, the documents required are more or less the same ones required in most countries (copy of last salaries and/or annual Income Statement).

We can help you to find the right bank and open an account.

In Italy it is not possible to have interest only mortgages. There are no penalties whatsoever on partially or fully paying off a mortgage.

You have to pay the 2% ( for resident 0,25%) on the total mortgage amount; about 1.500/3.000 euro for the Notary , according on the mortgage amount and mortgage registration fee.

Other information you may need to know

  • Customers from every country in the world are allowed to own a property in Italy, there aren’t any difference between Italians & foreigners.
  • Usually the properties in Italy don’t include kitchen.
  • If you buy a house from a builder he has to give you a guarantee that covers the mayor construction defects which start from the day of completion of the works to 10 years later.
  • If you sell your property before 5 years from the purchase you must pay the 20% of tax on the eventual gained value. There are no capital gain taxes after these 5 years have passed.
  • Annual costs for the owner:

municipal/state tax for the house (split in two payment: June and December; the amount depends of ther town where the house is and it’s calculated on the cadastral value),water and rubbish once a year, electricity and gas bill every two months,.

Once a year it is necessary to do a check of the boiler; a yearly gas certificate is about 120 Euro which it’s done by a professional company.