Ever thought about enjoying your retirement as a wine-grower in the Toscanini valley or being a lord of the manor in Northern Italy? Ever dreamed about a rustically villa in the region of Piemont? We can help you to make your dream come true.
We are glad to tell you that as an EU member (except Swiss) you do not have to deal with purchase restrictions here. That simplifies the process of buying a real estate in Italy a lot.
For properties situated around the northern Italian lakes (e.g. Lake Garda, Lake Maggiore), investors pay Swiss prices. In South Tyrol the property market almost reached the German level. Likewise the desired Italian Riviera, there exists a high demand for real estates and people are willing to pay high prices for it. Among the German, Tuscany is the most famous Italian holiday and residence region. Therefore, the real estate market is very competitive and raises prices.
Meanwhile regions like the north-west situated Piemont and also Marche continuingly stay attractive and have a favourable price level. But even these regions are getting influenced the past years. The area surrounding Tuscany has become more expensive and the market value has increased by 50 percent during the last five years. Due to the higher risk of earthquakes in this area the demand has declined a little. The German Union of Foreign Real Estate Protection (www.dsa-ev.de/) advices prospects to let their property in request professionally inspected. Measures to be taken in order to own an earthquake safe estate often correspond with domestic regulations. Further information about rehabilitation services of re-d Italy you will find here.
In Italy it is usual to sign a provisional contract as well as a notary contract (escrita – means a sale contract). When signing up a provisional contract, the buyer already pays 30% of the agreed price into a trusting account. From that moment on, the contract is binding even it has not been officially certified by a notary. Prior to every purchase, realestate-dreams verifies in the Italian real estate register, if the property is encumbered with mortgages, building debits or for instance a right of way. Furthermore, we will check the registered information of the rightful owner, the exact geographical location, the economic value, measurements and more, thoroughly on completeness and accuracy. The periodically payments of the land transfer tax (register tax) will also be coordinated by realestate-dreams.
After the provisional contract has been signed, thus both parties are bound by the agreement and its conditions, a good and reliable notary (notaio) has to be assigned. Now, adjustments are only possible with both sides approval. With the signatures on the notary contract, the ownership will be transferred to the buyer. Please note that is also an option to agree on a later date for the ownership transfer, which is then validated and determined in the provisional contract.
Purchase and payment – modalities
Until the purchase is completed the price is composed of the charges and fees described below.
A property for e.g. € 200.000 generates the following costs:
Calculation example: Unique costs total purchase price pre contract approx.. 30%: 60.000 € (approx. 2 months before the purchase date) Provision depending on property e.g. 5% Unique taxes total: 4% Unique fees: 3% (cadastral - tax) including notary fee apporx. 10% Total:
200.000 €
10.000 €
20.000 €
230.000 €
Assuming: yearl costs (permanent use) Land tax (depending on property and region) Property insurance approx. phone, broadcast, water, gas, firing approx.
Total:
250 €
600 €
1.700 €
2.550 €
Please find detailed information concerning taxes, costs and fees in the following chapter. When you are interested in a certain property, we provide you with exact information about the charges which would fall due.
Despite of the European Union and their developments, the legal regulations of real estate still differ from country to country.
If you intend to acquire a real estate in Italy, you will need a tax number (codive fisclae). Only then, it is possible to legalize the sale contract. From the beginning, realestate-dreams will be at your disposal and we will advice you in taking the necessary steps concerning the Italian bureaucracy and registration regulations.
Acquisition-tax How much purchase tax you will have to pay, is strongly dependent on the exploitation and the type of real estate you have acquired. Having your first residence in Italy, you will enjoy tax relief which results in 4% of land tax. Otherwise you should count on at least 10% of the purchase amount. Agricultural use of the property, for example a vineyard, costs up to 15%. As an entrepreneur being charged value added taxes on the property, land tax can reach 19% of the purchase price.
In Italy tax on mortgages and land register tax are both 3%.
Income tax In The Italian government will charge you taxes on generating income through rentals and commercial use of the property. Please pay attention to the tax laws in the country of your first residence.
Commission and brokerage realestate-dreams Provisions depend on the value of the property; usually they come down to 2 – 6% for the seller and 2 – 4% for the buyer. Realestate-dreams will receive the provision as soon as the provisional contract is signed.
Local tax Communities charge their citizens between the € 200 and €400 per year for their delivered services, for instance the removal of refuse.
Other costs / fees Costs for gas, water, electricity, TV/radio and other will differ per community, property size and consumption. see example under ‘Purchase and payment-modalities’
Charges for phone In Italy there are not too many telecom suppliers. E.g. Telecom Italia www.telecomitalia.it, Tiscali www.tiscali.it/ • For addresses of janitor and care taking services please ask for our advice. • Property insurance companies are Genialloyd (all kinds of insurances) www.genialloyd.it, Winlocat www.winlocat.it / estero@winlocat.it.
Renting properties or purchase of rented properties: Please do not buy a rented property. A tenant is protected by law against given notices and has the title to advance sale. Besides rentals are taxable in Italy and often must be declared in the country of your first residence. Realestate-dreams Italy usually does not offer rented properties.
Property adjustments: For extensions, restorations and rebuilding a planning permission is required. Realestate-dreams Italy will help you to obtain the necessary permissions.
Illegal building: Actually, it has been an known secret that there is a large market for illegal construction work , including extensions and rebuilding. In Sicily every second house is unofficially built and paid. In the region of Lake Garda it is even every third. If a house is built illegally, the authorities are able to refuse the registration in the land register. Realestate-dreams Italy verifies the relevant registrations in advance.
Rusticos: The costs of sanitation, restorations and rebuilding are often difficult to indicate. Realestate-dreams Italy has experience in this field for many years and we have access to an expanded network of experts and specialists. You will find more details in chapter ‘Sanitation and building’.
Agricultural land: Pre-emption rights of neighbours or tenants. Realestate-dreams verifies the relevant registrations in advance.
Right and law: registered building debits, rights of passage, pre-emption rights, taxes or mortgage debits. Realestate-dreams verifies the relevant registrations in advance. If necessary we can recommend you Italian lawyers or tax consultants.
All our provided information, our hints and tips show important but general viewpoints. If would like to gain more detailed information, we recommend the following literature:
Buying a Property: Italy (Buying a Property) by Monica Larner, John Howell ISBN: 1860118798 Paperback 320 pages Amazon.com: 15 $
Investing in International Real Estate by M. A. Hines Publisher: Quorum Books; (October 30, 2000) ISBN: 1567203752 Hardcover: 304 pages ; Dimensions (in inches): 1.05 x 9.62 x 6.46 Amazon.com: 99 U$
Those books, with many practical tips and comprehensive information, give you advice about the entire buying-process and even being an owner of an Italian home.
For further queries, don't hesitate to ask for onward information and personal consultation - realestate-dreams can help you.
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