How to buy in Italy

Buying a property in Italy should be a pleasure. Polarius International Real Estate is here to guide you through the buying process and into your wonderful new Italian home.

What you need to know as a Foreign Buyer

First of all, as with buying in any country, you need to know your budget. In order to find your ideal property, you must establish how much money you have to work with (whether cash or with a mortgage) to avoid any disappointment.

Once your budget is established, you can commence viewings, which is where Polarius International Real Estate is here to help. As Agents and Search Agents, we will manage your search, show you a selection of our properties, or scour the market for your perfect property through our extensive and exclusive network.

Preparations to undertake before buying a property in Italy

As with many other countries it is wise to engage with a surveyor. In Italy you would engage a Geometra, a surveyor and architect rolled into one. They would make sure any property is up to Italian code.

You will also need to obtain an Italian bank account and Italian tax code – ‘Codice Fiscale’. This can readily be obtained by applying to the local tax office in person, or by a third party, with a copy of your passport.

The Point of Offer

So you’ve found your dream property, and now it’s time to make an offer. Understanding the wider details of the property’s history through your agent is important. Knowing how long the property has been for sale for, or what the vendor’s situation and motivation is, will help determine what level of offer you should be making or whether there is a willingness for the vendor to accept anything less than the asking price.

The Reservation Offer - Proposta Irrevocabile Di Acquisto

Once found, making an offer for your dream home in Italy is done through what is called a ‘proposta irrevocabile di acquisto’. You must pay 1% of the purchase prices as a gesture of good faith. It shows your commitment to buy, however it doesn’t oblige the seller to sell to you. If the seller does not formally accept your offer, the deposit will be returned to you.

By signing the reservation offer, the seller is agreeing to remove the property from the market for a period of time, normally 15 days.

During this period, you will need to engage with a notary - the ‘notaio’ - and where necessary assisted by a surveyor. The notary will be responsible for handling the sale on your behalf as well as the seller and will be able to conduct due diligence.

Due diligence aims to ensure there are no nasty surprises during the final phase of the purchase.

The Preliminary Contract – Contratto Preliminare di Vendita

Should your offer be accepted by the seller it becomes binding on all parties. The next stage is to sign a preliminary contract - the ‘Contratto Preliminare di Vendita’. This is a private agreement between the buyer and seller and sets out the details terms and conditions of the sale. This contract is legally binding and commits both sides to the transfer of ownership and to complete the purchase. You will be required to pay an agreed deposit at this stage of between 10-20% - the ‘Caparra Confirmatoria’.

It is important to be aware this amount will be forfeited should you pull out at any stage following signature. However, it is also important to note the seller will be required to pay you double the amount paid as a deposit should they pull out of the sale following signature of the preliminary contract.

The Deed of Sale – Atto di Vendita

Once completed to your satisfaction you can attend the office of the notary alongside the seller to sign the public deed of sale - the ‘Atto di Vendita’. This must be fully complaint with all the details and essential elements contained in the preliminary contract.

Once the deed of sale has been signed by all those present, you must then pay the final balance to the seller and then the keys are handed over to you.

It will be the role of the notary to provide you with a copy of the property deed and present copies to the tax office and Land Registry. The notary will also ensure the utilities are transferred to your name and inform the local police of the change of ownership.

Transaction costs are moderate to high in Italy so it is best to be prepared in advance. The buyer will be responsible for the payment of the Registration tax (between 3-7%), VAT (4-22%), Land Registry tax (1%), Legal fees (between 1-2% + 22% VAT) in addition to our agency fees.

Patience is a virtue, but owning a prime piece of fantastic Italian real estate cannot be rushed.