Buying Property in Italy

The attraction of the Italian property market is strong especially among British buyers because property in Italy often offers far better value for money when you compare like for like with Spain and Portugal for example.

Furthermore there has been a boom in the number of low cost airlines servicing many regional airports in Italy and this has opened up ‘new’ property markets to foreign investors.

Many purchasers are attracted to the beautiful period properties that Italy is famous for and which can still be snapped up at bargain prices and renovated to their former glory.  The Italian government offers substantial grants for certain renovation work as well, and this is just another bonus that attracts foreign buyers to the property market in Italy.

But, just as with everything else ‘official’ in Italy, the Italian property buying process is a complex web of red tape, paper work and fixed ways of doing things! 

Fear not - this no nonsense guide to buying property in Italy cuts out all the fluff and gets to the heart of the matter!

First things first, finding that dream property…a lot of your initial homework into which regions of Italy offer you the types of property you’re after for your budget can be done online.  Many real estate companies have websites filled with regional investment verdicts, and of course properties for sale.

There are also a number of specialist property publications in Italy that either list properties by region or by type, for example you could try getting your hands on the likes of Casa e Casali if you’re looking for a farmhouse to renovate or Secondamano for properties in Florence and Milan.

When looking at properties you need to consider the fact that the buying process is expensive.  You need to add on at least 10% of the purchase price for professional fees and another 10% for property VAT (known as IVA in Italy) and if you set aside a further 5% for connecting utilities, transferring title and any extra costs you should be okay.

While looking for property ensure you secure the services of a recommended estate agent and lawyer.  The lawyer should be registered with the Ordine degli Avvocati and the British consulate usually lists ones that speak English in your area.  Check their website for more details.  If at all possible secure the services of estate agents and lawyers who have be recommended to you by other expatriates, that way you know you’ll be getting someone good who can navigate their way easily through the red tape and who will represent your interests at all times.

Once you’ve found your property you should make an official offer to purchase and this offer is usually valid for a fixed period of between 2 weeks to a month.  If your offer is accepted during that period you are required to make a 10% deposit.

The next step is the signing of the preliminary contract which will usually be conditional to satisfactory surveys and the purchaser securing a mortgage if necessary.  Upon signing the purchaser pays an additional deposit of between 20 and 30%.  Make sure you have it written into the contract at this stage that if the buyer pulls out you get back double your deposit.  This may sound greedy or crazy, but it is actually standard practice!  If you pull out of course, you lose all money paid to date.

A notaio deals with these contractual arrangements for the buyer and the seller which is why it is important to have your own lawyer employed to oversee everything and protect your interests throughout the entire transaction.

Before moving to the final stage you must have an expert conduct a full survey and search on your desired property especially if it is in need of renovation.  Think about the property as practically as you can, if it is in need of extensive work will this include having water, electricity and access roads put in?  These are not only essential of course but incredibly expensive!  Also, if you are going to do much more than paint the place you will need permission agreed at the town hall for all your building work - this also costs money!  Get quotations in place for all the necessary work before you go any further and always use qualified and registered builders.  They might cost you more in money terms but the heart ache they’ll save you will be worth it!  Builders should be regulated by the Ordine degli Inegneri and architects should be registered with the Ordine degli Architetti.

And finally - once everything has been agreed upon and secured the final contract is signed and the final transfer deed or rogito is in place, then the purchaser pays the outstanding amount together with the property registration fee and a land registry tax.