Buying a Property in Italy
What’s the process of buying a home in Italy?
This guide is for UK visitors. Buying from the US? Read our US version of this guide.
Welcome to your guide through the process of acquiring property in Italy.
At Puglia Investments, we understand that venturing into foreign real estate markets can seem daunting. Our mission is to transform this journey into a seamless and exciting adventure.
What are the steps and is it difficult to buy a property in Italy?
01. Eligibility to Buy
Who Can Purchase Property in Italy?
Can I buy a house in Italy as a foreigner? As a general rule, Italian law permits the purchase of real estate by foreigners. However, there can be a few exceptions.
Whether you're a citizen of the European Union, EFTA, or a stateless person residing in Italy for over three years, you face no restrictions. For non-EU residents, and people coming from “sensitive” countries, the journey involves navigating through the reciprocity condition or holding a valid residence permit. We can help you evaluate this on a case by case basis.
After you know you can claim a slice of this Italian paradise, you can move to the next phase.
02. Discovering Property
Beyond the Listings: Unearthing Italy’s Hidden Gems
Explore the hidden gems of Puglia's property market with Puglia Investments, where many exclusive deals are often found off-market and not listed on standard real estate platforms like Immobiliare.it, Idealista.it, and Casa.it. Our expertise and local knowledge prioritise your interests, guiding you to unique properties that capture the essence of Puglia, from architectural wonders to pristine landscapes, often not accessible through conventional channels. Let us navigate the off-market opportunities to bring you closer to securing your dream property.
03. Key Documents for Purchase
Ensuring Serenity in Your Purchase
Finding your ideal property in Puglia is thrilling, yet it's crucial to carefully review key documents to ensure a smooth and legally sound purchase:
Cadastral Plan Inspection: Verify that the property's physical state aligns with official records to avoid future disputes.
Planning Documents & Certificate of Habitability: Confirm the property complies with local laws and is habitable.
Deed of Provenance: Reveals the property's history and prior transactions.
Cadastral Survey: Determines the property's value for tax purposes.
Mortgage Certificate: Checks for any existing mortgages to avoid taking on previous debts.
It's also essential to assess the property’s infrastructure and ensure it meets or it can eventually meet required standards. Some irregularities can be corrected, potentially adding value to the property.
Real estate registers should be examined thoroughly to identify any mortgages, rights, or legal issues that could affect ownership. Either you buy a property with a “clean title” or not, very often astute investors can find opportunities to enhance their property's value by resolving certain covenants.
For an in-depth look at navigating Italian property paperwork, visit our blog post.
04. Offers and Negotiations
Sealing the Deal Italian Style Navigate the unique landscape of Italian property offers and negotiations, emphasising the binding nature of offers and the strategic approach to negotiations in Italy. In Italy offers are legally binding and negotiation is a two steps process and an act or respect. Learn more about what we have learned here.
05. Remote Purchasing Power
Seize Your Italian Dream Home no Flight required
Embrace the convenience of acquiring your Italian property from afar with the power of 'Procura Speciale.' This special proxy empowers foreign investors to navigate the process of buying property in Italy, such as securing a dream home in Puglia or investing in Italian real estate, without the necessity of a flight.
The 'Procura Speciale' serves as a crucial tool for those looking to manage their property purchase remotely, offering a seamless and efficient pathway to homeownership in Italy's enchanting regions.
Dive deeper into the advantages of remote purchasing and how it simplifies the journey for buying property in Italy as a foreigner.
06. Codice Fiscale
Unlock Italy’s Property Market with a Codice Fiscale
Securing a 'Codice Fiscale' is essential for navigating Italy's real estate landscape.
This unique fiscal code, a must-have for all property transactions, paves the way for seamless financial dealings. Whether you're abroad or on Italian soil, obtaining your Codice Fiscale is straightforward—request it via the Italian Revenue Agency or your nearest consulate.
A professional can also facilitate this for you, ensuring you're ready to embark on your property journey without delay. Embrace the first step towards your dream Italian property by securing your Codice Fiscale as soon as you have decided to secure a place in this beautiful part of the world.
07. Notary Assurance in Italian Property Transactions
Your Italian Real Estate Investment Safeguarded with a Notary
In Italy, a notary is central to the property purchase process, addressing the question: "Do I need a lawyer to buy property in Italy?".
Rather than a lawyer, you'll engage a notary, appointed by the Ministry of Justice, to ensure the legality of your property transaction. This system contrasts with the UK, where separate solicitors might be involved, by offering a streamlined, one-stop solution for both parties.
After your offer is accepted, making the contract legally binding, the notary ensures both buyer and seller interests are legally protected. Their role simplifies and accelerates the property buying process, offering a secure and transparent investment experience. This approach provides assurance, facilitating a smoother transition to owning your dream property in Italy.
08. Fiscal Considerations
Navigating the Fiscal Landscape of Your Dream Home
Do you pay tax on property in Italy? Yes, but relatively little in our view.
Non-resident private individuals purchasing from private sellers are subject to up to 9% of the property's fiscal value (which is usually considerably lower than the price of purchase) in property tax.
For your initial acquisition, Italy offers a relatively favourable tax scenario. At the 'rogito' (final deed of sale) stage, specific taxes apply, but no additional property taxes are required under certain conditions.
If you keep your property for a minimum of five years, no capital gain taxes are applicable either, making it really compelling.
Subsequent property purchases, something happening quite common as investors fall in love with the variety and beauty of this region, Italy introduces a different tax structure, demanding a more detailed exploration. Puglia, in particular, is currently offering various incentives for tourism and renovations, making it an attractive option for investors (stay tuned for our detailed upcoming post on these incentives). Please get in contact with us to explore possibilities tailored to you.
09. From Offer to Compromesso
The first formal step in Property Acquisition in Italy
In Italy, securing property involves critical steps, starting with the Compromesso (Preliminary Contract), a key phase in the Italian real estate purchase process. This initial contract is a formal commitment between the buyer and seller, laying the groundwork for the eventual transfer of ownership. It ensures both parties' interests are protected, facilitating time for necessary financial preparations, such as mortgage applications.
The Compromesso typically involves a deposit, usually 10% of the agreed property price, signifying a serious move towards homeownership. It details the property's specifics, including location, cadastral data, and architectural details, alongside the agreed price and the timeline for finalising the purchase.
Although not always mandatory—direct progression from offer to final deed is possible—the Compromesso is a common practice, offering added security. For properties built or significantly altered after March 16, 2019, notarial authentication of this contract is required, providing an additional layer of assurance through professional vetting for any potential legal or financial issues.
This structured approach, blending tradition with practicality, ensures a transparent and secure path to owning property in Italy, highlighted by clear expectations and legal safeguards.
10. Finalising Your Italian Property Transaction: The Rogito
The culmination of purchasing property in Italy is marked by the Rogito (Final Deed of Sale), the definitive legal act transferring ownership. Italian real estate transactions are thoroughly documented in public archives, ensuring a high level of transparency and security.
The Rogito formalises the sale in a notarial deed, making the transaction enforceable and public. The notary, an impartial figure appointed by the state, plays a crucial role by rigorously examining all related documents to confirm the property's legality. This process includes checking the floor plan, historical deeds, energy certifications, and more.
Upon executing the Rogito, the seller receives the agreed payment, transferring all related financial obligations to the buyer. This marks a significant transition, embedding the buyer into Italy’s cultural and lifestyle fabric. The Rogito embodies the completion of the property purchase process, beginning a new chapter in Italy’s rich heritage for the buyer. It’s a pivotal moment, supported and verified by the notary's expertise, ensuring a secure and celebrated entry into Italian property ownership.
Finally Your Italian home
Embarking on the Path to Italian Property Ownership
Navigating the intricacies of Italian property law and bureaucracy marks the beginning of an exciting journey towards owning a piece of Italy's storied landscape. This voyage, filled with the anticipation of establishing roots in Puglia's enchanting terrain, underscores the importance of patience, diligence, and informed decision-making. Puglia Investments stands ready to guide you through each step, transforming complex processes into streamlined pathways to ownership.
Our experience and expertise are your assurances that every facet of acquiring and owning property in Italy is handled with care, precision, and an unwavering commitment to your dreams and investment goals. We invite you to explore the possibilities with us, knowing that the beauty of Italy extends beyond its physical allure to the enriching experiences and lasting legacies it offers.
Join us in navigating the path to your Italian dream home, where the essence of Italy's rich heritage, vibrant culture, and breathtaking landscapes becomes a part of your story. Together, we'll turn the prospect of Italian property ownership from a daunting quest into a rewarding journey, unveiling the extraordinary treasures that await.
