Sienna, one of Italy's countless picturesque cobblestoned streets.
Making an Offer on an Italian Home
When you are ready to make an offer, the broker will ask you to sign a proposta di acquisto, purchase proposal to confirm the offer, accompanied by deposit money. If you sign the proposta and then back out without a valid reason, you will likely lose your deposit. However, in the case the seller withdraws, the prospective buyer is legally entitled to receive double the amount of the deposit.
The compromesso, or contratto preliminare, preliminary contract requires parties sign the final contract. The compromesso details the main elements of the transaction with data from the land registry and specifies the closing date. The prospective buyer should retain a lawyer or notary to draft the compromesso, the notary will then register the compromesso with the land registry. Registering a preliminary contract publicly “reserves” the property for the prospective purchaser. This is important if the advance payment is substantial or a lengthy delay is anticipated between the preliminary and final contract; additionally, it reduces the possibility that a dishonest seller could try to sell the property to someone else or use it as collateral for a loan.
The final contract and property transfer takes place in front of a public notary, whose seal and signature close the contract, verifying the buyer the new owner of the property. The notary is responsible of drafting the act of sale and ensures the transfer of property complies with all regulations. The deed is typically drafted in Italian. Both parties will sign the deed in front of the notary. If one party is not fluent in Italian, the notary may obtain a certified translation of the deed, and the translation becomes part of the public deed; or, a trusted advocate fluent in Italian may receive power of attorney and negotiate for you. The notary collects all real estate transaction fees and taxes, and will enter the deed in the land registry, register the deed with Italian tax authorities, and convey payment of the relevant taxes.
Property Tax in Italy
Owners must pay annual property taxes to the Italian government. The mere fact of owning a home in Italy won’t subject you to Italy’s income tax system, but home ownership is a factor in the official determination of whether Italy is your fiscal residency. If you spend more than six months a year in Italy, or if Italy is the center of your personal or professional interests, then you must file taxes in Italy.
Relocate is Here to Make Your Move to Italy Easier
The Italian property market is currently full of unique opportunities for those considering purchasing property. Combined with various financial incentives, such as low-interest mortgages and generous tax-credits for renovating properties — Italy is truly a dream destination. However, navigating the Italian property market can be challenging for those considering to purchase real-estate in Italy.
For more in-depth information about life in Italy and how to buy property, dig-deeper into our featured articles and contact experts through Relocate. You can easily browse qualified Advisors in Italy and request a direct consultation for assistance in finding and purchasing a home in Italy.