Property Purchase Guide

• Ownership Rights: Italy recognizes full ownership, leasehold, and usufruct (the right to use and enjoy property owned by someone else).
• Restrictions for Non-EU Citizens: Non-EU citizens may face restrictions unless there is a reciprocal agreement between Italy and their home country. Always verify this before proceeding.

• Licensed Professional: Only use licensed agents who are registered with the local Chamber of Commerce.
• Fees: Agent fees are typically 3% to 8% of the purchase price, split between the buyer and the seller..

• Purpose: The preliminary contract outlines the terms and conditions of the sale. It’s a binding contract that both parties sign.
• Deposit: A deposit (usually 10%-30% of the purchase price) is paid at this stage. If you back out, you may lose the deposit; if the seller backs out, they may owe you double the deposit.

• Role of a Lawyer: While not mandatory, hiring a lawyer can help with due diligence, drafting, and reviewing contracts. Lawyers typically charge 1% to 2% of the property value.
• Due Diligence: Your lawyer will check for legal issues like unpaid taxes, encumbrances, or disputes over the property..

• Role: The notary is a public official who ensures the legality of the transaction. They prepare the final deed of sale (Rogito), ensure taxes are paid, and register the property in the new owner’s name.
• Fees: Notary fees usually range between 1% and 2% of the purchase price.

• Signing the Deed: Both parties sign the deed in the presence of the notary. The balance of the purchase price is paid, and the property ownership is transferred.
• Registration: The notary registers the deed with the Land Registry (Catasto), officially transferring ownership.

• Registration Tax: Varies depending on the property type (main residence vs. second home) and whether you are an Italian resident. It ranges from 2% to 9% of the property value.
• VAT: If purchasing from a developer, VAT might apply, typically 4%-10%.
• Municipal Taxes: Annual property taxes include IMU (Municipal Property Tax) and TASI (Tax for Indivisible Services), based on property value.

• Mortgages: Italian banks offer mortgages to non-residents, but terms can be less favorable. It’s often required to have a substantial deposit, sometimes up to 40% of the purchase price.
• Currency Exchange: Consider fluctuations in exchange rates if you are buying from abroad.

• Utilities and Services: Arrange for the transfer of utilities and services (water, electricity, gas, etc.) into your name.
• Insurance: Property insurance is not mandatory but recommended to protect your investment.

• Residency: Owning property in Italy does not automatically grant residency. However, property ownership can be a factor in obtaining a long-term visa or residency permit.
• Renovations: If you plan to renovate, be aware of local regulations and potential requirements for permits.