How to Buy a Home in Italy | NEOCLASSIC real estate

How to buy a home in Italy

Guide to Buying Property in Italy

1. The Fiscal Code is the initial step in understanding how to buy a home in Italy; the Fiscal Code.

If you're considering buying a property in Italy, obtain a CODICE FISCALE. This code is essential for property purchases and opening an Italian bank account, calculated based on your personal information for dealings with authorities.

2. Opening an Italian Bank Account

Open an Italian bank account for fund transfers and handling utility payments. This account is crucial for completing property purchases, often done with Italian banker's drafts.

3. Formal Offer of Purchase

Initiate the buying process with a written Offer of Purchase (proposta di acquisto). Once accepted, the vendor commits not to sell to others until a specified date, protecting the buyer's opportunity to purchase.

4. Cadastral Checks

Before proceeding, investigate the property's title at the Land Registry (Conservatoria e Catasto) to ensure proper registration and freedom from loans.

5. Preliminary Agreement of Sale (Compromesso)

The Compromesso is a legally-binding document specifying the sale price, completion date (Rogito), and property information. A deposit is paid, and the Rogito is executed 1 to 3 months later.

6. Deed of Purchase (Rogito)

The final contract or Deed of Purchase is signed after the Compromesso when all documentation is available. It includes the transfer of property, payment of the balance, and the official transfer of ownership.

7. Taxes and Fees

Various taxes and fees apply to property purchases in Italy, including:

  • Stamp Duty: 2% for primary home, 9% for second home.
  • Cadastral Tax: €50 (fixed rate).
  • VAT: 4% for primary home, 10% for second home, 22% for luxury home.
  • Land Registry Tax: €200 (fixed rate).
  • Duties: €230 (fixed rate).
  • Cadastral Fee: €55 (fixed rate).

Other fees: Consider legal, inspection, translation, and moving services, as well as potential mortgage fees.

IMU: Applied on the cadastral value, multiplied by the cadastral coefficient and the tax rate set by each municipality.

TARI: Applicable for long-term property rentals.

Verify tax rates with each municipality, as they may vary based on location and regulations.

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