The procedure for buying property in Italy
The procedure for purchasing real estate in Italy
Possession, trade, sale and purchase of real estate is a question of what is solved independently by the governments of the countries depending on the benefits and considerations of the economic security of each state. This article will deal with the rights of foreigners to own real estate in Italy.
In Italy, foreigners and citizens of the country have equal rights to purchase real estate. This is ensured by laws, and the purchase of real estate is not necessarily related to obtaining a residence permit. A person without a residence permit has the right to acquire real estate in this country.
You can buy any property - from empty land to homes and building complexes. Moreover, this can be done both by a private individual for personal purposes and by a legal entity that can benefit, for example, from co-ownership of a housing complex or office buildings.
At the same time, from the point of view of taxes, some difficulties are possible: an increase in the tax rate if the owner does not have a residence permit in this country.
Thus, it can be said that foreigners have the same rights as residents of the country, but their responsibilities are no less.
To make a purchase according to the law, you must fully follow the ritual and exchange of documents adopted in this country. Here you need to remember two features of negotiations with the seller:
- They all go in writing, personal meetings and telephone conversations are not an official offer.
- In this country, accepted the auction of the final price of real estate.
The first document testifying to the beginning of trade relations will be the buyer’s letter to the seller expressing the desire to buy one or another object on its own terms. The seller can accept them, and can push their own. The subject of correspondence, in addition to the price, will be the terms of the purchase and the terms of the conclusion of the remaining contracts.
Then, when the buyer's proposal is accepted by the seller, and he gives a written confirmation of this, the buyer must make the first advance payment, which is about 7-10% of the total purchase amount. From this point on, the seller and the buyer combine monetary liabilities. If the transaction is terminated first, then it compensates the buyer for double-loss, and if second, he loses the amount paid.
After reserving the site is a preliminary contract. This is an optional procedure, but it guarantees that none of the participants will change the conditions. This is done at the request of one of the parties, if the transaction is made for a very large amount, or if it is forced to stretch for a significant period.
- The contract contains information about:
Data seller and buyer.
- On the price of real estate and how payment will be made: by what parts and by what means.
- The contract has a description of the property involved in the transaction, this description and cadastral data.
When the contract is made, lawyers check the legality of the transaction: whether the seller owns exactly what he sells, whether there is a mortgage on real estate. If the transaction cannot take place, then the fault is on the seller, and he must pay the buyer a sanction penalty. He is bound by the contract after signing, because the seller loses the right to terminate the transaction.
Preparing for a deal
In order for a foreigner to fully prepare for a transaction, it is necessary to issue several documents before signing the preliminary contract:
- You must obtain an identification tax code (fiscal code) - the number that is needed to create any official documents. Without it, you can not enter into contracts, do business in the country, even open a bank account. It can be obtained either in Italy or in the Italian embassy in any country. It is issued on the passport.
- You need to create your bank account, it is more convenient than to pay for services through a bank in your country or through any other non-Italian bank, because funds may be detained. And this leads to additional complications.
- Before the transaction is completed, the verification of its legality must end. If the property is pledged, then all conditions are reset.
The cost of buying real estate
More recently, in Italy, real estate was very cheap, but the price-quality ratio was also one of the lowest in Europe, this was due to the crisis in the country, now the problem begins to level out. Prices are no longer falling, as before, and the number of sales has increased, indicating a rebalancing in the market.
Property tax depends on several factors:
- Type of property.
- Buyer status.
- The number of homes and funds from the buyer.
For foreigners, the benefits are practically not valid and the total tax is higher by a factor of 9 (9%), but there is an opportunity to receive a benefit.
When calculating the transaction amount, it is necessary to take into account the services of translators, as well as notary services, which are paid as a percentage of the transaction amount.
Make a deal
To make a deal, you must sign a contract certified by a lawyer, as well as fully pay for the deal. To avoid any objections or misunderstandings of the terms of the contract, it is read and discussed by the parties to the transaction. As soon as the amount is transferred to the seller’s account, or as soon as it is paid off with checks, the transaction is completed.
The next mandatory stage of purchase - registration of ownership. This is done in state bodies, where the lawyer who made the transaction transfers all the documents. The procedure can be lengthy and take several months. But only after this process, the original bill of sale is the new owner of the property.
Real estate can be used for commercial purposes, for example, renting it out. 20% of such profits will go to the state as income tax, but the rest of the amount will belong to the owner of the property. There are no management companies in Italy, therefore legal leasing is carried out on the basis of a formal contract.