🏠💼The Purchasing Process in Italy📝

Whether you're planning to buy a primary or secondary residence, or simply investing in Italian land, this comprehensive guide will help ensure a smooth and informed transaction. Don't forget to thoroughly inspect the property's structure as well, not just its documentation!

Italian Fiscal Code (Codice Fiscale):

Obtaining an Italian Fiscal Code from the Italian Revenue Agency (Agenzia delle Entrate) is mandatory for purchasing property in Italy. This unique alphanumeric code serves various purposes, including tax declaration, administrative tasks, healthcare access, and financial transactions.

Written Bid (Proposta d'acquisto):

The first step in buying property in Italy is submitting a written bid using the "Proposta d'acquisto" form. This includes bid price, payment method, and proposal expiration date. Enclosing a deposit demonstrates commitment, and if accepted, the contract becomes binding.

Preliminary Contract (Contratto Preliminare):

The preliminary contract binds both parties to proceed with the sale by a set date, detailing terms like property description, selling price, and payment conditions. A down payment (10-20% of the total price) is typically made upon signing.

The Notary Deed (Atto di compravendita):

This formal written deed, overseen by a notary or authorized official, finalizes the property transfer. Legal ownership is transferred, and the buyer must pay the agreed amount at this stage.

Taxation:

Cadastral Property Income Value:

The Revenue Agency assigns a value to cadastral income to calculate property taxes fairly. This value is based on factors like location, size, and construction quality to prevent tax evasion and ensure fairness.

Property Purchase Taxes:

• Sale conducted by a private individual:

• Primary Residence: Registration Tax (2%), plus fixed Mortgage and Land Registry Taxes.

• Secondary Residence: Registration Tax (9%), plus fixed Mortgage and Land Registry Taxes.

• Sale conducted by a Company/Business:

• Primary Residence: Registration Tax (4%), plus fixed Mortgage and Land Registry Taxes.

• Secondary Residence: Registration Tax (9%), plus fixed Mortgage and Land Registry Taxes.

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Taxation on Land:

Taxes are calculated based on the land's price indicated in the deed, with 15% of this value payable.

Additional Expenses:

Notary and Real Estate Agency Fees:

• Notary: Fees start from €2,000, with 22% VAT added. Payment coincides with the notarial deed and methods may include check or bank transfer.
  

• Real Estate Agency Commission: Typically start from 4% plus 22% VAT, paid upon seller acceptance of the purchase proposal or signing of a preliminary sales contract. The exact amount depends on the property's purchase price.