Buying Guide

STAGE 1
PROPOSTA DI ACQUISTO - (OFFER TO PURCHASE)
Having identified the property you wish to purchase and agreed the price you wish to offer, with us the Agency, you will be required to sign a PROPOSTA DI A'CQUISTO (PROPOSAL TO PURCHASE). This is a reservation agreement, normally valid for a few weeks. A small deposit is required at this stage from the Buyer (between 1000 euros and 3000 euros depending on the value of the property). This deposit is only handed over to the Vendor when they have agreed the price formally and have countersigned the Proposal. The property is then withdrawn from the market by the Vendor, and the deposit becomes non-refundable should the Buyer fail to complete the purchase.

STAGE 2
COMPROMESSO - (PRELIMINARY CONTRACT)
Once your offer has been accepted by the Vendor, then both parties can sign the COMPROMESSO ( Preliminary Contract), which is a legally binding agreement, whereby  both parties have the mutual obligation to complete the purchase. At this point the Buyer must pay a deposit ( ranging from 10% to 20% of the sale price) to the Vendor. Once the deposit for the Preliminary Contract has been handed over, it is not refundable. For example, if the Buyer withdraws he will lose his deposit.

In the process of drawing up the Preliminary Contract, the buyer(s) will require a tax code, which in Italy is a tax identification number
(Codice Fiscale). In the Preliminary Contract the following documents are included:

• Plan of the house
• Habitable Condition
• Planning Permissions

PLEASE NOTE THAT IN PRACTICE THE ABOVE STAGE IS OFTEN SKIPPED IN FAVOUR OF A DIRECT PROCESS TO STAGE 3 to avoid unnecessary expense and time.

STAGE 3
ROGITO - (TITLE)
The final step is the execution of the ROGITO ( Title Deed ). This contract has to be signed in the presence of a public Notaio (Notary ). The Notary is an independent and impartial officer who performs the vital task of registering the sale in the Land Register. This act publicly records the transfer of the ownership to the buyer. The Notary also ensures that the sale is executed correctly by running local searches in the Land Register, checking planning permission, investigating the vendor's legal title, and checking that no other mortgage or charge exists over the property. At this stage the buyer pays to the Notary the balance of the price for purchasing the property, the Notary fees (usually ranging between 2.5% to 3% of the property value), and the taxes payable (10% for a second home, or 4% if primary residence). The buyer's commission of 3% must also be paid to the Agency at this stage.

COST OF THE WHOLE PROCESS
The Transfer Taxes for a resale residential property is about 10% of the cadastral value, for agricultural land it is 18% of the sale price.

Agent negotiation fee

A fee of 3% of the purchase price or (not less than 3.500 + IVA) and it is paid at compromesso (preliminary) and includes:

• We will meet you at your hotel,or our office
• Assistance with opening an Italian Bank Account 
• Assistance with Italian mortgage lenders 
• Assistance with acquiring a tax identification number ( Codice Fiscale )
• Assisting clients in re-selling the property
•  Translation of the Deed, or providing a translator at the execution of the Deed, at cost price.
• We will support you throughout the entire buying process, and answer any questions you may have, and will continue to be your first point of contact until you are in your new property.

• Introduction to and assistance with the formulation of estimates from builders,electricians, plumbers, carpenters and other relevant tradesmen.
• Assistance with the registration of your property for the supply of water, electricity and other utilities
• We also offer an in-house project-management service to oversee all aspects of the renovation of your property to pre-agreed specifications, thereby providing you with a "turn-key" home.

Property purchase tax

On new Italian properties Value Added Tax (VAT) is payable at 9% for non-luxury property and 19% for luxury property. If the property is not new, then a property purchase tax is paid instead. Purchase tax is levied at 10% for non-residents and at 3% for residents, and gets paid to the Italian Government.

Stamp duti (bolli)

Stamp duty (bolli) is levied at 1% for both non-residents and residents, and gets paid to the Italian Government.

Notio's fees

The notaio's fees usually amount to approximately 2.5% of the Declared Land Value of the Italian property.

Italian survey fees

The Geometra's fees vary depending on what work is involved in the conveyance and is usually of the order of €250.

Example breakdown of costs related to buying an Italian property

An Italian property with a purchase price of €200,000 may have a Declared Land Registry value of €120,000. The purchase tax (or VAT in the case of new properties), notaio's fee and stamp duty (Bolli) are all be calculated on the Declared Land Registry value and not the purchase price.