Italy is one of the most beautiful and diverse countries in the world. This is also reflected in the quality and desirability of its real estate. Whether you seek a penthouse in a fashion district, a villa in the riviera, or a country house in the hills, owning a property in Italy can be a rewarding and fascinating experience.

This guide sets out the key aspects of the house buying process. According to the law there are not evident restrictions concerning foreign ownership. However, while the buying process is relatively straightforward, it does differ from many other countries.

EU/EEA Citizens

EU/EEA citizens can buy a property in Italy by complying with the same policies applied to Italians.

NON-EU/EEA Citizens

Non-EU/EEA citizens are allowed to buy a property in Italy, as long as there is a mutual agreement between Italy and their countries of origin.

UK Citizens

After Brexit, UK citizens can still buy a property in Italy, but they will be deemed as “non-residents”. It means they may pay higher taxes and spend a limited amount of time at the property each year, unless they apply for an Italian residency permit. However, there are no restrictions preventing UK citizens from buying a property in Italy, as long as they abide by the policies applied to non-EU/EEA citizens.
To learn more: www.gov.uk/guidance/living-in-italy#visas-and-residency

Requirements to open up an Italian bank account:

Key documents needed:

• Passport or ID.

• Codice Fiscale (Italian Tax code).

• Proof of address: Recent bill, or rental contract.

• Proof of residency status: Residence permit for non-EU/EEA citizens.

• Proof of employment, or student’s status: Work contract, payslips, student’s enrolment document.

Important points to remember:

• Age requirement: You must be at least 18 years old to open up a bank account. 

• Non-resident account: Banks may offer special accounts for non-residents with different requirements. 

• Contact the bank: Always check with your chosen bank for specific details and procedures.

Due diligence on a property

When performing a due diligence on a property, a buyer should thoroughly examine the property legal status, the certificate of ownership, cadastral records, zoning regulations and any potential encumbrances, like outstanding mortgages, while also assessing the property physical condition.

InMarche partners with trusted professionals to ensure that all the documents and contracts comply with the law. I assist in negotiating and due diligence alike to safeguard your interests throughout the buying process. My goal is to make your investment secure and hassle-free giving you peace of mind as you step closer to owning your dream property.

Estate Agency in Italy

Real estate agents in Italy must be licensed by the chamber of commerce and covered by a liability insurance. A real estate agent is not required to undertake any legal or technical check regarding listed properties, nevertheless he/she must disclose information to the buyer according to the code of ethics. Failure at performing the above could result in contractual liability and trigger end-user’s rights. Fees arise as early as at the preliminary contract and they are charged on each party up to 4%.

Purchase proposal

A purchase proposal, i.e. proposta di acquisto, consists of a written offer including a downpayment up to 10% held in escrow by the agent. By signing a purchase proposal, a buyer shows his/her interest to buy a property at a given price within a cut-off date. Typically, a purchase proposal is already binding for the buyer, while the seller is still free to assess it. Should the seller accept the offer, the agreement becomes legally binding for both parties. In case one of the parties back out, an escape clause arises and the agreement terminates. Otherwise, the parties may move to an intermediate step known as the preliminary contract, or get on with the deed of sale, i.e. rogito notarile.

Preliminary contract

A preliminary contract compels both parties to sign the deed of sale, and it sets out their mutual obligations. Albeit the preliminary contract is a private agreement, it should be drawn up by a Notary and registered at the Land Registry Office. As a result, the contract becomes legally binding for both the seller and the buyer as well as unassailable by third parties. A 0,5% of the downpayment is charged on the buyer as a registration fee, then it will be refunded at the deed of sale.

A preliminary contract is usually claimed in case of:

• A significant downpayment

• A long time before the deed of sale

• A default-risk seller

It also provides a full description of the property, the parties’ IDs, the price, any extra conditions pertaining to the sale, the completion date and the deposit paid which, subject to the parties’ agreement, ranges between 10 and 30 percent of the agreed purchase price. As the conveyancing is carried out prior to signing, the preliminary agreement can be made conditional on their outcome. Careful drafting of the deposit clause is pivotal. Under a deposit clause, i.e. caparra confirmatoria, a buyer who pulls out from the purchase forfeits his deposit, while a vendor who pulls out must pay twice the amount of the deposit, plus damages if applicable.

Due taxes at the deed of sale

Taxes vary depending on the cadastral income and the seller’s legal status. They are charged on the buyer and are exacted from the Notary at the deed of sale.

Stamp Duty

Stamp Duty is determined pro rata on the taxable amount.

• 2% (first-home purchase, and an individual as a seller)

• 9% (second-home purchase, and an individual as a seller)

• € 200 (a company as a seller)

Cadastral and Mortgage Tax

Cadastral and Mortgage taxes apply at the following fixed amounts:

• € 50 (an individual as a seller)

• € 200 (a company as a seller)

VAT

When the seller is a company the purchase is subject to VAT.

• 4% (first-home purchase)

• 10% (second-home purchase)

House ownership - annual taxes

Every house owner must comply with the annual taxes.

• IMU (Municipal Tax) affects legal rights such as home ownership. First-home owners are IMU-free.

• TARI (Waste Collection Tax) is due as a result of the waste disposal.

• TASI (Indivisible Services Fee) concerns road maintenance, as well as public lighting. First-home owners are TASI-free.