ITALY

Buying property in Milan, Rome, Tuscany, Turin, Florence, Venice.

Property Investment: Around 20% of Italians own a second property, indicating the popularity of real estate investment.

Buying vs. Renting
Renting First: Expats often rent initially to explore neighbourhoods and understand the market. Rental costs vary widely, from €7/m² in southern regions to nearly €16/m² in Lombardy and Aosta Valley.

Ownership Prospects: If you plan to stay long-term, buying may offer stability and investment opportunities, particularly in regions with rising property values.

Can Expats Buy Property in Italy?

No Major Restrictions: Most expats can buy real estate freely, especially if they are EU citizens or from countries with reciprocal property agreements with Italy. Restrictions mainly apply to citizens from countries without these agreements, but these disappear if residency in Italy is obtained beforehand.

Mortgage Options: Expats can apply for mortgages but need to meet specific requirements such as proof of stable income and ensuring that repayments do not exceed 30% of monthly earnings.

The Italian Property Market

Rising Prices: After a period of stagnation, Italy's real estate market is recovering, with house prices rising in 2022. Incentive programs like the 'super bonus' scheme for renovations and €1 home sales in rural towns have drawn interest.

Regional Variations: Major cities like Rome and Milan command high prices, with €3,000/m² in Rome and €5,000/m² in Milan being common. However, more affordable properties can be found in rural areas.

Costs Involved in Buying Real Estate in Italy

Additional Fees: Buyers should budget 10-15% extra on top of the purchase price for fees, including:
Estate Agent Fees: Split between buyer and seller, typically 3-8%.
Notary Fees: 1-3% of the property value.
Registration Tax: 3% for main residences, 7% for non-residents, based on the cadastral value (not the purchase price).
Land Registry Tax: A fixed fee of €170 for residents or 1% of the purchase price for non-residents.
Mortgage Fees: Can include arrangement fees (1-2%), notary fees for registering the mortgage, and administrative fees from the lender.

The Buying Process
Pre-Mortgage Arrangements: If a mortgage is required, explore options early. Banks in Italy are cautious, so be prepared with financial documentation.
Property Search and Offer: Once you find a suitable property, submit a formal offer. Prices are often negotiable, depending on the market.
Legal Steps and Survey: Hire a house surveyor to check for issues and appoint a solicitor to handle the legal aspects.
Sign Contracts: After due diligence, sign a purchase proposal, pay a deposit (10% of the purchase price), and later sign the 'compromesso,' a formal commitment to buy, with additional payments of 10-30%.

Finalization: Complete the sale by signing the property title deed (Rogito) and paying the balance, along with any applicable taxes.

Other Considerations
Insurance: Home insurance is not required by law but is often mandatory if you take out a mortgage. It covers damage to the property, and optional contents insurance protects personal belongings.

Utilities: After moving in, you'll need to transfer utility contracts for electricity, gas, and telecom services. Water suppliers are designated by district.
Renovations: Italy offers schemes to encourage eco-friendly renovations, so consider these if you're buying an older property in need of work.

Building a New Property
If building from scratch, costs for land purchase include a 9% registration tax and potentially 25% VAT. Permissions and adherence to local regulations are necessary, and you should consult experts to navigate the complex building process.

Final Tips
Explore Areas Thoroughly: Rent first to get a feel for the region, local amenities, and lifestyle.

Budget for Fees: Ensure you have factored in the additional costs of agents, taxes, and legal fees.

We can search, source, and provide the very best property options available for you before negotiating, securing and moving you in.

To find out more, contact us for further details.