Advice on buying Property in Italy

Successfully Buying a Property in Italy
An increasing number of overseas buyers have taken to purchasing property in Italy over the course of the past fifteen years.
The increase in real estate purchases in Italy by foreign nationals has really taken off following the integration of Italy into the EU.
With the advent of the European Union, more and more foreign nationals are purchasing different types of property within Italy. This includes commercial, residential and speculative investment purchases by foreign nationals.
The vast majority of buyers are from within one or another of the European Union nations.
With that said, British investors have been particularly active in buying and investing in property in Italy during the past five to ten years especially in the areas of Tuscany, Lunigiana and southern Italy.
The prime real estate purchases in Italy by foreign nationals in recent years has been concentrated fairly heavily in rural regions of the country.
Investment Real Estate
As with the other nations that are members of the European Union, Italy has seen a growth in the number of foreign nationals making property purchases within that country since the inception of the EU.
The common marketplace that was formed with the development of the EU is deemed to be the primary reason as to why there is so much activity in the arena of real estate buying and selling in EU nations such as Italy.
A significant amount of the movement in regard to property in Italy involves the buying and selling of property for investment purposes.
A significant amount of activity when it comes to investment real estate has involved two primary types of property: commercial or industrial property as well multi-family properties that are used for residential and holiday purposes. There are no real restrictions on foreign nationals purchasing real estate in Italy beyond a bit higher purchase registration tax that will be discussed later. This holds true for investment real estate as well as other types of property in Italy.

Residential Property in Italy
The biggest rush of selling when it comes to residential property has occurred outside some of the major cities in Rome.
Many overseas buyers have involved themselves in this particular property buying spree.
Indeed, particularly people from the EU have actively made the purchase of homes and villas in rural areas of Italy to be used as second homes or holiday retreats.
These people maintain that they are attracted to the easy going and relaxing lifestyle of rural Italy. (There have been some motion pictures in recent years set in such environments that many real estate experts in Italy maintain have further spurred the sales of rural residences in the Italian countryside.)
Apartments in Italy
When it comes to finding private properties in the larger cities in Italy, apartments remain one of the most popular types of residential property bought and sold in the 21st century.
Take for example the city of Rome. Apartments remain one of the most often conveyed forms of real property within the Italian capital city.
(Of course, the limited amount of living space and the ever growing population of Rome have combined to make apartments an invaluable residential asset in the city.)
Many foreigners have invested in apartments in the more major Roman cities over the course of the past decade for two primary reasons.
1.These apartments are allowing foreign nationals a second and oftentimes more affordable residence in one or another of the Roman major cities for their own purposes.
2.Many people from other nations are making the purchase of these apartments in the larger cities in Italy to then be let or rented to other individuals.
Generally speaking, these investors who are purchasing apartments in Italy are renting to people who will be in Italy for an extended period of time on business.
In the alternative, they are renting apartments to individuals and families who have elected to spend an extended period of time in Italy, in one of the major Italian cities, on holiday.

Holiday property in Italy
Vacation real estate remains a proverbial hot property in Italy at the present time.
The demand for property in the major resort communities in Italy have sent the costs of real estate in those communities through the roof.
With that said, many of the more healed foreign nationals continue to attempt to make the purchase of nicely situated real estate in the resort communities in Italy.
One of the other areas in which vacation real estate is selling at a brisk pace is in some of the more rural spots in Italy.
As mentioned previously, many foreign nationals are taking to purchasing real estate and graceful homes in rural parts of Italy to be used for their second homes.
Likewise, many foreign nationals are purchasing property in more remote and rural areas of Italy for use on family or other types of vacations and holidays.
In addition to using these properties for their own personal holiday or vacation purposes, many of these same foreign nationals are leasing these properties to other nationalities during those times of the year in which these owners are not occupying the properties themselves.
As a consequence, many of these foreign nationals have been able to make their vacation properties pay for themselves.
Indeed, there are some foreign nationals who have gone so far as to purchase more than one residential property in different locations in Italy. These individuals will use one or another of these residences at different times during the year and let them out to others the remainder of the time. Quite a profitable little business!
Successfully Purchasing Real Estate in Italy:
Specific Steps to Buying Real Property in Italy.
The real estate sales and purchasing process in Italy is fairly streamlined and not particularly complex.
For the most part, a foreign national stands in the same shoes as does an Italian citizen, with one exception.
When it comes to the purchase of real property in Italy, a foreign national must pay a 11 purchase registration tax after the sale itself is consummated.
An Italian citizen must only pay a 4 purchase registration tax.
In Italy, the first step towards the purchase of property is the initial agreement between the parties.
Once the initial agreement is signed and executed, there are some primary tasks that must be completed by the parties.
For example, the buyer must obtain appropriate and sufficient financing.
The seller must work to make certain that title to the property is free and clear of any and all encumbrances so that it can be conveyed to the buyer.
When this initial agreement is signed, the seller will post a deposit in the amount of at least 10 of the total purchase price of the real estate being sold.
It is not uncommon in Italy for deposits to run as high as 50 of the overall purchase price of the property.
Deposits in Italy tend to be higher than what is seen in many other countries around the world.
Generally speaking, the deposit is not refundable if the buyer simply decides that he or she does not want to buy the property.
Indeed, the only real circumstances in which a buyer can obtain a refund of the deposit - even a hefty deposit of upwards to 50 of the purchase price - is when the buyer backs out of the deal or in circumstances when clear title to the real estate cannot be obtained within the time set forth in the initial agreement between the parties.
The real estate purchase process is overseen by a notary in Italy.
The notary actually has more duties than is normally associated with a notary involved in real estate transactions in other countries the world over.
For example, the notary in Italy is responsible for carrying out title searches to make certain that the title to the property is free and clear of any obvious defects or liens.
Many real estate experts in Italy recommend that a purchaser take the time to hire what is known as a geometra.
The geometra will survey the physical boundaries of the property for sale to make sure that it actually does comport with what is listed on the legal description that is subject to a contract for sale.
(These experts maintain that this particularly is important when it comes to older properties in Italy.)
The real estate purchasing process can take upwards to six months to complete in Italy.
For this reason, unlike in many other countries around the world, it is a commonplace occurrence for a purchaser to move into residential property after the initial agreement is signed.
In most countries around the world, the purchaser does not take possession of the property until the final agreement is executed and the deed to the property is transferred from the seller to the buyer.
Property Prices in Italy
Range Varies, for example:
From £30,000 for a small property in need of extensive development.
From £35,000 for an apartment.
From £50,000 for a rural home.
Generally speaking, Italy is fast becoming popular as an alternative to the like of Spain / France and as a result property is starting to increase rather quickly in certain areas especially in Tuscany and the coastal areas.
Location Italy
There is a great deal of variety in the landscape in Italy, although it is characterized predominantly by two mountain chains: the Alps and the Apennines.
The former extends over 600 miles from east to west. The Alpine foothills are characterized by large lakes: Lake Maggiore and the lakes of Como, Iseo and Garda.
The principal islands are Sicilia, rising up to the great volcanic cone of Etna (10,860 feet) and Sardinia.
Living Costs in Italy
The northern and central regions are quite expensive while the southern part of Italy is generally less expensive to live in.
The major cities are similar in terms of costs of living to Britain. Luxury goods like cars and white goods can be expensive. Wines and alcohol are relatively cheap throughout the country.
Solicitor / Lawyer
Wherever possible, try to enlist the services of a local Lawyer or Solicitor to act on your behalf, preferably one who speaks English. They will be responsible for drawing up your contracts, contacting the Notary, paying any taxes and registering the property with the land registry in Italy. They will normally charge between 1 - 2 of the sale value of the property.
It's important to deal only with a qualified and licensed agent, and to engage a local lawyer, before signing anything or paying a deposit.
A local surveyor may also be necessary, particularly if you're buying an old property or a property with a large plot of land.
Your lawyer or surveyor will carry out the necessary searches regarding such matters as ownership, debts and rights of way.
Enquiries must be made to ensure that the vendor has a registered title and that there are no debts against the property like mortgages or taxes and check the property has the relevant building licences, conforms to local planning conditions and changes have been authorised.
Check for selling consent of all family registered owners and water supplies for countryside properties.
Property Tax
Income tax (IRPEF) is high in Italy and ranges from 10-60.
Non-residents must submit a tax return stating the details of their Italian property, even though there's no tax to pay if no income is derived from rental etc.
The standard rate of VAT is 19, with reduced rates to a minimum 4. VAT is payable on new properties at 9 for non-luxury property and 19 for luxury property.
The local community tax or rates, ICI, ('Ichy') is paid by anyone who owns property or land in Italy, whether they are a resident or non-resident. It's levied at between 0.4 - 0.7 of a property's value, the actual rate being decided by the local authority depending on the size of the property, location, class and category.
If a property is unfit for habitation it could qualify for a 50 reduction. ICI is paid in two instalments in June and December.
Mortgages
These are available from Italian banks but can be lengthy to approve, and usually you can obtain better terms from foreign financial institutes with borrowed amounts against purchase price of up to 80. Remember to declare any funds brought in to your Italian bank. Maximum loans from Italian banks on property are usually 50-60 of buying price for second homes and nearer 75 for your main residence, usually up to 15 years.
These guidelines are meant for guidance only and describe a straightforward purchase scenarios. However this information is not meant to replace proper legal advice, which we always insist you take.