Buyers Guide - Italy
Why Buy in Italy?
Italy is the country of choice for the more selective overseas property buyer. The North is where many famous people own homes. The Eastern part of Tuscany still continues to be where most people look for beautiful properties and surroundings in Italy. All major airports are well connected all year round withcheap flights available from most UK airports. Some destinations do not currently have direct flights from the UK, but with that about to change it may well be worth consdiering investing in these areas.
Fees and taxes
- Buyers should expect to pay around 15% of the purchase price to cover costs.
- Stamp Duty / Land Registration Tax for non residents or second home owners can vary from 10% for rural properties and up to 17% for urban with the majority of properties falling in the 'urban' category.
- Residents or those wishong to make a permamant stay will pay Stamp Duty of approx 4%.
- VAT on New-Builds can vary between 10 - 20%, this can depend on whether the property is considered a luxury home. This is usually included in the price.
- For those who decide to self-build, reduced rates of approx. 4% VAT are available.
- Estate Agents fees are approx. 3 - 5%, Notary fees approx. 3% and legal costs are approx. 2% of purchase price.
- Local taxes (ICI) range between 0.4 - 0.7% and also apply to anyone owning a home in Italy.
The Buying Process
Anyone wishing to buy an Italian property will need to obtain a tax identification number (codice Fiscale) from the Italian authorities.
There are 3 main buying stages:-
- The buyer makes an offer, which commits the buyer to buying the property at the given price. If the seller chooses to accept then a deposit of approx. 10% is paid.
- Both parties sign a legally binding buy-in proposal. This outlines the details of the contract including the sceduled completion date.If the seller should withdraw they must pay the buyer double the value of the deposit. If the buyer withdraws from the sale they will lose their deposit.
- On completion both parties will then sign the final contract in the presence of a Notary, who will then issue the deeds and will inform the land registry to transfer the ownership of the property. At this poin the remainder of the balance (and all outstanding fees and taxes) must be paid by the seller.
Health
The health service in Italy is very good with English speaking medical experts widely available. As with many countries outside the UK, however, it is advisable to get private medical cover.
Property Costs
1 Bed Apartment - £105,000
2 Bed Apartment - £160,000
3 Bed Villa - £250,000
4 Bed Villa - £320,000
Useful Links
www.amblondra.esteri.it/Ambasciata_Londra
