Brief Guide To Buying Property In Italy
News Posted On: 27 July 2012
After the Royal Institution of Chartered Services named Italy one of the best countries where foreign buyers can invest in property, there has been a rise in interest. One of the key reasons for this is that the country has avoided the rise and fall that property markets across the world have experienced. Also, changes in taxes in Italy have reduced purchasing costs by 15%, making it the right time to invest in property in the country. Here are 3 important facts you should know of before you buy a home in Italy:
Find an estate agent who is trustworthy
The educational qualification of the estate agent you choose should be in line with his profession. He should be registered with a local chamber of commerce, and have indemnity insurance and a license. He should be a member of the Federation of Professional Estate Agents, the Federation of Mediators and Agents or the Italian Association of Estate Agents.
Decide a realistic budget
Once you decide a budget you can stick with, look for areas where property costs are in your price range. In regions like Tuscany, which have cities like Pisa and Florence that hold a lot of appeal, prices will be very high. The likelihood that sellers will negotiate prices for properties in these areas is small. The only time you will get to bring down the price is if you go for a house on which you have to do a lot of rework. Also, as the value of property in Italy has not dipped the way it has in other countries, the biggest discount you may get on a property will be 10%.
Many who buy run-down houses are those who plan to transform it. However, before you purchase a house with this intent, you should consider the high cost and hard work it takes to make those changes. On average, a complete restoration drive will cost you €1,000-€1,500 per square meter.
Know the steps to buying property in Italy
Step 1: Once you find a property you like, at a price that suits you, hire a legal advisor who can tell you whether the deal is good. If the advisor gives his approval, make an offer and agree to deposit approximately 5% of the purchase price you agree on with the seller.
Step 2: Draw up a sales contract, called compromesso in Italy, and sign it with the seller. Set up a schedule according to which you can make payments. At this stage, you will have to make an additional deposit so that you would have paid 30% of the price.
Step 3: Sign the final deed of sale known as atto di vendita, which will be printed in Italian, at the office of a notary. If you don't know Italian, inform the notary. He will get the deed translated. The documents will then be examined and filed at the Land Registry. Following this, you have to make the final payment through an Italian bank. Request the tax office to provide a fiscal code which you have to use to apply for an account at a bank in the country.
If you are purchasing new property in Italy, you should add 12% - 15% of the total cost of the property to your budget, as you have to pay that as taxes.
Read our full buyers guide to Italy
Written by Les Calvert
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