An increasing number of foreign nationals 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 really took off following the integration of Europe into the EU. With the advent of the European Union, more and more foreign nationals began purchasing different types of real estate within Italy. This included commercial, residential and speculative investment purchases by foreign nationals.
Who is investing in property in Italy?
The vast majority of foreign nationals who have taken to purchasing and owning real estate in Italy 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 real estate in Italy during the past five to ten years.
Where are people investing in property in Italy?
The prime real estate purchases in Italy by foreign nationals in recent years have been concentrated fairly heavily in rural regions of the country
Is the process of buying a property in Italy complex?
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 real estate 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.
How much deposit will I be expected to pay to secure a property?
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.
Will the deposit be refundable?
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.
How is the sale concluded?
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 work to make certain that the title to the property is free and clear of any obvious defects or liens.
Can I get the property surveyed prior to the sale?
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 in Italy 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.)
How long will the sale take to complete?
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.
Gatehouse International always recommends using a Solicitor or Lawyer.
