Generally speaking there are no restrictions placed upon a non-resident wishing to purchase a property in Italy.
At this stage you are invited to sign an irrevocable purchase offer (Proposta irrevocabile d’acquisto) that will formalize your intention to purchase the property. This document, despite normally being quite simple, it would contain a floor plan of the property you wish to purchase.
Normally your Proposta would be followed by the payment of a deposit, that will be returned if not accepted. This could be EUR 10,000 for example.
As well as paying the balance for the property, there are other costs associated with you purchase (please see our FAQ for more detailed information):
VAT– which – on most properties – would be at the reduced rate of 10% (since you are directly buying from the developer) or 4% if you are planning to become resident in the property and it is your first residential home in Italy; this may not be possible in certain properties depending on their planning destination.
Notary fee + applicable costs and VAT (see question no 7 of our FAQ) – payable at the Rogito. This would normally represent between 0.50 to 1,5% of the price of the property (lower the value of the property higher the impact of Notary fees and associated costs).
If you have applied for a mortgage you will have to pay the mortgage tax which is equal to 2% of the sum mortgaged or 0,25% if you become resident in the property (and it is your first residential home in Italy). Please note that in the event of a mortgage – since the Notary will produce an additional contract – he or she will charge an extra fee and costs.
In most of cases when you buy off-plan or newly refurbished properties you would have to pay for utilities connection and land registry formalities. As a general guideline only it could add up to around Euro 2,000. In some cases you may also have to participate to the on-site management set up fund, usually when the project features common facilities; the sum requested would vary from case to case.
Running costs of your property will include (please see our FAQ for more detailed information):
• Annual Local Tax– The Imposta Comunale sugli Immobili (ICI) is an annual council tax calculated on the value of the property. Determined on the basis of the property’s cadastral value;
• Service charge – the annual cost in connection with shares areas and facilities.
The easiest way to pay most of these is by direct debit through your Italian bank account .
As mentioned above we can help you with the opening of your Italian bank account. It is normally a straight forward procedure that initially does not require your presence. You can provide Realitalia with a good copy of your passport, your address, and a letter letter in which you explain that you want to open a bank account and in which you authorize Realitalia to pass your details onto the bank. You will then need to pop into the bank at the first occasion so that they can collect your signature and check your ID.
Subject to banks’ guidelines and approval, you are likely to be asked to provide the following documents:
Photocopy of your passport clearly showing your personal details
Photocopy of the Italian Codice Fiscale
Copy of your marriage certificate/decree of separation or divorce (only if appropriate) Last two consecutive months’ salary slips or Last 2 consecutive years’ audited balance sheet and trading accounts (if you are self-employed)
Confirmation of income and employment signed by your employer or Letter from your accountant confirming personal income and dividends received (if you are self employed)Last Income Tax Return (P60 in UK) or Most recent personal tax assessment (Inland Revenue Tax Return in UK) (if you are self employed)
Last three consecutive months’ bank statements from your main bank account or Last six consecutive months’ bank statements from your main bank account and Last six consecutive months’ bank statements from your company bank account (if you are self employed)
Policies and requirements can change from bank to bank, but generally speaking these are likely to be the documents that the bank would ask you to process your application.
*The above information is complimentary and for guidance only. Realitalia recommends that you seek appropriate legal and tax advise on your purchase in Italy.