The Italian 'property revolution'
Italy has been revolutionised in recent years with the arrival of budget airlines, which have had a major impact on the property market... Property prices are now increasing at between 10% - 15% per annum and the number of UK residents now looking to invest here is at an all time high.
However the Italian legal and tax system is unfamiliar to many and the form of conveyance is somewhat different to the ‘normal’. With this in mind www.realpointproperty.com a UK company who is a leading agent throughout Italy offer potential purchasers an easy guide into investing in Italy with the benefit of their many years of experience. Buying property in Italy is normally arranged in three stages; Property checks and searches, negotiating drafting and exchanging contracts and thirdly completion duties.
Three stage process
Stage one is by far the most enjoyable as it involves actually selecting your property. At this point you are normally asked to pay a small deposit and sign a reservation agreement (Prenotazione).
Also all necessary checks need to be carried out by the local authorities (Comune) as far as local planning and building regulations are concerned and this work is normally undertaken by a local surveyor (Geometra).
Stage two is usually spent in negotiating, drafting, signing and exchanging the contract. It is vital at this stage to have acquired all the documentation and reports necessary to complete the purchase. Italian law requires all contracts relating land or buildings to be in writing, signed by both parties.
The final stage relates to completion formalities, which normally takes place in the local Notaries office where a special duty of drafting the purchase deed (Rogito) is completed to ensure proper execution, registration and payment of all Italian taxes relating to completion.
Essential to take advice
Eddy Crompton Director of Realpoint Property says, “Buying property in Italy does not have to be a minefield, but for those venturing into this property market for the first time it is essential to take advice from agents that have a proven track record in guiding purchasers through the Italian system. Registration tax for non residents is currently levied at 11% and this actually includes stamp duty (Bolli) which is levied at 1%. If you take out residency registration tax is levied at 3% with 1% stamp duty. Notary’s fees amount to approximately 2.5% of the total cadastral value and it is also prudent to allow for translators fees and Geometra’s fees depending on the amount of work involved in the conveyance. Buying a second home overseas should be an enjoyable experience that’s why at Realpoint Property we use our experience to guide purchasers through the different stages.”
Note from the editor: Also our agency can help you through all the stages of buying a property in Italy. There is an international staff - available knowing everything about the Italian property market - who can help you mostly in your own language.
Source: The Move Channel, Thursday, December 13, 2007