Many foreigners, after reading different information in the Internet, ae wrong believing that by purchasing real estate, they will automatically receive a residential permit in Italy. We hasten to reassure you: buying real estate in Italy does not endow a foreigner with an unconditional right to obtain the residential permit. However, we note that the fact of owning real estate in the country is a good reason for issuing a residential permit for another reason – for example, the elect Italy as a a place to live – Residenza elettiva.
The procedure for buying real estate for Foreigners consists of three stages:
- Purchase offer, where the parameters, location and price of the selected real estate, conditions and time of payment, additional conditions, as well as the dates for signing the preliminary and final contract are prescribed.
To confirm the seriousness intention, the buyer must make a deposit by bank transfer to a special account of the Notary who will conduct the transaction (The Notary is a government entity and guarantees the reliability of the transaction).
As a rule, the deposit is 5% of the total offer.
The purchase proposal is submitted to the owner, together with a confirmation of the amount in the Notary’s deposit account.
if the offer is accepted, the Notary keeps this amount in a deposit account until the signing of the preliminary contract;
in case of refusal of the offer, the Notary will return the amount to the buyer within 5 working days
Upon acceptance of the offer, the deposit takes the form of a security deposit.
- Preliminary contract. Usually appointed a few days after the purchase offer is accepted. When signing the preliminary contract, the buyer pays to the seller about 20% of the transaction value (the amount is transferred in advance to the Notary’s deposit account, which unlocks the money at the time of signing the contract), 0.5% of the amount of tax fees for the sale and purchase (the estimate from the Notary is provided by us in advance ).
Also, upon signing a preliminary contract, in accordance with Italian law, an agency fee 4 + VAT is paid. When signing the preliminary contract, all details of ownership, rights, etc. are checked.
As a rule, 1-2 months pass between the preliminary and the final contract (it may be less or more, depending on the condition, necessary checks, etc.) the time required for the preparation of all documents.
- The final contract. At the time of signing, the remaining amount and all necessary taxes are paid. Upon signing the final contract, the ownership of the property is transferred.
Purchase and sale taxes:
if the buyer is a LEGAL PERSON – 9% of the purchase and sale amount declared in the act + 100 euros fees;
if the buyer is an PHYSICAl PERSON – 9% of the cadastral value + 100 euros state fee, but if this is your first home in Italy and within 18 months you receive a residence permit and register in it, you pay this tax under a preferential system in the amount of 2% of cadastral value of real estate + notary fees.
Agency fee – 4% of the transaction value + VAT.
This is how the procedure for buying real estate in Italy. If you have more questions, you can contact us for further information.