Buying Property in Italy: legal advice

The interest in real estate investments in Italy has increased significantly over the past 10 years.

Doubts and difficulties encountered as a foreign investor in Italy may concern: language barriers, Italian laws and bureaucracy. For these reasons, getting preliminary advice and on-site aid is essential for a safe purchase.

A step-by-step guide to purchasing property in Italy

- Buyers may have to provide a formal written offer to purchase the property and may be requested to put a deposit in escrow to secure it. 

- Legal counsel is highly recommended as the offer, if accepted, might become a legally binding contract. 

- Once an agreement has been reached, the buyer's solicitor and/or surveyor will undertake the relevant searches so the preliminary contract, or Compromesso, can be drafted.

- The Compromesso does not transfer the title but sets out all the details of the sale and gives the seller time to gather any necessary documents and vacate the premises prior to the agreed closing date. 

- Usually, a deposit of 20 per cent – 30 per cent of the purchase price is exchanged by the buyer (who must have an Italian tax code) at Compromesso, a process dealt with by a notary who registers the transaction.

- Following Compromesso, the notary, who is independent in the process, undertakes a title search and prepares the final contract.

- Buyers may claim back twice the deposit paid if the vendor has defaulted on mortgage payments on the property, but a buyer would lose their deposit if they withdrew without a legitimate reason.

- The final contract signing is witnessed by the notary. The purchaser then pays the outstanding balance as well as any other fees and taxes, and the notary pays stamp duty and other purchase taxes to the government on the buyer's behalf.

Taxes and charges

Prospective foreign home buyers should expect to spend between 10-12 per cent of the purchase price when buying property in Italy.

This is a combination of agent fees, property taxes, sales taxes (similar to VAT and currently 22 per cent) and notary fees, as well as any potential extra costs, such as translation of documents, if required.

Income tax is payable in Italy by all property owners on the theoretical rental income of the property during the year, although non-residents are only subject to it if the income exceeds a certain threshold.

The Imposta Municipale Unica, similar to the UK council tax, is collected by the local authority twice a year, and there are no capital gains taxes on the sale of a property if the transaction takes place more than five years after the purchase.

Foreign property owners are advised to draw up an Italian will.

Selling Property in Italy

In Italy, we have 25 years of in-house expertise where we've created a network with other leading local partners to gain an intimate knowledge of various local and national markets. we always find the right buyer for your property.

Our expert multilingual team has a proven track record for helping our clients sell their property for the very best price in the quickest possible time.

Working alongside our associate office network in Italy, we pride ourselves on a service that is honest, transparent, insightful and personalised, while we are always present to help through every step of your property's sale.

It's what makes us the partner in property of choice of thousands of home sellers around the world.

For those needing something a little extra, we offer data-led residential investment advice, which is backed up by a deep understanding of the Italian residential property market. 

Get tailored, specialist advice whenever you're ready to make your move in Italy.

For more information on selling a property in Italy, contact our specialist International Property team in Pra.gue.