LUNIDOMUS

STEP 1: FISCAL CODE (CODICE FISCALE)

The codice fiscale identifies a citizen in all his or her dealings with Public Authorities and Administrations. You need a fiscal code to buy a property in Italy. LUNIDOMUS will help you obtain your codice fiscale. You will need a valid passport or resident’s permit.

STEP 2: OPEN BANK ACCOUNT

Establishing a current account promptly is essential in order to facilitate payments and the transfer funds from your home country. LUNIDOMUS can introduce you to a local bank if required, and assist you if necessary.

STEP 3: INTENTION TO PURCHASE (PROMESSA DI ACQUISTO)

Upon verbally agreeing a purchase price, the potential buyer will sign a promessa di acquisto (Letter of Intent) declaring his intention to buy and thus securing the property.

A small deposit, e.g. €2000 is paid, as agreed in the promessa di acquisto. It also states the dates on which the preliminary and final contracts are to be signed. If the potential buyer withdraws, the deposit is forfeit.

STEP 4: SURVEYS & PROPERTY CHECKS

LUNIDOMUS have close links with an Architects Studio that process the usual surveys and check the related property records and permissions held at the Italian equivalent of the Land Registry. The Architects Studio can also verify with the commune the planning constraints etc.

STEP 5: PRELIMINARY CONTRACT / PROMISE TO BUY (PRELIMINARE DI VENDITA / COMPROMESSO)

The preliminare di vendita, commonly referred to as the compromesso, a legally binding contract drawn up by the agent, signed by all parties once their identities have been confirmed by the agent. The contract describes the property, what is being sold and what is being bought and includes a guarantee from the vendor that he owns what he is selling and that the property can be sold.

The deposit (Caparra), 15-20%, is paid. There are two types of deposit (Caparra):

Caparra Confirmatoria (article 1385 of the Codice Civile). If one of the parties does not fulfill the terms and conditions of the preliminary contract, the deposit (caparra) is forfeit. If the non-fulfillment is on the part of party making the deposit, then the other party keeps the amount received. If the non-fulfillment is on the part of the vendor, then he is required to pay back double the amount received. The injured party could also ask the courts to intervene, to enforce the execution of the contract and or claim compensation for damages.

At this stage of the buying process the agency fees are paid.

STEP 6: FINAL CONTRACT OF SALE (ROGITO)

The contract is drawn up by a notaio or public notary, who will witness the transfer of ownership and collect the taxes due on the property. With all parties present, he will confirm their identities and then read the contract, making sure that both parties understand what is being sold and what is being bought. With all in agreement, the parties will be asked to sign it, together with the notaio, who will then stamp it.

The balance of the price, the registration tax and the notaio's fee are payable.

The public notary will then register the new title deeds within 20 days. If there is a mortgage on the property, the deeds for it will also be registered.

NOTES:

RELATED FEE’S AND TAXES

When purchasing a property; a rough guide is to add 10-15% to the purchase price. This should factor in the approximate purchase fees and taxes.

The taxes are:

The percentage tax paid is based on the 'Valore Catastale', the rateable value of the property, which can be less than the amount paid for the property.

Italy takes special care of first home buyers by offering a 3% rather 7% tax this rule applys to foreign buyers if they apply for a residence certificate within 18 months of completion. It is wise if in doubt to consult an appropriate taxation specialist.

FOGLI CATASTALI – (REGIONAL PROPERTY MAP)

A residential property can only be sold if it exists on the official map. (Fogli Catastali).

TRANSFERING MONEY

It is important to take advice on the best way to set up a bank account and transfer funds.

PROPERTY RUNNING COSTS

There are two unavoidable taxes which you will have to pay as a property owner: the first one is a straight property tax payable annually known as ICI (Imposta Comunale sugli Immobili); the second is a payment for the collection of rubbish (Sistema Ambiente) by the local authorities. Both are municipal taxes and are based on the cadastral value of the property in the first case and the volume of the property in the second. LUNIDOMUS can help you calculate the ICI to be paid, you can then either pay it at the local post office or instruct you bank to pay it; the other tax and the routine payments for your utilities can be paid by direct debit through your local bank.