Having found a property in Italy the first step in the negotiation is to prepare a written offer to the seller through the real estate agency. With the purchase proposal (proposta d'acquisto) the buyer binds himself irrevocably, for the period of validity of the offer, to buy the property for himself or for others, independent, or legal representative, organizations or companies, who have the right to remain anonymous until the signing of the final notary deed , at a particular price.
In the mean time a cheque is given to the vendor (non transferable) which will be delivered by the agent, to the vendor who, having accepted the conditions, will undersign the proposal. The amount of this cheque (which can vary depending on the price of the estate) will become deposit and "first payment" of the price offered. If the seller refuses the offer, the cheque is given back to the buyer within 5 days.
In the case the offer has been accepted and signed by the seller, the preliminary contract (contratto preliminare or compromesso) is prepared.
The preliminary contract contains the details of the sale such as:
- purchase price
- way of payment and financing
- date of the drawing up of the final deed of purchase (rogito)
- declaration of the absence of mortgages and/or other bonds
- description of the estate and relative pertinences
- indication of the amount paid as first payment, caparra confirmatioria e/o caparra penitenziale;
- declaration of conformity according to the building and town planning rules;
- declaration that eventual building illegalities have been remitted (condono edilizio)
The final deed (rogito) is drawn by a public notary (notaio) paid and chosen by the buyer. Once the contract has been signed by the two parties, the final payment is done (balance). The notary will prepare the official communication to the local council and register the deed of sale (atto di vendita). The notary will also provide in giving seller and buyer a copy of the conveyance.
FEES ON REAL ESTATE PURCHASE
When you buy a property, fees to be paid can vary depending on the destination of the property and the vendor (private or builder).
In the case the property to purchase is a first home and the vendor is a private, the final notary deed is subject to the following fees:
- registration fee of 3%
- fix mortgage fee of 129,11 Euro
- fix cadastral fee of 129,11 Euro
In the case the real estate is a second home or a different type of property, the final notary deed is subject of a total fees amount of the 10%:
- registration fee of 7% (3% when of artistic, archeological, historic interest)
- mortgage fee of 2%
- cadastral fee of 1%
In the case your first home is sold by a building company, the final notary deed is subject to:
- VAT of 4%
- Fix registration fee of 129,11 Euro
- Fix mortgage fee of 258,23 Euro
In the case is a second home or a different type of property:
- VAT of 10% (20 % for a luxury home, 3% when of artistic, archeological, historic interest)
- Fix registration fee of 129,11 Euro
- Fix mortgage fee of 258,23 Euro
The above mentioned fees have to be applied on the value declared in the final notary deed. This value can not be, in any case, lower than the "cadastral value" of the real estate, which is calculated multiplying by 115 the cadastral income given to the estate.
Notary's fees can vary depending on the price of a property and are higher as percentage on cheaper properties.
Agent commission : 3% of the purchase price
PROPERTY TAXES
Who owns a property in Italy pays yearly a tax called ICI (Imposta Comunale sugli Immobili) to the council (Comune) where it is located the property. In Tuscany the annual tax vary from 0,5 to 0,8 % (depending on the commune) of cadastral value the is usually much less the real market value.
ICI is paid in two instalments in June and December. The rubbish tax is to be paid yearly to the local council (Comune).
