- Purchase taxes ( VAT when buying a new home 4 %, 10% or 22 % of the purchase price , and buying the property from the secondary market you pay a stamp duty , which is or 2 or 9 % of the cadastral value )* - payable when you sign the final contract
- The cost of the services of public notary ,
- The cost of a real estate agency services,
- The cost of an interpreter to be present at the final notary act , if the buyer does not know the Italian language , and the notary does not know the language spoken by the buyer .
Availability of real estate in Italy is not a basis for obtaining a residence permit in Italy. But when requesting a residence permit in Italy on different kind of base (work or residence in the case of " selected residence " ) presence in the real estate property is an advantage. In the presence of the real estate here feeding on a tourist visa , instead of hotel reservation , you will make the final copy of the notarial deed of sale . Our agency cooperates with lawyers specializing in such matters. We will give you all the details on request.
In all advertisements for the sale and lease of real estate you will see the following entries " index of energy consumption in kilowatts 1 sq.m. per year "and" class energy saving . " It is preparing by the expert after studying the state of the property (the presence of heaters , the technical conditions of the building , the windows , the presence of thermal bridges that increase heat loss) . These data will help you quickly understand how much is spent on heating the property . Energy efficiency class ranges from A ( highest) to G ( lowest) , the higher the class , the better insulated the building and the less energy spent on heating. This certificate is required for the transaction as a purchase or rental. Its validity in the constancy of performance of 10 years from date of issuance.
- Annual municipal property taxes (IUC)
- Utilities: water charges, gas, electricity , internet, landline phone
- Condominium payments ( maintenance of the property owned in sharing with other tenants)
- Insurance of property
Real property gains tax levy in Italy is 26% (the rate was 20% until 2020) on gains from the disposal of the property sold within 5 years of purchase. Called in Italian “imposta sostitutiva”
It is calculated from the sum of the difference between the sale and purchase price and the documented purchase costs.
Please note, not all expenses may be deducted.
Possible write-off costs:
Make sure that the invoices for the works are issued correctly in the name and surname of the owner, with the Italian tax code, the works at the address of your property have been correctly described. The decision to pay this tax is made at the time of signing the deed of sale. The taxes are paid for you by the notary.
Or, you can declare the capital gains on your income tax return and pay taxes at the progressive personal income tax rate (imposta reddito persone fisiche).
We are often asked whether non Italian resident can buy property here in Italy.
Foreigners can buy in Italy both residential and commercial real estate property in accordance to reciprocity condition (condizione di reciprocità), i.e. if Italian citizens can buy in their country of origin, the citizens of this country can buy property in Italy. This condition is also found in intergovernmental agreements between countries on mutual protection of investments . You can look whether your country is a condition of reciprocity on the following link http://www.esteri.it/MAE/IT/Ministero/Servizi/Stranieri/Elenco_Paesi.htm
Purchase should be divided into the following steps:
- Proposta d'acquisto – Purchase proposal with paying of confirmaton deposit (5-10% of the agreed sale price ) which confirming the seriousness of proposal.
- Contratto preliminare - preliminary contract of sale with a down payment of the price (20-30 % of the agreed price )
- Rogito - the final contract of sale at the notary with the payment of balance price.
Needs a passport, marriage certificate or marriage contract , which shows how is managing the economic relations between the spouses, and the Italian tax code (codice fiscale), which can be requested or the Italian consulate in the country from which you came , or at the local tax authorities (we provide you all the assistance nedded).
The first two payments ( security deposit and down payment of the price ) on the signing of the contract can be paid from your foreign account . Payment upon signing the final contract should occur or before signing the contract , or simultaneously with the signing of the contract. Payment in advance is not safe for the buyer. Payment simultaneously with registration of the transaction can be carried out only with the help of the Italian bank checks , it is desirable that they were guaranteed by the bank , to the name of seller , irrevocable , they are called in Italian “assegni circolari”.
If payment of the price you can do all the same without opening an account in an Italian bank , for example by placing money in a deposit account of a notary , in the future to pay for current utility bills and taxes for your real estate it would be better to have an account in an Italian bank . Therefore, to all our clients buying property here , we recommend to open a account in an Italian bank.
In Italy, the real estate is sold in full ownership (Freehold). In case of purchase of apartments in an apartment building, apartment has a full ownership and area of land on which the building built, the bearing walls of the building , stairs and landings , roof , etc. are jointly owned by all the residents in the proportionate share , (Share of Freehold) the cost of maintaining these areas are paid jointly , more than 4 occupants formed condominium (legal entity) and more than 10 apartments have a duty of hiring a special administrator
- Certified copy of the Title Deed;
- If after the date of the deed there were made changes to the property you should provide Municipal Authorizations (building permit);
- Copy of the Certificate of Habitability (Certificato di Agibilità)
- Original of the declarations of conformity of the electrical, plumbing
and gas or communicate the non-compliance of the plants with the current legislation;
- Copy of condo rules;
- The cadastral floor plan;
- Energy Certification.
The owner has the following advantages to sell through the “exclusive” listing:
- the owner get more exposure of his property through the different marketing channels of Agency
- this property has major priority for the Agency;
- the owner receive the report of the inquiries and visits.
It might be 3 months, 6 months or 1 year.
Lake Como real estate market is attracting many foreign investors searching through the web, so we invest a lot in the visibility of our website www.bestcomo.com.
Our web site www.bestcomo.com has about 3,500 visitors each month with about 25 000 views. Our visitors are from all over the world (USA, Russia, England, Germany, Switzerland, United Arab Emirates, the Netherlands and many others countries).
For each property for sale, we are developing suitable advertising campaigns including international, national and local advertising. ((Online Newsletter Campaign, Social Marketing Tool, AD campaign, featured listing)
Offices of Best Como Immobiliare are located close to the 5 star Grand Hotel Tremezzo walking from Villa Carlotta along the lakeside, in the most popular and attractive place on lake Como, and in the old wallet city of Como close to Duomo, so in front of our “storefront” people often stop, take our brochures, stop by or call us later. The largest percentage of return of “storefront” is during the tourist season. But if we estimate a percentage, it will be 20% of the transactions, as still the largest number of clients come to us through advertising on the web.
A: The water in the lake is considered the property of the state. The state, through special consortia, collects fees from individuals for the use of berths for mooring boats or for the use of the coastline.
On Lake Como, many villas are sold with beaches or boat docks. Sometimes there are even residential buildings that touch the coastline and are thus on land / water owned by the state.
Fees for the use of state property, depending on the object (a few examples from the experience of my clients)
This is one of the frequently asked questions in your requests, but there is no quick answer.
The purchase taxes will depend on:
The most common situation which we deal with on our market on second houses on lake Como is:
A private person buys residential real estate as a “second home” (it means that the buyer is not going to become a resident there),
and then the answer is:
Apartment 80 sq.m. and garage in the new residence
Price 275.000 Euro
Total purchase taxes: 28.100 euro
Apartment in a residence with a swimming pool and a parking place, fully furnished
Price 278.000 Euro
Total taxes to be paid at the deed= 5.362 euro
But, we reiterate that this is not the precise definitive calculation, it is a synthetic and approximate method.
After viewing the properties, you select several solutions that you like, and based on your situation (who is the buyer, whether you will become residents or not, whether or not land is included in the property, if you take a mortgage loan or not) – our agency will give you an accurate calculation of the purchase costs, which will help you make the final decision.
Q.:What should be the amount of passive income for obtaining a residence permit in Italy called “residenza elettiva "?
A.: The visa for elective residence allows entry into Italy, for the purpose of stays, to the foreigner who intends to settle in our country and is able to maintain himself independently, without exercising any work activity. To this end, the foreigner must provide adequate and documented guarantees regarding the availability of a dwelling to be elected as a resident, and of ample autonomous, stable and regular economic resources, which can be reasonably supported in the future. Such resources, in any case not less than € 31,000 / year (or, at three times the annual amount provided for in table A attached to the Ministry of the Interior's directive of 1 March 2000), must come from the ownership of large rents (pensions, annuities) , possession of real estate, ownership of stable economic-commercial activities or other sources other than subordinate work.
Our agency provides clients with a contact of a lawyer specialized in these consultations that will help to understand everything in detail.
Do I need an official translator for the notarial deed of sale? I use an Italian friend to review all documents for me and I also translate it in English.
The deed in Italian must be translated into a foreign language when:
- the notary does not know the foreign language;
- one or more parties declare that they do not know the Italian language;
The interpreter must be present when the deed is received and has the task of allowing communication between the parties and the notary who speak in a different language. (so your friend should be present and should do the oral translation during the deed)
The interpreter swears an oath or affirms to a notary that the contents of a translation are true and this must be mentioned in the deed, as far as the name of the interpreter.
The interpreter must also make the written translation of the deed and its attachments which must be appended next to the original or at the bottom. (therefore in advance your friend should translate the text of the deed and in the study of the notary be ready to make the necessary changes if there will be during the deed)
The interpreter must sign both the original and the translation at the end and in the margin of each sheet.
If there is not a full coincidence between the translation and the original in Italian, the latter always prevails.
It is here that I would like to warn you that it is very important that the "friend" translator does his job well.
Q: Dear Hanna, Please find attached e-mail, Tassa Rifiuti, the garbage tax that has to be paid by the 16th of September. It doesn’t have a IBAN reference. Will it be charged automatically? Otherwise I will have a problem to know where to pay the tax.
A: The garbage tax and property tax CAN NOT be automatically paid from your bank account. Therefore, from abroad it is more convenient to pay this tax by bank transfer. Almost all the municipalities on Lake Como published on their websites their bank account data for paying taxes from abroad.
But if you are in doubt, or do not quickly find this information on the website of the Municipality, it is better to write directly to the tax office (Ufficio Tributi). For the city of Tremezzina it will be the following address
Q: Dear Hanna, As I mentioned in e-mail below me and R. are updating our legal documentation. We have a question if we need a specific Italian “last will” (or if the Swedish is good enough) in order to regulate the property in Italy if someone of us pass away?
A: The law applicable to your inheritance will be the law of the country of which you are a resident.
But the inheritance for real estate located in Italy will be processed according to the procedure provided for by Italian law.
Therefore, if you are preparing a will in your country in your own language, be sure to mention in a separate paragraph how you plan to manage your assets in Italy, movable (for example, your account in an Italian bank) and immovable (a description of your property can be found in your Italian notarial deed of sale)
You can also make a will for the Italian property only with an Italian notary public. About the will on the website of Italian notaries in English can be read here
Please check all information with your trusted lawyer.
Yes it is possible. The loan will be repaid on a notarial deed of sale from the amount of the price. The bank will inform his client in advance the exact amount of loan to pay at the deed. For loans granted to individuals, together with the payment of a debt, the bank removes the mortgage from the property for free. The notary conducts all necessary steps to close the loan in order to guarantee both the seller and the buyer.
If I have a house in the UK (or even somewhere outside of the European Union) and I buy a house in Italy, does that count as a 'first house' (4% tax) because it's my first house in Italy? Or a second home (10% tax) because I also have a home in my country of origin?
You can benefit from the "first home" tax benefits at the time of purchasing the property in Italy, provided that the following requirements are met:
a) The property does not belong to the category of "luxury house", i.e. is not defined in the Land Register in categories / 1 (mansions), / 8 (villas) and / 9 (castles and palaces of outstanding historical and artistic value), in accordance with new rules DL 104/2013;
b) the property is located in the municipality where the buyer lives or where he will become a resident within 18 months from the date of purchase (deed);
c) the buyer does not own other property rights, nor use (usufruct), the right of residence in real estate properties located in the same municipality,
d) the buyer is not the owner of other rights of possession, nor use (usufruct) residence rights in other real estate properties acquired with the tax benefit "first house" in Italy.
This all means:
Even if you have real estate abroad, and you are going to buy your first property in Italy, then you can request a "first house" tax benefit, subject to the rules above.
If you are not a resident of Italy and do not plan to become resident here in the future (18 months after buying), you will be subject to taxes at 'second home' rates, even if you do not have another property here in Italy.
If you already have real estate in Italy, for example, a house in Menaggio, but you bought it and paid the taxes as a "second home", and now you are buying another property in another city, for example, in Tremezzina, even though it would be your second purchase, you can take advantage of the 'first home' tax privilege.
If you are an investor and you are not buying the property for permanent residence, you will pay all properties first, second, third, etc. at the tax rate of "second home".
And something to keep in mind; if you buy a property belonging to the category of "luxury real estate" for example, a luxury villa in Italy, you can't benefit from 'first home' tax rates.
For each individual case, we can show you the best way forward, for example:
- what to do if after the purchase you did not become a resident within 18 months
- what to do if you sell before 5 years and have used the tax privilege "first house" when buying