- 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

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

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)

• Mooring buoy - 200 euros per year
• Coastline / Beach - 10 sq. - 30 euros per year
• Berth for a boat 7 sq. - 280 euros per year
• Apartment with an area of ​​119.17 square meters - 1059.59 euros per year (8.70 euros per 1 square meter)

What are property purchase taxes in Italy?

This is one of the frequently asked questions in your requests, but there is no quick answer.

The purchase taxes will depend on:

• Who is the seller
• Who is the buyer
• What is for sale (apartment, house with land, land, from the primary market or the secondary market, etc.)

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:

• if you buy a new home from a construction company - 10% VAT is paid
• if you buy property from the secondary market from a private person - the registration tax is paid in the amount of 9% of the cadastral value of the property

Example 1 - a purchase from the primary market

Apartment 80 sq.m. and garage in the new residence

https://bestcomo.com/en/property/apartment-tremezzina-id-9415

Price 275.000 Euro

Purchase Taxes:

• VAT 10% - 27.500 euro
• Stamp Duty tax  (imposta di registro) - 200 euro
• Land Registry tax (imposta ipotecaria) - 200 euro
• Cadastral tax (imposta catastale) - 200 euro

Total purchase taxes: 28.100 euro

Example 2 - a purchase from the secondary market

Apartment in a residence with a swimming pool and a parking place, fully furnished

https://bestcomo.com/en/property/apartment-tremezzina-id-377-0

Price 278.000 Euro

Purchase taxes

• Stamp Duty tax  (imposta di registro) 9% of cadastral value - 5.262 euro
• Land Registry tax (imposta ipotecaria) - 50 euro
• Cadastral tax (imposta catastale) - 50 euro

Total taxes to be paid at the deed= 5.362 euro

Tip for buyers how to understand the total amount needed for the purchase 

• For real estate from the secondary market, add to the price - 8-9% of the price (all transaction costs including agency commission and notary services)
• For real estate from the primary market, add to the price - 15-16% of the price (all transaction costs including agency commission and notary services).

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: 

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. 

A: 

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. 

Question:

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? 

Answer:

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