Complete Guide to Buying Property in Italy
Navigate the steps to owning your dream home in Italy with ease.
What are the Costs to Purchase in Italy?
When buying property in Italy, consider the following taxes and fees:
Stamp Duty: Ranges from 2% to 9% of the cadastral value, with a minimum of €1,000. 2% for primary residences and 9% for secondary properties.
Land Registry Tax: Between €50 and €200, depending on whether the seller is private or a company.
Mortgage Tax: Similar to land registry tax, between €50 and €200 for mortgage registration.
VAT: Ranges from 4% to 22%, depending on property type, and applies to purchases from registered companies.
Capital Gain Tax: Around 26% for sellers, exempt if the property is owned for over 5 years.
Notary Costs: Typically at least €4,000 or 1% of the transaction value for legal validation.
Agency Fee: Usually between 1% and 5% of the transaction amount if using a real estate agency.
Evaluate Your Borrowing Power for Buying a House in Italy
Discover the key benefits of using LikeJunco for your Italian mortgage needs.
Determine Borrowing Capacity
Learn how much you can borrow from Italian banks.
A mortgage broker will evaluate your eligibility by liaising with Italian lenders to find the right options.
Understand Debt Ratio Calculation:
Italian banks use a debt ratio to assess how much you can borrow. Your mortgage shouldn’t exceed 30%-35% of your income.
Example: If your outgoings are €900, your income should be €3,000
Loan-to-Value (LTV) Considerations:
LTV typically covers 60%-70% of the property value. You’ll need to provide the remaining 30%-40% plus fees. Higher LTV rates may apply for Italian residents abroad.
Evaluate Your Financial Profile
Our team will evaluate your financial profile and assist you in selecting the ideal lender to maximize your borrowing potential and secure the best rates.
How to Buy a Property in Italy
When viewing potential properties, follow these key tips to make a well-informed decision:
Take Your Time: Don’t rush; calmly evaluate the house.
Bring Someone You Trust: A second opinion helps spot things you might miss.
Inspect Thoroughly: A second opinion helps spot things you might miss.
Compare Prices: Research similar properties in the area for fair pricing.
Visit at Different Times: Check the property’s light exposure and ventilation at various times of day.
Ask Questions: Inquire about the reason for selling, maintenance fees, and any planned work.
Stay Neutral: Even if you love the house, don’t show too much excitement during negotiations.
Essential Pre-Purchase Checks
When considering buying a home, there are a few essential things to ask the real estate agent or landlord:
In Italy, there are frequent building abuses or situations of discrepancy in the state of affairs with respect to the plans present in the land registry or in the municipality. This should not scare you, often these are solvable situations, but it is right that you know them and evaluate them with your consultant
It may happen that, shortly after your purchase, the condominium assembly decides to renovate the roof or the facade. This is good because it enhances the building, but spending several thousand euros immediately after buying your apartment could affect your family budget.
The buyer should inquire whether there are any injurious inscriptions or transcripts on the property, such as mortgages (voluntary, legal, or judicial) or other burdens that could impact the purchase. These terms can be complex, and understanding them often requires professional assistance. It is essential for the buyer to seek clarification and carefully review the documentation. Relying on a consultant is strongly recommended to ensure a clear understanding of the property's legal and financial status.
Ask if the systems are compliant (it is not mandatory to buy and sell a house, but it is extra security) and if they have the energy performance certificate (APE) with the relative energy class (yes, mandatory).
The answers to most of these questions should be backed by appropriate documentation. Let’s review the key documents you need to examine:
Here are the essential documents (ask the notary you have hired to check the validity of these documents) :
This is the deed (deed, declaration of succession, transfer decree, “usucapione” …) by which the seller acquired ownership of the property. It is a very important document that certifies, in addition to the correct ownership, also the urban planning practices made over time and any conditions that could hinder the purchase.
You must ensure that the house as it appears corresponds to the plan in the municipality.
Even with the cadastre, you will have to check the conformity of the state of affairs with the plan and check the data reported in the survey.
Mandatory in a sale, by law.
Check how much you will spend exactly at the condominium level.
They will allow you to find out if the condominium assembly is talking about any work to be done in the future.
Essential document allows you to be clear if the property is burdened with mortgages or other burdens that could be dangerous.
Making a Proposal for the House
Once you've gathered all the necessary information from the seller regarding taxes and costs, and you know the final price, you're ready to make your proposal. The process typically involves three steps:
Once the seller and you agree on the sum to be paid for the property, the seller will ask you for some money to be paid as a deposit, as a proof of the seriousness of your intentions. This is called “proposta” or proposal of purchase. The amount requested in this phase can vary. It can be as little as 2000€. However in case the seller decides not to proceed with the sale, the money will be given back to you unless agreed otherwise.
Note: LikeJunko will assist you in making your proposal conditional on mortgage approval. This means that if your mortgage application is not approved, you will not lose your deposit.
Next comes the "preliminare," or preliminary contract. At this stage, the seller will request a larger deposit than the initial one, typically ranging from 5% to 20% of the property’s value, depending on the property. Additionally, a portion of the agency fees is usually paid at this point. According to Italian law, if the seller withdraws from the agreement, they may be required to return double the deposit received. This phase takes place after mortgage approval, ensuring you have the necessary funds secured.
Last there is the final deed of sale or “rogito”. With this one the transaction and the purchase is formalized and the change of ownership is finally completed. This deed of sale is where most of the money gets paid.It is done in front of the notary and by this term all the essential taxes listed below must already be paid.
The information provided on this website is for general guidance purposes only and is subject to change over time.
While we strive to keep the content accurate and up-to-date, it may not reflect the most current regulations, market conditions, or financial guidelines
This site does not provide advice or personal recommendations. While we are not advisers, all our partner advisers are fully regulated. By submitting your details, you consent to being contacted for an initial consultation. We will not use your information for other purposes or share it outside this service. Our partner advisers specialize in Italy expat home financing, ensuring expert guidance tailored to your needs.
Transparent and Simple Pricing
At LikeJunco, we guide you through every step of the home buying process for securing a mortgage in Italy, from scouting the perfect mortgage to finalizing the deal.
We are not financial adviser ourselves, however all the advisers we work with are fully regulated by the appropriate authorities.
Our fee is a success fee of 2% (with a minimum of €5,000) of the value of your mortgage, payable only once the mortgage is secured. This fee also includes the services of our mortgage brokers.
