1. What is the first thing I should do before going to Italy to buy property?

It’s so easy to get caught up in the rush to buy a new house in Italy that you may not be able to immediately identify what it is that you want which may not be available. Be sure to do some forward planning before making the trip to view and purchase the property. Bear in mind that it is a seller’s market in Italy right now and if you find the property of your dreams you should be ready to shell out some cash. It is the practice to pay a certain amount as holding fee even before you are even ready to sign over a check for the property. Never secure a property by issuing a check while on a viewing trip. The best way to handle this is to let your lawyer put up a client account that you can access after he has reviewed the preliminary contract or reservation agreement.

2. Is it okay for me to sign anything while in Italy?

Make sure your lawyer first reviews whatever papers you need to sign. Arrange to send him a fax or email copy of the documents and sign only when you are happy with the terms of the contract and your legal advisors give you the go signal.

3. What fees will I be expected to pay?

When purchasing property in Italy you should be ready to shoulder the following fees:
• Land Registration Tax – 10% of the declared value for ‘urban’ and 17% of declared value for ‘rural’ property. If the property is owned by a company, an I.V.A. (VAT) is charged at a rate of 20% of declared value in place of the Registration Tax.
• Estate Agents Fees – 3% to 5% of the actual value of the property
• Notary’s Fee – approximately 2.5% of the total declared value
• Geometra’s Fee – a fee for the conveyance of the property, this cost may vary depending on the work involved.

4. What is the role of the Notary in my purchase transactions?

You will have to sign a legal document in the presence of the local Notary Public binding you to the promise to complete the purchase of the property at some future specified date. At this time, it is important for you to have acquired all necessary documents to complete the sale and to ascertain that the property is free of any encumbrances. It is the Notary Public’s duty to prepare the Purchase Deed (Rogito) and to guarantee the proper execution, registration and payment of all Italian taxes necessary for the completion of the purchase.