The Buying Process
There are normally two main stages to a purchase;
Allthough there are occasions that the following is also used.
Promessa d’acquisto (purchase proposal).
1. Compromesso (Preliminary contract)
By signing this document you are agreeing to the sale going ahead, pending the satisfactory outcome of any clauses.
Deposit
Procura (Power of attorney)
At this point we will be doing the following;
Ensuring the compromesso is registered. This means the seller will not be able to accept any further offers on that property.
Assist you in obtaining your Codice fiscale(Tax code). This is not an application for residenza (residency).
Opening an Italian bank account for you and establishing how you access the funds when needed to complete the sale.
Dealing with any issues arising when making our preliminary searches such as breaches of regulations that need rectifying.
2. Atto
Atto also called the rogito (Deed of sale)
Notaio (Notary)
Purchase Taxes
The following general comments should always be considered with reference to your specific position. We advise either to use an commercialista (tax advisor) here or from your home country. We can introduce you to either a local tax expert or expert in your home country if you so wish.
Taxes for property transactions are listed below; there are no extra taxes for foreigners:
Imposta di Registro (Registration tax) of 3% on the purchase price - if the buyer has or intends to be resident within 18 months of purchasing and this house is to be their prima casa (primary residence). Residency is not citizenship, it means you will be a tax resident of Italy i.e. spending more than 183 days a year here.
Also taxes of;
Imposta Ipotecaria (Mortgage tax) - €168
Imposta Catastale (Land registry tax) - €168
For second homes or when not becoming resident:
Imposta di Registro (Registration tax) is 7%.
Imposta Ipotecaria (Mortgage tax) is 2%.
Imposta Catastale (Land registry tax) is 1%.
Imposta Catastale (Land registry tax) is not paid on new builds or property bought from companies, but IVA (VAT) is paid at 4% or 10% for second homes. If the property is deemed ‘luxury’ then it is 20%
This is a simplified explanation of property taxes covering the main types of transaction; others involving purchasing via companies, etc needs further explanation.
We have software available, so you can enter different scenarios to see the effect it will have on your tax burden and illustrate the real ‘total’ cost of buying a property here.
We always wish that our clients are able to fully understand under potentially confusing circumstances what is occurring at all stages. We are not specialist property lawyers and so if clients feel the need for further legal assistance then we can either recommend avvocati (lawyers) here in Sicily or specialist property lawyers in their home country. Of course they are always welcome to use any other parties they feel fit to use for advice, bearing in mind information needs to be specific to their position and the person advising needs to have through knowledge of the Italian laws.