Buying real estate in Italy

Purchasing property in Italy as a foreign citizen involves navigating various legal requirements and procedures to ensure a smooth and legally compliant transaction. At Aliant, we specialize in guiding foreign investors through every step of this process. Below, we outline the essential legal requirements for buying property in Italy on which we can assist to ensure all legal aspects are covered and our client is protected.

Eligibility and Restrictions

Non-EU Citizens: Generally, non-EU citizens can buy property in Italy if there is a reciprocal agreement between Italy and their home country, allowing Italian citizens to purchase property there. Aliant can confirm if such an agreement exists for your country.
EU Citizens: EU citizens face fewer restrictions and can purchase property in Italy under the same conditions as Italian residents.

**Fiscal Code (Codice Fiscale)**

Requirement: A fiscal code is a unique identification number for tax purposes.
How to Obtain: You can obtain a fiscal code from the Italian Revenue Agency (Agenzia delle Entrate) or through the Italian Consulate in your home country.

Opening an Italian Bank Account

Requirement: An Italian bank account is not a pre-requisite to handle the financial aspects of the property purchase, including payment of deposits, fees, and taxes. However, after you purchase the property it is recommended.

**The Purchase Proposal (Proposta d’Acquisto)**

Purpose: This is the initial document that outlines the buyer's intention to purchase the property under specified conditions. It includes the offer price and any conditions for the purchase.
Binding Nature: Once the proposal is accepted by the seller, it becomes binding. However, the seller is not bound to accept the proposal.
Deposit: Often, a small deposit (caparra) is made to show the buyer's serious intent. If the seller accepts the proposal, this deposit is deducted from the total purchase price.

**Preliminary Contract (Contratto Preliminare di Vendita)**

Purpose: This is a binding agreement between the buyer and seller outlining the terms and conditions of the sale, including the purchase price and deposit amount (usually 10-20% of the purchase price).

Due Diligence

Legal Due Diligence: We review the property's legal documentation, including title deeds, planning permissions, and any existing encumbrances or liens, to ensure there are no legal issues affecting the property.
Site and Technical Due Diligence: Our team, including surveyors and architects, conducts on-site inspections and technical verifications to verify the property's condition and compliance with local regulations.

**Final Contract (Rogito Notarile)**

Role of the Notary: A public notary in Italy is required to draft and oversee the signing of the final contract. The notary ensures that all legal requirements are met and that the property is free of liens or other encumbrances.
Signing: The final contract is signed in the presence of the notary, who then registers the property transfer with the Land Registry (Conservatoria dei Registri Immobiliari).

For foreign clients who do not speak Italian, at closing, Italian law requires the presence of an official interpreter and two witnesses. Since this is a lengthy and costly procedure, we offer to appear at closing in the deed of sale in your name and on your behalf as your attorney-in-fact through a power-of-attorney so the deed may be executed in the Italian language (although we provide our clients with an informal copy in English for their reference as well as a package with all relevant documentation).

Taxes and Fees

Purchase Taxes: Depending on the property's nature (residential or commercial) and whether it is a primary residence, various taxes apply, including VAT (IVA), registration tax, mortgage tax, and cadastral tax.
Annual Taxes: After purchase, you will be responsible for annual property taxes, including IMU (municipal property tax) and TARI (waste disposal tax).

Post-Purchase Requirements

Registration: The notary handles the registration of the property with the local Land Registry, ensuring the transfer of ownership is officially recorded.
Utilities and Services: Assistance with setting up utility services and other essential administrative tasks to help you settle into your new property.