Step 1: Verify the Professional’s Credentials
It might seem obvious to you. Before diving into any property deal, it’s crucial to verify the credentials of the professional assisting you. If you’re working with an estate agent, ask to see their official proof of registration. By law, all estate agents in Italy must be registered with the Chamber of Commerce in their province. They also need to have a VAT number (known as partita IVA) and an R.E.A. number (business registration number).
Avaling yourself ot the services of a licensed estate agent is quite important, and the client’s benefit come from the Italian Law.
In Italy, licensed estate agents are legally required to carry professional liability insurance, ensuring clients are protected against errors, omissions, or negligence during a property transaction.
Often referred to as assicurazione per responsabilità civile professionale, this insurance covers a wide range of potential problems, including mistakes in contract management, failure to disclose crucial property details, or legal disputes arising from the transaction.
Step 2: The Purchase Process
once you’ve found your dream property, here’s a breakdown of the steps involved:
- Check the Property Documents
- Property Title: This document includes key details about the property, such as the seller’s information, cadastral parcels, and building permits.
- Building Permits: This document is crucial to ensure the property complies with Italian building laws (Testo Unico dell’Edilizia, D.P.R. 380/01). If the property has been altered or has unregistered areas, these must be addressed before the sale. However, properties built before 1967 may not require modern planning permits due to previous legislation (Legge Ponte).
- Cadastral Search: You’ll need to review the visura catastale (property registration) and the planimetria catastale (property floorplan), both of which are issued by the Italian Revenue Office. These provide official records of the property’s size and layout.
- Energy Performance Certificate: This document is mandatory by law and outlines the property’s energy efficiency, along with recommendations for improvement.
- Legal Inspections: A Notary (a public official) will carry out checks on the property’s ownership and any outstanding debts to ensure the transaction is smooth and secure.
- Getting an Italian Fiscal Code (Codice Fiscale) The codice fiscale is similar to a Social Security Number in the US or National Insurance Number in the UK. It’s essential for tax and legal purposes, and you’ll need it to open a bank account, sign contracts, and pay taxes. You can easily obtain one from the Italian Revenue Office.
- Opening an Italian Bank Account While not strictly required by law, having an Italian bank account simplifies the purchase process. You’ll use it to pay bills and transfer funds for the property transaction.
- Irrevocable Purchase Proposal (Proposta Irrevocabile d’Acquisto) This document represents your formal offer to buy the property. It includes the price, deposit, and property details. It’s signed by the potential buyer first and serves to “block in” the property while you proceed with the purchase.
- Preliminary Contract of Sale (contratto preliminare) The preliminary contract is a legally binding contract that outlines the agreed terms of the sale, including price, date of completion, and other key details. It’s usually prepared by an estate agent, lawyer, or notary, and is governed by the Italian Civil Code.
- Final Deed of Sale (Rogito) The rogito is the official transfer of ownership. It is signed in front of a notary, who ensures all legal requirements are met. At this point, you’ll pay the seller, and the property is officially yours. If you’re not fluent in Italian, you’ll need a translator for the deed signing, unless the notary speaks your language.
- Agent’s Fee In Italy, estate agents are typically paid a commission of around 2 or 3% plus VAT of the agreed purchase price. Both the buyer and the seller are responsible for this fee, and it’s not split between them.
- Taxes Taxes on property purchases in Italy depend on whether you plan to establish residence there. If you do, you’ll pay:
- Notary fees (based on the property price)
- Registry tax: 2% of the cadastral value
- Fixed cadastral tax (€50)
- Fixed mortgage tax (€50)
For further details on the reduced taxation when purchasing a property, take a minute to read our article on Primary home taxes in Italy.
If you don’t plan to make Italy your primary residence, taxes are slightly higher:
- Registry tax: 7% of the cadastral value
- Cadastral tax: 1% of the cadastral value
- Mortgage tax: 1% of the cadastral value
The cadastral value is typically lower than the market price, meaning your taxes will be less than they might seem.
Whether you’re looking for a historic trullo, a countryside villa, or a charming coastal retreat, Puglia offers a diverse range of beautiful properties, and now you’re well-equipped to make an informed decision!
By following these steps and working with trusted professionals, buying property in Puglia can be a smooth and rewarding experience.
Our real estate experts are available and and ready to guide you in your Italian journey. Feel free to contact our property agents, italian real estate lawyers and engineers at your own convenience for any question or need you might have.
