Real estate in Italy.
Legal issues.
The process of buying property in Italy.
After choosing a suitable property and deciding on its purchase, two options are possible: (1) the buyer pays the purchase completely, which is extremely rare, or (2) the buyer usually pays a partial payment.
In the latter case, a preliminary contract is signed – Compromesso and an advance payment is paid. Compromesso is an agreement between the seller and the buyer, which specifies the details of the buyer and seller, gives a detailed description of the property, indicates the price of the sale / purchase, terms and method of payment, the date of the contract, as well as various guarantees from the seller that it really is owner of the property being sold and that has the full right to sell this property. This agreement is notarized.
When signing a preliminary contract, the buyer pays a deposit, usually 10% – 30% of the value of the property, thereby reserving the property with him (caparra confirmatoria). In the event of a change in the purchase decision, the buyer loses the deposit, and if the seller refuses, he must return it to the buyer in a double amount. According to the procedure, the buyer must receive in advance a tax code (codice fiscale), through which a foreigner is identified in Italy. After signing the preliminary contract, the buyer (seller) pays for the services of the Real Estate Agency. Next, the terms of signing the final contract of purchase and sale are stipulated. The remaining amount of money is paid at the signing of the final contract. The final sales contract is signed by the buyer and the seller in the notary’s office in the presence of the Italian notary (Il Notaio), which represents the state in its person, assures the transfer of the property right from the seller to the buyer and controls the payment of registration taxes and fees. The buyer pays the remaining value of the property plus taxes and notary fees. The final contract of purchase and sale is registered by a notary at the Conservatory of Real Estate Registers, where he is given a registration number.
Any type of property in Italy must be registered with the Conservatoria Registri Immobiliari, where you can get full information about who owns the property, its exact cost, area, and information about the possible debt of the owner.
After the transaction, the notary will register a new owner of the property within a few days. If you take a mortgage, he will also register a loan. However, it may take several weeks before you receive a copy of the notary deed.
The buyer enters into ownership of real estate in Italy from the moment of signing the final contract of sale and purchase, and officially from the moment of registration of this contract in the Conservatory of Real Estate Registers.
Real estate in Italy – legal aspects and the process of buying.
When buying a property in Italy there are certain needs, in particular:
payment of acquisitions must be carried out in a strictly defined manner; the acquirer must be identified, that is, it is impossible for an anonymous person to be legally present in Italy; the acquirer must have an Italian tax code; The acquirer, as a rule, should be a representative person, i.e. have guarantors from among the residents of Italy; transactions must be registered in special state registers and only after their registration become legal and notarized; and much more.
The presence of your own house or apartment in Italy in itself can not serve as a basis for obtaining an Italian visa or residence permit. The owner can only visit his house, and not for permanent residence purposes, but solely for business purposes, for example, for renting, at the call of an authorized administrator at home, and also for tourism purposes, etc. Terms of residence are determined by the validity of visas issued by the relevant Italian Consulate.
Taxation in Italy is such that, as a rule, it is more profitable to first obtain the status of a resident of Italy (permanent residence), then to obtain significant savings in the purchase of real estate, especially since the resident of Italy is equated with the citizen and in all other rights: from free education and medicine , before visa-free travel around the world.
When buying real estate in Italy, the main taxes are:
& laquo; Imposta di Registro & raquo; – The tax of the register.
It is paid to the state at the time of purchase of real estate. This tax is proportional to the value of the property with the coefficients that the State establishes.
& la Imposta catastale e Ipotecaria & raquo; – The inventory tax and the mortgage tax.
It is paid to the state at the time of inventory and registration of real estate in the public real estate registry (Conservatoria Registri Immobiliari).
& laquo; IVA & raquo; – Tax on value added.
The tax that the state pays when buying a property from a construction company or other legal entity.
The size of these taxes depends on the status of the seller (private or legal person, for example, a construction organization) and the status of the buyer (permanent resident of Italy or a foreigner).
In 2005, for individuals, tax payments for the purchase of real estate were:
1) for residents of Italy (ie permanent residents of the country, both Italian citizens and citizens of other countries who are on permanent residence)
a) Purchase from a private person of the first house (not elite real estate):
– Imposta di registro (Registry tax) 3% of the cadastral value of the property.
– Imposta ipotecaria e catastale 336.
b) Buying from a construction organization in the IVA mode (the value-added tax of the first house (not elite real estate) for residents in Italy:
– Imposta di registro (Registry tax).
– Imposta ipotecaria e catastale 336.
– IVA (NDS) 4% of the cadastral value of the property.
2) for foreigners (ie persons who are not permanent residents of Italy)
a) Buying a property from a private person (equated to buying an elite property)
– Imposta di registro (Registry tax) 7% of the cadastral value of the property.
– Imposta ipotecaria e catastale 1% + 2% of the cadastral value of the property.
b) Buying property from a construction company in the IVA (elite real estate) regime for foreigners.
– Imposta di registro (Registry tax).
– Imposta ipotecaria e catastale 336.
– IVA (NDS) 20% of the cadastral value of the property.
From the data given, it is obvious that the Italian legislation leaves significant advantages for residents (permanent residents) of the country – not necessarily citizens. For example, when a VAT is paid when a purchase is made, the foreigner pays the maximum rate of 20%, while the resident of Italy pays 4% if this is his first home (“prima casa”), and 10% if not the first . Similar benefits for residents of the country exist and when other taxes are paid.
In general, the purchase of the first housing in Italy is extremely preferential – the country is rapidly aging and the authorities are stimulating the formation of new families. The lawful resident of the country (again, not necessarily a citizen) who buys the first housing can count on a long-term mortgage loan for up to 90% of the cost of housing, at 3.5-4% per annum, with the subsequent five-year exemption from property tax (this tax is.