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ITALIAN REAL ESTATE MORTGAGE

To Italian Espatriates AIRE scheduled 

 for buy , restore , refinance

residential properties , in Italy

This preliminary agreement will contain the following :

• Identification of the parties (full names, place and date of birth, passport number, nationality, tax identification number ; in the case of companies which are selling, they must provide their value-added tax number, and their legal registration number) .

• Indication of the location of the property in question (town and province).

• Identification in the national register of lands (NCT) or urban areas ( NCEU) : this identification is achieved by citing the register sheet, the units of property or parts thereof.  In the case of segments (frazionamento) of property, is it necessary to obtain  their identification in the national register.  Such action must take place before the final sales agreement with the notary 

• In the case of land and/or for portions of buildings, the agreement must be accompanied by a map from the register, which will be signed by both parties .

• Verification of the seller's title to the property (provenienza) .

• Verification of whether any limitations exist to the title, for example judiciary or bank obligations, italian mortgage, inheritance or property rights, rights to first choice of purchase, or any other limitations that reduce or in some way curtail the right to full title of the property.  The seller must commit him/herself to eliminating such limitations prior to, or simultaneously with, the final sales act.

• Particular attention should be paid to the agrarian preemption,if the house is in a rural together and if with the house is purchased farmland . For furter information on this subject , you should read this document , drawn up by the italian Notary Association <The Prelazione Agraria>  

• Identification of all servitudes that might weigh on the property (roads, trails, pipelines etc that transit through the property to be purchased) and those from which the property should benefit (access to water from nearby natural sources or wells, rights of passage, and rights to access to pipelines etc) .

• Building licenses issued after 1967 .

• The sales price, indicating the amounts paid at signature (or at various successive moments) and the balance to be paid at the time of the final sales act.  The initial payment (anticipo/caparra) should be identified as the down payment (caparra confirmatoria).  In case that the seller decides that he/she no longer wishes to sell, he/she will compensate the damaged buying party with a sum equal to twice the initial down payment .

• The date established for the final sales act.  This must be at least 30 days after the private sales agreement.

• From July 1, 2010 year , came into force of the requirement to verify the correctness of the register made before the notary deed, before the signing of deeds of sale of buildings, or other acts with which they move or real rights (for example  mortgages) are on the same must verify that the property is regularly surveyed in land on behalf of the owner (or holder of rights in rem), which must state that the cadastral data and maps are stored in the register state of the building.  The lack of these statements results in the nullity of the act, and therefore void the sale or the Act concerning the property. It is no longer possible, therefore, sell a building, or enter a mortgage to secure a loan, if it is not consistently stated in the land registry, but even if the header register is not true, if the plan filed in the land registry does not show exactly the state of the property, or other characteristic data of the property (stocks, category, class and cadastral income) are not updated.  For more info, please click on the following links :  

   

  Circolare_Agenzia_Territorio_203-2010  

   

  Circolare_Agenzia_Territorio_202-2010  

   

   

Notes

2. In case the buyer is unable to read Italian, he or she must be accompanied for both the preliminary agreement and the final act, by an interpreter registered with an Italian court, or alternatively a trusted person can be given a power of attorney to act on behalf of the buyer.

3. Payment must be made in the place and currency requested by the seller.

4. In order to simplify payments,  is recommended that the buyer to open an  bank account in Italy.  

5. If a purchaser wishes to obtain an italian  mortgage, either for the purchase or for improvements , restoration , building , refinancing or pay off another mortgage , but he/she is unable to read Italian, then he/she will need to adopt the same procedure as indicated in point 2 above.  Should he/she wish to delegate a trusted person, the text of the proxy must be provide by an italian notary and approved  by the Italian banking institution. (ATTENTION some banks do not allow this procedure)

6.  At the time of the preliminary purchase agreement, the buyer must pay the commission to the agent and/or intermediary.

7. At the time of the final sales act, the buyer will have to pay:

• The notary's honorarium
• The purchase tax : 9% for buildings and plots , with a minimum of 1000-euro ; 15% for lands - For all with a minimum of 1000-euro.
• The ipotecaria tax  : 50 euro 
• The cadrastal tax    : 50  euro 
• The costs of title verification undertaken by the notary, on average costing some Euro 420.

All these percentages will be calculated on the 

valore catastale issued by a Ufficio del territorio 

on the property certificato catastale 

 TAXES  FOR PURCHASING ACCORDING THE  

First Home Italian Laws

 NOTE : THIS TAXES  ARE NOT APPLICABLE TO PROPERTIES CADRASTALLY SCHEDULED AS A/1 - A/8 - A/9 (luxury homes)

    1  - If the seller is a builder  ,

• The imposta sul valore aggiunto (IVA-VAT) , is 4% of the property cadrastal value 
• The cadrastal tax  is  200 euro 
• The registro tax    is  200 euro
• The ipoteca tax     is 200 euro  

     2 - If the seller is a private people  ,

• The registro tax    is   2% of the property cadrastal value
• The ipoteca tax     is   50 euro  
• The cadrastal tax  is   50 euro

For 

Italian Tax guideline , Live in Italy 

>> PLEASE CLICK HERE <<

Additional information

1. Within 48 hours of the public sales act, the seller must present in the relevant commune or in any police office, a declaration of  >>> transfer of the property<<<  indicating complete information about the buyer.

 2.  All of the pre-existing utility services (water, light, gas, telephone) must be transferred from the seller to the buyer.  Please      note that entering into new contracts is particularly costly, and therefore the transfer of existing contracts is recommended.  For this purpose is  it important to obtain copies of the previous bills paid by the seller.  The purchaser, or whoever is entrusted with the task, should go to the various public utility offices or contact them via the toll free numbers listed in the telephone directory,   communicating the full name, tax identification number, and address where the bills should be sent.  In order to obtain reduction benefits for the "First Home" it is necessary to provide a certificate the residence within 180 days  of the request for transfer of the account.

3. Within 30 days the buyer, with a copy of the final purchase act, a photocopy of his/her passport and of the tax identification number, should provide the tax office of the community concerned with:

             a) The declaration IMU - the value of the act to determine the tax base varies from municipality to municipality, 

                 we strongly encourage every buyer, to contact an accountant to fulfill this obligation. 

              b)  The declaration for the removal of household and urban waste.

Please note, for both of the above it is advisable to provide a copy of the payment bills used by the previous owner.

If the purchaser obtains a mortgage for the purchase in many cases the purchaser can detract on his/her income tax return the interest and related charges.

Restoration or Building

In order to proceed with the restoration or the construction of a building, it is necessary to obtain the services of a licensed technician (Geometra), or an Architect or a Civil Engineer.

In Italy, all types of construction or restoration works , require the presentation of a request for authorization to the towns offices , signed by the owner of the property and a licensed technician.

In order to obtain authorization to begin these works, a tax must be paid to the town offices ; it normally takes 90 working days to receive the authorization from the time the request is presented.

Only in the case of light restoration works (painting, floors, window and door frames and wiring) may the technician present a particular request called DIA, for which it will not be necessary to pay any tax and the works can initiate in a brief time period .

For more info about Italian's  laws to building , please click to following points , to download :

Note : files are in Adobe  in you don't have it, click > HERE  <

1.  All Italian Building Laws 

2. All Italian historic restoration laws

>> Klick here to Go back to Italy Mortgage Guideline <<

> Ugo-Quick-Contact <

Professione esercitata a norma della legge 14-01-2013-nr.4

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