Purchasing Process

Property registration

All properties in Italy are registered on a property register called Catasto. On written application, the Catasto issues a certificate called Visura Catastale for each property. Each Visura Catastale contains, amongst others, the following information: name of the owner, number of the land or building parcels, area of each parcel, official registered type of land (i.e.: agricultural, pasture, wood, etc.) or official registered type of building, fiscal value of each parcel.

The service of obtaining the Visure Catastali is included in our fee.

Surveys

Surveys in Italy are optional and a fee will be charged according to the complexity of the survey and the size and condition of the property. Usually, unless the building to be purchased has not been recently built or restored, the only survey that could be carried out is a structural survey.

Case in Italia has a number of preferred technicians that can complete the surveys. The relevant cost is not included in our fee.

Codice fiscale

The Codice fiscale, is a social security number, which is given to any Italian citizen as well as to non-Italians applying for it. The Ministry of Finance issues the Codice fiscale. The applying person should send the application form to the Ministry of Finance indicating a 'indirizzo fiscale' (fiscal address). Case in Italia offers its Clients to use its address as temporary fiscal address. Once the Buyer completes the purchase and the property is habitable the temporary fiscal address must be changed with the property address.

All formalities to apply for a Codice fiscale can be completed by Case in Italia without extra charges.

Bank account

It is advisable to open a bank account, once a property has been identified and the potential buyer wishes to proceed with the purchase. To do so one must fill out an application form, which differs from bank to bank, have a valid Passport and a Codice fiscale.

Case in Italia has agreements with internationally well-known banks to make the process smoother and quicker. Our relationships indeed make things easier, but bank accounts can be opened anywhere.

Money can be transferred without limitation into the account. There are no restrictions on funds being imported into Italy, but to ensure that the proceeds of any resale can be repatriated, it is recommended that the purchaser obtains official documentation from the bank of the importation of the purchase money and incidental costs. The funds should be deposited in the Italian bank. Re-sales involving payment of the purchase money outside Italy is permissible between non-residents but rights to repatriation of funds should be expressly included in the conveyance.

The person opening the account, or anyone else expressly nominated, can withdraw money or authorise payments: this should be taken into consideration if one does not plan to be in Italy every time a payment needs to be made!

All formalities to help the potential buyer open a bank account can be completed by Case in Italia at no additional expenses.

Proposta di acquisto (Step 1)

Once a property has been identified, the vendor and the buyer agree on a price and on the general conditions of the sale (payment terms, timing, etc.). Said conditions are outlined in the Proposta di acquisto (de facto a promise to purchase), which must be defined and signed by both Parties.

The Proposta di acquisto contemplates the issuance of a first payment to the Vendor, whom, upon receiving the payment, temporarily takes the property off the market while a due diligence is carried out on its legal and technical status and while the Contratto preliminare di vendita is drafted between the parties.

Should the due diligence be positive the parties will proceed with the final definition of the Contratto preliminare di vendita.

Contratto preliminare di vendita (Step 2)

Frequently known as Compromesso, the Contratto preliminare di vendita defines exactly all terms and conditions of the sale. It contains:

• names, addresses, Codice Fiscale of all parties involved;
• description of the property with clear indication of parcel numbers and their area;
• list of the neighbours, if not all, at least the ones necessary to better define the property and, especially, having the right to exercise any 'pre-emption right';
• agreed purchase price and the cadastral price,
• payment terms;
• date of completion of the purchase;
• particular terms, if any, agreed by the parties.

Before proposing drafts of a Contratto preliminare di vendita to the buyer, Case in Italia completes the necessary conveyance checking the legal status of the property and the existence of possible mortgages with the help of specialised consultants. If the result of the above checks is positive, a draft of the Contratto preliminare di vendita is prepared and finalised with the buyer before submitting it to the Vendor.

Once the content of the Contratto preliminare di vendita is finalised, it is ready for signing. The signing of the Contratto preliminare di vendita requires either the presence of the buyer (not necessarily all, if the buyers are more than one) or his representative with a Power of Attorney. The Power of Attorney may be given to a third party such as a relative, a friend, a solicitor or a representative of Case in Italia (Case in Italia can provide a sample text of the Power of Attorney).

With the definition of the Contratto preliminare di vendita a second instalment is made. Said payment, summed to the funds paid with the Proposta di acquisto, is considered as the deposit of the full payment due.

Providing assistance in overseeing and drafting the Proposta d'acquisto and the Contratto Preliminare di Vendita, is part of the services included in our fee.

Contratto definitivo di acquisto - Rogito (Step 3)

The final contract or Deed of Purchase, is called the Contratto definitivo di acquisto or Rogito, and is signed after the Notary has completed a second conveyance on the legal status of the property.

The buyer always chooses the Notary.

Case in Italia has a list of preferred Notaries to be suggested depending on the location of the property.

The Rogito is always in the Italian language and, generally, the text is not available for consultancy until the time of the meeting with the Notary. Case in Italia always requires the Buyer to meet with the Notary before the actual signing to get a verbal translation of the content of the document. Not to be forgotten that the Notary represents the buyer and not the vendor.

It will take the Notary from 2 to 4 weeks to register the Rogito. Once the Rogito is registered it can be collected at the Notary's office with the receipts of all the paid duties and the invoice of the Notary's fee.

All the necessary assistance up to the final signing and collection of the Rogito is included in our fees.

Purchase expenses

Following is the list of the expenses involved with the purchase process with relevant estimated percentages. The listed percentages are indicative as they depend on the type of property and each specific case. Estimate an additional 10-15% of the purchase price to cover duties, taxes, notary and translations when required.

Taxes

Taxation on property purchases is applied at different rates on buildings and land. Therefore, the total value of the property, for taxation purposes, will be divided into two separate values: one for the building(s) and the relevant courtyard(s) and one for the remaining land. Such values are not arbitrary, but depend on the parcel fiscal values obtained from the Catasto.

Stamp Duty

This is known as Imposta di registro. There is no stamp duty threshold as in England and you will therefore be required to pay at the appropriate rate. If the buyer is purchasing the property as prima casa (first house in Italy) this is the equivalent to a permanent residency and the rate is, therefore, 3% of the fiscal value of the building(s) and pertinent courtyard(s). You can apply for your residence certificate within 18 months from the date of the Rogito. If the property is not bought as prima casa, even though it is the first property purchased in Italy, the rate is about 11% of the fiscal value of the building(s) and pertinent courtyard(s).

Land is always taxed at 18% regardless of residency (prima casa).

As of January 2006, for all residential properties acquired through private transactions, one may declare two prices: the purchase cost and the cadastral value. The Stamp Duty is calculated on the cadastral value (usually the lower of the two).

The new law does not apply for the following: plots of land, buildable land, factories and industrial buildings, shops and offices.

Other Fees and Duties

Other fees and duties such as costs for registering the purchased property at the Property Registrar, will be assessed on a scale fee according to the value of the property.

Notary fees

A fee is charged by the Notary to prepare and legalise the Rogito. This is also a scale fee based on the property value.