Via dei Colli Immobiliare assists the client from the moment of the first contact until the deed of sale is completed. And so much more.
We respond promptly to your requests, together we identify the properties that meet your needs, we accompany and assist you during the viewings, we obtain all the documentation relative to the home, we do due diligence, we keep in touch with the seller, we support you during the negotiation process, we draft an offer to purchase and hopefully a preliminary contract, we ensure you in the fulfillment of formalities related to the purchase (such as obtaining an Italian Tax Code and the opening of a Bank Account, requested for non-residents in Italy), we help advise you in choosing a notary and we are present at the deed of sale. Even after, we are here to help change the names on utilities and can even assist you in getting in-touch with english speaking accountants and other professionals. For a true One Stop Approach.
The purchasing process in Italy is normally subject to 3 stages:
1. The purchase proposal
The first step for those who are preparing to buy a home is to fill out a written purchase offer; with the purchase proposal the promising buyer shall inform the seller in writing of his offer, including payment methods and conditions, period of validity of the proposal, times established to reach the final deed, any conditions precedent or resolutive (ex: offer valid on the condition that a mortgage loan is granted to the buyer).
To strengthen the commitment made by the parties, a sum of money is attached to the proposal, often deposited as a confirmatory down-payment (pursuant to Article 1385 of the Italian Civil Code) and typically between 10,000 and 20,000 euros.
This amount is entrusted to the agent – by non-transferable check made payable to the seller or through deposit on the agency’s escrow account – who will take care to deliver it to the seller if the latter accepts the proposal presented to him
2. The preliminary Purchase agreement
The preliminary purchase agreement is a reinforcement of the purchase proposal; it is a contract between the two parties that obliges the promised buyer and the promised seller to draw up the final deed within a certain period, under the agreed conditions.
In the preliminary contract must be indicated, in addition to the generality of the parties, the description of the properties for sale, the details of the previous transfer deeds, charges and easements on the property, the details of the building concessions or works completed in amnesty, the price agreed for the sale, the payment conditions and any suspensive / resolutive conditions.
The amounts paid by the buyer (20-30% of the total, as a rule) normally constitute a confirmatory deposit; the non-performing party is therefore obliged to pay twice the sum in question to the other party, who has the alternative right to ask the court for the forced execution of the contract.
The preliminary contract must be written, is subject to registration; the former is also mandatory in the case of private documents not authenticated by the notary.
3. The deed of sale
The act of buying and selling real estate is a public deed that must be in writing by a public official, normally a notary, in the presence of the purchasing and selling parties or the persons appointed by them.
For the validity of the act, which incorporates the elements already identified in the preliminary contract, it is necessary to produce a series of additional documents such as: building permit or concession in amnesty, cadastral plans, certificate of occupancy, certificate of energy performance, certificate of land zoning if land is transferred.
The real estate sale is normally carried out on a lump sum basis, therefore the price is determined globally for the building as a whole.
The delivery of the property to the buyer is assumed to be immediate, unless otherwise agreed (in this case there is a sale with mandatory effects); the seller must guarantee the buyer from hidden defects and from eviction (the claim on the object of sale by third parties).
The buyer must pay the amount agreed upon at the place and at the time of delivery, unless otherwise agreed.
Checks, verifications and necessary requirements.
The real estate purchase in Italy is a truly controlled process and there are many documents that must be produced and verified; this gives a great guarantee to those who buy, compared to what happens in many other countries.
First of all, the building must comply with the floor-plans filed with the Land/Building Register and the entry of the property to the land registry must also be correct; it is not possible to sell an irregular property under these two aspects.
The registry of all the real estate properties is held in Italy by the Territory Agency, an institution of the Ministry of Finance which includes within it the offices of the Land/Building Registry and the Title Register of Real Estate Records (conservatoria registri immobiliari)
The land/building registry, subdivided into land register and buildings register, is the inventory of all the existing real estate on the national territory, with an indication of the relative tax value (cadastral income, dominical income and agricultural income) associated with each of them.
The documentation produced by the land registry, instrumental to the real estate purchase, consists of:
- Site map
- Cadastral layout (flor-plans) of the building
- Cadastral inspection entry (by name or by land parcel and subaltern)
The cadastral information is accessible electronically and we provide our customers with a copy of all these documents. The information regarding the ownership of the property and the presence of restraints, mortgages or other liens, can be obtained from the title origin of the property (previous sale, donation or succession), which must be presented to the notary, and from the Title Register of Real Estate Records.
Via dei Colli carries out the necessary checks at the Title Register of Real Estate Records, even before the practice is passed to the notary.
Since the deeds of sale of unauthorized buildings are void, it will also be the responsibility of the seller to present to the agent and to the public official (the notary) the documentation proving the actual town-planning regularity of the building and in particular:
- Copy of building permits issued by the municipality (building consents) or of the permission in an amnesty
- Copy of the last architectural plans approved by the municipality
- Certificate of occupancy, issued by the municipality
- Certificate of land zoning, issued by the municipality, in case the object of sale is a land
- Certificate of conformity of the installations
- Certificate of energy performance
The real estate agent will take care to assist the parties, up to the notary deed of sale, in the verification of the cadastral compliance, as well as in the verification of building and town-planning compliance of the property, collecting all the necessary documentation and examining it.
Requirements regarding the buyer:
The buyer who is not resident in Italy, before purchasing, must obtain the taxpayer’s code.
This may be applied for either at the Italian consulate / embassy in your country of residence, or by proxy through us or through the notary.
The purchaser is also required to present, before purchase, a marriage certificate, if married.
The opening of a current account in Italy is not mandatory, but it is certainly recommended, in order to then manage the payments of the various utility contracts.
The real estate agent is obliged to keep a register of customers and transactions; Via dei Colli will then ask you some information on the origin of the funds used for the purchase and on your profession, as well as all your personal data and a copy of your identity documents.
Taxation on real estate.
The taxes on the sale
The sale of a property is subject to certain taxes, all to be borne by the buyer, as is the case with the notary’s fee. In the case of the purchase of a real estate unit from a private individual or a non-construction company, the buyer will have to pay to the notary, who acts as tax collector for the State, 3 different types of taxes, proportional to the value of the property:
- Registration tax, equal to 9%
- Mortgage tax, fixed amount (50 euros)
- Cadastral tax, fixed amount (50 euros)
- Tax filing, stamps, other fixed taxes, about 450 euros
In the case of purchase of a home from an individual or a non-construction company, the above taxes will be calculated on the basis of the cadastral value of the property (“price-value”); the cadastral value is a function of the cadastral income associated with the property and, in our areas, is typically between 20 and 50% of the market value. To calculate the cadastral value of residential properties, the cadastral income resulting from the Land/building register records should be multiplied by 126 in the case of a second home and by 115.50 in the case of a “first home” (Prima casa).
If the buyer can make use of the benefits offered by the “first home” (with the obligation to transfer residence within 18 months from the purchase), the registration tax is reduced to 2% and the other two taxes are paid at a fixed rate of 50 euros each. It is not possible to buy as “first home” properties included in the “luxury” category (cadastral category A / 1, A / 8, A / 9) ;.
In the case of purchase from a construction company, the above taxes will be paid as a fixed tax of 504 euros, and to the price of the property shall be added a 10% VAT (4% if first house).
Regarding the purchase of land, the applicable tax (on the value of land declared at completion) is equal to 15% for agricultural land (plus 100 euro of fixed taxes) and equal to 9% for building land (plus 100 euro of fixed taxes).
Capital gains on the sale of properties
An individual person who earns a capital gain from the sale of a building is required to include it in the tax return, or to pay a 26% substitute tax, if the sale took place less than 5 years after the purchase; notwithstanding this principle, the capital gains on properties, used as main dwellings for most of the time between purchase and sale, are not taxed. Capital gains relating to properties received by donation or succession are not subject to income tax.
Capital gains on building land are always subject to taxation and must be included in the income tax return.
Annual taxes on buildings
IMU: property owners (owners, usufructuaries, emphyteus, owners of rights of use and housing) are required to pay municipal property tax, with rates ranging from 4 to 10.6 per 1000, to be applied to the revalued cadastral value of the property. The IMU must be paid in 2 instalments, in June and December.
Waste fee: si paga annualmente al comune dove si ha la residenza.
IRPEF: real estate must be included in the tax return for individuals, whose presentation is mandatory for those who produce income in Italy. IRPEF has progressively increasing rates as the tax base increases. Income associated with buildings must be included in the income from land (from land or buildings). In the case of buildings, it is necessary to distinguish various situations:
• if the property is leased, the annual rental income must be reported, with a deduction of 15%
• in other cases, the cadastral income has to be reported
Rental income: as an alternative to the inclusion of rental income within the income tax return, it is possible to opt for the substitute tax (cedolare secca) at 21% on rental income; in the case of renting at a controlled rental rate, the cedolare secca is lowered to 10%.
In the case of short-term rentals for tourism purposes, it will be the intermediary (for example, Airbnb, booking, etc.) that must directly withhold the tax of 21% from the sum due to the owner, acting as a substitute tax collector for the Italian state.