Since the integration of Europe into the EU, there has been increasing interest from foreign nationals in property purchase in Italy. There are no restrictions on foreign nationals purchasing real estate in Italy beyond a slightly higher purchase registration tax and so, therefore, can be an attractive prospect to potential buyers. This holds true for all types of real estate in Italy.

A significant amount of property in Italy is bought and sold for investment purposes, ranging from commercial or industrial property to family residences which can be renovated for both person use and the vacation rental market. The types of residential real estate in Italy that are popular with foreign buyers include homes and villas in rural areas of Italy which are purchased as second homes. Apartments are increasingly popular with foreign buyers, particularly in larger Italian cities like Florence, Milan, Rome, Venice and in seaside resorts such as Liguria and islands like Sardinia and Sicily, where they can be used for rental investment purposes, letting these properties out as short or long term lets and vacation rentals. Foreign nationals are also finding a profitable investment from using their second property as holiday homes for foreign travellers at times of the year when the property is vacant.

After the initial offer for a property has been accepted, there are two contractual stages to purchasing accommodation in Italy.

The buying process takes the form of the following process:
Making an offer on a property
Signing a Proposta Irrevocabile D'Acquisto
The Compromesso - Preliminary Contract
The Rogito - Final Contract

Once you have made an offer on your dream property in Italy and it has been accepted, the estate agent may ask you to sign a Proposta Irrevocabile D'Aquisto (Irrevocable Proposal to Buy). Although it is poor professional conduct to accept more than one Proposta Irrevocabile D'Aquisto on a property, it can happen. This document does not legally reserve your home even if you have written acceptance of your offer from the vendor. Only after you sign the Compromesso is your property reserved.

Once the initial agreement is signed, the buyer needs to secure funding and the seller must ensure that the title to the property is free and clear of any encumbrances so that it can be transferred to the buyer. The Compromesso is a legally binding contract which once signed and registered with the local Registration Tax Office, commits both the vendor and buyer to the transfer of the property.

The Compromesso includes:

1. Vendors Details
2. Buyers Details
3. Property Description. It is important to have a detailed description of what you are buying-both the ground it covers and the physical makeup of the property.
4. Agreed Sale Price
5. Deposit Amount (Coparra or Deposito) . Deposits range from 10% of the total purchase price to as high as 50% of the total purchase price. Should the buyer choose to withdraw at this stage they are at risk of losing their deposit. Similarly, should the vendor withdraw, they are obligated to return the deposit to the buyer along with a penalty amount equal to the deposit.
6. Final Contract Date

Once you have had an offer on a property accepted, it is recommended that you enlist the services of a ‘Geometra’. A Geometrais a cross between an architect and a surveyor. This individual will survey the physical boundaries of the property for sale to ensure it actually does compare with what is listed on the legal description that is subject to a contract for sale. A Geometrawould find any structural faults in a building, subsidence, leaks in the roof, etc. The Geometra’s site visit is called a Soprulluogo and the technical survey a Perizia. Local estate agents should be able to recommend a Geometra.

Before the Rogito can be signed, you will need a tax code or Codice Fiscal (similar to a National Insurance Number) so that you are able to pay tax on the purchase of the property.

The Rogito is a legally binding contract and must be signed in the presence of an official Notario (Lawyer/Notary). The Notario registers the Rogito to the Land Registry, collects the Purchase Tax due on the property and ensures there is sufficient proof that the buyer is able to pay the sale price.

Once all of this has been taken care of, the transfer of the ownership of the property is complete.

At Michael Morris, we are committed to assisting you every step of the way. We will introduce you to local agents who will provide a comprehensive service including:-

• Guidance on your property selection
• Accompanying you to selected properties
• Representing you in the price negotiation process
• Assisting you in obtaining a "Codice Fiscale" (equivalent to National Insurance Number)
• Advising you in legal and financial matters
• Drafting and defining the preliminary agreement
• Selecting a notary
• Liaising with the notary in the definition of the Deed of Purchase