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Immobiliare Ferroni.

Property Purchasing Modality and its Taxation in Italy for Foreign Citizens

Guide to Property Buying and Selling in Italy Italy has always had a powerful charm, enticing people to its shores from all over the globe. The lure of the wonderful climate, unique history and culture, not to mention the fabulous cuisine and wines, all combine to make Italy a superb choice for a holiday or retirement property. Tuscany, Sicily,Sardinia, Veneto and Umbria appear to rank higher in the preferences of foreign investors. British citizens are among those who have shown particular interest in real estate investment in Italy. They prefer in particular Florece, Rome, Venice but also Milan and Como's Lake. Property purchase in Italy need not be any more stressful than buying in the UK with the right professional advisors by your side. There are considerable variations in the process of property purchase in Italy compared with that in the UK and it is wise to be aware of the differences in the procedure before you start out. The term “foreign” describes both EU and non-EU citizens and incorporates non-EU citizens legally residing in Italy. Such citizens have the right to purchase a property or to create a company, providing they can produce evidence of their right to stay in Italy, such as the visa. Should the prospective purchaser be a non-EU citizen who does not hold the right to reside in Italy or to purchase property, it will be necessary to verify that a reciprocal agreement exists between the non-EU citizen’s country of origin and Italy allowing an Italian citizen either to reside or buy property in the country of origin of the non-EU individual attempting to invest in the Italian real estate market. As far as the definition of property is concerned, according to article 812 of the Italian Civil Code: “property it is to be considered as anything that is naturally or artificially connected to the soil; the soil itself, water sources and streams, trees, buildings and other constructions, even if only transitionally connected to the soil”. In order to complete the purchase of a property, the foreign citizen must follow a rather complex procedure which necessitates the use of the services of a notary. Should they not be particularly proficient in Italian, they can request the deed is drafted into another language (the notary must be proficient in the specific language) or request the assistance of an interpreter for the translation of the Italian contract. The sale is facilitated by the following steps: The first contract to be signed together with the seller is the preliminary contract The price of the property, the timings of the sale, the deposit and details relating to the property are defined. The agreement is binding for both parties: should the buyer not wish to proceed with the purchase, the seller is entitled to keep the deposit. Should the seller not wish to proceed with the sale, they will have to pay double the amount of the deposit to the buyer. The sale deed, called the “Rogito”, is signed by both parties in the presence of the notary and witnesses, when they are needs. The deed is then taken to the Revenue Agency and registered within the public registry by the notary, who will also proceed to the cadastral transfer: the property is transferred through a deed recording at the appropriate Ufficio del Territorio (which depends on the area where the property is located) Throughout all the steps listed above the support of an experienced real estete agent is crucial during this phase. On a fiscal level, the purchase of a property from a private individual is subject to the registration charge, mortgage registration fee and the Land Register fee. The charges vary depending on whether tax-breaks for the purchase of the first house apply. The registration charge is in the sum of 2% of the sale price if tax breaks apply (with a minimun amount due of €1.000,00), if there no tax-break the registration charge amounts 9%. In both cases the fixed costs of €100,00 must be added. However, should the property be bought from a construction company, VAT amounts to 10%, in case of no tax break, should a tax-break apply the rate is 4% VAT. In both cases the fixed costs of €600,00 must be added. The last case is should the property be bought from a company but a non construction company, where the VAT amounts to 22% Once you own your Italian property you will need to address a number of issues surrounding real estate ownership in Italy like Property Tax, Garbage Tax, etc.. but we'll dedicate a further specific post sutable for them. Perhaps the most pressing is dealing with the tax liabilities attaching to an Italian residence, unique condition for obtain a tax break in Residential Property purchasing. The tax regulations change frequently, tax rates and taxes present in this post are update to the current Italian law and expected for 2018. Michele Ferroni  - Immobiliare Ferroni Image Copyright: <a href=''>nonwarit</a>
Immobiliare Ferroni
27 December 2017

Are you thinking of buying a Condominium Apartment? Pros and Cons!

If you are looking to buy an apartment, one of your options will undoubtedly be the possibility of living in a condominium. In Italy there are about one million condominiums where 14 million families live. But let’s first of all understand what a condominium is. The civil code does not provide a definition . The difficulties continue, as to the question what is a condominium, it is possible to answer in different ways, since the concept refers to various profiles (material, legal, etc.). The condominium is a particular form of communion in which parts of exclusive property and parts of common property coexist . Given the definition of condominium, the problem immediately arises of identifying those concrete cases to which the code regulations apply. In particular, on a numerical level, when can we say that we are facing a condominium? Is it enough that there are two, three or more condominiums? How do you identify a condominium? The presence of two different exclusive owners of different portions of the property will suffice (so-called “minimum condominium” ), defined for the purposes of the law as “condominiums”, in order to apply the condominium rules. These can develop both vertically, the classic multi-storey condominium building, and horizontally, such as residences consisting of single or semi-detached houses with more common services such as internal roads, lighting, etc. to the so-called “supercondominio”when this is made up of several condominium buildings linked together by common goods and / or services. Thus, for example, a group of four or five buildings, which have a park or sewerage services in common, can be categorized as a super-condominium. The last technical aspect to highlight in this long but necessary introduction is when the obligation to have a condominium administrator arises. Article 1129, first paragraph, of the Civil Code specifies that the appointment of the condominium administrator is mandatory when there are more than eight condominiums. Nine, therefore, is the number of condominiums that makes the appointment mandatory. Here are five things to think about before taking the plunge. The pros and cons A condominium house is on average less expensive to buy than a house or a terraced house or a semi-detached house. Ordinary and extraordinary maintenance costs are divided according to a thousandth table that will also take into account the different sizes of the apartments that make up the condominium, unlike a detached house where all costs are borne by the individual owner. the condominium is usually located in a center or in a suburb of a city. This will allow access to a range of services such as public transport, schools, public offices and various shops. The independent houses or villas have a basically peripheral or suburban location, where sometimes some of the services listed above are not present. purchased for investment, the condominium dwelling allows a faster lease having on average a lower monthly rent than a villa or house. The audience of potential tenants will therefore be wider than the interested one or the canon of a more independent solution can be afforded. some types of condominiums such as residences in tourist resorts can offer services and common areas such as swimming pools, tennis courts, etc … which if otherwise combined with a terraced house or an independent house would have prohibitive construction and maintenance costs . Finally, here are some useful considerations to keep in mind when choosing to purchase a condominium house. Be careful if there are a lot of apartments for sale, as unless the building is new construction and therefore all for sale this could mean that there is a high level of dissatisfaction in the building. Do you like the size of the condo? Is it in the right neighborhood? Is the building properly maintained and are the resulting costs reasonable or within your reach? These considerations will point you in the right direction for buying an apartment in an apartment building that has everything you want. Michele Ferroni – Ferroni Real Estate Image Copyright: <a href=''>scanrail</a>
Immobiliare Ferroni
2 August 2016