Expert Advice on Buying Italian Property
Buying an Italian Property
Buying a property in Italy can be both a dangerous game, and an extremely fulfilling one, with dream-worthy results! The difference can be as simple as getting good advice, from people who:
- know how to buy a property in Italy,
- know the pitfalls, and the
- things to watch for in the buying process
That’s what this site is for. Buying a property in Italy, owning a property in Italy, letting a property in Italy and even selling a property in Italy need not be a nightmare. The system and rules are surely different from anything you have experienced anywhere else and this is why getting the right advice from the outset is crucial.
This site is not intended to replace the independent professional advice that we urge you to take. But here you will find plain speaking, something which in our opinion, is sadly lacking. We have spotted so-called 'independent buyer's guides' which are really fronts for currency exchange companies; PR companies posing as estate agents; even so-called expert international lawyers who give out incorrect information.
We hope that this site will quickly develop into a serious forum for exchange of questions and answers, views and information
Italy is split into regions, much like the counties of the UK. The regions this site specialises in are:
Bricks and Mortar Speak Volumes In Volatile Times
By admin | October 10, 2008
It’s no good pretending that the closing months of 2008 are the best on record. The FTSE has just fallen below the 4,000 mark for the first time in five years and the markets across the globe are in virtual freefall. Yet history shows that every crisis brings with it opportunities and there is a very appropriate old saying:
“When the wind blows, some batten down the hatches and some build windmills.”
If you have cash, now is the time to invest in bricks and mortar. Serious vendors are willing to negotiate prices far beyond any ‘loss’ you may envisage due to exchange rate movements. What is worth remembering is that in Italy an existing registered building has real value for development since completely new building permits on clear sites are hard to come by (at least in the areas most sough-after by foreign investors). If you don’t want excessive running costs at the moment, buy a ruin with development potential and sit on it. No one can seriously argue that it’s safer to keep your money in the bank! And when the recovery comes, as it surely will, you will see your investment grow.
But remember the ruin must be recorded on the land register. If not, it doesn’t exist!
Topics: Essential reading, Miscellaneous, Share your wisdom, Uncategorized | No Comments »
Annual Taxes
By admin | August 19, 2008
Just as in any country, once you own a property in Italy you become liable for ongoing taxes. How else can the local authority provide services? Yet many foreigners think that because they are not resident and don’t pay tax on their income to the Italian authorities that they are somehow excused from paying. This is not true and you risk penalties if you do not pay; it may even impede the eventual sale of your property. Things have changed recently and as far as we know the information below is up-to-date. Please add your comments if you have further updates.
ICI - Imposta Comunale sugli Immobili is similar to a council tax on property. Owners of a house have to fill in a form at their local Tax Office before the 31st of July of the year after they bought their house in Italy. If you cannot go and get the form yourself you can also send it by registered mail, but not by email, or ask your accountant. You will not receive it automatically. The rate differs according to the Municipality, from 5,5 per thousand to 7,5 per thousand of the rateable value (valore catastale) of your house. If the house is your prime residence (prima casa) there is nothing to pay unless the property is classified as luxury. ICI Tax can be paid annually in December (before the 20th) or in two instalments, one before June 30th and the other before December 20th. YOU WILL NOT RECEIVE YOUR TAX FORMS AT HOME, YOU HAVE TO OBTAIN THEM YOURSELF!
IRPEF – Income Tax. If you own a house and/or land in Italy you have to declare its value to the Italian fiscal authorities. The value is given in the visura catastale: Reddito catastale is for the house, Reddito Dominicale and Reddito Agrario are for the land. You have to enter these values in your tax declaration form. You need to do this even if you don’t have your fiscal domicile in Italy and if you’re not a resident. Even if the values are so low that you don’t have to pay any taxes you still have to declare it. If you let out your house in Italy you also have to declare the income. At the tax offices you can ask for free help (in Italian) with filling in your tax forms but we recommend that you engage a commercialista ( accountant) to do this for you. They don’t charge a lot for this service and in our opinion it is money well spent. Deadlines for tax declarations are: before the 31st of July of the following year if you fill in the paper form, before the 31st of October of the following year if you send in your declaration on-line. Deadlines to pay your taxes: down-payments for the current year: June 20 and November 20. The remainder for the preceding year: June 20. The tax forms can be purchased as of the end of May in office supply shops like Buffetti, or can be found (if available!) at the local town hall or tax office. YOU WILL NOT RECEIVE YOUR TAX FORMS AT HOME, YOU HAVE TO OBTAIN THEM YOURSELF!
WASTE TAX (Tassa per lo Smaltimento dei Rifiuti Solidi Urbani). This tax is calculated by the Municipality on the basis of the surface area of your house. You have to register at the Municipalità and they will send you the form to enable you to pay. You can pay once a year (before the end of April) or spread it over four payments (see the deadlines - ‘scadenze’ - on each payslip). This tax cannot be paid directly by your bank; you have to pay it in cash at the post office.
Our recommendation to ALL owners is to engage the services of a Commercialista as soon as you have completed your purchase.
Topics: Essential reading, The buying process, Uncategorized | No Comments »
Italian Tax Code (Codice Fiscale)
By admin | August 19, 2008
Something you must have before you can even sign a preliminary contract is a Codice Fiscale. This is a national tax code and you need it for buying a house, a car, taking out contracts for utilities and many other services. Having a codice fiscale does not mean that you become liable for Italian income tax. A good agent will help you obtain your CF (the abbreviation for codice fiscale) and if you give them authority (a delega) they can even get it for you in your absence. All you need is a copy of your passport and an address in Italy; as you haven’t an address of your own until you buy the property, quite often the office address of the agent or your lawyer is used but remember to change this as soon as you can as important correspondence may go missing.
Topics: Essential reading, Miscellaneous, The buying process | No Comments »
Jobs around Italy
By admin | August 7, 2008
Are you looking for a job in Italy? Can you offer a job to someone? Post your requirements here, free of charge. You must give a contact number and email address so that any interested party can contact you directly. Naturally, we cannot offer any guarantee about the advertisers and can take no responsibility so please exercise due caution when responding. And please let us have your feedback on your experiences so that we can take appropriate action against anyone not playing fair.
Topics: Essential reading, Miscellaneous, Uncategorized | 1 Comment »
Holiday or Viewing Trip?
By admin | August 4, 2008
If you are serious about buying a property in Italy it is pretty obvious that you have to physically see those places that are of interest to you. But don’t make the mistake of trying to view during August! There are many reasons, the main ones being:
1. It is too damned hot! Most people do not realise just how debilitating it can be traipsing around houses and gardens in temperatures over thirty-five degrees celsius. You will get fed up, the agent will get fed up and the owners will get fed up. Do everyone a favour and go to the pool or beach.
2. It is well-known that the vast majority of summer holiday viewers never buy. The vacation euphoria leads nicely to the sudden idea of buying a property. When you walk into an estate agency in your shorts and sun hat, maybe wiping the last traces of your ice cream from your lips, do you think that you will be taken quite as seriously as you should be? Any such visit should be simply to introduce yourself, register your details and requirements - then get out. Few agents will appreciate being asked to drop everything there and then to take you to visit suitable farmhouses. Even if the vendors would permit access!
3. If you are on holiday, why shouldn’t others be? I mean, let’s say you have rented that lovely Tuscan farmhouse with pool for the first two weeks of August; isn’t it likely then, that the lovely Tuscan villa with pool you want to view is also let out to a similar family? Would you be happy for viewers to come and crawl all over your belongings and disturb your hard-earned fortnight’s rest?
4. August in Italy means annual holidays. August 15th is ‘ferragosto’ - the big one! This is not a time to be on the roads under any circumstances. Many Italian businesses close - yes, CLOSE - for all or part of the month. August is a time to relax in Italy, to enjoy the sun, the clear skies and balmy nights. It is not for doing business in. Just turn up and you may well find the people you hope to meet are not there. (It’s not just Italy. I remember a couple years ago in the Spanish interior looking in the window of a small estate agency purely out of professional curiosity. There was a sign in several languages saying ‘ We are closed all of August for annual holidays. See you in the autumn.’)
What you should do, if you really can’t relax for your entire fortnight, is have a gentle tour around and try to identify where you might like to buy. Jot down contact details for agents who are clearly active but currently lying by a pool somewhere avoiding sunstroke. Then when you get home and the euphoria dies down, if you all feel the same, start to work those contacts! You will be clearer, you will be treated with serious respect and all the protection you will need for your weekend viewing trip is an umbrella!
Topics: Essential reading, Miscellaneous, The buying process, Uncategorized | 1 Comment »
Save Money on Foreign Exchange?
By admin | July 21, 2008
It is surprising just how many people take the trouble to investigate the ins and outs of the buying process yet overlook one very important area which could save them money. If you have your money in Sterling or Dollars or anything other than Euros, it is almost certain that you are going to have to deal with some form of foreign currency exchange company. The immediate reaction is to use your bank. For some this is valid but for many private individuals the bank will not give you the best rate available. The use of a specialist foreign exchange company can save you £ Thousands on your purchase.
However, you need to exercise care because at the moment FX dealers are not regulated by the FSA. Make sure you choose a dealer with a track record. Your funds should be held in a safe clients account until the Euros are released so that you are not at risk if the company goes to the wall.
Currency dealers can usually beat the rates offered by your bank because they are highly specialised in the currency markets alone. They forward-buy currency on your behalf so that you know what to expect and can budget more accurately.
Topics: Essential reading, Share your wisdom | 2 Comments »
A New Tuscany?
By admin | July 14, 2008
Imagine a little undiscovered corner of Tuscany where you can still enjoy the simple beauty of rolling hills of olive groves and vineyards, the charm of tiny medieval villages perched on the highest hills, the taste of a glass of local wine in a quiet rustic village square. Imagine being in a place where you can enjoy affordable and unparalleled local cuisine, spend a luxurious day at a nearby thermal spa, discover little corners of historical interest or simply take a leisurely trek through some of the shady paths of the mountain ring road.
The place is the area of Monte Amiata tucked away in the south of Tuscany, a little off the beaten track for regular Tuscan tourism but embodying all the characteristics of an area that has enchanted visitors for centuries together with the tranquility of still being relatively unknown to foreign visitors.
The area is a mountain, long ago an active volcano, with its peak at around 1,700 m., snow-covered in winter with ski slopes, chestnut groves cultivated at a lower level and surrounded at its base by gentle hills with their rows of vines and olive trees. There are a variety of eco-systems and climates from top to bottom to suit the taste of anyone visiting the area.
Amiata offers quiet, rustic, simple living yet at the same time relaxing and cultural adventures. One can enjoy a day at one of the five thermal spas at different points around the mountain, take a short trip to the famous Montalcino wine growing area or venture a little further to discover the medieval towns of Siena, Pienza or Montepulciano or even the little known Etruscan ‘triangle’ around Pitigliano. Just an hour away one can find a long stretch of one of the loveliest areas of Mediterranean coast for swimming, walking or cycling or simply having a wonderful fish meal.
Amiata still has that magic quality of tranquil pleasant living, unhurried by the modern world, enjoyment of the simple natural elements that are part of the place. Why not discover it for yourself?
Topics: Miscellaneous, Share your wisdom, Tuscany, Uncategorized | No Comments »
Driving to and from Italy - Where to Stay
By admin | June 28, 2008
Some of us drive from the UK through France and directly into Italy. Some choose to pass through Switzerland. In fact depending where you are driving from - be it somewhere in the UK or other parts of Europe - you may pass through many different countries including the Netherlands, Germany, Belgium, Luxembourg and Austria. Here is the place to share your experiences of overnight stops, good and bad. Let’s hope we can create a really useful directory.
Topics: Share your wisdom, Uncategorized | 5 Comments »
Hotels in Italy
By admin | June 28, 2008
As requested, a place to tell users about hotels, guest houses and residences in which to stay (or not) in Italy. There is a separate section dedicated to places to stay (or not) when driving to and from Italy.
Topics: Share your wisdom | No Comments »
To Be Or Not To Be…..Resident
By admin | June 12, 2008
During your search for an Italian property you will at some point be asked if you are going to be resident. It may even be suggested to you that you may wish to be resident as it will save you tax on the purchase of the property. We will examine the actual tax issue separately but for the purpose of this argument you can take it as a fact that if you declare residency then your first house in Italy will attract a much lower rate of ‘stamp duty‘.
We spotted the following on a prominent website:
“The tax on your first property purchase in Italy is 3% (4% if buying the property from a company). However you must obtain residenza (residency) within 18 months of purchase otherwise you will have to pay an additional 7% plus interest and a fine. You should then spend 183 days of each year in Italy although with the relaxation of border control in Europe now it is difficult for anyone to check. It is likely that the police will visit the house to check that you live there. On your second house the purchase tax rises to 10%. The way round this though is to buy the first property in your name and the second in the name of your spouse thereby qualifying for 3% in both cases!”
The implication is clear - lie about being resident to save tax! We must impress upon all purchasers that it is an offence to claim the ‘prima casa‘ discount if you are not going to be resident in Italy. In any event, being resident brings other tax implications with it. We recommend that you take professional financial advice before becoming a resident.
There are many estate agents who will try to persuade you that it is ‘the done thing’ and perfectly acceptable. You have been warned!
Topics: Essential reading, Uncategorized | 6 Comments »