Italy buying process
When buying a property in Italy, international buyers will benefit from doing as much research on the buying process as they can.
The process is quite straightforward, but there are essential decisions to make early, and some things that will make the process easier, such as requesting a codice fiscal (Fiscal code).
Here is a basic outline of the property buying process in Italy:
- Step one: Preparation & research
- Step two: Start your property search
- Step three: Viewing trip
- Step four: Making an offer
- Step five: Initial contracts
- Buying a resale property
- Buying new or off-plan
- Step six: Mortgage (if applicable)
- Step seven: Final contract & completion
Step one: Preparation and research
The first step in the Italian buying process is to determine what and where you’d like to buy. The property should suit you, your needs and how you plan to use the property.
There are many different types of properties available in Italy, and you’ll find that their styles and prices differ significantly, depending on location.
To help determine what kind of property is best for you, list everything that comes to mind about what you want and need. Try answering these questions:
- What type of property do you see yourself living in? A new-build apartment, villa, farmhouse, trulli?
- How big does it need to be? How many bedrooms? How many bathrooms?
- Would you prefer to live in an old house or something new? If you are looking for an old property, are you happy to manage a serious renovation? Or perhaps a more simple redecoration is more in line with your plans?
- Do you need a terrace? Off-road parking? A garden? A swimming pool? Maybe you are looking for some land with fruit trees? A vineyard to manage? An outhouse/ annex?
- Are you looking for a property that you can open as a B&B business or guesthouse?
- What type of view (if any) do you require from the property?
- What else is needed to fulfil your property requirements?
Once you’re able to answer these questions, we recommend getting in touch with an estate agent, a property lawyer and a currency specialist. These are your golden three contacts who can help make the Italian property buying process smoother.
You should also look to outline your budget during this initial period. An independent advisor may be able to help you understand what you have to spend, and a currency specialist can advise what that correlates to in euros.
If you plan to buy with a mortgage, get a quote early-on, to understand if you’re likely to be accepted and at what rate.
Find out what to look for in an estate agent, property lawyer and currency specialist
Step two: Start your property search
If you’ve already made contact with an estate agent in Italy they should be sending you regular updates via email when they have new properties added to their books. You can also browse property portals online and enquire directly with the estate agent. Don’t worry if you find a property with another estate agent, if you’ve already spoken to one, they often work together, so this won’t be a problem.
Here are a few popular property portals to get you started:
Once you’ve found a few properties you like, you can book a viewing trip to Italy.
Another option is to appoint a buyer’s agent, who will look out for the properties for you and screen them.
Step three: Viewing trip
International buyers usually visit Italy once or twice to scope out the market and visit properties in the areas they’re interested in buying in.
How you organise the viewing trip is entirely up to you, but they usually last between three days and a week, allowing you enough time to explore local areas and neighbourhoods when you’re not viewing properties.
Step four: Making an offer
Once you’ve found a property you like and it ticks most – if not all – your boxes, it’s time to make an offer. Similarly to the UK and US, you will make an offer via your estate agent, who will take it to the seller on your behalf.
Initially, the offer is negotiated verbally via our estate agent. You could then do a purchase proposal (proposta di acquisto), which is a declaration by the buyer that you want to purchase the property at a certain price. Once signed, you are committed to purchase. But the seller is not yet obliged to accept.
Please note: Property that comes with a lot of land has to be offered to the neighbouring farmers at that price first.
Once the seller has accepted your offer or has ended negotiations, the next step is to sign the initial contract.
Step five: Initial contracts
Buying a resale property
If the seller accepts your offer, you can move onto the next step which is signing a preliminary contract (cotratto preliminare). If you previously signed a purchase proposal, this should be converted into a preliminary contract which will then need to be signed by both the seller and the buyer.
The preliminary contract outlines the main details of the transaction, including the property price, its address, plot number, identity of the property, detailed descriptions using information from the land registry and the date of the final contract.
Once the seller signs the preliminary contract, they are accepting your price and cannot sell to another buyer.
At this point, a deposit (caparra) is paid, usually around 10% of the purchase price. Once you’ve signed the preliminary contract, your property lawyer will begin any legal due diligence and the notary will begin their legal checks. It’s at this point your lawyer will request a codice fiscal for you.
Buying a new-build property
Be aware that nearly all modern Italian property is sold freehold. If buying an apartment you will own a proportional part of the freehold for the new build complex and will be financially responsible for general maintenance in the shared areas.
It is possible to find new-build properties in rural areas, but, as there are fewer, competition can be fierce.
Step six: Mortgage (if applicable)
After signing the cotratto preliminare, you’ll have a legally binding contract. Consider consulting a mortgage broker in Italy as they’ll likely be able to access more lenders than you as an individual and can advise on applications and other essentials, such as insurance.
Since the global financial crisis lending conditions have become more stringent. In Italy, interest rates are lower than they were, but they are set by the lenders. These are usually influenced by the Euribor (European Interbank Offer Rate).
Lending criteria in Italy is usually based on a debt-to-income ratio (DTI), which is used to assess how much you can borrow. This is a sum of all your monthly outgoings, including any existing rent or mortgage payments and the repayments on the mortgage you’re proposing, as a percentage of your net monthly income.
The maximum loan to value for Italian residents is around 60% and can be lower for non-residents. Deposits are often around 40-50%.
For more information on buying with a mortgage in Italy, read our in-depth guide
Step seven: Final contract & completion
The seller and buyer attend the notary’s office to witness and sign the public deed of sale (atto pubblico di compravendita, more commonly known as rogito). You must take your passport, codice fiscal (tax code), mortgage documents, and your marriage certificate, if applicable. If you are unable to attend in person, you can be represented by your lawyer using power of attorney.
Once the deed has been signed, the outstanding balance of the property price is paid, usually via the notary using an Italian banker’s draft or a bank transfer. The funds usually have to be in the notary’s account before the deed is signed, so it’s worth confirming this before the completion date.
Once these are completed, you’ll receive the keys, the notary will register the deed with the authorities and pay the relevant taxes on your behalf. The deed must be filed in the public register, by law. The land registry will also be updated with the cadastral registrations. You will receive the deeds a short time after completion.