Real estate commission rates (fees) and payment schedules
When planning
to purchase a property in Italy, you would usually seek the assistance of a
licensed real estate broker for the initial property search. The real estate broker has the duty to
facilitate the transaction and to inform both the seller and the buyer of all
details and aspects which may be relevant.
Real Estate Agent’s Commission
As in most countries, Italian real estate agents’ commission (provvigione) varies. In Italy, commission payment to a realtor is usually shared between the vendor and buyer. According to art. 1755, paragraph 1 of the Italian Civil Code, commission is paid once, due to the assistance of the estate agent, the sale has been complete. Legally, an estate agent must be the effective cause of the sale. This means that the agent must be able to show that their ‘introduction’ of the buyer led to the formation of a deed of sale between the vendor and buyer.
Building contracts in Italy: liabilities of the contractor for building works
Whether you are building a new property in Italy, or renovating an existing Italian property, having the right building contract is vital to ensure that everyone involved knows their rights and responsibilities. A building contract constitutes a legally binding agreement, recorded in written form between two parties; one or more property owners and one or more contractors.
A building contract sets forth all the terms and conditions under which construction or renovation work is to be carried out. This includes, but is not limited to, the basis of remuneration, time scale, and penalties, if any, for failure to comply with the terms of the contract.
In Italy spouses can chose between two default[1] matrimonial financial regimes: community of properties/assets (comunione dei beni) and separation of property regime (separazione dei beni).
Married couple buying a house
If no matrimonial regime option is expressly made by both spouses through a notarial deed or upon marriage celebration, Italian married couples’ finances and assets are regulated under the community of property regime.
In Italy, homeowners are expected to pay tax on any payment they receive from long or short term rental of their Italian properties.
Generally speaking, the Italian law requires that tax from rental
income is paid by all the co-owners of
the property on a pro quota basis, no matter who actually signed the rental
contract or if the rent is paid in favour of only one of the co-owners.
Deposito prezzo is the term used for a specific bonded holding account for the balance of payment related to the purchase of an Italian property.
Deposito prezzo protects against the risk of legal claims or encumbrances that may arise between the signing and registration of the deed of sale at the land registry (catasto).
Once you have signed a deed of sale, it is sent to the
land registry, where an official stamp is placed on the deed of sale. The
registered deed of sale is returned to the notary you used to authenticate the
transaction.
It generally takes two to three weeks to obtain the registered deed of sale and thereafter, you can obtain a copy from your notary.
A Last Will and testament is absolutely necessary to avoid causing conflicts among your heirs, especially if you are a foreign citizen who owns goods and property in Italy. Not only can a Will allow you to assign your inheritance to the appropriate beneficiary, but it could also be useful to prevent problems for your heirs, and it could even enable you a tax saving. Let’s see more specifically each case.
Those who are married or in a registered partnership and without children
Applying for Italian tax code (in Italian: codice fiscale) seems a simple task, but there are some hidden pitfalls to be aware of. Check them out in the article below.
Table of Content
What is and When an Italian tax code (codice fiscale) is needed:
What do the tax code figures mean.
Where and how to apply for the tax code in Italy.
What document/information is required to apply for the Italian tax code:
Common mistakes when applying for the Italian tax code.
Make sure to read this, prior to signing any property purchase offer in Italy
You’ve seen it:
the Italian property you’ve always dreamt about.
Now you have a
pen in your hand and the property purchase proposal in front of you, ready to
be signed.
Take your time before putting pen to paper, no matter who drafted that proposal for you.
You deserve a
little hesitation, especially if you are going to sign a boilerplate template
provided by a Real Estate Agent and not by your own legal advisor, or if there is anything
whatsoever that you feel is unclear to you.
If the proposal has
been provided by Real Estate Agents, I am sure they told you that it’s a
standard proposal, drafted as per common
general terms and in compliance with the Italian civil code; and that the
standard template itself has been approved by the Chamber of Commerce.
An Elective Residency Visa (ERV) is specially intended for foreign
nationals wishing to permanently reside in Italy and who are in the position to
support themselves financially without working in Italy.
In Italy only an Italian Notary Public’s escrow account benefits from full and complete legal protection against possible creditors.
There are two main payments
you are expected to make when buying a property in Italy,or
that you will receive, if you are selling an Italian property; the deposit and the balance.
The deposit is usually paid upon purchase offer acceptance and it is aimed at confirming the parties’ intention to proceed with the purchase-sale contract. The balance is customarily paid upon closing, unless otherwise agreed.
