Frequently, property buyers in Italy decide to take advantage of tax reductions available for first-time property purchases, namely a registration tax of 2%, a fixed cadastral tax of €50 and a fixed mortgage tax of €50. To benefit from fiscal reductions, purchasers must transfer their residence to the Municipality in which the property is located, within 18 months of signing the deed of sale. Missing the transfer deadline entails the loss of tax benefits and heavy fines unless there is an extraordinary event or circumstance that constitutes a force majeure. Examples of a force majeure event might be an earthquake, seaquake, flood, landslide. In general, any event deemed to be beyond man’s control, which renders the property uninhabitable. (more…)
The right to back out of signing the final deed of sale if there is no certificate of habitability
Last November the Italian Supreme Court of Cassation ruled that buyers can refuse to enter into the final deed of sale if the residential property they have promised to buy has no certificate of habitability (Court of Cassation., section II, 26th November 2015-8th February 2016, n. 2438).
The Certificate of Habitability certifies the suitability of a residential property as being fit for human habitation. It is issued by the competent municipal offices following verification that the building and its systems comply with health, safety and structural regulations. According to law, prior to issuing the certificate of habitability, the competent authorities should also verify that the building complies with planning permission.
Following purchase of a property in Italy, owners will need the certificate of habitability to get utilities and municipal services for their property. (more…)
Italian Real Estate Leaseback Scheme: buying a house in instalments
The real estate leaseback scheme is a financial product for those whose annual income does not exceed 55,000 Euro and are in a position to take advantage of first home benefits, in other words, people who do not already own another property.
The contract can only be entered into by individuals and banks or leasing companies. The bank or leasing company commits to buy, or to build, a property on behalf of a client, who then becomes the property lessee. The property is therefore owned by the lender, while the lessee has the right to use the property upon payment of an initial instalment and a monthly rent thereafter. (more…)
At What Stage of the Buying Process Should You Contact a Property Lawyer in Italy?
People planning to buy an Italian property frequently ask me at what point of the buying process they should involve a lawyer.
On the one hand, people worry that if they contact a lawyer too soon, they will end up wasting their time or incur unnecessary additional costs when they might not actually proceed with a property purchase immediately. (more…)
Buying properties in Italy is a major decision. Proceed with caution. Do your research. Always get independent advice.
Continued slow economic growth in Italy is helping to keep property prices low and therefore attractive for those looking to invest. Interest rates show no sign of substantially increasing in 2016 either in The UK or in the Eurozone. 2016 is therefore looking to be another year when many Britons will purchase an Italian property.
Each year, I am engaged by clients whose Italian property purchase started out as an impulse decision, driven more by emotional than rational considerations. Unfortunately, at some point during the purchase, the dream has turned in to a nightmare. All sorts of additional costs are incurred; costs which could have been completely avoided if legal advice had been sought prior to purchase. (more…)
The government’s objectives for introducing the flat-rate tax scheme are to boost employment, steer Italy’s economic recovery in a positive direction, reduce undeclared taxable income and employment irregularities. (more…)