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Italy offers a diverse range of properties for purchase, whether you’re dreaming of a quaint stone cottage in Tuscany, a chic apartment in Rome, or a coastal villa overlooking the Mediterranean.
Whatever you’re seeking, buying property in Italy differs from buying in the United States. It’s crucial to understand the process and be aware of any costs and fees so you can budget accordingly.
Securing a favorable exchange rate is also important when transferring money overseas. This applies whether you’re funding the property purchase, paying an Italian mortgage, or covering utility costs once the sale has gone through.
If you’re considering buying a property in Italy, here’s an overview of the buying process to give you an idea of what to expect.
Start off with a budget, including things like taxes and travel costs. You may also want to secure a mortgage offer in principle and consider your currency transfer needs.
Find your dream property by searching websites, contacting real estate agents, or getting in touch with a notary (notaio) in your chosen area.
Make an offer in writing. It’s advisable to have your notaio or lawyer review it first. Once the seller accepts, you have a legally binding agreement.
Next, sign the preliminary contract (compromesso) and pay a deposit, usually 10-20% of the purchase price. This contract binds both parties to the sale.
The notaio will carry out necessary checks, including verifying property ownership and any existing debts. Ensure your documentation and finances are ready during this period.
Finally, sign the final deed of sale (atto di vendita) at the notaio’s office. Pay the remaining balance, and the property ownership will be transferred to your name.
Whether you’re seeking a serene countryside retreat or a bustling urban locale with strong rental returns, Italy has something to offer everyone.
Italy's capital city offers a blend of historical charm and modern amenities. While property prices can be high, the rental yields are strong. For a quieter lifestyle, consider the surrounding suburbs.
Renowned for its stunning landscapes and historic towns, Tuscany offers a quintessential Italian countryside experience. The region is popular among expats and provides a range of properties from charming farmhouses to elegant villas.
Famous for its breathtaking coastal views and picturesque villages, the Amalfi Coast is ideal for those seeking a vibrant lifestyle by the sea. It’s a hotspot for tourism, making it a great choice for rental investments.
As Italy’s fashion and business capital, Milan offers dynamic living with excellent amenities and a strong rental market. The city’s diverse neighborhoods cater to a range of lifestyles and budgets.
Often referred to as the "green heart" of Italy, Umbria offers beautiful landscapes and a slower pace of life. It's known for its medieval towns and relatively affordable properties compared to neighboring Tuscany.
This historic city in southern Italy is known for its rich cultural heritage and affordable property prices. Naples is a lively area with a strong local community and a growing expat presence.
When you’re transferring money overseas, it’s important that you get a strong exchange rate. At Currencies Direct, we offer highly competitive rates so you could get more than if you transferred using a bank.
We’re also experts in helping you time your transfer for when the market is in your favor.
As a Currencies Direct customer, you’ll have your own personal account manager providing you with specialist insights. They can help you choose from our range of transfer options to find the best solution for you.
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If you’re buying a property in Italy, you probably already have a lot on your plate. Thankfully, we can ease some of the stress by helping to simplify your overseas payments.
While your account manager is always on hand to offer expert guidance if you need it, you can also easily track transfers and send money 24/7 through your online account or with our app.
Our services also take the hassle out of international transfers. You can hold currency on account, allowing you to speed up deposit payments.
Thinking about buying property overseas? Create a free Currencies Direct account in minutes. You can then start sending money or talk through your transfer needs with a friendly currency expert.
Along with the price of the property itself, it’s important that you factor in any fees, taxes, or additional charges you’re likely to encounter when buying in Italy.
New Italian properties incur VAT at 22%, but properties listed as tutte le tasse comprese, or TTC, have VAT included in the price. You’ll also pay stamp duty, which varies from 2% for first-time homebuyers to 9% for second homes and investment properties.
Estate agents charge around 3% to 8% commission. This is often included in the listed price (described as spese dell'agenzia inclusi or SAI). Notary fees range from 1% to 2.5%, though these may be higher if they helped with your search or negotiations.
Another key cost to consider is currency exchange. It’s crucial you get a strong exchange rate, as a weaker rate can eat away at your funds. The sooner you get in touch with Currencies Direct, the easier it is to secure the best possible exchange rate.
In addition to shipping costs or new purchases to furnish the property, you’ll likely have ongoing bills, mortgage payments, and other expenses to cover. There’s also an annual land tax (IMU), which varies based on the property’s location and type, and a waste tax (TARI) that applies to all properties.
There are three main ways to find property in Italy. You can connect with private sellers, use an Italian realtor, or contact a notary (notaio).
If you’re happy to put in extra work to cut costs, searching for Italian property yourself is a good option. There are plenty of websites and property portals online for you to browse.
Using an Italian agent can simplify the process, provide you with more properties, and potentially get you a better deal, although they tend to charge between 3% and 8%.
Notaries are public officials who oversee property sales in Italy, but they can also offer guidance. However, they charge similar fees to estate agents in addition to a 1% to 2.5% negotiation fee.
If you’re planning on moving to Italy from the United States, you’ll need to apply for a residency permit or Italian nationality.
There are many different Italian residency permits (known as permesso di soggiorno), depending on how long you’re staying and whether you’re a student, a retiree, employed, self-employed, or related to an Italian national.
You can also apply for a long-stay visa, which typically allows you to stay in Italy for up to a year.
Without a visa or residency permit, the 90-day rule applies. You can only stay in Italy (or any other Schengen Area country) for a maximum of 90 days in a 180-day period. For the most up-to-date information and advice, visit the official Italian Government website.
After you’ve bought your dream property in Italy, you’ll need to prepare for the move. Here are some of the key considerations.
Get all the required documentation ready, including things like your passport, utility bills showing your residency, or any other evidence.
Decide how you’re going to transport your possessions and book in advance. You may also need to give a detailed inventory of any goods you’re bringing in.
If you’re bringing a pet with you, they’ll need to be microchipped and vaccinated, and you’ll need a health certificate from a vet to prove it.
Enrollment in the Italian healthcare system is mandatory. Once you are a resident, you can register with the Servizio Sanitario Nazionale (SSN) to obtain a health insurance card (Tessera Sanitaria). This card simplifies administrative procedures and covers a significant portion of medical costs.
It’s best to get the utilities connected before you move in. Usually, your local realtor or real estate agent can help with this, otherwise, you can often do it yourself online.
Your financial and tax arrangements might change once you move, and you may need to transfer money to or from Italy, so it’s best to plan ahead.
There may come a time when you decide to sell your Italian property, perhaps to move somewhere else in the country or return to the United States. Here’s a short list of the key stages when selling a property in Italy.
Prepare the property as best you can for the sales market. Spring is a good time to work towards, as buyers seek new beginnings amid the change in seasons.
Using a local real estate agent can take a lot of the hassle out of selling a property, although you may also want to advertise online or with local notaries.
You’ll need to carry out compulsory surveys and checks when selling a property, known as the dossier di diagnostica tecnica (DDT).
The notary oversees the property sale, working for both buyer and seller. You may also choose to appoint your own attorney.
When you accept an offer, your notary will draw up a contract of sale (compromesso di vendita). You and the buyer will sign, and they’ll pay the deposit.
The last step is to sign the atto di vendita at the notary’s office and hand over the keys. Your notary will issue an attestation and arrange for you to be paid.
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The amount of tax depends on the type of property and whether it is a primary or secondary residence.
Additionally, you will need to account for:
Unless you are obtaining a mortgage from an Italian bank, you do not necessarily need an Italian bank account to buy property in Italy. However, if you are living in Italy for an extended period, it may be advisable to open a bank account.
It’s worth noting that many Italian banks may not allow an overseas resident to open an account until they have a physical tie to Italy, such as a signed purchase contract or a rental agreement.
Yes, you can obtain a mortgage from an Italian bank as a foreigner. However, if you are a non-EU national, you may be limited to borrowing 50-60% of the property value.
Additionally, Italian lenders generally will not offer a mortgage if your financial liabilities exceed 30% of your net income. For those over 65, the lenders will only consider pension payments or other passive income, such as rental income.
The process of buying a property in Italy usually takes about two to three months from the time you make an offer until the completion of the sale. This timeframe can extend, especially if you are securing financing for the purchase.
In Italy, there are no legal restrictions preventing foreigners from purchasing property. Whether you are an EU citizen or a non-EU citizen, you can buy property in Italy provided that you have the necessary funds or financing arranged.
The USD/EUR exchange rate fluctuates constantly, so the rate you receive when transferring money to Italy will vary based on the timing of your transfer and the service provider you choose.
We offer market monitoring services to help you execute your transfer at an opportune time, aiming for a favorable exchange rate. Feel free to contact us to learn more about how we can assist you with your currency transfer needs.
The primary risk in currency exchange is the potential for the exchange rate to fluctify unfavorably by the time you are ready to complete your transaction.
To mitigate this risk, it's advisable to plan your currency exchange well in advance and monitor the currency markets closely. As a Currencies Direct customer, you will have access to a personal account manager who can assist you with these tasks.
Additionally, you can utilize various types of currency transfer strategies to reduce risk. For instance, a forward contract enables you to lock in an advantageous exchange rate for up to a year before you need to make your transfer, providing protection against unfavorable shifts in the market.
Once you have established residence in Italy, we can convert your account so you can set up automated regular payments to go out every month or quarter. You can even combine a forward contract with a regular payment, giving you the certainty of getting the same exchange rate for each transaction.