Buying property in Italy?

The amount of tax depends on the type of property and whether it is a primary or secondary residence.

• New Builds : Typically subject to VAT of 4% for primary residences or 10% for secondary homes. This VAT is often included in the property price.
• Stamp Duty : For new builds, the stamp duty is 2% of the cadastral value for primary residences and 9% for secondary homes. For older properties, it ranges from 2% to 9% depending on the type of property and the buyer's residency status.

Additionally, you will need to account for:

• Notary Fees : Usually 1-2% of the purchase price.
• Registration Tax : Typically between 0.5% and 3% of the property’s value.

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.