Frequently Asked Questions
What do I need in order to buy a property in Italy?
You will need to obtain a Codice Fiscale (tax id code) and have a local bank account in order to complete the sale.
What is a Codice Fiscale?
It is a code number which identifies every individual. Everybody, whether Italian or foreign, needs this to take part in any kind of financial transaction e.g buying a house, car, opening a bank account, applying for utilities under your name, etc. You can apply for a Codice Fiscale at the offices of the Agenzie delle Entrate. You will require a copy of your passport and an address in Italy for communications.
What do I need to open a bank account?
Opening a bank account is a fairly simple procedure. You do not need to make an appointment at the bank and it can be finalised the same day. The Bancomat card is a debit card generally accepted throughout Italy to pay for goods and services and it is recommended to request this when opening an account. It will take up to 3 weeks for the card to arrrive. You will be issued with a cheque book as soon as you have sufficient funds in your account.
You will be asked for all or some of the following:
- Passport
- Codice fiscale
- Proof of address
- Proof of income or financial resources
- Birth certificate
- Reference from your home bank
Do I have to take out Italian residency?
You do not have to be a resident in order to buy a property. Italy allows all EU citizens and most foreigners to stay for up to 3 months without a resident's permit. After the three months are up, and if you are still living in Italy, you must take out a residence certificate which is issued by Anagrafe (Registry) Office of your local town hall (comune), and provide either proof of employment or proof of financial resources, which can be in the form of bank statements, tax returns or a contract. The certificate is a confirmation that you do live where you claim to and the vigili (local police) will physically come to your house and check that you are living there.
You will pay considerably less tax (see Property Taxes and Fees) as long as you obtain residency at your new property within 18 months of the signing of the final contract. However, to qualify for this concession you must declare your home as your primary residence (prima casa) and it cannot be classified as a luxury home.
What is the cadastral value? (valore catastale)
This is the assessed value by the Catasto (Italian Land and Property Registry Office) and is very important as the taxes are based on this value. It is a figure lower (sometimes substantially) than the market value of the property.
What is a geometra?
A geometra is a surveyor/project manger who prepares all the paperwork for property sales, renovations and improvements, planning applications, etc. He is qualified to carry out surveys, draw up plans and present projects to the local planning authorites.
What is a notaio?
A public notary, a legal official who is responsible for the drafting and execution of the Final Contract (it is advisable, although not necessary, to also use their services for the Compromesso). Under Italian law, it is obligatory to use a notaio to complete all property purchases or sales.
Can I apply for a mortgage in Italy?
Yes, but mortgages are not so common here, resulting in less competition and high transaction costs. Normally the banks will not lend more than 80% of the property value, with 60% being more common. The loan is usually payable over a period of 10-15 years. A notary has to draw up a contract between the bank and purchaser of the property. Obtaining a mortgage can take some time - up to 3 months.