The beauty of Italy is renowned around the world, from its classical architecture in Florence and Rome to the rural splendour of Tuscany. A sun-drenched Amalfi coast, a vibrant Milan city life, and spectacular Alpine views of the Aoshi Valley, Italy has it all. History, superlative art and culture, exquisite cuisine, a premier lifestyle, and a wonderful climate put Italy in the top bracket when talking about the most attractive places in the world to own a home in the country of ‘La Dolce Vita’.
Like any other modern European country, there are areas of Italy that are more expensive to move to and live in than others. Major cities come into that category, as do coastal areas and the small islands off the coast. There is much history to consider in Italy’s property market, starting inevitably with Rome, the country’s capital and heart of its heritage. And it’s from the Roman Times that the concept of luxury villa derives from when mansions were built for the Emperors and elders of the Roman Empire, many of which remain on the island of Capri and are at the top end of the current property market in Italy. These exclusive properties change hands for multiple millions regularly.
Stylish & Sought After
With the Italian climate in mind, so many ‘Mediterranean style’ houses populate the country’s coastal areas, designed with the recognisable features of rendered stucco walls, red-tiled roofs, and covered patio areas for alfresco mealtimes. Just as typical but perhaps more characterful are the rural farmhouses of country areas, and primarily, Tuscany, many with their origins in medieval times. The most amazing rustic townhouses are found in possibly less sought-after areas. These properties are very often up to three storeys high. Meanwhile, the more modern alternatives in busy, popular cities are one-floor apartments. The range of properties is obviously as wide and varied as Italy itself.
Finding the most appropriate and attractive location in Italy to suit your lifestyle needs must be the priority. It always makes sense to consider the amenities and facilities within that location that will most comfortably support your way of life. This means conducting research into schooling for young families may inform your choices and has to be a chief consideration. However, if one is buying the property as a second home, it will be wise to research the area as an investment opportunity. And if intended to be rented out as a holiday home, one needs to have up-to-date knowledge of demand and trends within the market, with consultation from reliable sources.
Wherever they decide to buy their new home in Italy, there is a procedure that a buyer has to adhere to. Although relatively straightforward, there are legal steps that need to be observed, as with any property purchase in most parts of the world; hiring professional and legal experts is an essential starting point.
Legal procedure
Having reliable legal representation is a vital exercise as part of the process of buying property in Italy. A formal written offer must be submitted to begin proceedings with the relevant surveys and searches to follow. A deposit of between 20% and 30% can then be put down on the property, but the buyer needs to have an Italian tax code in order to proceed. From this point onwards, the ‘Compromesso’, a legally binding contract, lays out the sale details, giving the vendor the time to gather documentation and agree a date for closing the deal, vacating the premises before that due date.
Finance
Having an ‘Agreement in Principle’ from a lender indicates how much the buyer will be able to borrow if necessary and obviously influences whether a seller will accept an offer on the property in question – it puts the buyer in a much stronger position as some sellers are more likely to accept this than a mortgage clause within a buyer’s contract. The more a buyer can offer without financial assistance, however, the greater the likelihood of striking a deal and securing that dream Italian home.
Extra Charges
Prospective home buyers in the Italian market should expect to spend a further 10 to 12% of the purchase price in a combination of agent fees, property taxes, sales taxes, and notary fees, plus other extras. With regards to renting the property out, income tax is payable by all property owners on the rental income earned during the year, although non-residents are only subject to the tax if the income from rental exceeds a set threshold. The ‘Imposta Municipale Unica’ tax is collected by the local authority twice a year, but there are no capital gain taxes on the sale of a property if the transaction takes place more than five years after the purchase.
The process of buying a property in Italy isn’t much different from that in most parts of the world, including the UK. The challenge is choosing a home that suits your lifestyle in the right location, and with so many incredible places to choose from, it could take time. So much of the lifestyle in Italy is bound to its own inimitable culture that has micro variations and subtle adaptations in different regions. The wisest advice passed on from those who have made the move is to take the time to get to know the country well. Only then can you feel your way into it and begin to make those all-important decisions on the criteria set by both the heart and the head. And that is precisely where the fundamentals of any good home should be.
