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Are you a foreigner and want to buy a villa/property in Tuscany/Italy?

Here is a short practical guide.

Buying a property in Italy doesn’t start very spectacularly.  The easiest way is to obtain an Italian tax number – codice fiscale – from the Italian embassy. With this in your pocket, you should open an account at a bank in Italy – in the north you have the advantage of being able to communicate in German.  In the meantime, however, any local branch, however small, is acceptable – you should apply for online access straight away and have this explained to you. All running costs such as electricity, telephone, gas, etc. are conveniently debited – although it has recently become quite possible – unlike in the past – to pay some bills from Germany.

So let’s take one thing at a time:

– Italian tax number codice fiscale

– Bank account

EU foreigners are allowed to buy property in Italy without limits, both as a primary residence and as a holiday home. For investors from Switzerland, the size of property and land is limited for reasons of reciprocity.

There are countless property portals in Italy and abroad that offer Italian properties. They are presented by property agencies as well as private owners. If you decide in favour of a non-Italian agency, you should be aware that they should charge Italian VAT in their brokerage fee and pay this to the Italian tax authorities. Some estate agents still do not know this. (the property is located in Italy, so currently 22% VAT/IVA on the brokerage fee).

Let’s assume that you have already found your dream property and would like to buy it.

What costs will you incur?

– Land transfer tax + other small taxes/levies

– Notary 

– Interpreter/translator (if available)

– Real estate agency (if available)

There is a difference both in terms of taxes and procedure, whether you are buying from a private individual (owner is a private person) or a company/corporation.

At this point I would like to make a remark from my more than 30 years of experience, also because almost nobody mentions it, but I consider it to be almost the most important calculation and measure.

Technician or Geometra. Not in all regions of Italy is his report to the notary compulsory, but in Tuscany it is. Also, it is not specified who should pay these expenses – the so-called relaziona tecnica is simply put – a written inspection of the property and its building permits (and becomes part of the purchase contract), does the condition of the property match the information in the cadastre or register or are there deviations? In other words, illegal work. The previous sales contract must be checked, the certificate of habitability, any registered mortgages and encumbrances, the condition of the installations and pipes, town planning documents, etc. – in other words, the property must be thoroughly scrutinised. Logically, this should be provided by the current owner – he must prove that the property to be sold is in order,

Sometimes the costs are borne by the buyer, as he wants to keep an overview himself, sometimes they are shared. I consider this ‘role’ to be extremely important and recommend it even where it is not required. (Examples: even 1 additional staircase, 1 chimney and wider stair surround must be renovated (subsequently approved), which means costs (technician for drawings/application + municipality) and bureaucratic obligations.

Throughout Europe – also in Italy – there have been various programmes for some time to stimulate property renovation (for residents) (insulation, heating, insulation etc.) Please find out what is possible for you.

If you sign a so-called preliminare (preliminary contract), you will have to pay for its registration. The preliminary contract is, if not more important, then just as important as the contract itself – I personally recommend having it drawn up by a notary. The preliminary contract is not mandatory, it is just as common as the down payment – both VB.

Mortgage: Expert opinion, notary and later cancellation cause costs.

Further or later possible costs

Annual property tax incl. tax consultant (income tax registration)

rubbish

Renovation

Garden maintenance

insurance

Electricity, gas, water, internet, TV

Security systems

Annual inspection of instantaneous water heater and chimney

Event. Additional costs in residence or flat block

Many of the points listed here are for information purposes only; you are welcome to discuss various options

Of course, everyone is free to consult a lawyer. From my experience. Please keep your eyes and ears open. Unfortunately, lawyers are also just people who want to earn money and first create problems so that they can solve them (for a fee, of course). Not all of them, of course. There are shining exceptions. They have to be sought out.

I know I’m boring you with my examples, but I think they speak for themselves: a lady recently wanted to sell a beautiful little house in Versilia. She is Swiss. An artist. She bought the house 10 years ago. Hired a lawyer to help her. Just to be on the safe side.  The house is short and well unsaleable – unless you find a new victim (and don’t reveal some things). 2 pergolas can be removed, but the ground floor is too low and a wooden extension can be demolished, but no longer built – i.e. the house will be approx. 20% smaller. I have seen the lawyer’s bill – it was 15,000 euros.