High fashion, fast cars, amazing quality of life, outstanding food, and beautiful people – that’s Italy for you. Are you looking to buy property in Italy?
Italy is, of course, one of the best places to live in the whole world that boasts of an enviable standard of living. Lake Como, Tuscany, Sardinia, and Liguria are stunning in every way. So if you are looking for a villa in Tuscany or an apartment with a view of Lake Como, be prepared to get into a possible bidding war for them.
But here’s the good news – property prices in Italy have come down by quite a lot since 2008. So lower property prices combined with the weakness of the Euro means this is the perfect time to buy a villa or apartment in Italy.
A lot of investors from China, Russia, Middle East, etc. have shown great interest in buying Italian properties. This is apart from the usual crowd from Britain, Scandinavia and the United States that have always been fascinated with Italy.
Italians are incredibly friendly and laid-back people, so doing business with them is a pleasant experience for the most part, but it can get frustrating at times, because of the slow pace of life here. You wouldn’t, however, regret your decision to buy property in Italy.
Here’s an interesting bit of information for you - Did you know that Hollywood star George Clooney’s Lake Como property, which he bought for $10 million a few years back, is reportedly worth $100 million today? Amazing, isn’t it?
Buying Property in Italy – How It Works
If you are from the UK or any EU member nation, you will have the same rights as the local Italians when it comes to buying property in Italy. If you are a resident, you will be changed less on the property purchase tax, registration and other fees to be paid to the government.
In Italy, the property registration tax is charged at 3% for residents and at 7% for non-residents. If you are buying an agricultural property, you will be charged at 10%.
Those buying new properties are exempt from paying registration tax, but will be required to pay 4% VAT (value added tax) if they are residents and 10% VAT if they are non-residents. Luxury properties are taxed at 20%.
Land registry tax is charged at 130 EUR for residents and 1% of the purchase price for non-residents. Estate agents expect to be paid 3% to 8% of the property price, which is quite steep. Higher the sale price, the less you will have to pay to an estate agent.
In Italy all paperwork is handled by your estate agent, so it is not really required to hire a lawyer. However, if you are a foreigner with no knowledge of Italian laws, it is always a good idea to hire an Italian solicitor who is well versed in the local laws and has a good grasp of English – so that he can explain everything to you.
Italy Property Market Outlook 2016
The outlook for Italy in 2016 is generally positive. Italy has a very stable economy and after a long time has political stability in the country with a popular government. The property market in Italy is underpriced compared to the UK, but is not cheap either. Apartments in Milan and Rome are as expensive as ever. As a prospective buyer, you would probably be worried about the refugee crisis, which threatens to overwhelm Italy in 2016. Apart from that, Italy is a terrific place to buy a second home, if you can afford it.
Contact us today with your budget and type of property you want to buy in Italy and we will source you properties in any region.