Buying in Italy
Sardinia is an Italian island governed by Italian law. This includes legislation for purchasing property.
Purchasing a property in Sardinia is easy and safe once rules are understood:
Step by step to buy your chosen dreamed property;
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Purchase offer This is where you formally make an offer in writing. With the offer a security deposit of between 10% to 20% is paid. This blocks the property and the documents relative to the property are taken to the Notary for verification. This deposit is refundable only in the case the property owner decides not to proceed with the sale or there are technical problems. The purchaser may choose to proceed directly to the Preliminary Contract.
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Preliminary Contract This is the “Compromesso” and is the Purchase Contract, which is legally binding. The Preliminary Contract is usually signed within 15 days following the offer being accepted. A deposit between 10 or 20% of the purchase price (including the amount already paid) plus the estate agents fees are paid at this time.
3. Final Contract “Deed”or “Rogito” This is the completion of the passage of the title deeds from the Seller to the Buyer and is performed by the Notary.The Final Contract is when the balance of the purchase price, taxes and notary fees are paid.
In order to purchase a property, you will need an Italian tax code and bank account. These can be arranged by one of our Consultants at no charges.
New properties have a building guarantee similar to the UK. Building surveys are not a requirement unless you are requesting a mortgage, however it is recommendable for older properties. This service can be provided by our consultants and usually costs of 600 euros, depending on the size of the property.
Payable taxes on purchased property
As a guide you should allow 10% – 15% of the purchase price to cover taxes and fees.
The Italian State differentiates between buying a house as the principal residence (prima casa) and buying a house as a second home (seconda casa).
For a principal residence the purchaser pays an Imposta Registro (Registration Tax) of 3% of the Valore Catastale of the property (value of the property registered at the Catasto or Land Registry). The Valore Catastale is usually significantly less than the purchase price. However if it is a new or renovated property purchased from the builder, the Imposta Registro is fixed at €168 and IVA (VAT),is charged at 4% of the purchase price as VAT.
When purchasing a second home, the Imposta Registro is charged at 10% of the Valore Catastale and a new or renovated property purchased from the builder has an Imposta Registro of €168 plus IVA at 10% of the purchase price as VAT.
Notary fees are approximately €2000 but varies slightly between Notaries.
Estate agency fees are as follows:
For properties over € 100.000 - our fees are 3% + VAT (IVA)
For properties less than € 100.000 – our fees are 4% + VAT (IVA)
Example of a house purchase breakdown of costs;
€100,000 – purchase price
€4,000 – agency fees + €840 VAT (21% IVA)
€4,000 - €8,000 house taxes* and notary fees
€350 – survey fees if a survey is requested
F.O.C – fee for opening a bank account and obtaining a fiscal code if this service is requested