Buying property in Italy is a little different from purchasing in the UK.  Purchase prices are about half those in England but the actual process is expensive by the time you have paid taxes, the Notary, the Geometra for the Survey, the Estate Agent and Italian VAT! 
 
Role of the Estate Agent  
The Estate Agent acts for both parties and gets paid by both of them! Official rates are between 3% and 4% for the purchaser and the same for the vendor.  Some unscrupulous Agents charge more or hide the cost in an overall purchase figure.  Expect to pay the 4%  because it is likely Agents will have to do more work where an overseas purchaser is involved. The Estate Agent is far more involved in the sale than in the Uk and collects the plans from the vendor and checks them.  He usually agrees the terms of the 'Compromiso' (see below) with both parties and draws it up.  He also normally helps with opening a bank account, getting names changed over for the utilities and getting a telephone installed.  Sometimes this will involve an extra charge -well worth it in terms of the hassle factor.   
 
Other professions acting as Agents on property sale 
 
There are other people who act as Agents in the sale of the house:- 
 
A Commercialista  - this is a profession somewhere between an Accountant and a Legal Executive (in the Uk) and some get involved in selling houses and related property matters.   
 
Private Agents - Anyone can act as an intermediary on house purchases and some agriturismo owners or  building contractors also  get involved with house purchasing.  Fees are generally cheaper but be warned there isn't the same protection afforded when you deal with a proper agent or Commercialista.   
 
We personally act with a local Commercialista Andrea in this area to introduce people to houses for sale in this area.  We can help with your initial search, with visits to property to assist with language difficulties, act as a conduit once you find the right house and help with advice on where to find the best value deals on materials, furniture, dealing with the utlility Companies etc. 
 
Geometra 
 
If you want a survey on your potential property, to make any changes to yournewly purchased property, draw up plans, find you builders ,apply for planning permission, manage the building project while you are away - then you need a Geometra.  Obviously they work closely with Estate Agents and be warned some unscrupulous Agents will want a kick back which will find its way onto your bill.  Typically Geometra's charge between 5 -7% of the project value. Don't sign a contract for a fee higher than this.
  
Financial matters  
Mortgages -These are generally applied for through an Italian Bank, several of which have offices in the UK.  You can also go to a Financial advisor in Italy who will act on your behalf with a number of Banks.  
 
In principle they loan up to 80% but the top rate is very difficult to achieve.  Mortgages are available either as fixed term or variable rate in Euro currencies. 
 
Bank Accounts -The first thing to do is open an Italian Bank Account and start transferring money across on a regular basis to establish credit worthiness.  One word of warning though, Banks in Italy don't seem to have understood the customer benefits of the electronic transfer system and transfers typically take ten days to two weeks to complete and charges are high for the priviledge of handling your money.  We found it was not worth paying the extra at the UK end when transferring money over to Italy as the Italian Banks still levy a charge.  By far the cheapest way is to bring cash over yourself and physically pay the money in, but of course there are risks involved in that!  
 
Code Fiscale - You will also need a Code Fiscale (similar to a National Insurance number in the UK) which your estate Agent can obtain for you so take some copies of your passport details with you.
  
The Compromiso (preliminary contract)
This is a legally binding document to purchase a property(a little like the UK Exchange process) so do not sign it until you are certain you have all the finances sorted out and are really committed to the purchase.  If you do pull out you will have to pay the owners double the amount of the deposit!
 
Do make sure that everything you are buying is included in the document - land is often sold seperately to the property and we have heard horror stories of people buying a house only to find they haven't bought the garage. Also Italians take their kitchens with them when they move - this was a painful lesson we learnt after we had signed our Compromiso!    
When the Compromiso is signed and the deposit paid this is the time to pay the Estate Agent.
  
Purchase Taxes & Vat
 
VAT rates are 20% in Italy.  The Italians are adept at avoiding paying tax and it is quite common to  be asked to  pay some of the purchase price in cash outside of the Legal process.  This will save you money, but it is not legal.... the decision has to be up to the individual. The Tax man now routinely checks the purchase price of the property,so take care.
 
If you buy your house as a holiday home you will pay 11% tax. You will pay only 3% tax if you buy your home as a first home, but if you do this you must register your residency with the demografic department of your local comune within 18 months of the date of purchase.  It is not enough to simply live in the area and the tax man can demand the difference in tax if you do not comply with this requirement.
 
Notary  
This is a very important and much respected role in Italy.  Basically his rolethere to see the law is upheld and that the parties understand what they are getting into.  In practice that means they will want you to understand what is happening, so you need an English translation of the Compromiso and the Purchase document.  
This latter can be arranged by the Notary and he can also organise a Translator for the actual signing.  this saves you hassle  but the service doesn't come cheap as the Notary's fees are quite steep.  Again we can help you by providing a translator who can also advise you on the process.  The actual signing is quite a heavy affair, with all parties meeting in the Notary's office - including the Estate Agent and the Bank Director (if you are buying with a mortgage).  The Notary reads out the document and double checks all the relevant bits with each of the parties and everyone is very serious.  When it is all over and everything is signed then it is all smiles (at least before you go into the outer office to pay!).  Again if you pay cash you may well find that some of the VAT is 'forgotten'!!  - well this is Italy!! 
 
You will get unstamped copies to take away with you but the formal documents will take a while to come to you, typically three months. You will need these to various purposes - Permission to stay (Permisso di sojourno) & your residency application for example.
  
Permisso di Sojourno  
New Technology has finally arrived  and you can now download your application So much for free movement within the Common Market.  You will need to apply for permission from the Caribinieri to stay in Italy.  In theory this is required after 8 days residence but as you will need get your forms from the internet.
  
If you don't have access to a computer you need to go to the Questura di Straneiri (foreigners Police Station)-  in our case this was in Perugia - and pick up two copies for each adult ( Mon, Wed, Fridays - 9.00 - 11.00).   Once you have completed the forms you will need three passport photographs each, copies of your house deeds, proof of income & bank account plus evidence of health care insurance or similar (try your E111). These need to be filled in and returned (Tues, Thurs,9-11.00) with copies of passport, proof of income, copies of your house purchase, Bank statements,Code Fiscale, health documentation, four photographs and with the correct stamps on. Be prepared to queue for a long time to give in your documents and to have to return in 4 -6 weeks.  The rules may also change or be interpreted differently between the different Questure. 
Normally Permisso di Sojourno is granted for two years, then renewed for a further five years  & so on but these periods can vary- we were lucky enough to get permission for 10 years at first application! 
 
Once you have your Permission to stay you can then apply at the USL (health centre) to join a Doctor's list and fully participate in the excellent medical service.
  
Formal demographic Residency
 
Within eighteen months of living permanently in Italy you must go to the demographic department of your local Comune and apply for Residency.  Again take your house details with you for proof of address only and three more passport photographs, fill in a long form (or it can be done on the Computer) detailing your age, date of birth etc, educational standards,professional qualifications, parents names and basic details.  You will then be asked to pay 13 euros and get a small yellow slip of paper as confirmation -whatever you do don't lose it.  You will need to return approx. ten days later to pick up your identity card, this is a very useful document which can be used to get credit, enter hire purchase agreements and buy a car so get used to carrying it at all times. 
 
After all that you can breath easily until it comes time to pay your tax bill!
  
A further word on House Taxes 
 
Once you have got over the shock of  the above,  you will need to turn your mind to the various ongoing taxes that you have to pay  
 
 
 
  
  
ICI  - council Tax 
 
Paid twice a year in December and June and based on the Mc of your property.  Get a Commercialista  to calculate how much you need to pay and prepare the documents.  You can pay it in at your local Post Office. Amazingly there is no bill, you are expected to be pro -active about this!  We didn't find out about this for two years so had to pay catch up which was very painful as late payment is surcharged by 30%! 
 
Rifuti -rubbish tax 
 
This can be paid once a year or in 3 instalments and again is based on the property Mc.  Italy is keen to promote recycling and you can achieve a discount on your bill based on the amount of recycling that you do during a year.  Glass, paper, plastic and tin all count.  You apply for a plastic card called a Tesserina (like a credit card) and take that along with your re-cycling to the recycling centres. the recycling is weighed and you receive a receipt with confirmation of your credits.  Last year we achieved the maximum discount of 25 euros, not a lot but it all helps 
 
Stradale tax 
 
This is a wonderful wheeze dreamed up to elicit more tax from unsuspecting house owners.  Basically it is a tax on properties with direct access to the road for the right to enter your own property from the strada (road).  It is paid direct once a year  and your commercialista can advise.  
  
For more information contact us on 0039 075 956139 or by email j.julian@tiscali.it 
 
To contact Andrea direct (please mention that you came via our site) 
Dott. Andrea Antonioni Title: Estate agent, lawyer and accountant - andrea.antonioni@libero.it,  Phone: 0039 075 8358442,   Mobile: 0039 3476038138, Fax: 0039 075 8358442