The days of bargain property in Italy are not over.  There is a growing trend amongst property purchasers in Italy to seek out beautiful rural properties in quiet locations.  With the dramatic increase of budget airline connections to many areas of Italy, previously lesser known regions are now becoming increasingly popular amongst investors as prime Italian property locations.

The property market in Italy doesn’t seem to hit the headlines like the real estate markets in emerging countries do and neither is Italian property booming or going bust – so is it seemingly a slow cook commodity of interest to a few but overlooked by many?

Reasons why property in Italy is a good investment

• No capital gains tax on profits from Italian property, creating maximum returns on investment.
• Possibility to cut purchase costs in half by becoming a resident.
• Prices remain relatively low, compared to many EU destinations.
• Capital growth of 20% per year in some locations.  Many new markets in Italy still remain undiscovered and ripe for investment.
• Possibility to renovate beautiful old Italian houses into fabulous residences that earn high rent in peak season.
• Italy is at the hub of the low cost flights revolution, forever enhancing its strong tourist industry.
• The Italian government offers investors grants to reform rural.
• Italy has pioneered property tax reforms, offering great opportunities for the rural renovator, including substantial VAT discounts.
• EU member country.
• Economic and political security.
• Only 2 ¼ hours direct flying time from UK.
• Abundance of culture, history and magnificent architecture.
• Stunning variation in natural beauty, from lakes, mountains and lush vegetation to rugged or sandy beaches.
• Warm Mediterranean climate.
• Recreational activities to cater for all needs, from skiing, hiking or beach holidays to sightseeing and cultural activities.
• Dream lifestyle, modern systems and friendly people make Italy an easy relocation destination

STEPS TO BUYING PROPERTY IN ITALY

Buying property in Italy is normally a straightforward process, there can be a lot of Italian red tape and bureaucracy, and does tend to move slowly.

As with many countries you must first obtain a tax identification number (condice fiscale) from the authorities.

You will then make an offer on the property you wish to buy, this commits you to buying the property at the given price. When the seller accepts you will then pay a deposit of 10% (in most cases).

You and the seller will then sign a legally binding buying proposal (compromesso di vendita). This will outline the details of the purchase, including the completion date.

If the seller withdraws, they will be required to pay you double your original deposit, however if you withdraw you will loose your deposit.

On completion both you and the seller will sign the final contract (rogito) in the presence of a notary, who will then issue the deeds and inform the land registry to transfer ownership.

The remainder of the balance should then be paid along with all taxes.

Typical Fees and taxes

In total you should expect to pay around 15% of the purchase prices in costs

Stamp duty varies between 10% and 17% depending on its location (10% is typical for most properties classed as urban, where 17% should be expected for rural properties)

If you intend on moving to Italy permanently then you will be required to pay 4% stamp duty

VAT on new properties varies from 10% to 20% depending on weather the property is considered luxury

If you build your own property you can get a 4% reduction in VAT

Estate agent fees are between 3% and 5%

Notary fees are normally 3%

Legal costs are typically 2% of the purchase price

Local taxes (ICI) are between 0.4% and 0.7%