ITALY REAL ESTATE PROPERTIES
Italian Real Estate Market
Italy's housing market is recovering gradually, despite the country's struggling economy. Demand is now rising. Residential construction activity is increasing. And the market outlook is improving. The nationwide house price index fell by 0.8% (-2.25% inflation-adjusted) during the year to Q3 2018, according to the European Central Bank (ECB). Quarter- on-quarter, house prices increased 0.6% in Q3 2018 but actually 1.4% when adjusted for inflation.
Prices of new houses increased 1.41% (-0.1% inflation-adjusted) y-o-y in Q3 2018 while existing house prices dropped 1.31% (-2.75% inflation-adjusted) over the same period, according to ISTAT
Total round-trip transaction costs in Italy range from 8.88% to 22.70% of the property value. Registration tax is 3% for main homes and 7% for second homes. Nonresident buyers pay a fixed registration tax of 7%. The real estate agent's commission is between 3% and 8% plus 22% VAT; typically split between buyer and seller.
International Real Estate Investment in Italy
A foreigner can legally buy and operate real estate in Italy. Like France, Italy is always been a real estate option for an investor who wants to diversify his portfolio and enjoy a favourable economic trend.
The real estate market in Italy is favourable for transactions and investments for several reasons:
- A transparent and open system.
- The law is in favour of the owners and protects them.
- A foreigner can become owner in the United States.
- Taxation is favourable.
The European Union and other countries signed an agreement that avoids the double taxation on the rental income but also on the inheritances and the donations.
Before Purchasing a Property
In order to have a clear definition of your project and meet your goal, it is necessary to process as follow:
1. DEFINITION OF YOUR OBJECTIVES
Before any process or research, it is necessary to define tangible objectives for your future investment: a rental profitability or an appreciation of your property, etc. We help on market specifics.
2. BUDGETING
After Defining your budget, our team in Italy will make available all the best properties that meet budget and your goal.
3. INVESTMENT STRUCTURE
Creation and registration of your company within 72 hrs. until ID Tax number id provided by the Italian tax authorities.
4. BANK ACCOUNT
Following the creation of your company, the next most important step is to open a bank account for all the transactions related to your investment: Rent payments, property tax payments, etc. The opening of your account can be carried out remotely by our Miami team on presentation of your credentials and registration of your company in Italy. You will have access to an online bank and will be the sole owner and manager of your account.
Purchasing a Property
Besides the definition of your project and the creation of your company, our Italian Team will support you in the research, negotiation and acquisition of your real estate property.
1. PROPERTY RESEARCH
Introductory market study will help outline your research and target opportunities on properties for sale, new or pre-construction. Click below to see our listing.
2. VISIT OF PROPERTY
Our Team will also help you to schedule your stay in Miami in accommodation, travel, property showings, etc. Then, you select the most appropriate property before drafting an offer.
3. OFFER AND DRAFT PURCHASE CONTRACT
After final acceptance, the Purchase Agreement is written according to the laws of Italy and the European Union. A deposit of 10% of the amount is required at the signing of the contract. It will be blocked on the Escrow Account of the Title Company in charge of necessary investigations.4. SIGNATURE AND “CLOSING DISCLOSURE”
After due process, Contract is signed and the balance and other fees shall be paid. Agency and Notary Fees: 1.5-5% of the amount
Legal Representation
Our Italian Agents and representatives are always here to assist our prospective international investors to meet their needs. We give our clients a full representation and bring them all the tools needed to realize their real estate investment safely.When investing in Italy, our priority is to make sure that this investment is protected as well as the investors under the Laws of Italy and the European Union. Having a legal structure in place will be beneficial in many ways: 1) Better Tax Optimization, 2) Privacy and 3) Liability.