20 Raising Capital to Purchase in Italy

I have in the past had contact with several members of this forum, as well as with several different financial institutions regarding raising funds to purchase property abroad.

I know that many people who buy in Italy own property already that they either borrow against or sell to generate the capital to purchase their home in Italy. I am not one of these - I have rented in the UK and Ireland for the past 5 1/2 years but have never bought (prices too high vs wages too low).

Now I really want to buy a place in Italy and set up a business - I have a background in hospitality that will go a long way toward helping set up a B&B or country hotel and have from my childhood and early adulthood some experience of farming (of the plant kind) that can go toward setting up a viable if not hugely profitable organic farm.

What I lack is the funds to do this - so I would like to know what sort of funding options exist within Italy and without that would help make the purchase of a property in Italy a bit more obtainable for a first time buyer?

Category
Legal

Submitted by Anonymous (not verified) on Wed, 02/09/2005 - 07:37

Sano...

I have also been down this route. In the past, it was relatively easy to obtain grants and financial aid to start up a hospitality business. Some people have managed to set up with these grants.

However, I think it is becoming more and more difficult to do. In some regions, like Tuscany for example, it is impossible to get any money. But I am aware that in Puglia (at least back in 2003) it is still possible because the regional authorities want to develop the region and thus encourage people to invest there by offering financial incentives and help. I'm not sure what it is like in other regions.

In the Marche I have some friends with a highly successful and cash rich business. They have been investing in tourism as a diversification project but I can tell you that even my friends have found it hard going and frustrating despite the fact that they put a lot of their own money into the new venture. The banks want evey guarantee under the sun.

One final note...I would advise you to identify an area where there is potential. Don't go for places like Tuscany where just in the Province of Siena alone there is a high desity of agriturismo's per every square Km.

Too much competition and overcapacity is not what you want. You could ask ENIT in London where the most up and coming places are and then talk to the relevant regional authorities to see what is available in the way of financial assistance. But be warned, you will still need to present a sound business plan and development strategy and you will need to have some of your own funds.

Charles

Submitted by Anonymous (not verified) on Wed, 02/09/2005 - 11:03

Thanks for the info and advice Charles.

The region I would prefer in Italy is northern Abruzzo, or even central Abruzzo, so long as there are decent mountains and national parks within close range. A business plan would prove more tricky - whilst I know what I want to do, and how to achieve it, laying it out in a way that a financial backer would find appealing is beyond my current field of knowledge.

As to generating some capital - that too is not entirely beyond my reach, I just do not have the 100k to 200k that some people do.

Submitted by Anonymous (not verified) on Wed, 02/09/2005 - 11:17

sano.... have talked in the past....
why not get down here and work in a local hotel....have a few contacts which might well be able to help you.......if you have any qualifications in this area it would help

that way you would be on the spot and ready to jump so to speak....and youll learn italian that much quicker

Submitted by Anonymous (not verified) on Thu, 02/10/2005 - 05:21

[quote=adriatica]sano.... have talked in the past....
why not get down here and work in a local hotel....have a few contacts which might well be able to help you.......if you have any qualifications in this area it would help

that way you would be on the spot and ready to jump so to speak....and youll learn italian that much quicker[/quote]

Adriatica,

I have a diploma in tourism studies and several computer courses (and one adult teaching cert.) behind me but most of what I have is experience. I have worked my way up through the ranks over the years.

The thought of upping stakes and moving down there is very appealing on one level, but practically it would be an unwise move - I know how hard it is to secure half decent work if you do not speak the language, and given my current state of affairs, cannot afford a substantial drop in earnings unless I was shifting rapidly from one income source to another (a polite way to say I have debts to pay).

I will pm you to clarify a few things - I am trying to grow the freelance side of my work, if that is successful then a wholesale relocation will not be a problem.

Submitted by Anonymous (not verified) on Thu, 02/10/2005 - 12:22

Hi Sano, so please the forum is back. There is a possibility of raising funds for an Italian purchase with Banca Woolwich and you don't need a property to raise it on. I have a contact in the uk if you would like it - he liaises between client and bank. They will take your earnings and give 75% of the value of the italian property plus extra percentage towards resotration. Good luck and send me an email if you want his number and email.