THREE STEPS TO MAKING A PURCHASE
Step 1
A formal written offer is made and a deposit of 10% should be available to send as soon as the offer is accepted
Step 2
The exchange of contracts (known as the preliminary agreement) is normally carried out within one month of the proposal. This formalises the proposal, and at this stage another 20% of the asking price needs to be paid
Step 3
Completion will be about two months after Step 2. This will, however, depend on the situation and agreement between parties. Note also that you need to have completion dates agreed at Step 1. At the completion stage, the state tax and notary fees will also be payable
OTHER CONSIDERATIONS
Property consultants’ commission in Italy is payable by law at the exchange of contracts stage. If you buy through a company in England, you may find that they will request half at the exchange of contracts and half before completion. Independent lawyers’ fees will be paid on private agreement arranged with the lawyers.
Surveys will be carried out either before the proposal is signed or after the proposal stage and before exchange of contracts, the latter being more common. Fees are generally payable direct to the surveyor, the amount will have been previously agreed.
Ten per cent State tax must be paid on the declared value of the property as a second home. If the property is purchased as a first home, then you will need to pay 4% on the declared value (rateable value).
Remember, that if you buy the property as a first home, it means you need to use the property for about six months a year, or live there. It is often tempting to purchase as a first home and apply for residency to save on the amount of expenses you pay; some companies may even advocate this. However, if you do so and are found not to be using the property in the correct way, then you will have to repay the tax, so do not be tempted as, in the long run, you will not save!
You should add a total of about 11% to the purchase price of your property as a second home. This 11% will include state tax, commission and notary fees. The percentage may increase if you are buying a cheaper property, say under £40,000, and may decrease if the cost of the property is over £300,000.
