Owning real estate in Italy is a lifelong goal for those who have what we like to call the “Italy bug.” Unfortunately, many who are thinking about buying abroad lack local contacts and necessary knowledge to navigate the purchase process. At Dolce Living, we assist you with each step in the journey to becoming a homeowner in Italy.
Preparation
Before embarking on the purchase process, it’s important to take a few preparatory steps. Tackling these early on can significantly reduce future uncertainties and unnecessary anxiety.
1. Explore your visa options
It is paramount that the prospective buyer understands how much time they intend to spend in their future Italian home. Will the property be a seasonal vacation home or a forever home? Depending on the answer, the buyer should start to understand the requirements for obtaining a visa. EU citizens and their spouses have the right to reside in Italy without obtaining a visa, while tourists may only stay for 180 days in a calendar year and for no longer than 90 consecutive days at a given time. The most popular immigration route for Americans wishing to stay longer in Italy is the Elective Residency Visa. The ERV, however, has strict requirements for passive income. Starting in 2024, a new option for international remote workers is the Digital Nomad Visa.
Our article on visa options for U.S. and Canadian citizens provides a brief overview of the most popular types of Italian visas.
2. Obtain a Codice Fiscale
The Codice Fiscale is the Italian equivalent of the Social Security Number (SSN). Obtaining a codice fiscale is a legal requirement for a prospective real estate buyer or renter. A foreign individual may obtain their codice fiscale through their area’s Italian Consulate or directly in Italy from the Agenzia delle Entrate (Italian Revenue Service).
3. Consider opening an Italian Bank Account
Having an Italian bank account is not strictly necessary but will allow for a significantly smoother transaction. Additionally, after the purchase is complete, having an Italian bank account will make it easier to pay annual taxes and monthly utility bills.
The purchase process
Once the buyer has obtained a Codice Fiscale and identified a clear and legal path to staying in Italy for the desired amount of time, the purchase process can begin.
4. Finding the right location
If you haven’t yet decided where you want to make your purchase, we advise you to invest some time in a thorough research. Across its 20 regions, Italy offers virtually any landscape and climate you might be looking for, from the tips of the Dolomites through the rolling hills of Umbria to the spotless beaches of Sardinia. You may fall in love with a rural country villa or choose the convenience of an apartment in a larger city. Logistical and cultural considerations should also be taken into account when choosing a location that fits your lifestyle.
5. Finding the right property
Even if you have a clear idea of your preferred location, finding the right property in Italy might not be an easy task. There is no country-wide MLS (Multiple Listing Service) in Italy. Several online platforms (Immobiliare.it and Idealista, among others) cover a good portion of the market but often include outdated information and fake listings. As a result, many brokers choose to stay off the main platforms and post their listings on their personal websites, or even their shop’s windows. Knowledge of the area and a strong local network can therefore make or break your search for the perfect home. Additionally, even if a property looks great online, we would strongly advise you to conduct an inspection of the interiors as well as the surrounding area. For complete peace of mind, our suggestion is to have a surveyor inspect the property as well. In Italy, home inspections are performed by a geometra, who may also plan home renovations and expedite approval processes. Dolce Living works with trusted local professionals to ensure our clients are able to purchase their dream Italian home with peace of mind.
6. Interaction with Real Estate Agents
The Italian legal system does not make a distinction between the seller’s and buyer’s agent and instead provides for a single agent to mediate the purchase process. The real estate agent is expected to be an impartial figure that does not favor either party to a transaction. In reality, because they receive a mandate from the seller, real estate agents are incentivized to speedily move a transaction forward in order to complete the sale and secure a commission. When interacting with a real estate agent, it is very important you understand these incentives and be aware that, as the buyer, you have the right to receive exhaustive information and perform due diligence on the property you want to purchase.
7. Making an offer
Once you have found your favorite property, it is time to submit a proposta d’acquisto (offer). You may decide to make a binding or non-binding offer and to include multiple clauses to protect your interests before bringing the transaction to a closing. The proposta will be accompanied by a caparra (deposit) equal to a percentage of the purchase price. Together with the offer, the prospective buyer should request the seller to make important legal disclosures (title history, structural conformity, cadastral conformity, among others). This documentation should then be independently verified during due diligence.
8. Undertaking Formal and Informal Due Diligence
Due diligence is undoubtedly the most important step in the purchase of an Italian property and one that unfortunately is often overlooked. As a prospective buyer, you have the right to verify the legal, cadastral and urban conformity of the property you want to acquire. Due diligence is usually performed by a professional surveyor. This will provide you with documentary evidence that your property is not encumbered by any regulatory deficiency that may result in legal problems after the transaction has closed. In case any irregularity is discovered, you have the option of abandoning the transaction or requesting that the seller remedy any deficiency before the transfer of ownership is completed.
9. Signing of the Atto Preliminare
If all legal conformities have been certified, a buyer can safely proceed with the signing of the Atto Preliminare. This “Preliminary Deed” is a binding contract that obligates buyer and seller to proceed with the transfer of ownership within a specific time frame. Upon signing, the contract is submitted to the Agenzia delle Entrate (Italian Revenue Service) for record keeping.
10. The Rogito, or Deed of Sale
Within the time limits set forth in the Atto Preliminare, the buyer and seller appear in front a notaio (Italian legal officer that incorporates the responsibilities of both a lawyer and a notary public). The notaio reads the entirety of the contract out loud to both parties, signatures are collected, the transfer of ownership is completed, and your new chapter in Italy begins!
