Have you always dreamt of heading to the Italian countryside, snapping up the dilapidated ruins of a charming and traditional trullo and then renovating it into your dream Italian home? If so, you aren’t alone.
Article written by The Overseas Guides Company
This charming property, in the heart of Puglia, is on the market for just €100,000 but what about the other costs involved? Today, Kirsty Lowe of the Italy Buying Guide outlines the costs associated with buying property in Italy.
Agency fees
These are usually divided equally between buyer and seller and range from 3 – 8 per cent of the price of the property. Make sure that you confirm the percentage that your agent charges before you begin your property search so that you know exactly how much you can afford.
Notary fees
These depend entirely on the sale price. A lower sale price will equal a higher percentage but that percentage won’t exceed 2.5-3 per cent of the total cost of the property.
Registration tax
This is payable upon completion of the sale and it will be charged at 3 per cent for a main residence. Those who are not resident in Italy will be charged a greater registration tax of 7 per cent and for agricultural property it increases again to 10 per cent. Purchasers of brand new property are exempt from this tax but they will instead be liable to pay VAT. This will be charged at 4 per cent for a main residence, 10 per cent for non-residents or for a second home and for luxury property, it can reach as much as 20 per cent.
Land registry tax
This will be charged in a fixed lump sum of about €130 for a main residence or at one per cent of the purchase price if you are a non-resident.
All of these taxes will need to be paid to the notary who will then channel them to the correct departments within the government.
Unfortunately, there are some additional costs which you need to budget for. These include: surveyors, solicitors and architect fees. You may also have to pay to connect to the water, electricity or gas mains.
One thing that it is important to consider is how you will transfer your funds to Italy in order to make all of these payments. Your best bet is to chat to a currency exchange specialist like Smart Currency Exchange. You can download their free report on how to save money on all international transfers here.
For details of property for sale in Italy, visit the Italy listing on Rightmove Overseas. One way to save money when buying and restoring property in Italy is to use a currency specialist when transferring your pounds into euros to complete the purchase. For more information on this, contact Smart Currency Exchange.
To understand the full step-by-step process to buying a property in Italy, collect The Overseas Guides Company’s ‘Italy Property Buying Guide’
The views and comments herein are those of the author and do not necessarily reflect the views or opinions of Rightmove Overseas, Rightmove Group Ltd or Rightmove Plc