Too much Tuscan Sun<\/h2>\n
Oh, but it all sounds so heavenly\u2014a country house with a view of rolling vineyards, quirky but friendly neighbors, and enough Chianti to drown yourself\u2014right?\u00a0 Yes, I\u2019ve read the book, too. Thanks to Frances Mayes, we all suffered a collective heatstroke under the spell of the Tuscan Sun. We all dream of recreating that same movie-ready fantasy for ourselves.<\/p>\n
What could be more enjoyable than propping up the crumbling remains of a 17th-century barn while simultaneously battling unreliable contractors and the Italian bureaucracy?\u00a0 You just can\u2019t buy that kind of fun at any price!<\/strong><\/em><\/p><\/blockquote>\n
Still, it somehow manages to hold its appeal, doesn\u2019t it?<\/p>\n
So if you\u2019re really <\/i>that bored with life and feel that a colossal lapse in judgment will save you from an eternity of the mundane tortures of comfort and ease, then I\u2019m willing to help. \u00a0I\u2019m here to facilitate your inevitable descent into madness and regret.<\/p>\n
How to buy property in Italy<\/h2>\n
First of all the good news: there are no restrictions on foreign property ownership in Italy. \u00a0Any chump with enough cash can purchase their Tuscan dream.\u00a0 Just make sure that money sent from outside of Italy for purchasing the property is officially documented to ensure that the proceeds of any resale can be repatriated.\u00a0 As if.<\/p>\n
Fantasy<\/figcaption><\/figure>\n But before you do anything, save yourself a big headache and hire a real estate attorney to protect your interests. Seriously. Although the real estate transfer process is a regulated process, it is generally biased in favor of the seller. Also, make sure that the real estate agent that you\u2019re dealing with is reputable.<\/p>\n
Real estate agents must hold a professional license and carry insurance\u2014they should also be registered with the local Chamber of Commerce. Ask them if they have a membership in one or more of the following agencies: AICI (Italian Association of Estate Agents), FIMAA (Federation of Mediators and Agents) or FIAIP (Federation of Professional Estate Agents).<\/p>\n
Once you have chosen the property, make an offer. You must pay 1%-5% of the purchase price as a gesture of good faith. Unfortunately, an offer to purchase is only binding on the buyer; the seller may still consider other bids. \u00a0You might want to specify a time limit in your offer agreement so as not to be left hanging indefinitely.<\/p>\n
Reality<\/figcaption><\/figure>\n It would also be a good idea to retain the services of an architect or surveyor, too, to ensure that the property is sound. Some of these properties are pre-electricity or even pre-plumbing, so they may not exactly be up to code, if you know what I mean.<\/p>\n
And if you know anyone in the \u201coutfit,\u201d (a.k.a. la malavita<\/i>) now would be the time to send them over for a friendly visit with the seller.\u00a0 It can\u2019t hurt.<\/p>\n
So if your surveyor, lawyer, and padrino<\/i> all give you the go-ahead, then you can sign a sales contract (compromesso<\/i>) and agree upon a timetable. The buyer (that would be you in this scenario) hands over a second down payment, taking his total deposit to hefty 30%.\u00a0 Just know that pulling out at this stage carries severe financial penalties for both sides. \u00a0Then in the last step, both sides sign a final contract (rogito<\/i>) in front of a notary and the buyer (again, you, in case you\u2019ve forgotten) settles IN FULL with the seller.<\/p>\n
Notable here is the absence of a mortgage.\u00a0 Yes, that\u2019s right.\u00a0 Mortgage lending has always been much tighter in Italy that in the U.S. or U.K, but it is even more so since the global economic crisis. Italians can\u2019t even get a mortgage these days, so they\u2019re certainly not keen to give them out to dreamy-eyed foreigners with no familial ties or legal status in the country. Money talks, folks, while all forms of promissory notes are conspicuously silent. Maybe I should have mentioned that in the very beginning.<\/p>\n
When a rural property is sold, neighboring farmers have the right of first refusal. Under such circumstances, it is necessary to notify neighboring farmers of the preliminary contract. They have a set time period \u2013 typically three months – to exercise their right.<\/p>\n
Taxes and Fees<\/h2>\n
Fees and taxes will usually add 7%-10% to the cost of a resale property, and 12-15% for a newly-built property. Typical add-on costs include around 3% to the realtor (the seller pays the other half of the 6%), \u20ac500-1500 for a surveyor, \u20ac150-200 per hour for a lawyer and up to \u20ac5,000 for a notary. \u00a0For newly built properties, 4% VAT is levied if within a year and a half the buyer registers for Italian residency, a fairly simple procedure \u2014 otherwise, the buyer pays VAT at 10%.<\/p>\n
For previously inhabited properties, the buyer pays 3% of the “cadastral value,” if residency is registered for within a year and a half, otherwise 10% of the cadastral value is payable. Cadastral value is decided by the Land Registry based on factors such as number of rooms, location, floor area, etc. \u00a0It is usually less than 50% of purchase price.<\/p>\n
So when\u2019s the house warming party?<\/h2>\n
Hopefully I\u2019ve been able to talk you down off the ledge by now.\u00a0 What\u2019s wrong with renting, anyway?\u00a0 But since my true expertise are in superstitions<\/a> (ha!) and not real estate, at least heed this bit of advice from a previous post:<\/p>\n
\u201cYou must diligently sweep out the corners of a new house to get rid of the evil spirits that had taken up residence with the previous owner.\u201d\u00a0 You\u2019ve got your own problems, right?\u00a0 Why would you want to inherit someone else\u2019s, too?<\/p>\n
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