These articles are your go-to resource for comprehensive advice on buying a home or moving to Italy, featuring general advice, engaging Q&A sessions with our former clients, and general advice.

Homes for Sale in Milan: Legal Issues and Suburban Opportunities

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The metropolis of real estate investments

Milan ranks as the city in Europe with the highest number of real estate investments. Between 2019 and 2029, investors plan to invest about 13 billion euros in real estate in the metropolitan city of Milan, aiming to develop and transform it. This surge in activity has also created a dynamic market for homes for sale in Milan, attracting both local and international buyers eager to capitalize on the city’s growth. Munich and Amsterdam follow in second and third place, with a significant gap from Milan. Against this backdrop of major growth and investment, how do the many ongoing and upcoming construction projects fit in from a legal standpoint?

Italian urban planning and building regulations lead to various interpretations, which hinder a clear understanding of what is and isn’t allowed during major construction work. Moreover, Italy’s complex bureaucracy often causes significant difficulties for those who choose to invest in real estate. Currently, a judicial investigation has slowed down real estate development in Milan’s capital city.

The risk involved in investing without the right legal advice

The judiciary is accusing builders of having misused building permits for renovations, using them even in the case of new constructions, which differ from the original building projects. The Municipality of Milan had authorized these large building works as if they were simple renovations. The investigation started with the ‘Park Towers’ located in Via Crescenzago, near Parco Lambro, and continued with other buildings, among which one in Via Stresa, in the Maggiolina area; one in Piazza Aspromonte, located between Loreto and Città Studi; and the ‘Bosconavigli’, an innovative project in the south-west of Milan. This practice came to a halt with the opening of the public prosecutor’s investigation.

Italian law upholds the fundamental principle of legal certainty. Under this principle, any ambiguity in the interpretation of a law is unacceptable, as the consequences of misinterpretation can be severe. Even if a party is ultimately cleared of wrongdoing, a construction site halted during an investigation can result in significant losses of both time and money.

For this reason, the Italian government has taken a strong interest in the matter and is drafting the “Salva Milano” decree to address construction site closures caused by investigations and to resolve the deadlock in the city’s urban planning. While this legislation has faced significant criticism, the government’s aim is to enhance legal certainty and provide clarity to investors on how they can safely allocate their resources.

The Best Time to Invest in Homes for Sale in Milan

Despite recent events causing a drop in Milan’s real estate investments, property prices in the city continue to rise. In the city center, a small flat can reach stellar prices, while the same in the suburbs costs less. Suburban costs are also set to rise due to price trends and the 2026 Milan-Cortina Olympics.

Projections show suburban property prices in Milan rising significantly over the next ten years. A real estate investment in Milan’s suburbs is a smart and profitable opportunity.

The Importance of an Italian Real Estate Lawyer When Buying Homes for Sale in Milan

Investing profitably and lawfully requires strict adherence to Italian building rules, though it is time-and money-consuming. Italian real estate law is complex, creating uncertainties for those unfamiliar with it. Therefore, relying on specialized real estate lawyers is essential to protect investments and avoid errors.

Finally…

An Italian real estate lawyer ensures you invest safely in the market while saving time and avoiding costly mistakes. The lawyer will guide you step by step to achieve your goals and avoid risks. If considering investing in Milan’s real estate market, contact De Tullio Law Firm at info@detulliolawfirm.com to schedule a consultation.

Ghost towns: Abandoned Beauty in Italy

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Italy is home to a number of ghost towns, known locally as “città fantasma”. These were once thriving communities but are now abandoned and left to the ravages of time.

These abandoned towns are not just relics of the past; they offer a unique and fascinating opportunity for tourists and potential investors alike.

abandoned town

The Allure of Abandoned Towns

Ghost towns are essentially open-air museums. They offer an immersive historical experience, providing insights into the architectural styles and cultural practices of bygone eras.

Moreover, for photographers, these towns are a dream, presenting endless opportunities to capture the haunting beauty of decay.

Especially for those with a sense of adventure, exploring these quiet, eerie streets can be a thrilling experience.

And for cultural heritage enthusiasts, visiting and investing in these towns supports efforts to preserve Italy’s rich history.

ghost towns

Ghost Towns Tourism in Italy: A New Trend

Tourism in Italy’s ghost towns is becoming increasingly popular, drawing over 1.5 million visitors annually. This surge in interest is driven by several factors.

First, there’s the allure of stepping into a place frozen in time, offering a stark contrast to the bustling modern world.

Secondly, the mystery and romance of abandoned towns captivate many, providing a unique and off-the-beaten-path travel experience.

Ghost towns such as Bussana Vecchia in Liguria, Pentedattilo in Calabria or Craco in Basilicata, attract tourists not only for their eerie beauty but also for the stories and legends that surround them.

The growing interest in sustainable and experiential travel also contributes to this trend, as travelers seek meaningful connections with history and culture.

Craco: the lost town

Among the ghost towns in Italy, Craco stands out because of its picturesque landscape.

On a guided tour along a secured itinerary, visitors can explore the ghost town of Craco. While some of the architecture still stands, much of the town is crumbling, making it too dangerous, and illegal, to visit unaccompanied.

From the town’s main street, one reaches the centre of the ghost town: on the way, one encounters several noble palaces around which the village expanded in the 15th century.

Looking out from a window of the bastion, you can admire endless meadows and the characteristic calanchi, deep furrows dug into the clay soil that make the landscape unique and evocative.

Because of its beauty, the ghost town of Craco has been included in the list of the World Monuments Found, a list of safeguarded monuments around the world.

Outside Craco’s city walls, you can admire one of the area’s religious heritages: the Franciscan convent with the Church of San Pietro Principe degli Apostoli, that dates back to 1630.

abandoned craco church

In conclusion, Craco is a true heritage of the Bel Paese, which, although abandoned, is worth maintaining and preserving as many others lost gems that characterised the italian landscape.

Property Investments in Italian Ghost Towns

Investing in properties in areas with ghost towns presents a unique opportunity to be part of a rich historical and cultural legacy.

With many of these areas boasting fewer than 10,000 inhabitants, they offer promising prospects accessible to Canadian investors.

For more details about updates to Canadian FPPRA rules, consult our resources.

However, investing in areas with abandoned towns carries inherent risks and complexities, demanding careful consideration and due diligence.

Understanding the reasons behind a town’s abandonment, assessing geological phenomena, conducting thorough property surveys and understanding legal ownership are some of the vital steps for informed decision-making and risk mitigation.

Finally …

At De Tullio Law Firm, our expertise lies in property, inheritance, residence and family law matters in Italy.

If you have any inquiries regarding purchasing a property anywhere in Italy, feel free to reach out to us. We are happy to provide you with a complimentary preliminary consultation.

Schedule your consultation. 

 

Move to Italy: Get Paid to Revitalize Local Communities

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Italy’s initiative offering 1 euro homes has captured global attention. Now, there’s another enticing opportunity: getting paid to move to Italy!

Calabria, aiming to combat depopulation and rejuvenate nine villages, has offered up to 28,000 euros to those who move to these areas.

Get Paid to Move to Italy: Terms and Conditions

To qualify, applicants must be under 40 years old. Additionally, they must commit to launching a small business and relocate to Calabria within 90 days of approval. This means officially changing their residence to the selected village.

This initiative has sparked interest both within Italy and abroad. Successful candidates can expect monthly payments ranging from 800 to 1000 euros for 2 to 3 years. Alternatively, they may receive a lump sum to start their own ventures.

Innovative Initiatives to Move to Puglia

In recent years, several towns in Puglia have implemented innovative measures to attract new residents and rejuvenate communities.

For instance, Candela, known for its natural beauty and historical charm, utilized funds from the National Recovery and Resilience Plan (PNRR) to implement effective revitalization strategies.

Get paid to Move to Italy

The Case of Candela: A Model for Success in Moving to Italy

Candela offers substantial financial incentives. These include grants ranging from 800 euros for single-person households to 5,000 euros for families with over 4 members moving to the area. These funds cover rental and renovation costs, making the move financially viable for new residents. Applicants must demonstrate residency and meet specific income criteria to qualify for these incentives, ensuring sustainable community growth.

If the cash incentive is not particularly appealing to convince people to move to the village in the province of Foggia, other options are being studied.

These include discounts on electricity bills, reduced fees for kindergarten enrollment, and reductions in waste and school canteen taxes.

All of this aims to repopulate a village that risks becoming another ghost town in the southern landscape. Southern Italy’s demographic vitality is declining, making it challenging to reclaim the lost essence of life.

The Role of the PNRR

The PNRR, the National Recovery and Resilience Plan, was introduced by Italy as part of the broader EU program for post-pandemic recovery.

The plan includes investments in various areas, such as urban regeneration and the recovery of historic villages. For Puglia, the PNRR has allocated funds for the revitalization of depopulated areas and support for local communities.

The case of Candela demonstrates how the strategic use of PNRR funds can turn challenges into opportunities.

In fact, thanks to these incentives, Puglia is experiencing a new era of growth and revival, offering a replicable model for other regions of Italy.

The adoption of such measures helps preserve cultural and historical heritage. It also ensures a prosperous and sustainable future for local communities.

Move to Italy and get paid

Finally …

At De Tullio Law Firm, we specialize in property, inheritance, residence, and family law matters in Italy.

Whether you’re considering moving to Italy under its incentivized programs or navigating legal matters related to property and residency, De Tullio Law Firm offers specialized expertise. Contact us today for a complimentary consultation. Let us guide you through the process. Together, we can ensure your move to Italy is smooth and successful.

 info@detulliolawfirm.com

Tel +39 080 483 1785

from the UK: 0800 012 6545

from the USA and Canada: 1-855-688-5546

The Times: Chaz and Lucy’s Italian move, with expert advice from Giandomenico De Tullio

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“We moved to a farmhouse in Puglia for la dolce vita” is how The Times headlines the story of Chaz Oldham and Lucy Akhurst. They, the couple in the photograph, are an English couple who have chosen to make their new home in the heart of Italy, a five-bedroom farmhouse in the hills with 20 acres of land, 15 minutes’ drive from the sea and 8 minutes from Alberobello, famous for its thousand Unesco-listed trulli. This is an area already well visited by foreign tourists, especially the French, Swiss and Germans.

Chaz and Lucy’s Italian move, with expert advice from Giandomenico De Tullio

The Times article tells you their story, the proximity to the world of cinema, the moves, the inspirations, the farm in Devon, the dream of France but falling in love with Italy, and the purchase of the house with a huge roof terrace with a 360-degree view, which convinced him to buy. What truly stands out, however, is the financial potential of such a decision.

 

A brief aside on the prices of apartments in the area where Chaz and Lucy bought: at the time of their purchase (2020) the average price per square metre was €1,836, while today it is €2,374 (source: The Times), which highlights the value of investing in property in this region. Real estate in Italy, particularly in sought-after areas like Puglia, is not only a lifestyle choice but a sound financial strategy. With property values steadily increasing, the potential return on investment is significant.

 

Then there was the application to the Municipality of Monopoli for a building and renovation permit (obtained in just over a year), the hiring of Puglia Pools to build the swimming pool, the renovation of a wing of the house which – in 2025 – is estimated to yield between €1,800 and €2,400 per week. This demonstrates how renovating and renting out properties in Italy can generate consistent income, making it a lucrative option for those looking to invest in the real estate market. Moreover, the cost of living in Italy, where they now live, is a fraction of the UK, while the produce is fresh and km0.

 

The rise in property prices, coupled with the attractive rental market, shows why investing in Italian real estate, especially in regions like Puglia, is an excellent opportunity. You can find more insights at the end of The Times article, where we also provide tips for British citizens looking to purchase property and apply for residency in Italy. You can read them there or take advantage of our free preliminary consultation in the language of your choice.

 

Click on this link to choose the time that suits you best or email us at info@detulliolawfirm.com.

 

Full text of The Times’ article here: https://www.thetimes.com/article/53afb046-b3ac-4422-b7b0-02231a555480.

 

Cultural Heritage in Italy: The Legal Landscape

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Dreaming of purchasing a property in Italy? The country’s magnificent buildings, historic cities, towns, and villages make the Italian real estate market particularly enticing. However, within the heart of these charming landscapes lie historical architectural treasures, subject to legal protections. In this article, we explore the role of legislation aimed at preserving Italy’s cultural heritage.Cultural Heritage in Italy

Understanding Italy’s Cultural Heritage Legislation

Cultural assets, encompassing movable or immovable properties, benefit from State protection due to their artistic, historical, or architectural significance. Since May 1st, 2004, Italian legislation governing this matter is the code of cultural heritage and landscape (Legislative Decree January 22, 2004, n. 42).

Italian Cultural Heritage: Limitations on Immovable Properties

The code imposes restrictions on the transfer of ownership or possession, particularly concerning immovable properties. These regulations vary depending on the owner of these assets.

Notification Requirements for Italian Cultural Heritage Properties

For immovable properties owned by individuals or companies to attain cultural asset status, they must be notified by the public administration. Such notifications, documented in property registers, can be challenging to verify, primarily post the enactment of Law No. 1089 on June 1st, 1939. It is therefore crucial to ascertain the property’s ownership history to verify the existence of notifications.




Cultural Heritage in Italy

Reporting Obligations for Transfers

Any transfer of ownership or possession of cultural assets mandates filing a report with the superintendent of the asset’s location. This report, due within 30 days of property purchase or inheritance acceptance, requires comprehensive details of the involved parties, asset particulars, and transfer conditions.

Penalties for Non-compliance with Italian Cultural Heritage Law

Failure to submit the report within the stipulated period constitutes a criminal offense, leading to severe penalties. These penalties include substantial fines ranging from €1,500 to over € 75,000 and potential incarceration for up to one year.

Italian Cultural Heritage Properties

Right of First Refusal

In consideration-based transfers like sale or exchange, the State or relevant local authorities hold the right of first refusal. This right must be exercised within 60 days from report receipt, conditionally suspending the transaction until then. However, there’s no right of first refusal in inheritance, donation, division, share transfer, merger, split, or mortgage creation scenarios.

Finalization of Ownership

If the right of first refusal remains unexercised after 60 days, ownership transfers to the buyer. However, if the report is filed after the 30-day legal period, the right of first refusal must be exercised within 180 days. Until this period expires, the asset remains with the vendor.

Finally …

At De Tullio Law Firm, our expertise lies in property and inheritance matters in Italy.

If you have any inquiries regarding the transfer of cultural assets, feel free to reach out to us. We are pleased to provide you with a complimentary preliminary consultation.

Schedule your consultation. 

 

Rental Contracts in Italy

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Italian rental contracts

Renting a property in Italy entails navigating a complex landscape of legal obligations and procedural steps to establish a fair and transparent relationship between landlords and tenants. Consequently, a comprehensive understanding of the Italian rental contract process is indispensable, whether for residential or commercial purposes.

This guide aims to provide a detailed overview of the various types of rental contracts available, their distinct characteristics, essential legal requirements, as well as the rights and responsibilities they entail for both parties. Additionally, it explores effective methods for resolving disputes, ensuring that all aspects of the rental process in Italy are approached with clarity and compliance.

Types of Rental Contracts in Italy

Italy offers several types of rental contracts:

Free Market Contract:

These are the most common type of rental contracts in Italy. They typically last four years with the possibility of automatic renewal for a further four years.

The rent and other contractual terms are freely negotiable between the landlord and tenant.

Agreed Rental Contract:

These contracts last three years with a two-year extension. Homeowners and tenant associations set the rents, often resulting in lower rates than free market contracts.

Transitional Contract: 

These contracts meet short-term rental needs, ranging from 1 to 18 months.
Additionally, they are non-renewable and require a stated reason due to their short-term nature.

Student Tenancy Contract:

These contracts cater specifically to university students and last from six months to three years, aligning with their study schedules.

 

rental contract

Rental Contracts in Italy: Characteristics

A typical rental contract in Italy should include the following:

1. Parties Involved:
Clearly identifies the landlord and tenant(s) including full personal information.

2. Property Description:
Provides a detailed description of the rental property, including the furniture and accessories.

3. Duration:
Specifies the start and end dates of the rental period and any renewal terms.

4. Rent and Payment Terms:
Agrees on the rent amount, payment frequency (usually monthly), and accepted payment methods.

5. Security Deposit:
Typically, this is equivalent to two months’ rent, held as security against damage or unpaid rent.

6. Maintenance Responsibilities:
Clearly defines maintenance and repair responsibilities, distinguishing between minor and major repairs.

7. Termination Conditions:
Outlines the conditions under which either party may terminate the rental contract, including notice periods and penalties for early termination.

Legal Requirements for Rental Contracts in Italy

Several legal requirements must be met to validate rental contracts in Italy. First, all rental contracts must be in writing and signed by both parties. Additionally, contracts lasting more than 30 days must be registered with the Inland Revenue (Agenzia delle Entrate) within 30 days of signing, with the registration fee typically shared between the landlord and tenant.

Moreover, landlords are obligated to declare rental income and pay applicable taxes, while tenants may benefit from tax deductions on rental payments under specific conditions.

In terms of rights and responsibilities, both landlords and tenants have distinct obligations under Italian law. Landlords must ensure the property is habitable, meeting safety standards, and they must perform major repairs and maintenance. They must also respect the tenant’s right to privacy and peaceful enjoyment of the property.

Tenants, on the other hand, are responsible for paying rent and agreed fees punctually, maintaining the property in good condition, and undertaking minor repairs as needed. It is essential for tenants to comply with the terms of the contract and refrain from using the property for unauthorized purposes. These legal frameworks help establish clear guidelines and promote a harmonious rental relationship in Italy.

rental dispute

Dispute Resolution

Resolving disputes between landlords and tenants regarding Italian rental contracts involves various channels, each tailored to different circumstances and preferences.

Negotiation

Initially, parties can engage in negotiation, where landlords and tenants directly discuss and resolve issues. For example, they might negotiate adjustments to the rent to account for maintenance responsibilities or agree on a revised schedule for property inspections.

Mediation

Mediation offers a structured approach with the assistance of a neutral third party. This process helps clarify misunderstandings and facilitates compromises that satisfy both parties. An example includes using a mediator to resolve disagreements over the interpretation of lease terms regarding property usage or responsibilities for repairs.

Legal Action

If informal methods fail to yield a resolution, parties can pursue legal action through the local Rent Tribunal. This step becomes necessary when there is a significant disagreement over lease termination conditions or disputes regarding security deposit refunds. The Rent Tribunal serves as a formal venue where both parties can present their cases, and decisions are made based on Italian rental laws and regulations.

These options ensure that disputes are addressed promptly and fairly, thereby promoting a harmonious landlord-tenant relationship and upholding legal standards in the rental process in Italy.

Finally …

We understand that renting a property in Italy can be confusing and involves legal risks. If you plan to rent an Italian property, always seek legal advice beforehand.

With over 55 years of experience in Italian property law, at De Tullio Law Firm we are specialists in negotiating rental contracts, drafting bilingual versions tailored to your needs and facilitating communication between property owners and tenants. Additionally, we offer comprehensive support in managing legal obligations and effectively resolving disputes.

Moreover, if you are considering letting your Italian property, we offer comprehensive services to ensure a secure and smooth process.

If you need further clarification regarding property rental or letting, or wish to discuss your situation, please contact us for a free consultation. We are here to help.


You may also like to read about buy to rent in Italy.

Buying a House in Umbria: A Guide

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Are you considering buying a house in Umbria? In this article, we’ll look into the this region of Italy. From its cultural richness to its stunning landscapes, we’ll explore what makes Umbria a true gem. Additionally, we’ll offer valuable insights into its real estate market and guide you through the property acquisition process.

Buying property in Umbria

Buying a House in Umbria: Discovering this Italian Region

Located in the heart of Italy, Umbria exudes enormous charm. Its rolling hills, medieval villages, and vibrant cultural legacy define its allure. Aptly dubbed the “Green Heart of Italy,” with its lush vineyards and olive orchards. In essence, Umbria offers an idyllic retreat for nature lovers and those in search of tranquillity.

Buying a house in UmbriaHistorical cities like Perugia and Assisi abound with artistic and architectural treasures, echoing the region’s rich significance in Italian history. With its clifftop location, Orvieto offers breathtaking panoramic views and is home to a magnificent Gothic cathedral. Gubbio captivates with its impeccably preserved medieval ambiance, labyrinthine cobblestone streets, and a palatial legacy tracing back to the 14th century. Moreover, the delectable local cuisine and vibrant traditional festivals make Umbria an irresistible destination for those seeking to invest in a home in the heart of Italy.

Buying a house in Umbria

However, Umbria’s appeal extends beyond its geography. Its real estate market, with prices averaging lower than in neighboring regions like Tuscany, is enticing investors. Amidst rising tourism and slightly declining property prices, many are opting to invest in Umbria’s real estate market. Renowned tourist destinations like Spoleto, Terni, and Todi further bolster its attractiveness, drawing thousands of visitors annually.

While investing in Umbria for a buy-to-let vacation home, bed & breakfast, or guesthouse can be a profitable venture, the region’s property market and procedures are unique. It’s therefore essential to understand these nuances before signing any paperwork.


Buying a House in Umbria: Legal Compliance

If you’ve come across a property you like in Umbria it’s essential to verify if its present condition aligns with its legal status as documented in the land registry and that it complies with urban planning permits.

Ensuring the continuity of property titles and confirming the absence of third-party rights are also crucial steps. Take the time to thoroughly assess these aspects to ensure everything meets your expectations and requirements.

Be cautious! Despite assurances from the real estate agent or seller, the property may be non-compliant.

Unlike other Italian regions, in Umbria, vendors aren’t obligated to provide buyers with a compliance report. Yet, this document is crucial for ensuring the property’s legal integrity, certifying urban and cadastral compliance. Known as “Relazione di rispondenza edilizia e conformità catastale” in Italian, it should be produced and signed by an authorized individual in the technical department at the local municipality.

Therefore, the risks of buying a non-compliant house are automatically higher in Umbria. It is common for the property’s actual condition, as recorded in the land registry, not to match that approved within urban planning permits.

Due to economic and administrative reasons, work is often carried out without permission in Italy. Identifying lack of permits and defects within a house can be difficult without first conducting a thorough analysis of property-related documentation.

Buyer’s Responsibilities in Umbria

Upon acquiring the property, the buyer assumes financial, civil, and criminal liability for any non-compliances. Obtaining retroactive permission to rectify issues may prove difficult or impractical. Even if it is possible, securing retroactive permissions can be time-consuming and expensive. Additionally, minor compliance issues could hinder obtaining new building permits or engaging in rental activities.

Precautions Regarding Access and Easements

In some cases, access to the desired property may involve traversing a path situated on a neighbor’s land. In such instances, meticulous contract drafting is vital to secure the transfer of rights-of-way. Additionally, parts of the land for sale might be utilized by others. To ensure a secure purchase in Umbria, it’s crucial to identify all access rights and easements to fully comprehend their terms before committing to any agreements.

Seismic Risks in Umbria

Umbria, being in a seismic region of Italy, poses risks like earthquakes and landslides. Before buying property in Umbria, it’s crucial to assess these risks. It’s wise to engage a surveyor for a full geological and structural evaluation of the property to ensure occupant safety.

Finally …

While real estate agents and sellers aren’t obliged to ensure property compliance or provide compliance reports, notaries conduct basic checks. However, by law, the responsibility for legal verification rests with the potential buyer. Conducting due diligence when buying a house in Umbria is crucial to avoid assuming liability for pre-existing defects.

Conducting due diligence can be a complex and time-consuming process, requiring a deep understanding of Italian law and administrative procedures. It’s common practice to enlist the services of a specialized real estate lawyer to manage this task on your behalf. A lawyer will oversee the entire procedure, including verifying documentation (urban, cadastral, zoning, mortgage, energy, habitability, etc.), drafting necessary contracts, handling administrative formalities, and accompanying you to the notary on the day of signing the deed.

The notary, an official of the Italian State is responsible for overseeing property transactions among other duties. By law, notaries must remain impartial in property transactions. They cannot provide legal advice to any of the parties involved. Therefore, a notary cannot substitute a lawyer in representing the buyer’s interests.

Buying a house in Umbria can yield significant rewards, yet it necessitates meticulous attention and adherence to legal protocols. Drawing upon more than 55 years of expertise across Italy, De Tullio Law Firm can guide you through the entire process. Our team of expert lawyers offers tailored advice, guaranteeing a secure and legally compliant investment. Book a free call today to embark on your path to owning a home in the captivating Umbria region.

You may also be interested in our guide to buying property in Puglia.

Property in Umbria

How to Buy a House in Italy: Legal Tips

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Buying a house in Italy?

In this article, we explore the step-by-step process of buying Italian property.

From picturesque villas to seaside retreats, discover essential legal tips and insights for a safe property purchase.

Real Estate Options Across Italy

Whether you’re in the market for an apartment or a villa in prime neighborhoods of Rome, Milan, Florence, Venice, and Naples, or hidden real estate treasures in Sardinia, Tuscany, or along the scenic Amalfi Coast, Italy offers options for everyone.

Italy’s lake regions, including Lake Maggiore, Lake Como and Lake Garda boast breathtaking properties. Alternatively, explore seaside retreats in Calabria, Sicily, Liguria on the Riviera di Ponente, Sardinia’s Costa Smeralda, or coastal havens in Campania, Capri, and Ischia. In addition, there’s a wealth of beauty waiting to be discovered in smaller, lesser-known villages and small towns throughout the country.

Recent government efforts have focused on attracting foreign investment to boost the Italian property market. A range of incentives is available, such as tax breaks for first-time homebuyers and subsidies for renovation projects.

Understanding the Process of Buying a House in Italy

The process of buying a house in Italy is substantially different from many countries. To navigate it successfully, it’s essential to grasp the three main stages of the purchase process:

1. Reservation Offer: The potential buyer formalizes their intention to buy the property.
2. Preliminary Sales Agreement: The parties agree on the details of the various terms of the transaction.
3. Final Deed of Sale:  Completion of the transaction, transferring ownership from the previous owner to the new owner.

Buying a House in Italy: The Reservation Offer (or “Proposta di Acquisto”)

When a buyer identifies a property they’re interested in purchasing, the initial step involves submitting a reservation offer. This offer serves to communicate the buyer’s desire to acquire the property under predetermined conditions from the vendor. This initial action holds significant importance; upon acceptance, the offer transforms into a legally binding contract, compelling both parties to fulfill obligations in order to finalize the transaction.

Conformity and Controls in Italy

In Italy, there is no legal requirement for real estate agents to verify the legal compliance of the properties they represent. Moreover, their incentive structure may discourage full disclosure of property details to buyers, as their commission often hinges on transaction completion.

Likewise, Italian notaries typically don’t perform comprehensive urban planning and land registry conformity checks. They primarily depend on information provided by the seller.

From a legal standpoint, the responsibility falls on the potential buyer to conduct all necessary legal due diligence when buying a property in Italy.

Due Diligence: Preliminary Verification and Documentation

Prior to submitting a reservation offer, it’s imperative to conduct preliminary due diligence by examining pertinent documentation and accessing various real estate records. This process enables the potential buyer to evaluate the property’s compliance with land registry, zoning, and planning regulations. Additionally, it’s crucial to ensure the absence of mortgages, debts, or outstanding charges on the property. Simultaneously, buyers should verify that property systems, such as electrical and photovoltaic systems, comply with regulations. Additionally, they should anticipate any tax implications associated with the acquisition.

Drafting the Reservation Offer

Following preliminary due diligence findings, the prospective buyer can submit a formal reservation offer, which should be tailored to comprehensively safeguard their interests.

Many real estate agencies may suggest using a pre-printed reservation offer form. However, these generic templates often fall short in ensuring full protection for the buyer. They typically fail to accurately represent the property’s specifics such as planning and construction permits, existing mortgages, absence of a habitability certificate, energy efficiency or any third-party rights.

Moreover, they do not address the buyer’s individual circumstances such as financing arrangement needs, timelines for formalities, tax implications, and other pertinent factors related to the purchase.

If a buyer fails to include relevant conditions in the reservation offer, it will not be possible to add these to the preliminary contract in the next phase of the purchase process.

Consulting a Lawyer when Buying a House in Italy

While not mandatory, it’s commonplace for buyers to engage a lawyer’s services when buying a house in Italy.

  • The lawyer undertakes thorough due diligence to facilitate the acquisition on behalf of their client, optimizing tax and financial considerations.
  • They handle administrative procedures, including obtaining an Italian tax code.
  • After conducting due diligence, the lawyer negotiates on the buyer’s behalf, advocating for adjustments to the reservation offer terms to protect their interests.
  • They customize the reservation offer based on findings, ensuring inclusion of necessary clauses, such as addressing planning issues or mortgage cancellation.

Typically, the reservation offer is drafted bilingually (in Italian and the buyer’s language) to provide clarity on legal implications for all parties involved.

Consequences of Acceptance

Upon the vendor’s acceptance of the reservation offer, two significant outcomes unfold:

  1. the buyer pays a deposit to the seller, and
  2. the seller removes the property from the real estate market, typically for a 15-day period.

When signing the reservation offer, the purchaser remits a deposit to the vendor, which, upon finalizing the purchase, becomes partial payment of the total price. However, if the vendor declines the reservation offer, the buyer pays no deposit.

In many countries, payments like deposits, installments, or balances are commonly held in escrow. However, in Italy, such payments are directly transferred to the vendor’s bank account. This arrangement carries implications and risks for the potential buyer. If one of the parties to the transaction fails to meet conditions in the reservation offer or if either party withdraws from the transaction before the final deed of sale, the potential buyer may encounter challenges in reclaiming the deposit.

To protect this and later deposits in the event of any contingencies or disputes, notaries in Italy have the option to hold deposits in escrow or holding accounts. However, the use of such an account must be expressly stipulated as a condition in the reservation offer.

Real Estate Agency Commission

In contrast to many countries where the real estate agent’s commission is payable upon completion, Italian law mandates commission payment upon signing the reservation offer, unless explicitly stated otherwise in the reservation offer.

Buying a House in Italy: The Preliminary Sales Agreement (or “Contratto Preliminare di Compravendita”)

The contratto preliminare di vendita holds significant legal importance as it delineates the detailed terms and conditions of the sale. The buyer must carry forward terms and conditions established in the reservation offer to the preliminary contract. Additionally, the preliminary contract forms the basis for the notary public to draw up the deed of sale in the final phase of the purchase process.

Engaging Legal Assistance

Again, the estate agent may provide a standard preliminary contract. This may lack conditions relating to the buyer’s personal situation. It could ultimately result in financial loss through inability to complete the purchase or acquiring a property needing costly remedial work. Therefore, it is highly advisable for the buyer to engage the services of a lawyer to draft the preliminary contract, ensuring all details are in their best interests.

Validity of Contract Conditions

While it may be tempting to modify an existing template to cover various situations, it is crucial to note that Italian law only considers specific types of conditions as valid. Conditions that solely benefit one party, known as potestative conditions, are invalid under Italian law. For instance, a condition allowing the buyer to unilaterally terminate the agreement if the property doesn’t meet their expectations is not acceptable. However, conditions affecting both parties, such as the buyer’s ability to secure a mortgage, are valid.

Legal Implications and Deposit

If the vendor’s legal advisor drafts the preliminary contract, it’s essential that the buyer to has their own lawyer examine it. The lawyer can provide detailed advice on the legal implications before signing.

An essential legal element of the preliminary contract is the payment of a second deposit (“caparra confirmatoria”), typically at least 10% of the purchase price.

The buyer will lose their deposit if they back out of the purchase without a valid legal reason stipulated in the preliminary contract. However, if the vendor withdraws from the sale, the deposit must be refunded in full, with the buyer also having the right to pursue a claim for double the amount of the deposit through the Italian courts.

Role of the Notary and Buyer’s Legal Safeguards

In the preliminary contract, the parties also designate the date for finalizing the sale in the presence of a public notary, an official of the Italian State responsible for overseeing property transactions among other duties.

By law, notaries must remain impartial in property transactions. They cannot provide legal advice to any of the parties involved. Therefore, a notary cannot substitute a lawyer in representing the buyer’s interests, highlighting the importance of engaging an independent lawyer to ensure legal safeguards.

The notary conducts basic checks including confirming each party’s rights to buy or sell the property, conducting land registry searches for any claims or mortgages, and verifying planning permission.

Since buyers have already paid a substantial deposit before notarial checks occur, it is essential to ensure that all aspects are clear. Before committing to the preliminary contract, ensure that it includes protective conditions should issues arise during the notary’s checks.

Buying a House in Italy: The Deed of Sale (or “Rogito Notarile”)

The last step in the process of buying a house in Italy consists of completing the final deed of sale in front of a notary. The public notary usually conducts the signing of the deed of sale at their office. They read aloud and explain the Italian version of the deed in the presence of the vendor, buyer, and/or their legal representatives.

If a party to the transaction is unable to be present at the signing, they can grant power of attorney to a lawyer to represent them.

Parties to the transaction have the opportunity to read and check the deed to ensure accuracy. Having a bilingual lawyer present allows the buyer immediately address any questions or concerns.

Once all relevant parties have signed the deed, the buyer pays the balance of the purchase price to the vendor and receives the keys to the property.

It takes approximately one month, following the signing of the deed of sale, for the relevant land registry office to register the deeds of new ownership. Following  registration, the new owners receive a copy of the title deeds. If not present in Italy when the title deeds become available, the lawyer can collect them on behalf of the buyer and send them on or hold them in safekeeping.

Choice of Notary: A Privilege of the Buyer

Italian law grants the buyer the privilege of choosing the notary to establish the deed. It is advisable to avoid following the recommendations of the real estate agent or the seller on this point to prevent any conflict of interest. Opting for a notary recommended by your lawyer guarantees their level of independence and impartiality.

Interpreter and Bilingual Lawyer

Italian law mandates that any foreign buyer not fluent in Italian must obtain the assistance of an interpreter at the time of signing the deed of sale. Engaging a bilingual lawyer is thus an economical solution as they can act both as a legal advisor and an interpreter.

Finally …

Before purchasing a house in Italy, it’s essential to engage a local lawyer with expertise in property matters. You should personally select your own rather than relying on recommendations from the estate agent or vendor.

Choose a lawyer who is proficient in your language to ensure not only legal guidance but also translation services. Your lawyer should also be capable of recommending surveyors, builders, and other professional services as needed.

Additionally, you may wish to give your lawyer power of attorney in case you are unable to be present in Italy for the completion of the purchase. Entrusting this responsibility to someone with potentially conflicting interests, such as an estate agent or a friend, can pose significant risks.

Before proceeding with your property investment in Italy, consider reaching out to us for assistance. At De Tullio Law Firm, we offer comprehensive advice and support throughout your Italian property purchasing journey. With over 55 years of experience handling clients’ Italian and cross-border property, family, and inheritance matters, we are well-equipped to guide you.

Book a FREE CONSULTATION with one of our lawyers here.

Italian First Home Benefits for Expatriates

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Law No. 103 of 10.08.2023, coupled with amendments to DL No. 69/2023, has ushered in significant changes to Italian first-home benefits for expatriates. This pivotal legislation not only addresses an infringement procedure initiated by the European Commission against Italy but also introduces key enhancements to the first home benefits regime.

The Innovation Introduced by DL No. 69/2023

DL No. 69/2023 addresses a critical issue flagged by the European Commission concerning first home benefits for expatriates. This decree, aptly named “Salva infrazioni” (Save Infractions), rectifies discrepancies in the application of reduced property taxes for expatriates. Now, expatriates who have resided or worked in Italy for at least five years and are transferred abroad for work reasons can enjoy reduced property tax rates when purchasing a property in Italy.

Understanding Italian First Home Benefits

Italian first-home benefits encompass a range of advantages aimed at facilitating property acquisition for expatriates. These benefits include reduced tax rates, fixed tax amounts, and VAT reductions, making property ownership in Italy more accessible and affordable.

Reduced Tax Rates: Expatriates can benefit from lower registration tax rates, alleviating the financial burden of property acquisition. Under the first home benefits scheme, taxes payable when buying property in Italy include:

For purchases from private individuals or VAT-exempt companies:

– Proportional registration tax at a rate of 2% (instead of 9%)

– Fixed mortgage tax of 50 euros

– Fixed cadastral tax of 50 euros

For purchases from companies subject to VAT:

– Reduced VAT at 4%

– Registration tax of 200 euros

– Mortgage tax of 200 euros

– Land registry tax of 200 euros

These reduced tax rates and fixed tax amounts provide transparency and predictability in property transaction costs, enhancing the appeal of property ownership in Italy for expatriates.

Eligibility Criteria for Italian First Home Benefits

To qualify for Italian first home benefits, expatriates must meet stringent eligibility criteria. These criteria include sole ownership of the property, compliance with municipal constraints, meeting residency prerequisites, and adhering to specific property categorization requirements. Moreover, only properties falling under designated cadastral categories, such as A/2, A/3, A/4, A/5, A/7, and A/11, are eligible for the benefit.

Evolution of Legislation for Italian First Home Benefits

Previous legislation provided exceptions for expatriates, particularly those relocating abroad for work. However, DL No. 69/2023 introduces a refined framework, emphasizing stricter residency and property location criteria. These changes ensure that benefits are directed towards individuals with substantial ties to Italy.

Rectification Procedures and Self-Certification

In cases where applicants fail to declare their residency status abroad at the time of purchase, rectification procedures exist. Italian citizens residing abroad can rectify their status through self-certification, as clarified by the Revenue Agency. This ensures compliance with residency prerequisites and maintains continuity in benefit entitlement.

Changes Introduced by DL No. 69/2023

DL No. 69/2023 introduces a new discipline regarding first home benefits for expatriates. This decree stipulates that individuals who transfer abroad for work reasons must have resided or carried out an activity in Italy for at least five years prior. Additionally, the property must be located in the municipality of birth or where they previously resided or conducted business.

Finally …

Understanding these legislative changes is crucial for expatriates considering property investments in Italy. With over five decades of experience, De Tullio Law Firm has been consistently delivering expert legal advice to international clients. Moreover, while we offer comprehensive legal services across all domains of Italian law, our particular emphasis is on real estate, residency, family law, and inheritance matters.

We take immense pride in providing personalized legal services to our clients. Additionally, we have a strong reputation for delivering pragmatic and efficient solutions. If you are exploring investment opportunities in Italian real estate, don’t hesitate to get in touch with us. We are right beside you, guiding you every step of the way.

 

You may also be seeking information about how to obtain an Elective Residence Visa for Italy or you might like to peruse our series of informational videos.