Italy’s charm is irresistible—its rich history, stunning landscapes, and vibrant culture make it a dream vacation for many. For those looking for a more long-term relationship with the boot, an Italian attorney well-versed in real estate and immigration can be indispensable. Whether you’re looking to buy a vacation home, invest in property, or make a permanent move, Italy offers a wealth of opportunities. This guide will provide an overview of the process, provide helpful tips, as well as highlight the added benefits that come with being an Italian dual citizen.
Understanding the Process
Purchasing property and relocating to Italy involves several key steps:
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Research & Planning
- Identify Your Goals: Are you looking for a vacation home, a permanent residence, or an investment property?
- Location Selection: Consider factors such as climate, proximity to family, cost of living, and lifestyle preferences.
- Role of Real Estate Attorneys: In Italy, attorneys generally play a much larger role in assisting with property selection than in the U.S., sharing more overlap with U.S realtors. Your attorney will take into account the climate, culture, and lifestyle you are looking for, and provide you with a variety of options based on extensive research.
- Role of Real Estate Agents: In Italy, real estate agents must be registered with the local chamber of commerce, possess proper qualifications, and have professional indemnity insurance. Unlike in the US, Italian real estate agents operate as independent professionals and are typically compensated by both the buyer and seller. Agents are not obligated to conduct due diligence on properties, however, they must disclose any known issues. Buyers should consult legal and technical experts to verify title validity, zoning regulations, and encumbrances. Agents can charge fees for their services even if they only introduce the buyer to the property. In Italy, about 90% of properties are listed by agencies, with no commission involved for privately listed properties.
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Legal Requirements
- Notaio: It is important to have the guidance of an Italian attorney for those interested in purchasing Italian property. However, an Italian notary (Notaio) will be absolutely essential to ensure the legality of any transactions. The Italian Notaio’s function is rather different from American notaries and they are a crucial factor to legitimize such transactions.
- Codice Fiscale: It is also necessary to obtain a Codice Fiscale, the Italian tax identification number required for significant transactions like property purchases. Although you can obtain one through the Italian consulate in your region, the process can be lengthy. For quicker processing, it is advised to obtain a Codice Fiscale in person in Italy or with the assistance of an Italian lawyer.
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Financial Considerations
- Financial Requirements: Account for the purchase price, notary fees, taxes, and potential renovation costs. This is particularly relevant in regards to frequently advertised “€1 houses”. Navigating property taxes is particularly important when choosing a given property.
- Italian Bank Account: While not required, having an Italian bank account is highly advisable. It simplifies transactions, reduces currency exchange fees, and can make it easier to obtain a mortgage. Additionally, local banks are often more accustomed to handling property-related financing, payments and legal fees. While this can be difficult without residency, an Italian attorney can be of significant help when opening an Italian bank account.
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Initiating and Negotiating the Purchase
- Purchase Offer: Make an offer (proposta di acquisto) and negotiate terms with the seller. It’s advisable to have a local real estate agent and/or legal advisor assist you with this process to ensure fair terms and conditions.
- Preliminary Contract: Once an agreement is reached, sign the preliminary contract (compromesso) and pay a deposit. This contract outlines the terms of the sale and is a binding agreement.
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Finalizing the Purchase
- Deed of Sale: Sign the final deed of sale (rogito) in the presence of a notary.
- Registration: Register the property at the local Land Registry (Catasto).
Helpful Tips for a Smooth Transition
- Learn the Language: While many Italians speak English, knowing Italian will help you navigate daily life and the property acquisition process more easily.
- Understand Local Customs: Familiarize yourself with the local customs to integrate smoothly into your new community. It’s important to keep in mind that Italy is extremely culturally diverse, and was only unified as one nation almost 100 years after America’s founding. That said, it is full of unique values, traditions, cuisines and dialects varying from region to region.
- Build a Support Network: Connect with other expats and local residents to get advice and support.
- Register for Healthcare: Register with the Italian National Health Service (Servizio Sanitario Nazionale) for access to healthcare services.
Benefits of Italian Dual Citizenship When Purchasing Property or Relocating to Italy
Being an Italian dual citizen offers several advantages when purchasing property or relocating to Italy:
- Easier Legal Processes: Italian dual citizens can bypass some of the restrictions and bureaucratic hurdles faced by non-EU citizens. For example, non-EU citizens often need to obtain a special permit to purchase property in Italy, which can be a lengthy and complex process. Dual citizens, on the other hand, do not require this permit, making the process much more straightforward. Additionally, dual citizens do not need to worry about residency permits or long-term visas which can be a significant hurdle for non-EU citizens. This means that dual citizens can move more quickly and easily through the legal and bureaucratic steps required to purchase property and relocate.
- Access to Financing: Dual citizens may find it easier to obtain mortgages and other financial services in Italy.
- Freedom of Residency: Dual citizenship allows you to live and work in Italy and most of the EU without time restrictions, making it easier to manage and enjoy your property.
- Tax Benefits: You may qualify for a tax deduction if you fall into one of the following categories:
- You are an Italian citizen, you are purchasing your first house in Italy and you are moving your residency there.
- OR you are an Italian citizen living abroad, you are registered with the AIRE and you are purchasing your first house in Italy even if you do not plan to move your residency there.
Partnering with Experts
Whether you hold Italian citizenship or not, navigating the complexities of Italian property purchase and relocation can seem daunting. ICAP, in partnership with esteemed Italian law firm, ILF, offer comprehensive services to assist you every step of the way. From legal guidance to finding and closing on the perfect property, we’re here to make your transition to Italy as smooth as possible.
Start Your Italian Adventure with ICAP
Purchasing property and relocating to Italy can be a rewarding experience, offering a seamless blend of cultural heritage and modern living. By understanding the process, planning carefully, and working closely with an experienced Italian attorney, you can turn your dream of owning an Italian home into a reality. Whether you’re drawn to the bustling cities or the serene countryside, Italy has something to offer everyone. Contact us at (312) 796-9970 or schedule a free call below and take the next step in pursuing your Italian dream.