Buy a house in Italy
The sale/purchase of a property in Italy can be carried out through power of attorney (POA). To be legally binding, a public notary writes and authenticates the POA. Italian notaries are government officers who provide reliable supervision for a deal and authorize it. Once a buyer has selected a property, a purchase proposal can be drafted to let the seller know a buyer is interested.
Mortgages can aid foreign buyers, but tradition makes Italian banks reluctant to grant loans even to nationals. Banks consider the market and financial status of applicants, while applicants should compare different mortgage proposals. Nevertheless, non-resident investors can apply for a mortgage from an Italian bank to establish an Italian commercial entity. Plus, there are tax incentives for foreign investors who decide to relocate to Italy.
A real estate agent/agency in Italy should be fully licensed. The Italian Civil Code Article 1755 regulates commission on sales by real estate agencies, which becomes applicable when an agreement is found and which the vendor and buyer both pay. However, these real estate agents are not liable for what they sell.
The characteristics and legal status of a property are to be presented in a due diligence report that includes technical and legal due diligence. It also includes company due diligence, so the buyer can avoid any future revocation actions which may apply to the property.
Entrepreneurs or foreign investors should be aware of Italian tax legislation. For instance, the classification of income does not depend on the number of units available for rent. Rents on properties can be classified either as land income generation or business income if a commercial entity carries out rental activity.
Italy allows different types of companies to be incorporated. The most commonly used companies are those whose liability is limited to their own assets instead of shareholders' assets. Most common type of company regulated by Italian law is the società a responsabilità limitata (S.r.l).
We provide experienced lawyers, real estate agents, accountants, architects, engineers and surveyors to find the right property, notary and real estate agency, evaluate the property comprehensively, drafting a POA act and due diligence report, full assistance in translations, process of obtaining mortgages and licenses, and offering tax and book-keeping services.