One bedroom apartment:

Two bedroom apartment:

Purchase Costs

Staged Payments

Non-refundable Reservation fee of 5000 euros

Deposit of 20% upon signing of the private contract

Further payment of 30% when construction meets roof height

Final 50% upon handover

The direct costs of purchase will be VAT of 10% (vat is 4% if you are a resident and a first time buyer: 10 if you are a non resident or if you are a resident purchasing your second property and 20% on other goods e.g. cars, services etc).

Notary and registration fees range from 2% to 4% (if a mortgage is required).

50% non-status 10 year mortgages available at a monthly interest & repayment cost (on a Mortgage of 100,000 euros) of approximately 1000 euros per month based on current interest rates.

Purchasers require an Italian accountant, who will organize the payment of income and property taxes. The cost for that will usually be around 200 - 300 euros.

For an additional cost of 300 euros you can have an official translator present when signing the official documents.

Capital Gains Tax

There is no Capital Gains Tax payable on the sale of property in Italy if the property is sold after 5 years of ownership. For resale prior to 5 years, capital gains tax is calculated as follows:

Rate Gain

23% 0 euros to 26,000 euros

33% 26,000 euros to 33,500 euros

39% 33,500 euros to 100,000 euros

43% Over 100,000 euros

Annual Taxes

ICI Tax

0.6% of the fiscal value (national rental value), payable in two stages – December and June.

The figurative rental income will be defined by the local authorities once the building is completed and registered.

Then the formula will be the figurative monthly rental income multiplied by 100, multiplied by 0.6%.

E.g. 500 euros x 100 x 0.6% = 300 euros

For a 100mÇ the ICI tax amounts to about 350 euros.

Tarsu Tax

Payable annually and at the rate of 1.30 euros per m2 per annum

E.g. A one bedroom apartment of 45m2 = 58.50 euros per annum

Those owners that take advantage of the rental guarantee scheme are not liable for this tax

as it will be paid by the developer during the life of the agreement.

Acquiring a property at Tassido Coda

In order to buy a property in Italy a foreign citizen needs to obtain a tax identification number (Codice Fiscale), which can be requested at any Italian Consulate or Embassy.

Having selected the property of their choice and agreed the purchase price and finish specification, purchasers may secure their property by signing a reservation undertaking and paying a non-refundable deposit of 5000 euros.

Subsequently, both the purchaser and the developer sign the ‘Contratto Preliminare or Compromesso’ (Preliminary Private Contract).

This is a private agreement between buyer and seller affirming the intention to buy and contains details of the sale such as identification of the parties, location and price of the property, method of payment and financing, date established for the final sale). On signing ‘Il Compromesso’ a deposit of 20% has to be paid.

Once both parties have signed the ‘Compromesso’, they are committed to the transfer.

Both parties still have the option to withdraw, however at the risk of losing the deposit or having to pay a penalty.

If the purchaser withdraws through no fault of the vendor, a forfeit applies.

If the vendor withdraws, he has to refund the buyer double the deposit.

The signing of the final contract (Il Regito), a legally binding document, usually takes place upon completion. ‘Il Regito’ is a public sales act, drawn up by a public notary (Il Notaio), who acts as a witness and collects taxes due on transaction.

Guarantees

Off-plan bank guarantee (Fideiussione bancaria or Polizza Assicurativa) are issued to protect the buyer against the developer going bankrupt.

Developers in Italy are required, under the Italian Civil Code, to guarantee a property from all defects for ten years.