Purchase procedure
There are no restrictions placed upon non-residents wishing to purchase a house in Italy. The process is generally less complicated and quicker than in other countries, mainly because Italians do fewer checks and searches on property they are buying.
1, It is necessary to obtain a codice fiscale (the Italian equivalent of a UK National Insurance card) in order to buy property, open a bank account or pay bills. This can be obtained by contacting the local tax office (ufficio dell’entrata).
2, Once you have chosen the property you wish to purchase, you may wish to consider obtaining a survey on the property. (See ‘Survey’). It is important to be sure of your intentions as, once the offer is made and accepted, it is considered binding on both parties.
3, You should then put in an offer to the owner, usually through a real estate agency. The offer should be subject to the property complying with all applicable laws.
4, Once satisfied with the survey the next step is to pay a deposit. Sometimes a holding deposit (Proposta irrevocabile d'acquisto) may be paid if there will be a time delay in getting the full Compromesso document drawn up. This deposit is normally then held by the agent or a lawyer if one is involved. Sometimes you may be asked to sign a reservation agreement (prenotazione), and perhaps pay a small deposit to secure the property.
5, Before a formal contract of purchase is drafted, it is often advisable to employ a property professional, usually a geometra, a uniquely Italian combination of surveyor and architect, who can organise local land registry searches and make the necessary checks with the local authorities regarding planning and building regulations. You may already have used him to arrange a survey.
6, The compromesso – the preliminary contract. This stage is the negotiation, drafting, signing and exchanging of the contracts. This is a binding legal agreement to complete the purchase on a specified date. As this is a commitment to buy the property at the agreed price, it is vital to have all the documentation and reports necessary to complete the purchase. 
A compromesso document is drawn up and signed by the vendor and purchaser. This is a legal document under Italian law and once signed binds both parties to go through with the sale.
Once a price has been agreed and both parties have signed the compromesso, a deposit of between 10% and 30% is paid (in the case of new constructions, this deposit is usually considerably less). The deposit is forfeited if the purchaser does not proceed; if the vendor withdraws, he must pay double the deposit to the would-be buyer.
There may be special clauses in the compromesso document allowing the purchaser to withdraw without penalty if a mortgage application is refused or because of misinformation about the property from the vendor.
When the compromesso is drawn up, a completion date is fixed and it is usually not possible to change the final date.
7, Between the compromesso stage and the final completion, a notaio (a notary public who represents the Italian government and both parties) then checks the vendor’s title and any outstanding loans or mortgages on the property, as well as rights of way and all other legal matters that might affect the ownership or rights affecting the land and buildings.
The notaio, when satisfied with the searches, draws up the rogito notarile (purchase deed) which is the final contract of purchase. This deed places the new particulars on the property register and the notaio informs the Land registry about the change in ownership.
8, The rogito - this final stage relates to the completion formalities, which normally take place in the offices of the notaio. The rogito formally transfers ownership of the property from the seller to the buyer (usually 1-3 months after the compromesso). The document is drawn up by the notaio.
The purchaser and vendor sign the document in front of the notaio and in cases where a property is being purchased by someone who cannot speak Italian, a translator is provided and the several copies of the deed are made in English as well as Italian. The balance of the declared purchase price is now paid and checked by the notaio. (See ‘Costs and fees’).
The notaio has a duty of drafting the rogito and ensuring its proper execution, registration and payment of all Italian taxes. The buyer, vendor and agent are all required to be present for the signing of the contract at the notaio's office. The vendor and purchaser must use the same notaio to execute the deed.
At this point the buyer must pay the remaining balance of the purchase price plus a property registration fee and land registry tax. Then both vendor and purchaser sign the rogito. The buyer must also pay the property purchase tax, the notaio’s fee and, if necessary, a surveyor’s fee. Some notaios liaise with a geometra directly and you will only pay one fee directly to the notaio.
A Proxy/Procura may be used for the rogito ceremony in cases where the purchaser is unable to attend the final signing.
9, Taxes & fees: The transfer of property in Italy is subject to various transaction taxes. The price allocated to the building is subject to taxes totalling 10% (the sum of three different taxes, the imposta catastale, the imposta sul registro and the tassa ipotecaria) and the price allocated to land is subject to tax of 11%. If the buyer is resident in Italy, there is a significant tax reduction (3% instead of 10%).
Both buyer and seller are liable for transaction taxes, although the common practice is that taxes are paid entirely by buyer. The same applies to notaio costs. Real estate agency fees are normally around 3%-4% for the buyer and 3%-4% for the seller, but may be higher.
