Why to buy a property near Lago Maggiore?

Lago Maggiore is one of the most beautiful and lakes in Italy. Natural Parks, small, characteristic villages, wonderful food, the airport of Malpensa (30-60 minutes). Water Sports, excursions, golf course, events and shopping are just some of the ways to discover the extraordinary natural and cultural heritage of the area . Last, but not the least: the price of the houses tend generally to increase and preserve high values, since there's always a strong national and international demand.

Once you have decided on a property, you will need to make an offer – the proposta irrevocabile di acquisto (irrevocable proposal to buy) – to the seller and pay a small deposit so it is taken off the market.

The amount of deposit is agreed privately between you and the seller but is often around five per cent of the total value. It can be refunded, should the purchase fall through at this stage. It is important to stress that, as the name suggests, this document is legally binding once signed by both parties.

Given the complicated and unfamiliar nature of the process in Italy, Millennium Studio Immobiliare recommends that you use a qualified legal expert. Too many prospective buyers still unwittingly sign documents unaware of what they are committing themselves to.

Searches then need to be carried out on the property to ensure, among other things:
- The legal title belongs solely to the vendor and no other party has a claim on it;
- There are no outstanding loans or mortgages that would transfer to the new owner;
- There are no undisclosed public rights-of-access across the property;
- The building and any modifications comply with building regulations and health & safety rules;
- You are aware of any maintenance fees payable if the property is part of a block;
- In the case of vacant land, there is planning permission to build on it.

Once all checks are completed to your satisfaction, both parties sign a second binding agreement, a contratto preliminare di compravendita (preliminary sales contract), more commonly referred to as the compromesso. In it, seller and buyer agree to complete the purchase within an agreed period, typically a month, at an agreed price. At this stage the buyer makes a second downpayment to bring his total deposit to between 10 and 30 per cent of the purchase price.

Again, this is a serious commitment. Should the buyer default, he loses his deposit. On the other hand if the vendor defaults, he must refund either the entire deposit or even double the deposit, depending on the terms of the compromesso.

Before making the final payment you will need to have applied to local tax authorities for a codice fiscale (fiscal code), which will allow you to register for property taxes and open a bank account if the outstanding balance needs to be paid by bank draft . Millennium Immobiliare will arrange both of these for you free of charge.

The final stage sees the completion of the purchase with the signing of the rogito (final deeds), usually done in the office of a notaio (notary), who will check all documents and forward all property taxes to the authorities.

Where the buyer is not a fluent Italian speaker, the notaio will require them to appoint someone with power-of-attorney to represent them at the meeting.

Your lawyer, if you have one, will usually organise this service for you, otherwise Millennium Immobiliare will charge one, on your behalf.

Within 48 hours of the exchange, the buyer must deposit a denuncia di cessione fabbricato (a document confirming them as the new owner) at a police station. Again, we are happy to do this for you free of charge.

On buying

Imposta di Registro, Imposta Ipotecaria, Imposta Catastale:
These are one-off taxes based on the property's "cadastral value". This value is determined by the Italian land registry, depends on factors such as location and floor space and is usually less than half the purchase price.

The level of tax depends on whether or not the buyer plans to live in Italy and is purchasing their first home there. Buyers falling into this category have up to 18 months after the purchase date to register as Italian residents.

Foreigners who live in Italy and are 1st time buyers.
All other foreigners including those buying a 2nd home
- Imposta Di Registro (Registry tax);
- 3% of cadastral value;
- 7% of cadastral value;
- Imposta Ipotecaria (Mortgage tax) €168;
- 2%;
- Imposta Catastale (Land Registry tax) €168;
- 1%;

Where property is bought directly from a company and is to be your principal residence, VAT at four per cent is payable, otherwise VAT is levied at 10 per cent. For agricultural property, taxes range from about eight to 15 per cent of cadastral value.

On signing the compromesso a registration fee is payable of €168 plus around €14 for each page of the document.

Estate agency: Usually the buyer and seller each pays between two and four per cent of the property price.

Surveyor: Will vary by property but expect to pay €600+.

Notary: Expect to pay €2,000-€5,000.

After you have bought the property, you will need to pay:
- Imposta Comunale sugli Immobili (ICI): Community charge on all property and landowners. Depends on property size and is due twice a year;
-Tassa Rifiuti Solidi Urbani (TARSU): Levied yearly for waste collection and depends on size and location of property.

On renting

The first €8,000 of rental income each year is tax-free. Thereafter, taxes range from 23 per cent to a top rate of 43 per cent on yearly rental income over €75,000.

On selling

Italy has neither inheritance nor wealth taxes and capital gains tax was abolished in 2002. If a property is sold more than five years after purchase, all proceeds are tax-free. If sold before then, however, the profit you make – ie, sale minus purchase price – incurs a 20 per cent plusvalenza tax.

Passport

Fiscal Code (Codice Fiscale): Needed to pay taxes and open a bank account. To be issued with a code, you must attend an Ufficio Delle Entrate with your passport.

Bank account: You do not have to be resident to have one. You will need to take along your passport and fiscal code to a bank. Often a bank statement and a utility bill are also requested as proof of identity.
Residence permit (Permesso di Soggiorno): Valid for five years. To get one you will need to take your passport, passport-sized photos, a bank statement and a letter proving your address to police headquarters.

Our Partners

Home Insurance: Assicurazioni Generali Spa
After-sales
Architects, Building Companies

Our commitment to you does not end once we have helped you buy your property.
There are several other ways in which we can be of assistance. For a small fee we can offer the following services:
- Handling all paperwork necessary to register you for the ICI community charge and the TARSU property tax;
- Signing you up with electricity, gas, water and telephone network suppliers;
- Arranging for mail to be forwarded to your address;
- If you have bought a flat or other managed property, liaising with estate managers on your behalf;
- Arranging cleaners and workmen such as plumbers, electricians and gardeners as necessary;
- Should your property require renovation, arranging for a reliable team of experts to carry it out while we oversee the work.