Buying from abroad: the Italian process, step by step

The Italian purchase process is more formal than the British or American equivalent and considerably safer for the buyer, because the notary is a public officer with a duty to both sides rather than an agent for either.

Before anything else you need a codice fiscale, the Italian tax code. It is free, it is issued by the Agenzia delle Entrate or by an Italian consulate abroad, and nothing — bank account, utility contract, purchase — can proceed without it. Allow two to three weeks if you are applying through a consulate.

The first binding step is the proposta di acquisto, a written offer accompanied by a deposit cheque, usually one to three per cent. If the seller signs it, you have a contract. Buyers used to the English system where nothing binds until exchange should read that sentence twice.

Next comes the compromesso, the preliminary contract, typically four to eight weeks later. The deposit rises to ten or twenty per cent and takes the form of a caparra confirmatoria: if you withdraw you lose it, and if the seller withdraws they owe you double. Registering the compromesso at the tax office costs a few hundred euro and protects you against the property being sold or mortgaged behind your back in the interval. We register it every time.

The rogito, the final deed, is signed in front of the notary. If your Italian is not fluent the notary will require a sworn interpreter and, in most cases, a second witness — this is not optional and it is worth arranging early rather than the week before.

Costs to budget beyond the price: registration tax at two per cent of the cadastral value for a main residence and nine per cent otherwise, notary fees of roughly one to two per cent, agency commission of three per cent plus VAT, and around six hundred euro for a technical survey. A foreign buyer should also expect their bank to ask for source-of-funds documentation well in advance of the transfer.