Italian Real Estate market overview
It’s the right time to buy a house in Italy. Although the housing market may be still depressed, something is positively going to change, at least as seen in the rising trend of residential property sales in the recent year.
House prices in Italy have been falling – by as much as 50 percent in some cases – steadily since 2010, but the home sales is maintaining their strong growth for the third consecutive year, according to the real estate portal Idealista.it.
The slump – which was attributed to a number of factors, including the euro zone crisis and austerity measures like higher property taxes – is now going to finish. Home sales in Italy are indeed maintaining their strong growth for the third consecutive year. Residential property sales surged by 18.9% with about 528,865 residential properties units sold, during the year to 2016, according to Agenzia delle Entrate. New tax measures to boost housing market
In 2016,the Government launched new tax measures aimed at boosting the country’s property market:
- TASI and IMU tax for principal homes (except luxury homes and castles) abolished.
- 25% discount on the IMU tax for houses being lent on an “agreed rental”(canone concordato) contract – a contract with a minimum period of 3 years plus two years of automatic renewal, which also includes compliance to the local authorities’ minimum and maximum rents.
- Flat rate of 4 per thousand and a €200-worth standard deduction on IMU tax for luxury homes and castles.
- IMU exemption for mountain land.
According to Bank of Italy, the average interest rate for new housing loans is stuck at a historical low in 2016.
Our services include, but not limited to:
- Negotiation of the price the property;
- negotiating of the real estate of the agent’s fees;
- drafting the Formal Offer (Reservation Offer) and meeting with the seller (if needed);
- obtaining a tax code tax identification code, so-called Codice Fiscale, which is required in relation to any purchase of property
- negotiating, drafting and reviewing on behalf of the client the Preliminary contract of sale, so-called contratto preliminare di compravendita;
- bespoke general legal advice on what legal issues should be addressed at the first stage;
- performing legal due diligence;
- based on the power of the attorney, representing clients at the Italian public notary’s office and dealing with the Notary to arrange for the registration of
- assistance in opening an Italian bank account;
- Liaison throughout with estate agents, developers, lawyers (if the Seller has instructed lawyers), the notary, tax office, public property registers etc.
In light of the above provided information, if you are looking for an italian property, it is highly advisable to be assisted by an italian lawyer throughout the purchase process on the purpose of addressing at the early stage legal issues that might arise out. We’re are here to help you deal with the process.
Please do not hesitate to contact us by filling out the contact form below. We look forward to hearing from you.
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