Italy

The third largest economy in Europe, with cultural richness, art, history, landscapes, appealing climate and cuisine, Italy has many reasons to attract both tourism and overseas property investment.

The mild climate, blue flag beaches, colourful villages to name just a few of the draws of Liguria that are becoming more widely recognised. The west of this Italian Riviera is easily accessible from Nice airport – yet prices are more affordable than its French namesake.

Lombardy to the north is home to the most expats, with its lakes, mountains and its capital, the dynamic industrial city of Milan. The largest concentration of UNESCO World Heritage sites is found here, eight of the country’s 51.

For the wealthy, the historical location of choice is the birthplace of Italian Renaissance, Tuscany, in particular the ‘Golden Triangle’ around Siena, Florence and Volterra. Some of the most expensive real estate in Italy is here.

Neighbouring Umbria has medieval hill top towns, like Tuscany, olive groves, dense forests & hills. It is one of the top culinary regions too, known in particular for black truffle, chocolate and wine.

The Southern region of Puglia is gaining more interest too, not only for its delicious wine.

Buying property in Italy can be complicated, but it can be relatively quick with some legal tie in early on, so a good agent to help you through the process is essential. As is bilingual lawyer if you don’t speak – or read - Italian. Getting as much information and documentation about the property before you offer is advisable.

Allow 10-12% on top of asking price, but this may vary depending on property type, resident status and area. It is usual for the agent’s fee to be split between buyer and seller.

A public Notary is appointed to conduct the sale, which includes checking legalities, paperwork, confirming taxes due and ensuring money is in order. The seller has to provide ownership title, floor plan, cadastral documentation, energy certificate and building permits alongside ID. The buyer needs to have an Italian tax code and ID. The notary is the only official legally permitted to transfer legal title.

There are a number of tax breaks and incentives to regenerate low population areas, to renovate and improve energy efficiency of buildings and to attract High Earning residents.

If you are buying a property in Italy to make your main residence then there is less tax to pay, 2% of the cadastral value as opposed to the 9% charged on second homes and luxury property. In addition, main residences do not pay IMU / TASI taxes and enjoy reduced electricity charges.

There are different visas and resident permits for non EU citizens wishing to stay longer than the permitted 90 days in any 180 day period. The Italian Embassy or consulate can advise. Financially independent individuals and couples may qualify for the Elective Residence Visa, although the annual income limit may be higher than other countries.

There is no Capital Gains Tax on the sale of property after five years of ownership, or if main residence.

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