YOUR ESSENTIAL GUIDE
TO BUYING IN Italy
Contents
Since 2007, we have been helping families, couples, individuals and investors find their
ideal property abroad. With our website being updated daily with new properties,
we are sure you will soon find your ideal property in Italy. Over the past years we
have built up a close relationship with leading overseas property agents and we work
hard with them to ensure that we are able to showcase their properties to genuine
interested buyers.
Equally important to us is the desire to help our property buyers find the right
property, and if required, guide them through the buying process. We are able to do
this as we work closely with a number of companies and individuals based in Italy who
offer a range of services which are normally required when purchasing abroad.
I am also proud to introduce our currency exchange company – Foremost Currency
Group. I founded this company 10 years ago and to date we have helped over 15,000
customers transfer money abroad. Working in conjunction with estate agents we can
ensure transfers tie in with purchase deposits and notaio’s fees, enabling our clients to
get better exchange rates than they would achieve by using their bank.
We trust you find this guide helpful and informative, without making the process of
buying in Italy too daunting. Remember, our knowledgeable team of currency brokers
are ready to share with you their in-depth market knowledge and help you on the road
to securing your property abroad.
We wish you success with your property search and encourage you to start your
search today by visiting our property website www.foremostpropertygroup.co.uk.
I am confident you will soon find your ideal property in Italy.
FINDING A PROPERTY
Create your brief
1. Property Location
2. Type of Property
3. Your budget
Currency Exchange Start your search
Estate Agents – Agente Immobiliare
Viewings
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BUYING THE PROPERTY – THE LEGAL PROCESS
Residency
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FINANCE
Inheritance Mortgages
Taxes 25
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CASE STUDY
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Robin McEwen Managing Director
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FOREMOST PROPERTY GROUP:
Italian BUYING GUIDE
At Foremost Property Group we speak to
property buyers every day and while the vast
majority of our customers have good experiences
when buying abroad, sometimes things can go
wrong. Our experience of working with property
buyers over the years has enabled us to help
many buyers resolve issues or complications
relating to their purchase.
To help our customers through this journey we
have put together some essential country-based
guides to buying properties in popular destinations.
The property buying process is different in every
country and there can be an overwhelming amount
of information on the web for you to sift through.
We hope this Italian buying guide is a useful
resource to ensure that your property buying
adventure is a successful one.
Guide to buying in Italy
In Italy the property buying process is strictly
regulated and very structured. If you understand
what to expect before beginning your search
and through every step along the way, the
process should be reasonably straightforward.
However, unlike the UK, you can secure a house
much earlier by signing a binding contract soon
after viewing a property, safeguarding you
against the possibility of being gazumped.
“
Finding the right property in Italy was
a challenge for us, on the Foremost
Property Group website we enquired about a
property in our preferred region- Lombardy, but
it didn’t meet our requirements. However, the agent
sent us a range of other properties to consider.
After two trips to Italy, 12 months later we had
purchased our second home in the Lombardy
region. We transferred our initial deposit, then final
payment with the Foremost Currency Group. As
they understand how the banking system works in
Italy, and work closely with estate agents, the house
hunting, purchasing and money transfer process
was simple and straightforward.
Mr and Mrs Lincoln, 2016
“
Buying a property abroad is an exciting time,
something that you may have dreamt of
doing for years, but it can be riddled with
challenges, particularly if you go into the process
underprepared.
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South Tyrol
Aosta
Valley
Lombardy
FINDING A PROPERTY
Friuli-Venezia
Giulia
Trentino
Veneto
Piedmont
Emilia-Romagna
Liguria
Tuscany
Create your brief
Marche
The key to a successful and stress-free property
search is the ability for you to answer the
following questions:
Umbria
Where do you want to buy?
Lazio
What are you looking for in a property?
Abruzzo
What is your budget?
Molise
Apulia
Step 1: Property Location
Campania
Basilicata
Sardinia
Calabria
Sicily
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Italy is split into 20 regions and has over 4,700 miles
of coastline along with outstanding beautiful lakes,
ancient cities and stunning countryside. The Apennine
Mountain range runs down Italy’s centre making it
perfect for owning a property that can be within easy
reach of both mountains and beaches. Each region has
its own unique geographical and cultural distinctions
with exceptional local cuisine and friendly locals. Below
are some of the popular regions to buy in:
Abruzzo – In the centre of the Italian peninsula,
Abruzzo has wonderful sandy beaches on the Adriatic
coast as well as over 20 ski resorts in the Apennine
Mountains. As this region is not as well-known as
Tuscany, it is considerably more affordable and has
good transport links with the UK with Ryan Air flying
regularly to Pescara.
Campania – Incorporating the Amalfi Coast and
Naples, Campania is also home to Pompeii and the
islands off the coast, including Capri. It is famous for its
food and stunning coastline. Prices here remain high
and on the islands properties are extremely expensive.
As it is such a popular holiday destination it does have
a thriving holiday rental market.
Friuli Venezia Giulia – Nestled between the Veneto
region, Slovenia and Austria, this region has golden
beaches, gentle hills and mountain peaks. As this area
is relatively undiscovered by the British, the properties
here offer good value for money.
The Italian Lakes – Studded with celebrity homes
and surrounded by snow-capped mountains, the
Italian Lakes are stunningly beautiful. Extremely
popular with both locals and foreigners, the prices
and demand in this region are higher than in most
other regions of Italy.
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FINDING A PROPERTY
Liguria – The Italian Riviera dei Fiori (The Flower
Riviera) with nearly 200 miles of coastline has been
a popular holiday resort for hundreds of years.
The properties available are diverse and extremely
popular amongst Italians and foreigners alike.
Piemonte (Piedmont) – Due to its top ski resorts,
vineyards, Lake Maggiore and the city of Turin,
Piemonte attracts tourists all year round. Holiday
rental properties offer a good opportunity in this
region which is competitively priced compared
to Tuscany.
Puglia – Guaranteed sunshine makes this area very
popular. It has a remarkably diverse landscape from
beaches and lagoons to mountains. The Gargano
promontory (the heel of the boot) became a National
Park in 1991, limiting the potential for urban
development. Accessibility has improved with the
arrival of the low cost airlines and with prices much
lower than elsewhere in Italy, Puglia is now a popular
region to buy in.
Sardinia – The Mediterranean’s second largest island
with some of the cleanest and clearest water in
Europe. Sardinia is renowned for its diverse culture,
geography and food attributed to its ancient history.
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FINDING A PROPERTY
Property prices vary across the island from the very
expensive Northeast (some of the most expensive
in the Med) to the more reasonable in the South,
Northwest and inland villages.
Tuscany – The most loved region of Italy by foreigners,
Tuscany is renowned for its cypress trees and
vineyards as well as the stunning cities of Florence and
Siena and the most famous tower in the world, the
Leaning Tower of Pisa. As Tuscany is so popular with
non-Italian buyers, the prices continue to rise.
Umbria – Landlocked and right in the centre of Italy,
Umbria is a region popular with tourists but not as
crowded as the likes of Tuscany. It is often described
as the ‘the green heart of Italy’ referring to its rolling
hills and agricultural significance. Property prices in
Umbria continue to rise as demand increases due to
neighbouring Tuscany becoming unaffordable
for many.
Veneto – Stretching from the Dolomites to the Adriatic
Sea, Veneto is famous for its capital city Venice, yet
other towns are now becoming more accessible due
to its infrastructure. There are four UNESCO World
Heritage Sites in Veneto: Venice and its lagoon; Verona;
Vicenza and Padua’s Botanical Garden. Outside of
Venice property prices are more affordable.
Step 2: Type of Property
If you are not in a rush to buy, keep an eye on the
property market over a period of a few months to
see if houses sell well in the area you have chosen.
This information could put you in a good negotiating
position later.
Once you have selected your region it could be useful
to introduce yourself to the Comune (local council) and
mayor. On top of having a great wealth of information
they can also be extremely influential.
Consider what sort of property you want: permanent,
holiday home, investment or business; the accessibility
from the UK; the amount of time you intend to spend
there and of course your lifestyle.
There are a number of other factors to consider.
If relocating to Italy, then employment, schools, shops
and healthcare services will also be important.
You may want to consider what the local community
is like. If you want to fully integrate into Italian life you
will want to speak, or learn to speak, Italian fluently.
Check the orientation of the property for sun. If you
are near the hills and want to have your balcony
drenched in sun, you will need to work out if this will
be possible all year round.
Will you be inundated with tourists during the peak
months? It is worth visiting the areas during these
months to see how congested it can become.
We recommend you start by creating a list that is
divided into three categories:
Essential (factors that you’re not willing to negotiate on)
Preferred (features you would like to have – a wishlist)
Must not have (factors that would knock a property
out of the running e.g. being on the flight path of a
busy airport)
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FINDING A PROPERTY
Buying a new build
It’s often cheaper to buy a new home than an old
property requiring modernisation or renovation, as
the price is fixed, unlike the cost of renovation which
can soar way beyond original estimates.
Buying an off-plan property in Italy has become
more regulated and requires that you receive a bank
guarantee to cover your staged payments. In case of
insolvency this guarantee requires the bank to refund
you within 30 days of request once you have provided
them with all evidence showing the amounts paid to
the seller/builder.
New builds also come with a 10-year guarantee from
the builder against all latent defects of the property
and any consequential damages caused by its total or
partial collapse, including third party damages.
Buying an existing property
The majority of English buyers are interested in
farmhouses (Case Coloniche) as they epitomise the
escapism of living in rural Italy. These can traditionally
be found in central regions of Italy such as Tuscany,
Umbria and Le Marche.
Renovating in Italy differs from the UK. Each region
has its own local laws, which can affect your plans
to renovate. Price per square metre to renovate will
vary from region to region. In Abruzzo for example,
this can be as low as 850 Eur per sq. m. or in parts of
Tuscany higher than 1,200 Eur. We suggest you speak
to a local architect to get an indication of renovation
costs for the area you are seeking to buy in.
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FINDING A PROPERTY
Step 3: Your budget
If you are not a cash buyer, you will need to
determine the amount you can afford as a deposit
as well as taking into account what your mortgage
repayments will be.
There are a number of costs that come with buying
property, such as taxes and fees, and they vary
depending on where in Italy you are buying.
The fees associated with buying a property in Italy
are among the highest in Europe. As a guide they
range from 7-18% of the property value, depending
on whether you are going to become a resident of
Italy, but also based on the type of property you are
buying. Estate agent fees are usually divided equally
between buyer and seller and they range from 3% to
8% in total. Check with your agent to see if these are
included in the price. There are various fees associated
with a mortgage – these typically amount to about
5% of the amount borrowed and include brokers’ fees,
mortgage tax, insurance costs, and the survey fee.
Notary fees are a percentage of the purchasing price
and tend to be a higher percentage for lower priced
properties – they range from 1-3%. Legal fees are
around 1-2% + VAT of the purchase price. Please see
the Property Tax section for more information.
There are costs associated with renovating,
maintaining the property and insurances. If you are
near the sea, the effect of sea salt can mean you need
to put more effort into maintaining it, or a private
pool that needs regular cleaning.
Take into account Service Charges when purchasing
apartments. Owners pay for the upkeep of shared
areas such as maintaining lifts, pools, gardens etc.
Finally, consider what your maximum purchase price
is, taking all the above points into consideration.
One of the biggest mistakes buyers make is using
the exchange rate at the point in time they start
their search to determine their budget. The smallest
fluctuations can have a huge impact on affordability.
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Make sure you obtain the best exchange rate
when it comes to exchanging sterling to euros for
your deposit and completion payments, as well as any
ongoing mortgage payments and savings transfers.
Speak with our currency partner Foremost Currency
Group on +44 (0)1442 892060 in the early stages of
your purchase. Your own dedicated broker can guide
you through a range of contract options and find one
that offers you a host of advantages depending on
your situation. The different options include:
Spot Contract – The spot contract is the fastest way
to exchange currency. As soon as you have found
the property you want, you can contact Foremost
Currency Group, agree a rate of exchange and
instruct your dedicated broker where to send your
euros. You then have two working days to transfer
the sterling to Foremost Currency Group, then your
euros can be sent. When your notaio requests your
property deposit, a spot is normally used.
Limit Order – The limit order contract helps you
get the rate you want. If you know what exchange
rate you will need to buy that villa in Tuscany, you
can instruct your Foremost Currency Group broker
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to purchase the euros automatically as soon as the
market achieves this rate. A great option if time is on
your side and you can afford to wait until the market
moves in your favour.
Stop Loss Order – The stop loss order contract
protects you against a drop in the exchange rate. It
allows you to buy currency if the exchange rate drops
to a pre-determined minimum level. Combine it with
a limit order and you can hold out for a better rate
while protecting yourself from a sudden fall in the
market – perfect for budgeting and forecasting.
Forward Contract – The forward contract allows you
to set the rate for up to 2 years. When your property
price has been agreed but the completion date is
still a few weeks or months away, a forward contract
guarantees the price as the formalities are concluded,
protecting you from any market volatility. Or if you
feel that the exchange rate is at a high but you haven’t
quite found the right property, you can use the
forward contract to hold that rate of exchange for up
to 2 years with just a 10% margin (payable within two
working days) and then settle the balance before the
contract expires.
Most customers choose to use both a spot and forward
contract. This is beneficial as you can pay for your
deposit and any fees using a spot contract, but you can
also use a forward contract to secure the currency for
your property further down the line. This combination
of contracts provides peace of mind and the ability to
budget accurately.
Speak to us today about the best currency option for
you on +44 (0)1442 892060.
Purchase Date
FX Rate Fixed
Amount Saved
Currency Exchange
Currency Exchange
FX Rate
Currency Exchange
Length of Time
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Your Search
Start your search
Estate Agents – Agente Immobiliare
When you enquire about any of these properties,
your enquiry is sent directly to the Italian estate agent
and they will contact you about your property search.
You will also receive a phone call or email from our
sister company – Foremost Currency Group, and one
of our currency brokers will introduce our currency
services and, if relevant, other partners who can
assist you with your buying process.
It is a good idea to use an agent who belongs to a
professional association such as FIAIP. To join FIAIP
you must be nominated and seconded by other FIAIP
members and are vetted before you are invited to join.
This guarantees the association having only registered
and legally operating agents. Members adhere to a
strict code of conduct and have indemnity insurance.
Foremost Property Group’s property portal is the
perfect place to start your search with thousands of
Italian properties for you to choose from. Through
our website you will be able to see the types of
properties available in the region, the price and the
number of bedrooms. You will also be able to make
a shortlist of properties that are of interest to you.
When you choose an estate agent, look for
experience – ask how long they have been in
the industry and operating in the region you are
purchasing in. Determine at the beginning, well
before your first viewing, if your agent is going to
be reliable, enthusiastic and helpful. This can be
determined by how quickly they respond to your
emails before any viewing trips to Italy.
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Your Search
Viewings
Using an estate agent who knows the region well and
can take you to multiple properties in a day is how
many Brits find their property in Italy.
Book a trip during the off-season as this is often a
slower time for the estate agents, and sellers are
more likely to negotiate a lower price when demand
is low. Let the estate agent put an achievable viewing
schedule together to make the most of your trip
and see the best properties. We recommend up
to 5 viewings a day and make sure you ask a lot of
questions while the estate agent is taking you around.
Find out about the local amenities, climate, crime rate
etc. Take photos of the property and the surrounds
and make sure you talk to the locals to get as much
information as you can.
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Buying the Property
Buying the Property –
The Legal Process
Professional Legal Advice
While you don’t need to understand Italian to
purchase a property in Italy, it is highly advisable to
engage a qualified English speaking lawyer (Avvocato)
experienced in property law who does not have any
conflicting loyalties (such as a financial connection
with the estate agent or a developer).
Tax Identification Number – Codice Fiscale
Before purchasing a property you will need a Tax
Identification Number. This will help you with many
activities in Italy such as buying a property, opening
a bank account, obtaining a mortgage, receiving
income, as well as getting a mobile phone contract.
There are a number of ways you can apply for one: go
to your local office of the Agenzie delle Entrate (Italian
Revenue Agency), use a third party by giving them a
copy of your passport; or through an Italian Embassy
or Consulate in your home country.
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Buying the Property
Buying the Property
Residency
If you are buying the property with a mortgage, it is vital
to secure a mortgage agreement, or to formally accept a
final offer before signing the preliminary contract.
EU residents can remain in Italy for 3 months without
having to file for residency, but if you wish to remain
for longer you must apply for residency. To do this
you complete forms from the post office and register
them with your Comune (local town hall). Also, if
you wish to pay property tax as a resident, you must
apply for residency within 18 months of your property
purchase and live in the house for at least 183 days
per year to remain eligible.
If you are under 65, you will need to prove that you
won’t be a burden on the state and that you have
sufficient financial means to support yourself and
any dependents. You will also need proof of medical
insurance. If all of your paperwork is in order you can
be issued with your Residence Certificate on the spot
and it is valid indefinitely.
Reservation Agreement – Proposta Irrevocabile
D‘acquisto – Once you have found the property
you want to buy and have negotiated the price, you
normally sign a Reservation Agreement, particularly
if buying from an estate agent. This takes the
property off the market for a short period of time
(usually 15 days).
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At this stage it will be necessary to complete a
number of searches and checks. Use a lawyer or a
local qualified surveyor (Geometra) and ensure they
provide a written report. The Geometra will organise
a survey, do searches to ensure that the property
matches the one at the Land Registry and do checks
with the local authorities (Comune) to ensure local
planning and building regulations have been met and
that all relevant taxes have been paid.
You will also be required to pay a small deposit which
is held with the estate agent or your lawyer as security.
This offer is only binding on the buyer but becomes
legally binding on the seller once they sign it too.
Preliminary Sales Contract – Compromesso
This stage consists of negotiating, drafting, signing
and exchanging the preliminary contract. This
contract outlines the agreed purchase price, deposit,
completion date, property details and boundaries as
well as any other relevant clauses.
A deposit – caparra (normally 10-30% of the purchase
price) secures the property and both the buyer
and seller are protected. If you fail to complete the
purchase you will lose your deposit and if the seller
fails to complete the sale they must repay you twice
the amount of your deposit.
Due Diligence
The notary – notaio, a legally trained representative
of the state, is responsible for the due diligence. They
will start the process of due diligence by getting a
number of searches underway, such as ensuring that:
•the seller is the legal owner of the property and is
entitled to sell the house
•there are no debts, mortgages, covenants, liens or
burdens on the property
•the seller has declared any outstanding private
agreements regarding the property e.g. if they have
allowed a neighbour to build or extend or has given
them right of way across the property
Neighbours’ Right to Buy – Diritto di Prelazione
Neighbouring registered farmers have the right to
buy your property up to 2 years from the date your
deposit is paid. To protect yourself from this, ask your
lawyer or notaio to draw up an agreement for the
neighbours to sign that will relinquish this right.
Deed of Sale – Rogito
Completion usually takes 1-3 months from the time
of signing the Preliminary Sales Contract.
Both you and the seller sign the deeds before a
notaio. If you can’t be present at this meeting you will
need to arrange for a Power of Attorney to sign on
your behalf (usually your lawyer).
When the title search has been conducted to your
satisfaction you will be required to pay for all agreed
final payments. These include the balance of the
purchasing price, as well as taxes, duties and fees.
Then you sign the Deed of Sale – Rogito. You will need
to show valid ID and your tax code.
The notaio will issue you a copy of the deed and present
copies to the tax office and Land Registry. You must pay
the government duties so that the sale can be officially
registered. Registration protects the property from
third parties charging any other interests against it.
The notaio will also ensure that the utilities have been
transferred to your name, and inform the local police of
the change of ownership within 48 hours of signing the
deed, in compliance with anti-mafia laws.
It takes an average of 15 days to complete all the eight
procedures needed to register a property in Italy.
You will receive the keys and you are now a proud
owner of a house in Italy!
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Finance
Financial Matters
Inheritance
Until August 2015, Italian property was subject to
‘forced-heirship’ inheritance provisions. This means
that protected heirs, usually children, would have
had a fixed right to at least a minimum interest
in the estate.
The new legislation, EU regulation 650/2012, also
known as Brussels IV, now means that any British
national who has property in Italy, or any other
participating EU state (and who has taken appropriate
action before their death) can choose either the law
of the country of their habitual residence, or of their
nationality (if you have multiple nationalities, then
you choose one) to govern the devolution of their
Italian estate.
If you do not have any estate planning measures in
place and you live in Italy permanently, all your
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property (even real estate properties abroad) will
be subject to the Italian inheritance rules. If you
live in the UK permanently (or in another country
in the European Union) all of your estate, including
property in Italy, will be subject to the inheritance
law of the country where you live. In this situation,
the new regulations mean that property in Italy won’t
be subject to Italian law.
If you don’t live in Italy permanently but you have
a holiday home in Italy, the Italian law will apply to
that house only, with the same restrictions.
If you seek specialist advice and plan the settlement
of your estate, the new regulations mean that you
can choose which national law will be applied to
the settlement of your estate. This can be done by
making a will.
Each situation is different and rules change frequently
so we recommend you contact a specialist to take
advantage of the new regulations.
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Finance
Mortgages
Getting a mortgage in Italy can be a lengthy
experience. In recent years, lenders have been more
cautious and have put increased restrictions on
borrowers. However many financial institutions are
still willing to lend to non-residents.
Mortgage products tend to be straight forward,
with usually fixed rate and variable rate mortgages
available. The majority of mortgages in Italy are
at a variable rate.
Mortgages in Italy are linked to the assessed property
value. Most mortgage terms run from 5-30 years
and they are expected to be repaid by age 70. The
standard LTV ratio for non-residents is 60% but can
be as high as 80% for residents.
It takes between 8-10 weeks to arrange a mortgage
from the time you make your application until you
receive the loaned amount.
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Finance
Shop around and compare interest rates, terms and
fees from a number of banks and financial institutions
– both in the UK and in Italy. When choosing between
a euro loan and a sterling loan, be sure to take into
account all costs, fees, interest rates and possible
currency fluctuations, as currency swings and
devaluations can wipe out any interest rate gains.
We recommend that you seek professional advice
through mortgage brokers or your bank and speak to
our currency partner, Foremost Currency Group, to
see how you can reduce any exchange-rate risks and
be introduced to UK mortgage advisors.
It is also useful to open a bank account in Italy as soon
as possible to pay bills, taxes etc. You will need to
transfer sufficient funds into the account to cover your
deposit when you sign the preliminary sales contract.
Taxes
To get the most out of your individual situation,
we highly recommend that you seek independent
professional tax advice.
Property Tax
The property tax situation in Italy is constantly
changing. Just when you think you have your head
around the tax system it is altered – often year upon
year. It is important to understand both the purchase
and ongoing property taxes and pay them on time
otherwise you will be subject to hefty fines.
Prima Casa is the status given to Italian residents
whose property is their primary residence. Seconda
casa is for holiday homes or second residences. Prima
Casa status reduces the amount of tax you have to
pay when purchasing your property and for ongoing
property taxes.
VAT – IVA is payable on the purchase price of new
properties and ranges from 4-22%. New residential
properties are those that have been sold within five
years of completion of construction or restoration.
It is 4% for a primary residence (prima casa) owned
by residents of Italy, 10% for second-home and
non-resident buyers and 22% on luxury homes
with a rating of A1 in the Property Register.
Registration Tax – Imposta di Registro – For resale
or older properties, registration tax is 3% for those
buying their prima casa. The registration tax for
non-residents and those buying second homes is
7%. Registration tax on the purchase of building land
is 8%. Registration tax on the purchase of agricultural
land is 10%. Sometimes it is possible to have
agricultural land ‘de-ruralised’ (deruralizzato) before
the sale and then the tax payable reduces from 10%
to 7% (or to 3% for prima casa).
When a property comprises both an urban building
and agricultural land, tax is calculated separately for
the building and the land.
These taxes are based on the declared value
(cadastral value) rather than purchase price, unless
you are purchasing from a company and then you pay
taxes based on the purchase price.
Registration Tax is not payable on new properties.
Changes to legal, finance and tax situations
relating to property purchases can occur at any
stage we recommend you contact a specialist for
up-to-date information.
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Finance
Land Registry Tax – Imposta Catastale – Owners
of a prima casa pay a fixed fee of €168 regardless of
whether it is a new or old property. Buyers of second
homes and non-residents pay 1% of the declared
price of the property.
Mortgage Tax – Imposta Ipotecaria – Owners of
a prima casa pay a fixed fee of €168 and buyers
of second homes and non-residents pay 2% of the
declared price of the property.
Municipal/Council Tax is made up of three taxes
which have changed numerous times over the past
few years.
1. IMU – Imposta Municipale Propria – This is
an annual tax payable twice a year by the owner.
It is paid to the Comune where the property is
situated and is calculated at 0.46-1.06% based
on the Cadastral value. Prima Casa are exempt.
2. TASI is a new tax on services such as street
lighting. It is payable by all home owners or if the
property is rented, a part will be due by the tenants.
3. TARI is the refuse tax, payable by all home owners
and tenants in part.
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Capital Gains Tax
If you sell your property in Italy then you are exempt
from capital gains tax if it is your primary resident
– prima casa or if you have owned the property for
more than 5 years. Capital gains tax is payable at
20% on the capital gain.
Income Tax
If you are a resident in Italy then you are liable to
Italian taxation on your world-wide general income
at progressive scale rates.
Non-residents are obliged to make an annual return
for income tax if they receive income from letting
property in Italy.
Net Wealth Tax
If you are an Italian resident, you will need to pay
wealth tax on financial assets located abroad at 0.2%
of their market value at the end of the year.
Due to regular changes to the legal and tax process,
we highly recommend that you seek independent
professional advice on the best way of managing your
tax obligations from specialist firms. Visit our website
www.foremostpropertygroup.co.uk/partners/ for
a list of recommended tax specialists.
www.foremostpropertygroup.co.uk
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Case Study
Don’t forget to visit our website,
www.foremostpropertygroup.co.uk
we have thousands of properties to choose from.
Read about our clients Lionel and Ann-Francis Gore and
how our services benefitted their purchase abroad.
“
“
We saved £3,000 using an €80,000
forward contract for European
home purchase.
Lionel and Ann-Francis Gore recently sold their
home of five years in Hornchurch, Essex, to make
a permanent move abroad in pursuit of a more
relaxed lifestyle. Planning ahead is key to making a
move overseas, so Mr and Mrs Gore decided the best
course of action would be to rent initially, allowing
them to search for their dream home while being
based in the country they wished to buy in.
Keen to be able to budget effectively, they spoke to
Foremost Currency Group to fix an exchange rate
using a ‘forward contract’.
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www.foremostpropertygroup.co.uk
“
By fixing a forward contract we were able to lock
in the sterling/euro exchange rate while it was
around the best it had been since 2007, meaning we now
don’t have to worry what happens with the rate whilst we
are shopping for a new home over the next few weeks,”
says Lionel.
“
We trust this property guide will help your property
purchase abroad go smoothly.
“We know exactly what we have in euros to spend, which
allows us to budget effectively. We were pleased that
we fixed a rate while it was so good and by booking
a forward contract rather than simply using the
bank, overall we’ve saved more than £3,000.
For other services we recommend, visit
foremostpropertygroup.co.uk/partners/ to view our
list of services you may find useful when purchasing your
home abroad.
TRUST
When buying your ideal property abroad
you need to make the most of your currency
Our knowledgeable brokers have helped over 15,000 customers move money
abroad for property purchases. They understand the importance of timing transactions for your
house deposit, final payments, renovations or ongoing payments.
Don’t hesitate to speak to one of our brokers today to find how you can make the most of your currency.
Visit our website foremostcurrencygroup.co.uk
or call +44 (0)1442 892060
The Foremost Currency Group Limited is authorised by the Financial Conduct Authority (FCA) for the issuing of electronic money under the Electronic Money Regulations 2011 [FRN 900204].
Registered in England: No 5544575. We are supervised by the FCA for compliance with the Money Laundering Regulations (MLR) 2007.
together we discover...
Foremost Property Group Limited
Sutton Court Church Yard
Tring Herts HP23 5BB UK
Email: [email protected]
www.foremostpropertygroup.co.uk
Disclaimer. This guide is provided for general information purposes only and none of the information represents formal
advice. Foremost Property Group cannot be held responsible for the consequences of decisions or actions you take
throughout the process of purchasing a property. We strongly recommend that you seek independent advice at all stages
of the buying process.
Copyright © Foremost Property Group Limited, 2016. No part of this document may be reproduced, stored or transmitted
in any form or by any means, electronic, photocopying or otherwise, without permission of Foremost Property Group Limited.
Foremost Property Group Limited (Company No. 6271862) is owned and operated by
The Foremost Currency Group Ltd (Company No. 5544575)