What is a Codice Fiscale and do I really need one to buy property in Italy?
The Codice Fiscale (Italian Tax ID) is an alphanumeric number that serves to identify you as individual in all your dealings with the Italian bureaucracy. As such, it is absolutely required for real estate transactions, where contracts must be registered and taxes must be paid. It’s an essential step in the buying process, and should be obtained preferably before making an offer on a property.
What is a Notaio and why do I need one?
The Notaio (notary at law) in Italy is a bit different than what you may consider a typical notary to be. These public officials are experts in civil law and ensure the validity of documents such as deeds, wills, and contracts. In a real estate transaction, their role also includes doing due diligence on the property, ensuring that the seller indeed has title to the property and that all encumbrances that may impede the sale have been resolved. As the buyer typically pays for the notaio, they also have the right to select them.
Can you help me identify the right area to buy in?
Yes and no. It’s important that you have done your research and even visited the areas in which you’d like to buy before we start looking for properties. Buying in Italy can be a bit like going into a candy store – the selection can be overwhelming if you don’t already have some idea of what you want. The clearer you are, the more success we’ll have.
Someone told me that foreigners can't get a mortgage to buy in Italy. Is that true?
That’s absolutely FALSE. Foreigners do have access to mortgages in Italy and I work with several mortgage brokers who specialize in this area of the mortgage market. Foreigners are able to get a mortgage for up 50% of the purchase price of the property depending on a variety of factors. If you are interested in using a mortgage to purchase property in Italy, I can put you in contact with licensed, professional, English speaking brokers who will guide you through the process.
Isn't it better just to use a lawyer when buying in Italy?
While the answer may seem obvious, it may not be so clear cut. As the Notaio (notary at law) is the expert who handles all of the contractual documents, involving a lawyer who may or may not be an expert in real estate law can complicate matters. That being said, outside of traditional real estate transactions (which are the majority), there may be a role for a lawyer in complicated contractual situations. Additionally, only the Notaio can legally provide escrow services to the buyer. And in terms of due diligence on the property, while notai and real estate agents have access to the land registry and property records, lawyers do not. They are also prohibited from collecting a commission as only licensed real estate agents can collect a commission on a property transaction in Italy.
What is a Procura Speciale?
The Procura Speciale (Power of Attorney) is a special document giving someone else the right to act on your behalf. It’s frequently used in cases where the buyer is unable to be present in cases where a physical signature is needed, for example at the Rogito (Closing). This document may also be needed in cases where the buyer or seller is not fluent in the Italian language. Some notai will require either a licensed interpreter and/or a Procura Speciale so that someone fluent in the language can sign the legal documents.
What's the deal with Italian real estate agents?
Italian real estate agents are famous for being unreachable. This could be due to the fact that English is not widely spoken, especially in a professional setting, outside of the major cities like Milan and Rome, and that the idea of professionalism here has a different meaning. In addition, many ‘agents’ are unlicensed and may not fully understand the sales process or care about being thorough with due diligence. Italy magazine published a great article in 2019 on a purchaser’s real experience buying in Italy. I’m here to help you make these connections and ensure a smooth, professional real estate transaction.
