Italy Property Ownership

Limited property and ownership information may be obtained in the Registry of Mortgages.

Italy Transaction Information

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Exclusive listings for agents are: Available.

Italy Trade Associations

Associazione Nazionale Amministratori Condominiali e Immobiliari (ANACI)
Via Cola di Rienzo, 111
Roma
I-00192
Italy

Phone : +39 06 3215399
Fax : +39 06 3217165
e-mail : info@anaci.it
Web : www.anaci.it

Federazione Italiana Mediatori Agenti d'Affari (FIMAA)
Piazza G. Belli 2
Roma
I-00153
Italy

Phone : +39 6 586 6476
Fax : +39 6 583 10059
e-mail : fimaa@tin.it
Web : www.fimaa.it

Italy Land Rights

The Italian Civil Code divides all properties into "beni immobili" (immovables) and "beni mobili" (movables). Real property is considered immovable. Beni immobili are lands, whatever is erected on land, trees, crops, rivers, and springs.

There are no restrictions on foreigners and nonresidents for purchase, ownership, or sale of real property. The Italian government retains certain rights in land such as the right to levy property taxes, escheat and the control of private property through zoning.

Leasehold estates: Information on this item is in the process of being compiled.

Leases in General - The term of a lease cannot exceed 30 years. A lease agreement need not be in writing unless the term exceeds nine years, in which case the lease agreement must be in writing. Leases can be recorded in books of Conservatore dei Registri Immobiliari (Recorder of Mortgages). Usually the tenant is responsible for all maintenance and repair of the leased premises.

Leases with a specific ending date will terminate at expiration thereof without notice. In general, residential eases cannot last less than four years, and commercial leases cannot last less than six years.

Statutory estates: Property of spouses acquired after marriage are community property (comunione). Income accruing from community property must be used for support of family. Courtesy is not recognized.

Italy Forms of Ownership

All title to real property in Italy is in the form of a freehold estate. No property rights are acquired under a lease and there is no equitable ownership of real estate in Italy.

Corporations may hold title to real property. There are several forms a corporation may take in Italy, including limited liability companies.

Partnerships may also acquire, hold, or convey real property. General Partnership (Società in nome collettivo) - the partners have unlimited liability for the partnership’s obligations. A general partnership may not have a corporate partner. The financial information of a general partnership need not be made available to the public

A limited partnership (società in accomandita semplice) must be composed of at least one partner with unlimited liability and at least one partner with liability to the extent of the partner’s capital contribution. The partner with limited liability may not participate in partnership management. A corporation may not be a partner in a limited partnership.

Joint Ventures may also operate in Italy.

Italy Real Estate Info Summary

Deeds: Conveyances of real estate, easements, and certain leases over nine years duration must be in writing. All instruments relating to the creation or assignments of rights with respect to real property must also be recorded in the books of the Conservatore dei Registri Immobiliari (Recorder of Mortgages). Real property can be conveyed after death via a will. Title to real property can be acquired through adverse possession provided that the possession is continuous for 20 years and possession was not obtained by means of fraud or violence.

All instruments relating to the creation or assignment of rights in real property must be recorded in the books of the Conservatore dei Registri Immobiliari.

To complete a purchase, parties use three agreements; the Letter of Intent, the Preliminary Contract, and the Final Contract. There are no essential differences between Italian and U.S. law regarding the validity of contracts. Contracts, in order to be valid, must be for a legal purpose and all contracts for the sale of real estate must be in writing and acknowledged by a notary public.

Property Taxes:

Tax on Real Property - Local municipalities impose an annual tax (imposta comunale sugli immobili) on income from real property based on the property’s assessed value. The tax ranges from 0.1% up to 0.7%. and is not deductible.

Capital gains taxes are assessed on transfers of real property. The rate varies between 5 and 30%.

Real estate companies which hold investment real estate are subject to gains tax on the appreciation of real estate portfolios. The tax is assessed every 10 years.

Registration tax is also levied on deeds and certain leases.

The sale will be completed before a public notary when the final deed or conveyance of transfer is signed. The notary issues a certified copy of the deed of sale and registers the original document with the land registry, which makes you the legal owner of the property.

Land Use & Control:

Land use controls are prevalent in Italy, keeping the supply of new developments constrained.

Italy Mortgages & Financing

Real property may be mortgaged as security for a debt in Italy. A mortgage in Italy must be in writing and must clearly set forth the exact consideration. Priority of mortgages is determined by the date of filing in the office of the Registrar of Mortgages. Mortgage liens usually continue for 20 years unless renewed or defeated.

Financing is available from Italian banks but can be lengthy to approve, and usually you can obtain better terms from foreign financial institutes with borrowed amounts against purchase price of 80%. Remember to declare any funds brought in to your Italian bank. Maximum loans from Italian banks on property are usually 50-60% of buying price for second homes and nearer 75% for your main residence, usually up to 15 years.