Our Services
Why Choose a Real Estate Lawyer When Purchasing Property
Engaging a real estate lawyer during a property purchase provides valuable legal protection and peace of mind.
- Legal Expertise
Real estate transactions involve complex legal documentation. A real estate lawyer ensures all legal aspects are correctly managed and potential issues identified early. - Independent Advice
Unlike real estate agents, lawyers owe a fiduciary duty to their clients. They offer unbiased legal advice, act solely in your best interests, and are free from conflicts of interest. - Contract Review & Negotiation
Lawyers carefully examine purchase agreements, title documents, mortgage contracts, and more. They explain terms, protect your rights, and negotiate favourable conditions.
- Title Search & Insurance
Your lawyer will verify that the property’s title is clear of liens or disputes and help secure title insurance to guard against future claims. - Due Diligence
Lawyers investigate zoning laws, taxes, environmental issues, and the seller’s legal status to uncover any risks—helping prevent problems such as fraudulent conveyance. - Closing Process
The closing involves critical paperwork: final contracts, mortgage documents, title transfer, and filings. Your lawyer ensures these are accurate and complete and can represent you at the closing to resolve last-minute issues. - In short: a real estate lawyer helps you navigate legal complexities, protects your interests, and ensures your transaction proceeds smoothly and securely.
Tax Considerations for Property Ownership in Italy
Purchasing property in Italy involves several taxes and legal obligations. Effective tax planning before acquiring property can result in substantial benefits. It’s highly advisable to consult an international tax professional early in the process. They can help determine:
- Whether you are a tax resident of a country that has a reciprocal agreement with Italy.
- Whether it’s more advantageous to purchase the property as an individual or through a company.
- How best to structure your ownership in light of property transfer, ownership, and income taxes.
Additionally, a tax advisor can assist with obtaining a Codice Fiscale (Italian tax identification number) and setting up a local bank account.
Common Taxes Associated with Italian Property Ownership
- Imposta di Registro (Registration Tax): Paid at the time of property transfer, this tax is typically a percentage of the higher between the declared value and the sale price. Rates vary depending on whether the property is a primary residence, secondary home, or investment.
- Imposta sul Valore Aggiunto (IVA – Value Added Tax): Applies to newly built or substantially renovated properties, or when the seller is a company. It is charged instead of the registration tax in these cases.
- Imposta Municipale Unica (IMU – Municipal Property Tax): An annual tax payable to the local municipality, calculated based on the property’s valore catastale (government-assessed cadastral value). Rates and calculation methods vary by municipality. Note: primary residences are often exempt unless they are classified as luxury properties.
- Tassa di Iscrizione Ipotecaria e Catastale (Land Registry and Mortgage Registration Fees): These are fixed or percentage-based fees required to register the property and any related mortgage in official registries.
- Imposta sul Reddito delle Persone Fisiche (IRPEF – Personal Income Tax): Applied annually on income, including rental income from the property. This tax is due even if the property is not rented, unless it is permanently occupied by the owner. Rates vary depending on the owner’s overall income bracket.
Certain properties may be classified as Historical Landmarks under Italian law, specifically according to Decree Law of 22 January 2004, no. 42, known as the Codice dei Beni Culturali e del Paesaggio (Cultural Heritage and Landscape Code). Properties that receive this designation are recognized for their cultural, artistic, or historical significance and are subject to specific protection and preservation regulations. Importantly, they also benefit from substantial tax advantages, including exemptions from IMU (municipal property tax), reduced inheritance and gift tax rates, and deductions on restoration and maintenance expenses, which may be partially or fully deductible for income tax purposes. Additionally, any income derived from the property may benefit from favorable tax treatment under certain conditions, particularly when the building is not used commercially