Buying real estate in Milan?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

What are the legal requirements for buying property in Milan?

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Authored by the expert who managed and guided the team behind the Italy Property Pack

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Yes, the analysis of Milan's property market is included in our pack

Dreaming of owning a piece of Milan, the fashion and cultural capital of Italy? You're not alone. The allure of Milan's vibrant lifestyle and rich history draws many to consider investing in property there.

But what legal hurdles might you face? Are there specific requirements for foreigners? How can you ensure a smooth transaction?

In this article, we'll break down the legal essentials you need to know before buying property in Milan.

Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Italy Property Pack

Legal Requirements for Buying Property in Milan

When purchasing property in Milan, there are several legal requirements and steps that must be followed. Below is a detailed table outlining these requirements, including necessary documentation, legal processes, and associated costs.

Requirement Description Estimated Costs
Fiscal Code (Codice Fiscale) A unique identification code required for all financial transactions in Italy, including property purchases. It can be obtained from the Italian Revenue Agency. Free
Opening a Bank Account Necessary for transferring funds related to the property purchase. Non-residents can open an account with an Italian bank. Varies by bank
Preliminary Agreement (Compromesso) A binding contract between buyer and seller outlining the terms of the sale. A deposit (caparra) is usually required. 10-20% of property price
Notary Services A notary is required to oversee the property transfer, ensuring all legal requirements are met. They prepare the final deed of sale (Rogito). 1-2% of property price
Property Registration The property must be registered with the local land registry (Catasto) to officially record the new ownership. 200-300 €
Legal Assistance Hiring a lawyer is advisable to navigate the legal complexities and ensure the transaction is conducted properly. 1,000-3,000 €
Surveyor's Report A surveyor can assess the property's condition and ensure it complies with local regulations. 500-1,000 €
Mortgage Arrangement If financing is needed, securing a mortgage from an Italian bank is necessary. This involves additional documentation and approval processes. Varies by lender
Taxes and Fees Includes registration tax, cadastral tax, and mortgage tax. Rates vary depending on whether the property is a primary residence or a second home. 2-9% of property price
Utility Transfers Arranging for the transfer of utilities (electricity, water, gas) to the new owner’s name. Varies
Insurance While not mandatory, property insurance is recommended to protect against potential damages or liabilities. Varies

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What You Need to Know Before Buying Property in Milan

What is the minimum deposit required for purchasing a property in Milan?

In Milan, the minimum deposit typically required for purchasing a property is around 20% of the property's value.

This percentage can vary depending on the lender and the buyer's financial profile.

It's advisable to have a higher deposit to secure better mortgage terms.

Are there any restrictions for foreign buyers purchasing property in Milan?

Foreign buyers from EU countries face no restrictions when purchasing property in Milan.

Non-EU citizens may need to meet certain residency or reciprocity agreements to buy property.

It's important to consult with a local legal expert to understand specific requirements based on nationality.

What are the average property prices per square meter in Milan?

The average property price in Milan is approximately €4,500 per square meter.

Prices can vary significantly depending on the district, with central areas being more expensive.

It's crucial to research specific neighborhoods to get a more accurate estimate.

What taxes are applicable when buying property in Milan?

When buying property in Milan, buyers must pay a registration tax, which is typically 2% for first-time homebuyers and 9% for others.

Additionally, there are cadastral and mortgage taxes, each usually amounting to €50.

These taxes are calculated based on the cadastral value of the property, not the purchase price.

How long does the property purchase process take in Milan?

The property purchase process in Milan can take anywhere from three to six months.

This timeline includes property search, negotiation, and the completion of legal formalities.

Delays can occur due to legal checks or financing issues, so it's important to plan accordingly.

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What are the notary fees associated with buying property in Milan?

Notary fees in Milan typically range from 1% to 2.5% of the property's purchase price.

These fees cover the drafting and registration of the deed of sale.

It's advisable to get a detailed quote from a notary before proceeding with the purchase.

Is it necessary to hire a real estate agent when buying property in Milan?

While not legally required, hiring a real estate agent can be beneficial for navigating the Milan property market.

Agents can provide valuable insights into market trends and assist with negotiations.

However, their commission, typically 3% to 5% of the purchase price, should be factored into the overall cost.

What is the role of a geometra in the property buying process?

A geometra is a technical expert who assesses the structural and legal compliance of a property.

They ensure that the property meets all local building regulations and codes.

Hiring a geometra can prevent future legal or structural issues, making it a wise investment.

Are there any additional costs to consider when buying property in Milan?

In addition to the purchase price, buyers should budget for taxes, notary fees, and agent commissions.

Other costs may include mortgage arrangement fees and property survey costs.

It's important to have a comprehensive budget to avoid unexpected financial burdens.

What financing options are available for property buyers in Milan?

Buyers in Milan can access various mortgage options, including fixed-rate and variable-rate loans.

Italian banks typically offer mortgages covering up to 80% of the property's value.

It's advisable to compare different lenders to find the best terms and interest rates.

How does the cadastral value affect property taxes in Milan?

The cadastral value is a government-assessed value used to calculate property taxes in Milan.

It is often lower than the market value, which can result in lower tax liabilities.

Understanding the cadastral value is crucial for accurate tax planning and budgeting.

What legal documents are required to complete a property purchase in Milan?

Key documents include the preliminary contract (compromesso) and the deed of sale (rogito notarile).

Buyers must also provide identification, tax code, and proof of funds or mortgage approval.

Ensuring all documents are in order is essential for a smooth transaction process.