Authored by the expert who managed and guided the team behind the Italy Property Pack
Yes, the analysis of Rome's property market is included in our pack
If you're reading this, it's likely that the allure of Rome has captured your heart, and you're contemplating buying an apartment in this historic city.
But what does the buying process entail? Is it straightforward or filled with complexities? How long should you expect it to take? What are the potential challenges?
In this article, we'll walk you through each step of the journey.
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
The Steps to Buy a Condo in Rome
- 1) Research and Choose a Neighborhood
- Understand the different neighborhoods in Rome, such as Trastevere, Testaccio, or Prati.
- Consider factors like proximity to public transport, local amenities, and cultural attractions.
- Visit the neighborhoods to get a feel for the area and its community. - 2) Engage a Real Estate Agent
- Find a reputable real estate agent who specializes in properties for foreigners.
- Ensure the agent is registered with the Italian Chamber of Commerce.
- Discuss your budget, preferences, and any legal requirements as a foreign buyer. - 3) Secure Financing
- Determine if you need a mortgage and explore options with Italian banks.
- Prepare necessary documents, such as proof of income and tax returns.
- Consider currency exchange rates and their impact on your budget. - 4) Make an Offer and Sign a Preliminary Contract
- Once you find a condo, make a formal offer through your agent.
- Negotiate the price and terms with the seller.
- Sign a "Compromesso" (preliminary contract) and pay a deposit, usually 10-20% of the purchase price. - 5) Conduct Due Diligence
- Hire a notary to verify the property's legal status and ensure there are no liens.
- Check the condo's compliance with local building regulations.
- Review the condominium's rules and any shared expenses. - 6) Finalize the Purchase
- Sign the "Rogito" (final deed) in the presence of a notary.
- Pay the remaining balance and any applicable taxes and fees.
- Register the property in your name at the local land registry. - 7) Settle into Your New Home
- Arrange for utilities and services to be transferred to your name.
- Familiarize yourself with the local community and amenities.
- Enjoy your new home in the heart of Rome!
Get the full checklist for your due diligence in Italy
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What You Need to Know Before Buying an Apartment in Rome
What are the average property prices in Rome?
The average price per square meter for an apartment in Rome is approximately €3,500, but this can vary significantly depending on the neighborhood.
In central areas like Trastevere or Monti, prices can reach up to €7,000 per square meter.
Conversely, in suburban areas, prices may drop to around €2,000 per square meter.
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What are the additional costs involved in purchasing an apartment?
In addition to the purchase price, buyers should budget for taxes, which can be around 9% of the property's value for non-residents.
Notary fees and legal costs typically add another 2% to 3% to the total cost.
Real estate agent fees are usually 3% to 4% of the purchase price, plus VAT.
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How long does the buying process usually take?
The process of buying an apartment in Rome 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 bureaucratic procedures or financing issues.
What is the role of a notary in the property purchase process?
A notary in Italy is a public official who ensures the legality of the property transaction.
They verify the identity of the parties involved and ensure that the property is free of liens or encumbrances.
The notary also registers the sale with the local land registry, making the transaction official.
Are there any restrictions for foreign buyers purchasing property in Rome?
Foreign buyers from EU countries face no restrictions when purchasing property in Rome.
Non-EU citizens can buy property, but they may need to obtain a "residenza" or demonstrate a reciprocal agreement between Italy and their home country.
It is advisable for non-EU buyers to consult with a local legal expert to understand specific requirements.
Buying real estate in Italy can be risky
An increasing number of foreign investors are showing interest in Italy. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
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What financing options are available for purchasing an apartment in Rome?
Italian banks offer mortgages to both residents and non-residents, typically covering up to 70% of the property's value.
Interest rates for mortgages in Italy can range from 2% to 4%, depending on the bank and the buyer's financial profile.
It is recommended to get pre-approval for a mortgage to streamline the buying process.
What taxes are applicable on property purchases in Rome?
Buyers must pay a registration tax, which is 9% for non-residents and 2% for residents purchasing their first home.
There is also a cadastral tax and a mortgage tax, each typically amounting to €50.
These taxes are usually paid at the time of the notarial deed signing.
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How can I ensure the property is free from legal issues before purchasing?
Conducting a thorough due diligence process is crucial, which includes checking the property's title and any existing liens.
Hiring a local lawyer or a trusted real estate agent can help navigate these checks effectively.
Additionally, the notary will perform a final verification before the sale is completed.
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=> What are the legal requirements for buying property in Rome?
What is the process for making an offer on an apartment?
Once you find a suitable apartment, you can make a formal offer through a "proposta d'acquisto," which is a preliminary purchase proposal.
This proposal usually includes a small deposit, known as a "caparra," to demonstrate your commitment.
If the seller accepts the offer, both parties will sign a preliminary contract, or "compromesso," outlining the terms of the sale.
What should I know about the neighborhood before buying?
Researching the neighborhood is essential, including factors like public transportation, local amenities, and safety.
Visiting the area at different times of the day can provide insights into noise levels and traffic conditions.
Consulting with locals or a real estate agent can also offer valuable information about the community and future developments.
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How can I negotiate the best price for an apartment?
Understanding the local market trends and comparable property prices can provide leverage in negotiations.
Being prepared to walk away if the price does not meet your budget can also be a powerful negotiating tactic.
Engaging a skilled real estate agent can help in negotiating terms and securing a favorable deal.
What are the common pitfalls to avoid when buying an apartment in Rome?
One common pitfall is underestimating the total costs, including taxes and fees, which can significantly increase the purchase price.
Another is failing to conduct a thorough inspection of the property, which can lead to unexpected repair costs.
Lastly, not understanding the legal requirements and processes can result in delays or legal complications.