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
Dreaming of owning a piece of the Eternal City? Rome's rich history and vibrant culture make it a captivating place to invest in property.
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 Rome.
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 Rome
When purchasing property in Rome, 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 & Time |
|---|---|---|
| Codice Fiscale | A tax identification number required for all financial transactions in Italy, including property purchases. | Free 1-2 days |
| Opening an Italian Bank Account | Necessary for handling financial transactions related to the property purchase. | Varies by bank 1-2 weeks |
| Preliminary Contract (Compromesso) | A binding agreement between buyer and seller outlining the terms of the sale, often accompanied by a deposit. | Deposit: 10-20% of property price 1-2 weeks |
| Notary Services | A notary is required to oversee the property transfer, ensuring all legal requirements are met. | 1-2% of property price 1-2 months |
| Final Deed of Sale (Rogito) | The official document that finalizes the property transfer, signed in the presence of a notary. | Included in notary fees 1-2 months |
| Registration Tax | A tax paid to register the property in the buyer's name, varying based on residency status and property type. | 2-9% of property price Immediate |
| Legal Assistance | Hiring a lawyer to assist with the legal aspects of the purchase, ensuring compliance with Italian law. | 1-2% of property price Ongoing |
| Property Survey | An assessment of the property's condition and value, often recommended but not mandatory. | €300-€1,000 1-2 weeks |
| Mortgage Approval (if applicable) | Securing a mortgage from an Italian bank if financing is needed for the purchase. | Varies by lender 4-8 weeks |
| Real Estate Agent Fees | Commission paid to the real estate agent for their services in facilitating the purchase. | 3-5% of property price Upon completion |
| Utility Transfers | Arranging the transfer of utilities (water, electricity, gas) into the buyer's name. | Varies 1-2 weeks |
| Home Insurance | Obtaining insurance to protect the property against potential risks and damages. | €200-€500 annually Immediate |
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What You Need to Know Before Buying Property in Rome
What are the legal steps involved in purchasing property in Rome?
The process begins with a formal offer to purchase, known as a "proposta d'acquisto," which is a binding agreement once accepted by the seller.
Following this, a preliminary contract called "compromesso" is signed, which outlines the terms and conditions of the sale and usually requires a deposit of around 10% to 20% of the purchase price.
The final step is the signing of the "rogito" or deed of sale in front of a notary, who ensures the legality of the transaction.
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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 also buy property, but they must adhere to the principle of reciprocity, meaning their home country must allow Italians to purchase property there.
It is advisable for non-EU buyers to consult with a legal expert to ensure compliance with Italian property laws.
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What taxes are applicable when buying property in Rome?
Buyers must pay a registration tax, which is typically 2% of the cadastral value for first-time homebuyers and 9% for others.
Additionally, there is a mortgage tax and a cadastral tax, each amounting to €50.
These taxes are usually paid at the time of the final deed signing.
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How much are the notary fees when purchasing property in Rome?
Notary fees in Rome typically range from 1% to 2% of the property's purchase price.
The notary is responsible for ensuring the legality of the transaction and registering the deed with the local land registry.
It is important to budget for these fees as they are a mandatory part of the property purchase process.
What is the role of a real estate agent in Rome?
A real estate agent in Rome assists buyers in finding suitable properties and negotiating terms with sellers.
They also help navigate the legal and bureaucratic processes involved in purchasing property in Italy.
Agents typically charge a commission of 3% to 5% of the purchase price, which is usually split between the buyer and the seller.
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.
What is the average price per square meter for property in Rome?
The average price per square meter for property in Rome varies depending on the neighborhood, with central areas like Trastevere and Centro Storico being more expensive.
As of the latest data, prices can range from €3,000 to €8,000 per square meter.
It is advisable to research specific areas and consult with local real estate experts for the most accurate pricing information.
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How long does it typically take to complete a property purchase in Rome?
The entire process of purchasing property in Rome, from making an offer to signing the final deed, can take anywhere from three to six months.
This timeline can vary depending on factors such as the complexity of the transaction and the efficiency of the involved parties.
Buyers should be prepared for potential delays, especially if financing is involved.
What financing options are available for buying property in Rome?
Italian banks offer various mortgage options to both residents and non-residents, with loan-to-value ratios typically up to 80% of the property's value.
Interest rates can vary, so it is important to shop around and compare offers from different banks.
Non-residents may face stricter lending criteria and should consult with financial advisors to understand their options.
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What is the cadastral value and how does it affect property taxes?
The cadastral value is an official valuation of a property used to calculate taxes and is often lower than the market value.
It is determined by the local land registry and affects the amount of registration tax and other property-related taxes.
Buyers should verify the cadastral value with the seller or a legal advisor before proceeding with the purchase.
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Are there any ongoing costs associated with owning property in Rome?
Property owners in Rome are responsible for paying annual property taxes, known as IMU, which are based on the cadastral value.
Additionally, there are condominium fees for properties within shared buildings, which cover maintenance and communal services.
Owners should also budget for utilities, insurance, and any necessary repairs or renovations.
What legal documents are required for purchasing property in Rome?
Buyers need to provide identification documents, such as a passport or ID card, and a tax code known as "codice fiscale."
Proof of financial capability, such as bank statements or mortgage approval, may also be required.
It is advisable to have a legal expert review all documents to ensure compliance with Italian property laws.
Can I rent out my property in Rome after purchasing it?
Yes, property owners in Rome can rent out their properties, either on a long-term or short-term basis.
However, short-term rentals may be subject to local regulations and require registration with the local authorities.
Owners should consult with a legal advisor to understand the specific requirements and obligations for renting out property in Rome.