THE BUYING PROCESS

In order to purchase a property, you will need an Italian Tax Code (Codice Fiscale) which is issued by the Italian tax authority (Agenzie delle Entrate) and open a bank account.  Non residents can open a ‘conto estero’

There are usually three stages to buying a property in Sardinia (under Italian law)

Stage One - PROPOSTA DI ACQUISTO (OFFER TO PURCHASE)

Once you have identified the property you wish to purchase and agreed the price you wish to offer with Key to Sardinia, you will be required to sign the PROPOSTA DI ACQUISTO which is an offer to purchase.  It is a reservation agreement which blocks the property while the documents relevant to the property are taken to the Notary for verification.  A deposit of approximately 10% is required at this stage.  The deposit will only be handed over to the Vendor once they have countersigned the ‘Proposta’ and then the property will be withdrawn from the market and the deposit will become non-refundable should you fail to complete the purchase. 

Stage Two – COMPROMESSO (PRELIMINARY CONTRACT)

Once your offer has been accepted by the Vendor, both parties will then sign the COMPROMESSO which is a legally binding document whereby both parties have a mutual obligation to complete the purchase.  The following documents will be included with this document:

• Plan of the house
• Habitable Condition
• Planning Permission if applicable
  

PLEASE NOTE THAT THIS STAGE IS OFTEN COMBINED WITH STAGE ONE TO CREATE A DIRECT PROCESS TO STAGE THREE TO AVOID UNNECESSARY EXPENSE AND TIME

Stage Three – ROGITO (FINAL CONTRACT)

The final stage of the process is the execution of the ROGITO which has to be signed by both parties in the presence of a public Notary.  The Notary is an independent and impartial officer who performs the vital task of registering the sale in the Land Register which publicly records the transfer of the title deeds to the buyer(s).   By this stage, the Notary will have ensured that the sale has been executed correctly by running local searches, checking planning permission, investigating the Vendor’s legal title and checking that no other mortgage or charge exists over the property.  At this stage the buyer(s) pay the Notary the balance of the purchase price, the Notary fees (approximately €3000) and the taxes payable (10% for a second home or 3% for a primary home)  The buyer’s commission of 3% or €2500 must also be paid to Key to Sardinia at this time.

OTHER PURCHASE COSTS TO CONSIDER

As a rough guide, you should allow 10-15% of the purchase price to cover taxes and fees.  The amount of tax paid both on the purchase and ongoing as annual taxes depends on whether it is your primary home (as a permanent resident) or a second home (holiday home).  As a primary residence, the purchase tax is 3% of the property’s cadastral value and 10% for a second home.

• Notary fees are approximately €3000
• Key to Sardinia’s agency fees are 3% for properties over €85,000 or a fixed fee of €3000 for properties less than €85,000
• Purchase Tax (10% of the cadastral value which will be confirmed by the Notary)
• Codice Fiscale (per person)                                       

ONGOING TAXES ON THE OWNERSHIP OF A PROPERTY

IUC (IMPOSTA COMUNALE UNICA)

This is an annual tax paid to the local ‘Commune’ and is made up of three elements:

IMU - a form of roof tax which is only charged on second homes.  It is calculated on the cadastral value of the property.

TASI – a tax for municipal services such as road maintenance and street lighting which is calculated in a similar way to IMU.

TARI – refuse tax which is calculated from the property’s square metres.  If the property is not already registered, it may be necessary to engage a ‘geometra’ to measure the property and declare the figures.

UTILITIES

You will need to ensure that you contact all suppliers of utilities such as water, electricity etc to register your details or change the existing name at the property.

Key to Sardinia can assist with all of the above as an extra chargeable service.  (See OUR SERVICES)

If you are purchasing a property which is part of a building where you will share communal areas such as gardens, driveway, swimming pool etc, then you will be required to pay condominium expenses.  These vary as to the type and communal areas of the property.