Buying a second home in Italy: 7 steps to make sure it's a success

The COVID-19 pandemic has made many people rediscover the benefits of having a second home. Whether you already live in Italy and would like to buy a second home, or live abroad are considering buying a holiday home in Italy, now may be the perfect moment to do so. With the option of even being able to work from a second home due to the rise in remote working, many people are considering the option of buying a second home as a place where they can spend extended periods of time to work if necessary, and relax without having to go to crowded tourist areas or hotels. Let's have a look at 7 steps to make sure buying a second home in Italy is a success. 

Establish your budget and chosen destination

These 2 elements go hand in hand. If you want a second home in a renowned tourist resort in Italy, then it is clear from the beginning that you will need to adjust your budget as these areas are more expensive. Consider living in the outskirts, close to your areas of interest but outside the centre, as these areas will be cheaper but perhaps just as characteristic. In your search for available properties, websites such as idealista are absolutely essential to help you find your way around the various offers available on the Italian property market.

Think about costs and benefits

When buying a second home in Italy, it is important to be aware of all the potential costs and fees, apart from what you will pay for the property and a mortgage. The costs linked to the purchase of a second home in Italy consist of registration tax (at 9% if you buy from a private individual or 10% if you buy from a building company), mortgage tax (at 2% or 1% respectively), cadastral tax (50 euros) and VAT. The notary fee and the agent's commission must also be considered. On a second home in Italy, you must also pay IMU (municipal property tax), which amounts to 0.76% (base rate) of its value, and TARI (waste tax). If necessary, condominium expenses are to be taken into account. In order to partially recover expenses, you could also consider using the property for short-term or tourist rentals when you are not using it. Keep in mind that if you do this in the current climate, you will have to take into account extra expenses related to cleaning and sanitisation, as well as bureaucratic formalities. 

Visit the property before sigining anything

This step can be twofold: a first phase consists of the "virtual" approach to the property which is especially useful if you live abroad. Make sure to carefully study all the photographs and plans, as well as attending a virtual tour where available. A second phase, when the seems like a viable option, is to contact the seller and visit the property in person. Although visiting the property virtually has its advantages, being able to see the property with your own eyes is impoprtant, as this is the moment in which you can see any defects (or merits) to the poperty in more detail, things that may be virtually invisible. You'll also be able to assess the location ofte property, any structural problems the building may have, work that may need done after the purchase and, perhaps, even get to know the neighbours.

Purchase offer

When you have chosen your dream home in Italy, the next step is to make your offer. The agent will ask you to sign a written document in which the details of the seller and the buyer are included, the offer amount, the payment method and the agreed deposit. The proposal will then be sent to the buyer who will either accept it, countersign it, or reject it, making a counter-proposal, which in turn will be accepted or rejected by the buyer. If the proposal is accepted, everything is ready for the next steps.

Choose a notary

Making an offer on a property in Italy also means that you will need a notary to proceed. The agency may propose a name, while the buyer is entitled to propose others. Italy has a lot of notary's and choosing one can be overwhelming. Choosing from reliable recommendations tends to be the best option.

Be aware of the commitment

When the preliminary purchase contract is signed, the commitment becomes irrevocable by both parties. The buyer pays the deposit, at which point the purchase is started in a binding manner. Should the buyer change his mind for some reason, he will lose the deposit. If the seller changes his mind, he will then have to pay double the deposit as compensation. The higher the deposit, the lower the possibility that the parties will decide to go back on their steps.

The deed

Your new second home in Italy is almost yours! At the time of signing the property deed, the buyer will be provided with all the documentation relating to the state of the property, from the living condition to the absence of mortgages or other liabilities. If the seller has a mortgage on the sold property and intends to pay it off with the amount collected, the buyer will be asked to issue two bank cheques (preferable to a bank transfer, which should be issued before the date of the deed, for greater protection of the buyer), one in favour of the borrower's bank, equal to the amount of the remaining bills, the other in favour of the seller, equal to the additional amount. If not, the cheque will be completely in favour of the bank (if it covers the loan in full) or the seller (if there is no loan). At that point, the house has changed hands and you're ready to enjoy some well-earned relaxation time in your new holiday home!