Buying a Property in Italy

Table of Contents..............= ...........................................................................= .......................... 1

Introduction........................................................................= ........................................................ 8

Sex......= ...........................................................................= ...........................................................................= ................................................... 8

Money....= ...........................................................................= ...........................................................................= .............................................. 8

Prices...= ...........................................................................= ...........................................................................= ................................................. 8

Law......= ...........................................................................= ...........................................................................= ................................................. 8

Reality Check.......................................................................= ...........................................................................= ......................................... 9

Translations........................................................................= ...........................................................................= .......................................... 9

The European Union (EU).................................................................= ...........................................................................= ........................ 9

The European Economic Area (EEA)..........................................= ...........................................................................= .......................... 9

Euroland.= ...........................................................................= ...........................................................................= ............................................ 9

Disclaimer..........................................................................= ...........................................................................= ......................................... 10

Useful Addresses & Telephone Numbers..........................................= ...........................................................................= ................... 10

Finding a Property in Italy.................................................................= .............................. 11

The Need for Preparation.................................................................= ...........................................................................= ...................... 11

Why?.....= ...........................................................................= ...........................................................................= ........................................ 11

What preparation should you make?..........................................= ...........................................................................= ...................... 11

Which Area and Type of Property is Right for You= ?..........................................= ....................................................................... 14

Personal preference.................................................................= ...........................................................................= .............................. 14

Getting to know the areas.................................................................= ...........................................................................= .................... 14

Do you want to let the property?..........................................= ...........................................................................= .............................. 15

Climate..= ...........................................................................= ...........................................................................= ....................................... 15

Access...= ...........................................................................= ...........................................................................= ........................................ 17

Facilities..........................................................................= ...........................................................................= ......................................... 19

Terrain..= ...........................................................................= ...........................................................................= ......................................... 19

Price Guide = PAGEREF _Toc120359694 \h = 19

Space....= ...........................................................................= ...........................................................................= ......................................... 19

Heating..= ...........................................................................= ...........................................................................= ....................................... 19

Air conditioning....................................................................= ...........................................................................= .................................. 19

Parking..= ...........................................................................= ...........................................................................= ........................................ 20

New or old? = PAGEREF _Toc120359699 \h = 20

Rental Potential....................................................................= ...........................................................................= .................................. 21

Capital Growth......................................................................= ...........................................................................= ................................. 22

Estate Agents.......................................................................= ...........................................................................= ........................................ 22

Italian based agents................................................................= ...........................................................................= .............................. 23

UK based estate agents..............................................................= ...........................................................................= ........................... 24

DIY sales= ...........................................................................= ...........................................................................= ...................................... 25

Auctions.= ...........................................................................= ...........................................................................= ....................................... 25

Renting instead of Buying.................................................................= ...........................................................................= ...................... 27

Inspecting Property.................................................................= ...........................................................................= .................................. 28

Do it yourself......................................................................= ...........................................................................= .................................... 28

Estate Agent's Valuation & "Survey"= ;..........................................= ...........................................................................= ....................... 32

Mortgage Lenders Survey.................................................................= ...........................................................................= ................... 32

Italian Builder.....................................................................= ...........................................................................= .................................... 32

Italian Surveyor....................................................................= ...........................................................................= ................................. 32

UK Qualified Surveyor based in Italy..........................................= ...........................................................................= ...................... 32

UK based Surveyor...................................................................= ...........................................................................= ............................. 33

Timescale= ...........................................................................= ...........................................................................= ..................................... 33

Contracts "subject to survey"..........................................= ...........................................................................= .................................... 33

General..= ...........................................................................= ...........................................................................= ........................................ 33

Useful Names & Addresses.................................................................= ...........................................................................= ..................... 33

Raising Finance to Buy a Property in Italy..........................................= .................. 34

UK Mortgages........................................................................= ...........................................................................= .................................... 34

Italian Mortgages...................................................................= ...........................................................................= ................................... 35

General concept.....................................................................= ...........................................................................= ................................ 35

The main differences between an English and a It= alian mortgage............................= ............................................................. 35

How Much Can I Borrow?..............................................................= ...........................................................................= ..................... 36

Applications for a Italian Mortgage..........................................= ...........................................................................= ......................... 37

The Mortgage Offer..................................................................= ...........................................................................= ............................. 37

Payments for New Property.................................................................= ...........................................................................= ................ 37

Property needing Restoration.................................................................= ...........................................................................= ............. 37

The Cost of Taking out a Mortgage..........................................= ...........................................................................= ......................... 37

Hidden Costs........................................................................= ...........................................................................= .................................. 37

Early Redemption Penalties.................................................................= ...........................................................................= ................ 38

The Exchange Rate Risk..............................................................= ...........................................................................= ........................ 38

Foreign Currency Mortgages.................................................................= ...........................................................................= ............... 38

Saving Money on your Euro Repayments..........................................= ...........................................................................= .............. 38

Summary..= ...........................................................................= ...........................................................................= .................................... 39

Useful Names & Addresses.................................................................= ...........................................................................= ..................... 40

Who should own the property?.................................................................= .................. 41

The options = PAGEREF _Toc120359739 \h = 41

Sole ownership......................................................................= ...........................................................................= .................................. 41

Joint Ownership.....................................................................= ...........................................................................= ................................. 41

Adding your children to the title..........................................= ...........................................................................= ................................ 41

Putting the property in the name of your childre= n only..................................................................= ........................................... 41

Limited company.....................................................................= ...........................................................................= ............................. 42

The use of trusts...................................................................= ...........................................................................= ...................................... 43

Which is right for you?.................................................................= ...........................................................................= ........................... 43

Useful Names & Addresses.................................................................= ...........................................................................= ..................... 43

Buying a Property in Italy.................................................................= ............................... 44

The Law..= ...........................................................................= ...........................................................................= .......................................... 44

General Procedure...................................................................= ...........................................................................= ................................. 45

Choosing a lawyer...................................................................= ...........................................................................= .................................. 45

The Notary Public ("Notaio")...........= ...........................................................................= ................................................................... = 45

Italian lawyers (avvocati)..........................................= ...........................................................................= ........................................... 46

English lawyers (solicitors).................................................................= ...........................................................................= ................... 46

The price= ...........................................................................= ...........................................................................= ........................................... 46

How much should be declared in the deed of sale?= ..........................................= ......................................................................... <= /span>47

Where must the money be paid?.................................................................= ...........................................................................= ....... 47

General Enquiries and Special Enquiries..........................................= ...........................................................................= ................. 47

The community of owners (condominio).............= ...........................................................................= ................................................ 48

"Vacant Possession".................................................................= ...........................................................................= ................................ 48

The Surveyor (Geometra)..........................................= ...........................................................................= .............................................. 49

Initial contracts...................................................................= ...........................................................................= ....................................... 49

Who prepares them?..................................................................= ...........................................................................= ........................... 49

If you are buying a Finished Property..........................................= ...........................................................................= ...................... 49

You are buying an Unfinished Property..........................................= ...........................................................................= .................. 52

Key points – a checklist.................................................................= ...........................................................................= ....................... 53

Steps between signing the contract and signing t= he Deed of Sale (rogito)..........................................= ..................................... 54

Searches.= ...........................................................................= ...........................................................................= ....................................... 54

Registration of the compromesso?............= ...........................................................................= .......................................................... = PAGEREF _Toc120359769 \h = 54

Powers of Attorney..................................................................= ...........................................................................= .............................. 55

Tax identification number.................................................................= ...........................................................................= .................. 55

Getting the money to Italy.................................................................= ...........................................................................= .................. 55

Final checks about the property.................................................................= ...........................................................................= ......... 57

Fixing the completion date.................................................................= ...........................................................................= .................. 57

Checklist – Steps before completion..........................................= ...........................................................................= ........................ 57

The deed of sale (rogito)..........................................= ...........................................................................= ................................................. 57

Formalities = PAGEREF _Toc120359777 \h = 58

Steps taken after the rogito has been signed..= ...........................................................................= .................................................. 58

The cost of buying a home in Italy..........................................= ...........................................................................= .............................. 58

Key points – property under construction..........................................= ...........................................................................= ................. 60

Key points – resale properties..........................................= ...........................................................................= ...................................... 60

Special points – old properties..........................................= ...........................................................................= ..................................... 60

Special points – rural properties..........................................= ...........................................................................= ................................. 61

Special points – city properties..........................................= ...........................................................................= .................................... 61

Special points – apartments and houses sha= ring facilities..........................= ...........................................................................= .... 61

Other things to do when you buy a property..........................................= ...........................................................................= ............. 62

Useful Names & Addresses.................................................................= ...........................................................................= ..................... 62

Owning a Property in Italy.................................................................= .............................. 62

Bank accounts.......................................................................= ...........................................................................= ...................................... 62

Who can open a bank account?.................................................................= ...........................................................................= ........ 62

Which bank should you use?.................................................................= ...........................................................................= .............. 62

Which type of account?.........= ...........................................................................= ...........................................................................= ... 63

"Bad" Cheques.................................................................= ...........................................................................= ...................................... 63

Your existing UK account.................................................................= ...........................................................................= ................... 63

"Offshore" Accounts.................................................................= ...........................................................................= ............................ 63

Key Points.........= ...........................................................................= ...........................................................................= ........................... 63

Taxes....= ...........................................................................= ...........................................................................= .............................................. 64

Electricity, gas, water & telephone bills..........................................= ...........................................................................= .................... 64

Electricity = PAGEREF _Toc120359800 \h = 64

Gas......= ...........................................................................= ...........................................................................= ........................................... 65

Telephone= ...........................................................................= ...........................................................................= ..................................... 65

Water....= ...........................................................................= ...........................................................................= ......................................... 66

Cable/Satellite TV..................................................................= ...........................................................................= ................................ 67

The Cond= ominio bill..........................................= ...........................................................................= ....................................................... 67

Property insurance..................................................................= ...........................................................................= .................................. 68

Other expenses......................................................................= ...........................................................................= ...................................... 69

Taking your car.....................................................................= ...........................................................................= .................................... 69

Non Residents.........= ...........................................................................= ...........................................................................= ..................... 69

Residents.........= ...........................................................................= ...........................................................................= ............................. 69

General.........= ...........................................................................= ...........................................................................= ................................. 70

Driving Licence.........= ...........................................................................= ...........................................................................= ...................... 70

Taking your furniture...............................................................= ...........................................................................= ............................... 70

Taking your pet.....................................................................= ...........................................................................= ..................................... 70

Useful Names & Addresses.................................................................= ...........................................................................= ..................... 71

Renting out your Property in Italy..........................................= ................................. 72

The right area......................................................................= ...........................................................................= ....................................... 72

Letting Agencies?.........= ...........................................................................= ...........................................................................= ............... 72

Climate.........= ...........................................................................= ...........................................................................= ................................ 73

Access.........= ...........................................................................= ...........................................................................= .................................. 73

Tourist attractions= .........= ...........................................................................= ...........................................................................= .............. 73

Other facilities.........= ...........................................................................= ...........................................................................= ..................... 74

The right property..................................................................= ...........................................................................= ................................... 74

Pick a pretty home..................................................................= ...........................................................................= ............................... 74

Making it attractive................................................................= ...........................................................................= ............................... 74

Equipping the property..............................................................= ...........................................................................= ........................... 74

The right price.....................................................................= ...........................................................................= ....................................... 76

Marketing= ...........................................................................= ...........................................................................= ......................................... 76

UK market= ...........................................................................= ...........................................................................= .................................... 77

Italian market......................................................................= ...........................................................................= ................................... 78

Other markets.......................................................................= ...........................................................................= .................................. 78

Internet.= ...........................................................................= ...........................................................................= ........................................ 78

Doing deals = PAGEREF _Toc120359833 \h = 78

Management..........................................................................= ...........................................................................= ..................................... 79

Furnished or Unfurnished?.................................................................= ...........................................................................= .................... 80

The Letting Agreement...............................................................= ...........................................................................= ............................. 80

Taxation of Rental Income.................................................................= ...........................................................................= .................... 80

Useful Names & Addresses.................................................................= ...........................................................................= ..................... 80

Taxes....= ...........................................................................= ................................................................ 81

Introduction........................................................................= ...........................................................................= ........................................ 81

Are you resident or non-resident for tax purpose= s?..........................................= .......................................................................... = 81

The Rules that determine Residence..........................................= ...........................................................................= ........................ 82

Tax Residence in more than one country..........................................= ...........................................................................= ............... 83

Decisions you must make.........= ...........................................................................= ...........................................................................= 84

Taxes payable in the UK.........= ...........................................................................= ...........................................................................= ...... 84

Should you pay tax in Ital= y?.........= ...........................................................................= .......................................................................... = 85

Accountants..........................................= ...........................................................................= ....................................................................... 85

Local taxes..........................................= ...........................................................................= ........................................................................ 85

ICI (imposta comunale sugli immobili)...................................................................= ..................................................................... 85

Refuse Tax (tassa rifiuti)........................= ...........................................................................= ............................................................. 86

Other local taxes etc...............................................................= ...........................................................................= ............................... 86

Other taxes payable in Italy - Non-residents..........................................= ...........................................................................= ............. 86

Taxes on income.....................................................................= ...........................................................................= ............................... 86

Taxes on wealth.....................................................................= ...........................................................................= ................................ 86

Taxes on capital gains..............................................................= ...........................................................................= ............................ 87

Taxes on death......................................................................= ...........................................................................= ................................. 87

There is not any inheritance tax to be paid in I= taly...........................................= ......................................................................... <= /span>87

Gift Tax.= ...........................................................................= ...........................................................................= ....................................... 87

VAT......= ...........................................................................= ...........................................................................= ......................................... 87

Stamp Duty..........................................................................= ...........................................................................= ................................... 87

Taxes payable in Italy - Residents..........................................= ...........................................................................= ............................... 87

Taxes on income..........................................= ...........................................................................= .......................................................... <= /span> PAGEREF _Toc1203= 59862 \h 87

Business Tax (imposta regionale sulle attivita produ= ttive – IRAP)...................= .................................................................... 90

Taxes on wealth.....................................................................= ...........................................................................= ................................ 90

Taxes on capital gains..............................................................= ...........................................................................= ............................ 90

Taxes on death......................................................................= ...........................................................................= ................................. 91

There is not any inheritance tax to be paid in I= taly...........................................= ......................................................................... <= /span>91

New Residents.......................................................................= ...........................................................................= ...................................... 91

Double Taxation Treaty..............................................................= ...........................................................................= ............................ 91

Tax planning generally..............................................................= ...........................................................................= .............................. 92

Useful Names & Addresses.................................................................= ...........................................................................= ..................... 92

Residence Permits...................................................................= ............................................... 93

EU citizens = PAGEREF _Toc120359876 \h = 93

Non EU citizens.....................................................................= ...........................................................................= ..................................... 93

Useful Names & Addresses.................................................................= ...........................................................................= ..................... 93

Health Care = PAGEREF _Toc120359879 \h = 94

Tourists & Temporary Visitors..........................................= ...........................................................................= ................................... 94

Health Care = PAGEREF _Toc120359881 \h = 94

EU/EEA Visitors up to 90 days.................................................................= ...........................................................................= .......... 94

EU/EEA citizens visiting for over 90 days at a t= ime..........................................= ......................................................................... <= /span>95

Non EU/EEA Visitors..........................................= ...........................................................................= .................................................. 95

Residents.................................................................= ...........................................................................= ..................................................... 95

People entitled to State medical assistance..........................................= ...........................................................................= ............. 95

People not entitled to State health care..........................................= ...........................................................................= ................... 95

Who do you contact to receive medical care?..........................................= ...........................................................................= ....... 96

What do you have to pay?.................................................................= ...........................................................................= ................. 96

Useful Names & Addresses.................................................................= ...........................................................................= ..................... 96

Welfare Benefits....................................................................= ................................................ 97

The General EU Rules................................................................= ...........................................................................= .............................. 97

How do you decide which rules apply to you?..........................................= ...........................................................................= .......... 97

Which country insures you?.................................................................= ...........................................................................= ................ 98

In which country do you live?.................................................................= ...........................................................................= ............ 98

Living in Italy - What Italian benefits can you = claim?..........................................= ..................................................................... 98

What UK benefits can you claim?.................................................................= ...........................................................................= ........ 99

Useful Names & Addresses.................................................................= ...........................................................................= ................... 102

Investments = PAGEREF _Toc120359900 \h = 103

The need to do something.................................................................= ...........................................................................= ..................... 103

What are you worth?.................................................................= ...........................................................................= ............................. 103

Who should look after your investments?..........................................= ...........................................................................= .............. 104

Where should you invest?.................................................................= ...........................................................................= .................... 104

Trusts...= ...........................................................................= ...........................................................................= ............................................ 105

Keeping track of your investments..........................................= ...........................................................................= ........................... 105

Useful Names & Addresses.................................................................= ...........................................................................= ................... 106

Retirement to Italy.................................................................= ........................................... 107

Pensions.= ...........................................................................= ...........................................................................= ......................................... 107

Health care = PAGEREF _Toc120359910 \h = 107

Cost of Living......................................................................= ...........................................................................= ..................................... 107

Coming back to England..............................................................= ...........................................................................= ......................... 107

Burial & Cremation..............................................................= ...........................................................................= ................................. 107

Useful Names & Addresses.................................................................= ...........................................................................= ................... 108

Inheritance in Italy................................................................= ............................................. 109

The Italian inheritance rules.................................................................= ...........................................................................= ............... 109

Who do the rules apply to?.................................................................= ...........................................................................= .................. 109

Making a Will.......................................................................= ...........................................................................= ................................... 109

What if I don't make a Will of any kind?..........................................= ...........................................................................= ............... 109

Useful Names & Addresses.................................................................= ...........................................................................= ................... 109

Conclusion..........................................................................= ...................................................... 110

Which Area and Type of Property is Right for You?

Personal preference

In the end, the choice of location and type of propert= y is down to personal preference. You are probably buying a home in Italy= because you have been reasonably successful in life. One of the rewards of such s= uccess should be the ability to do as you please. It is too easy to forget, as= you become immersed in the detailed planning for the purchase, that this whole exercise is supposed to be fun. If you want to throw reason = to the wind and buy the house of your dreams there is nothing wrong with doing so – provided you understand that this is what you are doing.

Getting to know the areas

The way that is most fun – and undoubtedly the b= est – is to travel extensively and to get to know the areas both in summer and in winter. The need= to know them in both seasons cannot be over emphasised. Some summer resorts close do= wn almost completely in the winter months. The climate, which was so agreeable in June, can be bloody awful in January. The place that= was a tranquil twenty minute drive from town in May might well involve a two hour nose to tail ordeal in August.

Very few people – the writer included – kn= ow the whole of Italy well.= It is too large to expect so= meone buying a holiday or even a retirement home to do so. In a sense it is unnecessary= . If you like a particular pla= ce and would like a home there does it matter that somewhere else there might be a place you like just as much or even better? Most people therefore select= the area to live from the areas they already know plus, perhaps, another couple that they have read about and decide to visit before making their final decision. A fair substitute f= or an initial visit is a bit of reading. &n= bsp; General guides to Italy, such= as that contained in the first part of this book, can give you a reasonable fe= el for what a place will be like. Follow that up with some more specific reading about the areas that interest you, television programmes etc and you will be ready for a product= ive exploratory visit. Libr= aries, the Internet and the Italian Tourist Board are good sources of information.=

Most people know within a few minutes of arriving in a= town whether it is somewhere they would like to live. A two-week self drive holida= y, using some of Italy's sma= ll hotels, can therefore cover a lot of ground. Take a large-scale map or mo= toring atlas. Be a vandal. Write your comments about the places you visit on the page. Otherwise you will never remember which was which. Buy some postcards to remind= you of the scenery or, if you are a gadget man, take a video or digital camera. Pick up a copy = of the local paper for each area. Even if you do not speak Italian it will give you some idea of what = goes on in the area and also supply details of local estate agents etc. Visit the local tourist offi= ce, if there is one, for more information about the area and an idea of what goes = on throughout the year. Lo= ok in estate agents window and make a note – again on the map – of the sort of prices you will have to pay for property of the type that interests you. But don't go inside.= Make it an absolute rule that you will not look at any propert= ies. If you do you will be caught= in the classic trap of focusing on bricks and mortar rather than the area. What matters most is the area where you are going to live. There are nice houses in every area.

Provided the initial look at prices doesn't make you f= aint, if you like the town mark it with a big aand move on to the next place. If it is not for you, mark the map with a big rand, likewise, move on.

Once you have short-listed your two or three most like= ly places visit them in both summer and winter. Spend a little time there. Make contact with estate age= nts and look at property to your hearts content.

Generally, when going to see property you will be accompanied by the estate agent. &nbs= p; If you are dealing with a private seller (i.e. someone who is not us= ing an agent), when you do finally go looking at property, take a mobile phone. If you don't hav= e one, buy one. Property in ru= ral Italy can be nearly impossible to find and it can save much gnashing of teeth if = you can phone and ask for directions. It is also courteous to telephone if you are delayed en route.

Do you want to let the property?

There are two types of people who decide to rent out t= heir home in Italy. There are those who see the proper= ty mainly, or even exclusively, as an investment proposition and there are those who a= re buying what is, predominantly, a holiday home but who wish to cover all or = part of the cost of ownership from rental income.

For the first group this is a business. Just as in any business, the decisions they take about where and what to buy, how to restore the property and what facilities to provide will be governed by the wish to maximise pro= fit.

The second group will have to bear in mind most of the= same considerations, but will be prepared to compromise (and so reduce potential income) in order to maximise their enjoyment of the property as a holiday home. Just where they d= raw the line will be determined by their need to produce income from the proper= ty.

The choice of the right area is vital if you wan to le= t your property successfully. = See below.

Whichever group you fall in, you are most unlikely to cover all of = your expenses and both capital and interest repayments on a large mortgage from letting your property, however efficiently you do so.

Climate

Most British people buying in Italy= are motivated, in large measure, by the thought of a better climate. What is "better" depends= on your personal perspective.

Remember that temperature & rainfall charts do not= tell the whole story. Wind, = lack of shelter, altitude and other factors can greatly influence your perceptio= n of the climate, which is what really matters. A place where it rains for 2= 00 days per year will seem wetter than a place with the same amount of rainfall but where it only rains for 60 days. = Figures can also conceal substantial daily variations.

The British, Italian & French Climates – a rough Comparison Average Monthly Temperatures (Daily Maximum & Minimum) and Rainfall Source: USA Today/US Met Office
	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
London<= /st1:place>	=	=	=	=	=	=	=	=	=	=	=	=
Max Temperature (C)=	7	7	11	13	17	20	22	22	19	14	11	8
Min Temperature (C)=	2	2	3	5	8	11	13	13	11	8	4	3
Rainfall (mm)<= /o:p>	61	36	51	43	46	46	46	43	43	74	46	58
	=	=	=	=	=	=	=	=	=	=	=	=
Birming= ham	=	=	=	=	=	=	=	=	=	=	=	=
Max Temperature (C)=	6	6	9	12	16	18	21	21	17	13	9	7
Min Temperature (C)=	1	1	2	3	6	9	12	11	9	6	3	2
Rainfall (mm)<= /o:p>	58	48	53	46	56	56	51	71	56	53	64	66
	=	=	=	=	=	=	=	=	=	=	=	=
Manches= ter	=	=	=	=	=	=	=	=	=	=	=	=
Max Temperature (C)=	7	7	9	11	15	18	19	19	17	13	9	7
Min Temperature (C)=	2	2	3	4	7	11	12	12	10	7	4	3
Rainfall (mm)<= /o:p>	71	58	58	51	64	71	86	94	81	94	84	86
	=	=	=	=	=	=	=	=	=	=	=	=
Edinbur= gh	=	=	=	=	=	=	=	=	=	=	=	=
Max Temperature (C)=	6	7	8	11	14	17	19	18	16	12	9	7
Min Temperature (C)=	1	1	2	3	6	9	11	11	8	6	3	2
Rainfall (mm)<= /o:p>	56	41	48	38	51	51	64	69	64	61	64	61
	=	=	=	=	=	=	=	=	=	=	=	=
Cardiff=	=	=	=	=	=	=	=	=	=	=	=	=
Max Temperature (C)=	7	7	9	12	15	18	20	20	17	13	10	8
Min Temperature (C)=	3	2	3	4	7	10	12	12	11	8	5	4
Rainfall (mm)<= /o:p>	91	64	74	53	64	64	69	76	84	91	99	94
	=	=	=	=	=	=	=	=	=	=	=	=
Belfast=	=	=	=	=	=	=	=	=	=	=	=	=
Max Temperature (C)=	7	7	9	11	14	16	17	17	15	11	8	7
Min Temperature (C)=	4	5	6	7	9	12	13	13	11	8	6	5
Rainfall (Wet Days)	23	21	26	20	18	19	21	23	21	22	21	22
	=	=	=	=	=	=	=	=	=	=	=	=
Dublin<= /st1:place>	=	=	=	=	=	=	=	=	=	=	=	=
Max Temperature (C)=	8	8	9	11	14	17	19	18	16	13	10	8
Min Temperature (C)=	3	3	4	5	7	10	12	12	10	8	5	4
Rainfall (mm)<= /o:p>	64	51	51	48	56	56	66	76	64	74	69	69
	=	=	=	=	=	=	=	=	=	=	=	=
Malaga<= /st1:place> (Spain= )	=	=	=	=	=	=	=	=	=	=	=	=
Max Temperature (C)=	17	15	18	20	24	27	30	30	28	23	20	17
Min Temperature (C)=	11	7	12	11	14	17	20	20	18	16	13	10
Rainfall (Wet Days)	8	8	7	9	6	3	1	1	3	8	9	9
	=	=	=	=	=	=	=	=	=	=	=	=
Tenerife (Spain= )
Max Temperature (C)=	21	22	23	22	23	24	27	28	27	26	24	22
Min Temperature (C)=	16	16	16	16	17	19	21	22	22	21	19	17
Rainfall (Wet Days)	3	3	4	3	2	1	0	1	2	2	5	4
	=	=	=	=	=	=	=	=	=	=	=	=
Nice (France)	=	=	=	=	=	=	=	=	=	=	=	=
Max Temperature (C)=	13	14	16	18	21	25	28	28	25	21	16	13
Min Temperature (C)=	6	7	9	11	14	18	21	21	19	15	11	8
Rainfall (Wet Days)	7	7	9	8	6	6	4	5	7	8	6	6
	=	=	=	=	=	=	=	=	=	=	=	=
Rome	=	=	=	=	=	=	=	=	=	=	=	=
Max Temperature (C)=	13	13	15	17	22	25	28	28	26	22	17	14
Min Temperature (C)=	4	4	6	8	12	16	19	19	17	13	8	6
Rainfall (Inches)	3.2	2.8	2.7	2.6	2.0	1.3	0.6	1.0	2.7	4.5	4.4	3.8
	=	=	=	=	=	=	=	=	=	=	=	=
Pisa	=	=	=	=	=	=	=	=	=	=	=	=
Max Temperature (C)=	11	12	14	17	22	26	29	29	26	21	15	12
Min Temperature (C)=	2	3	5	7	11	14	17	17	15	11	6	3
Rainfall (Inches)	3.5	2.7	3.0	3.1	2.4	1.7	0.9	2.3	3.5	4.9	4.5	3.2
	=	=	=	=	=	=	=	=	=	=	=	=
Palermo=	=	=	=	=	=	=	=	=	=	=	=	=
Max Temperature (C)=	15	15	16	18	21	25	28	29	27	23	19	16
Min Temperature (C)=	11	11	11	13	16	20	23	24	22	19	14	12
Rainfall (Wet Days)	15	15	15	12	8	4	2	3	7	12	16	16
	=	=	=	=	=	=	=	=	=	=	=	=
Venice<= /st1:place>
Max Temperature (C)=	6	8	12	16	21	24	27	27	23	18	11	7
Min Temperature (C)=	-1	1	4	8	13	16	18	18	15	10	4	1
Rainfall (Inches)	2.2	2.1	2.4	2.9	2.7	3.1	2.7	3.1	2.6	3.0	3.5	2.4
	=	=	=	=	=	=	=	=	=	=	=	=
Naples<= /st1:place>
Max Temperature (C)=	12	13	16	18	22	26	29	29	27	22	17	13
Min Temperature (C)=	4	5	7	9	13	17	19	19	16	13	8	6
Rainfall (Inches)	3.8	3.2	3.0	3.0	2.0	1.5	0.9	1.2	3.1	5.2	5.0	4.7
	=	=	=	=	=	=	=	=	=	=	=	=
Milan
Max Temperature (C)=	7	8	13	17	21	25	28	28	24	18	11	7
Min Temperature (C)=	-4	-3	1	4	9	13	16	16	12	7	1	-3
Rainfall (Inches)	2.0	2.4	3.5	4.9	4.9	3.5	2.5	3.5	2.7	3.3	4.2	2.0
	=	=	=	=	=	=	=	=	=	=	=	=
Florenc= e	=	=	=	=	=	=	=	=	=	=	=	=
Max Temperature (C)=	11	12	15	19	23	27	31	31	27	21	15	11
Min Temperature (C)=	2	3	5	8	11	14	17	17	14	10	6	2
Rainfall (Inches)	2.8	2.7	3.1	3.1	2.9	2.2	1.6	3.0	3.1	3.5	4.4	3.6
	=	=	=	=	=	=	=	=	=	=	=	=

Access

Getting there

Second only to climate in most people's decision proce= ss should be the question of access to the property. How will you travel there? How will your family and fri= ends travel? How will = you get about whist visiting?

There is interesting research in the tourist industry = that suggests that if visitors have a journey of more than 1 hour by road at eit= her end of their flight, 25% will not bother to travel. More than 1½ hours an= d 50% won't bother. This may not co= ncern you but it is worth bearing in mind as far as family and friends are concerned. It is even more re= levant if you are thinking of letting your property.

This makes driving to your home in Italy a minority activity. Despite this many people do regularly drive to and from their holiday home in Tuscany, a journey which (by motorway) can comfortably be covered from Calais in two days. Much better is to take 3 or = 4 days and enjoy some of the glory of France and = Italy on the way. The motorway tolls and fuel saved by travelling off the motorway may even pay your hotel bills!

Most people travel by air. Air travel to Italy is getting cheaper as more low cost airlines service some of the regional airports. It is a= lso getting easier as you can now fly at reasonable cost to places close to whe= re your home is located. A= few years ago it was a two-hour flight to Rome followed by a four hour drive. To use some of these services easily you will need Internet access.<= /p>

Cheap fares are not always cheap! Sometimes, particularly if you nee= d to travel at a particular time and cannot arrange your travel either a long wa= y in advance or right at the last minute, BA & Alitalia can offer competitive prices and take you to more mainstream destinations. There is a huge variety in prices. Sometimes movin= g to another nearby airport can reduce the prices considerably. A search of Expedia (www.expedia.co= .uk) (with departure on 30^th October 2005 and return on 7^th November 2005) showed a range of prices from London (LHR) to Rome from £112 - £542, to Pisa from £131 - £883 and to Venice from £122- £878. On the same date flights to Rome were shown as follows:

From<= /b>	Price Range – Flights to Rome
London (LHR)	£112 - £542
Glasgow	£194 - £1,108<= o:p>
Manchester	£163 - £1,038<= o:p>
Edinburgh	£188 - £1,067<= o:p>
Birmingham	£163 - £1,280<= o:p>
Aberdeen	£186 - £1,099<= o:p>

A similar wide variety of prices was shown for most destinations. These wer= e all prices from "normal" airlines rather than discount carriers such = as EasyJet, Ryanair etc.

Not all places in Britain are equally served wh= en it comes to flying to I= taly and not all places in Italy are readily accessible.

Ryanair, for example, servic= es Turin, Milan, Palermo, Genoa, Verona, Trieste, Venice, Pisa, Bologna, Rome,= Alghero, Ancona and Pescara – but not all with the same frequency and not all = from every airport. Similarly Easyjet services Venice, Cagliari, Bologna, Olbia, <= st1:City w:st=3D"on">Rome and Milan.

You will need to make enquiries to see how often and f= rom which UK= airports to can fly to somewhere close to your preferred destination – and what it will cost!

Getting around once you have arrived

If you are buying a home for retirement, is it in a pl= ace that will still be accessible in 20 or 30 years time? Or will you be uncomfortable drivi= ng up the twisting mountain access road at age 85? Is there any public transport? There will be times when you will need it. Your car may need repair. &nbs= p; You may have broken a leg. &nb= sp; You may (with luck!) be invited to a boozy party.

Think about travel once you have arrived by air. Most people either hire a ca= r or own their own Italian car, which they leave at the house or (better) in the airport car park waiting for their next visit. It is worth doing a careful = price comparison. Surprisingly often the cost of insuring, taxing and maintaining your local car plus airp= ort parking and the depreciation of its value can amount to nearly as much R= 11; or more – than renting a new, clean car on each visit. Renting also means you= can choose the type of car you need for that particular visit. If granny is coming, rent an= up market car with lots of legroom and easy rear seat access! Look to cheap, local car hire companies as well as the big na= mes, which sometimes have surprisingly good deals available.

Finally, how will your children/visitors travel when t= hey arrive in the area? Wil= l they have to/be able to rent a car? Remember that many car hire companies have a minimum age limit of 25. Is there any public transport? Will you be = an unpaid taxi service for the duration?

Weekends

Most people who have holiday homes in Italy u= se them regularly at weekends. = Even those who think that they will use them mainly for longer holidays tend to = end up flitting to and fro on a regular basis, captivated by the tranquillity, = the food and the fact that it can be cheaper to fly to Italy than to get the train f= rom London to Manchester.

Even if you are intending to live in Italy f= ull time your family and friends may wish to visit for weekends. This means that, whatever yo= ur own present intentions, it is sensible to think about how people would travel if they wanted to visit for weekends. <= /span>

Facilities

Your future happiness with the home you buy will depen= d upon the facilities in the area. Each person will have different requirements.

Are you a golfer?&nbs= p; If so just one or two golf course in the vicinity is unlikely to sat= isfy you for long. Are you thinking of retiring to the area? &nb= sp; If so you will need a major shopping centre within an hour or so by car. Do you visit the t= heatre or opera? What is available? Are you sociable? Is this an ar= ea where you will find "your kind of (English speaking?) people"? Do you expect your teenage children to visit? If s= o, is there anything for them in the area? = The local bowls club might not cut it!

Most people prefer a property within about an hour's d= rive of a city or substantial town.

Terrain

Each of us has our own preferences as far as the count= ryside is concerned. Is this really what you want, or i= s it a place that is beautiful but, ultimately, unsatisfying?

Price Guide

There are various ways of keeping your eye on Italian property prices generally. Take the various property magazines such as Homes Overseas and Priva= te Villas. Search the Internet. Attend proper= ty shows – particularly the larger events.

Once you know the area you are interested in make cont= act with several estate agents in the area.

Remember that apparently similar properties can differ widely in price because of factors not known to you such as the property's state of repair, location, views and convenience. Property in prime locations can be= much more expensive.

Space

Most people underestimate the space they will need in = their home overseas. This is becaus= e they underestimate how popular they will become once they have a villa in Tuscany! The combination of you= r own accommodation needs, the needs of visitors and the requirement for storage space means that, if the budget permits, it is worth thinking of buying one more bedroom than you first contemplated.

Heating

In the North and centre of Italy it can be as cold and w= et as it is in Britain. Or worse. Even in the warmest parts of= the south of Italy you need a decent heating system because there are numerous days each year = when heating will be needed. It may be a lot warmer than it would have been in Manchester, but if= you have been used to daily winter temperatures of 70ºF (21ºC) then a drop to 60º will make you feel cold.

Air conditioning

Air conditioning still has the reputation of being a l= uxury item. Some of us think = that giving in to the heat and turning on the air conditioning is "sissy".

We recommend that everyone buying a home in southern <= st1:country-region w:st=3D"on">Italy s= hould install at least some minimal air conditioning. With predicted global warming summer temperatures are likely to rise. However macho you may be, if= the 2 a.m. temperature is 30&ord= m;C (86ºF) and you cannot sleep it is hard to deny the value of air conditioning. You may n= ot need it often but when you do you really need it.

For people buying a home for retirement, or with elder= ly relatives who will visit, it is worth remembering that, as we get older, we gradually lose our ability to adjust to extremes of temperature. A temperature that is unplea= santly hot for a 55 year old can be life-threatening for a 90 year old.

With portable heaters available for £300 - &poun= d;400 buying some type of cooling makes a lot of sense.

Parking

If you have a nice car and want to keep it secure park= ing is an asset in any country. Town property in Italy is often sold without any dedicated parking space. These can cost a surprising = amount if bought separately.

New or old?

There is no right answer!

Traditionally the Italian, except for the wealthy, have scorned older, restored property in favour of new build. 30 years ago I can remember Italian friends thinking that expenditure on paint was quaint but foolish.<= span style=3D'mso-spacerun:yes'> This left the market open to= the British to buy up the older homes for a pittance, love them, restore them a= nd live happily ever after. Things have changed. I= n many areas the Italians have developed an interest in older "character" property. Also, t= he seemingly inexhaustible supply of houses and cottages abandoned as a result of rural depopulation and drought has, in areas like Tuscany, almost run out. They have been bought up by thousands of British and other foreigners and a few local people. Prices are rising. The habitable £30,000 cottage is, in most areas, a thing of the past – soon to be followed = by its cousins the habitable £40,000 cottage and the habitable £50= ,000 cottage.

The decision between new and old is, in Italy, basically the same decision as in Britain. It involves considering the featur= es of each type of property in the light of your own personal preferences. Most people are clear from the out= set which they prefer.

New & Old Property in Italy – a comparison
New Property	Older Property=
Advantages<= o:p>	Advantages<= o:p>
The technical specification and design will be bette= r than in an older property. This is particularly so in areas such as insulation and energy efficiency	The property has "character". Its design may be classica= lly beautiful and the detailed workmanship will probably be superior to today= 's product
It will have been inspected and built to known stand= ards	The garden will be mature
Most people prefer new kitchens, which get more sophisticated each year	It may occupy a better site than a newer property &#= 8211; on the basis that the best were often built on first
It will probably have a reasonable heating system	It may be a more attractive rental proposition than = a new property, especially in rural areas
Electrical and plumbing installations will be to a superior standard	You will feel that you are living in a property in <= st1:country-region w:st=3D"on">Italy=
Few people will have used the bathrooms!	What you see is what you get. You turn on the taps, ther= e is water. You can see the room= sizes and how the sun lies on the terraces. You can see the views and = the distances to adjacent properties
Provision will probably have been made for car parki= ng	It may be cheaper than a comparable new property
You may share common resources such as pools or tenn= is courts with other people	It will probably have more land than a comparable new property
The building will require less maintenance than an o= lder property, certainly for the first few years
It should be cheaper to run
You can design your own property or, at least, often= fine tune the existing design to your special requirements
The fabric will be guaranteed
If you bought "off plan" you may well see = some pre-completion growth in value


Disadvantag= es	Disadvantag= es
The building will be new and brash, not mellow	Older properties can need a lot of maintenance and l= oving care
It can be hard to envisage what you are going to get= from a plan and specification	It will be more expensive to heat and run
You will have to sort out all the small snags inevit= able in any new building. You may s= pend all your holidays chasing the builder or doing this. You don't speak Italian.	You may need to spend significant sums on, say, the kitchen and bathrooms to bring the property up to modern standards
You will have to sort out the garden
You may have to decorate
Although technical design may have improved the aest= hetic appeal may be less than that of an older property and the detailed workmanship less rewarding than that of a time when labour was cheap
As a rental property most (British) people prefer ei= ther a property with close access to golf or entertainment or a villa with a poo= l.

Rental Potential

The most important thing to understand i= s that there are thousands of properties in Italy which are, commercially= speaking, impossible to let. A ru= stic house in a rural backwater may find a few tenants during the year but they = will not be anywhere near enough to generate a sensible commercial return on your investment. If you are interested in such a house you will probably have accepted this and view any rental income as a bonus that may help to defray some of the expenses of ownership.

Assessing rental potential is a skill th= at takes time to acquire. = There are, however some good indicators of property that is likely to let well.

See the section on renting out your prop= erty.

Capital Growth

One of the great attractions of owning a property is the potential for the asset growing in value whilst, at the same time, you enjoy the use of it. Few would say that you get as much fun out of 10,000 Abbey National shares as yo= u do out of a flat in Rome! The fl= at is also less likely to go bust, or to be taken over and lose half its value overnight. In case ther= e are any libel lawyers reading, I am not suggesting that Abbey National is likel= y to go bust or be taken over!

For some people the choice of place to b= uy a property – or the selection of which of several places to choose R= 11; is governed by likely capital growth.

The British view property as an investme= nt as well as a home. We expect our= house to rise in value, if not year by year, at least over time. Until recently this was not = really a consideration for the Italian. &nbs= p; As a result there has been a perception that property in Italy d= oes not increase in value – or, at least, not to any significant extent.

That perception is false.

There is some truth in relation to some = rural areas, where there is still a lot of property left over after the massive r= ural depopulation of the twentieth century. The thousands of rural homes abandoned in the flight to the city and large towns lay empty for many years. This depressed r= ural property prices. Even in these areas, especially where older property has "sold out", there have been increases in value. A small cottage near Lu= cca, bought for £10,000 in 1985 and restored, might well be worth £70,000 - £100,000 today.

In popular areas – and, in particu= lar, in popular tourist areas – there have been large amounts of property inflation. In recent ye= ars this has been in the region of 10 – 20% per year. How much depends on the type= of property bought and, above all else, the place where it is located. There is, of course, no guar= antee that property prices will continue to increase at this rate. There is an economic cycle a= nd prices rise and fall over time. Over the mid to long term they generally increase.

Estate Agents

Although many Italians will buy their home without the intervention of an estate agent 99% of British people buying a property in = Italy w= ill use one.

Whichever agent you use and = wherever they are based, please remember that they are not being paid by you to look after your interests. They are usually paid a commission by both the seller= and the buyer only if they sell the property. However helpful and professional they may be, if you do not sign a contract to buy then they do= not receive their commission and their children starve! They therefore have their own interests to look after, which broadly coincide with those of the sellers b= ut which might not coincide with yours.

Despite this the estate agent can be a mine of useful information, knowledge about the area and practical help. The large majority is genuin= ely enthusiastic about property in Italy and about you joining their community. Take advantage of what they = have to offer, form a rapport with them, buy a property through them….but = get everything checked by your legal adviser just as you would in Britain= .

Some agents will tell you that you do not need to use a lawyer. That the servic= es of the local Notary Public (notaio= ) will suffice. Ignore that advice. It is qui= te true that the average Italian person would not use the services of an independent lawyer when buying a house unless there was something complex a= bout the transaction or about their own circumstances. For a foreigner, however, th= is is generally not good enough. There are many issues on which you will need guidance that it is no = part of the notary's duty to provide. &nbs= p; Furthermore, your Italian notary will almost certainly know nothing about British law and so will be unable to give you any help as far as such vital issues as who should own the property in order to make the most of UK AND Italian tax and inheritance rules. As to the functi= on of the notary, see the section on The Notary below.

Italian based agents

The role of Italian estate agents (agenzie immobiliari) is similar to the role of the British esta= te agent. Their job is to = find buyers for properties entrusted to them by a seller. But there the similarity end= s.

In England a person can be a plumber today and, without any qualifications or experien= ce, set up an estate agency tomorrow. &nb= sp; They cannot do this in Italy. In Italy in order to practice as= an estate agent you must be professionally qualified and hold a licence to practice. You must also= have indemnity insurance. Al= l this is partly an example of the generally greater paperwork and red tape preval= ent in Italy= and partly a useful consumer protection measure.

There are a number of agents operating in Italy without a licence. That= is, they are operating illegally. Many are foreigners servicing the foreign buyer. British selling to British, Germans to Germans etc. Some of these "illegals" are excellent, skilled people who offer a ser= vice at least as good as many of the legal agents. Despite this, you are better dealing with a "registered" agen= t or his genuine employee as you will then be covered by the legislation and the codes of conduct to which the agents must adhere.

Estate agents in Italy join the Italian equiva= lents of the British National Association of Estate Agents, known as AICI or a competing professional b= ody known as FIAIP. This is worth looking out for.

It is not only the seller wh= o pays the estate agents commission. Normally the buyer is expected to pay half the commission. Be clear when you are looking at property whether the price mentioned includes or excludes these fees and, i= f it does not, who is going to pay. The total estate agents’ fees= are usually about 6% of the price of the property. The amount will depend on the value of the property, whether it is new or old and the area it is located. Cheaper proper= ties generally pay more commission than more expensive properties and properties= in main tourist areas tend to pay more commission than in less sought after (a= nd generally poorer) areas. The commission is often payable when you sign the contract to buy the property rather than when you complete the transaction by paying for it and signing = the title deed (rogito).

In order to protect his substantial commission the age= nt may ask you to sign a document before he takes you to see the property. This is a statement that it = is he who has introduced you to the property, so avoiding later arguments about w= ho should be paid the commission due.

There are other significant differences from English practice. Generally age= nts are rather less proactive than they are in = England. This is particularly true in= rural areas, especially non-tourist rural areas. You will seldom find printed proper= ty particulars or be supplied with photographs. Still less will you find plans or = room dimensions in most estate agents' offices.= They see their role as capturing property to sell and then showing buyers around that property. Many agents are either "one man bands" or in small firms w= ith a limited range of property on their books. This is, again, especially t= rue in rural areas. Their offi= ces may not be obvious "shop front" premises as many agents, especial= ly those specialising in properties in rural <= st1:place w:st=3D"on">Italy for foreign buyers oper= ate more from their telephone than from their office. All this can make it difficult to get a comprehensive view of what is on the market in a locality. In addition, = there are few local or national groupings of agents.

You are probably best off starting to look for propert= y by using an estate agent in the immediate vicinity of the place where you are looking. Many rural age= nts will only cover an area about 40km in diameter. If you are still uncertain w= here precisely you intend to buy, try several adjoining agents or, if there is o= ne in your area, one of the big chains such as Technocasa. These generally operate as independent offices but their will probably be some linkage between branche= s in adjoining areas. Local newspapers will give you an indication of which agents are advertising, and= so active, in your area. You can= also get names out of the Italian Yellow Pages (under agenzie immobiliari). &nb= sp; The Yellow Pages for popular areas are kept in many city libraries in the UK. Some agents also advertise in both= the Italian and UK specialist property press. An excellent and simple way of obtaining a comprehensive list of agents is to write to both AICI and FIAIP. The list, though comprehensi= ve, will probably contain details of specialist agents who do not deal with ordinary residential property as well as those who do.

Estate agents also often operate as property management companies and as property letting agents.&= nbsp;

UK based estate agents

There are growing numbers of people based in the UK who = sell property in Italy. Most popular areas are covered. Although, under English law,= they are entitled to call themselves estate agents it is important to note that,= in most cases, they are not licensed Italian estate agents.

They very often work in association with one or more I= talian agents, generally covering a wider area than a single Italian agent would cover. They advertise or mark= et the properties through exhibitions etc and then act as an intermediary between = the potential buyer and the Italian estate agent – who may not speak English. Because they d= eal with British buyers all the time they should be able to anticipate some of = the common problems that can arise and smooth the progress of the transaction.<= /p>

Generally they should share the commission of the Ital= ian agent – who is very pleased that they can expand his potential buyer = base by introducing foreign buyers. Thus their services should cost you nothing extra.

These people can be very useful, particularly if you h= ave little experience of dealing with Italy and don't speak Italian= .

Unfortunately, it is not as simple as that. Some charge substantial amou= nts of extra commission for their services. = Often they do not disclose that commission to the buyer. There is nothing wrong with = paying someone who is doing a useful job some commission, but you should be told t= hat you are expected to do so. Yo= u can then decide whether the convenience of dealing with someone in Britain= is worth the extra cost. A= lways ask for confirmation that the price you will be paying is exactly the same = as you would have paid in Italy or, if there is an extra charge, the amount of the charge.

Some UK based agents advertise their prices as a global price including the price of the property, tax, notary's fees and all commissions. This can be very useful for = the British buyer unused to these transactions but it can also, in the hands of= the unscrupulous, be a way of hiding a large element of hidden commission. The Seller has agreed to sel= l his apartment for €50,000 (about £30,000). Commission has been agreed a= t 5%. (€2,500) Notaries fees = and taxes will amount to about 12% (€6,000). An all-inclusive price of €65,000 therefore gives an extra hidden charge of €6,500. If you are offered property = on this basis check what the price includes.

Many of these UK based sellers are highly experienced and very reputable. Before deciding which to use ask about their level of experience. It is more difficult to asse= ss whether they are reputable. A good starting point is to see whether they are members of FOPDAC (the Federation of Overseas Property Developers, Agents & Consultants – Tel: 020 8744 2362). This is a non-profit organisation that agents and developers can join if they are experienced in the field, are prepared to be scrutinised and willing to abi= de by its code of conduct.

DIY sales

In Italy, especially in big cities and rural areas far more property is sold "pe= rson to person" than in the UK. Depending on area this can be between 30% and 40%. Th= ere are a variety of different sources of information about such properties for sale.

Vendesi= (for sale) signs

As you drive around, particularly in tourist areas, yo= u will see a number of DIY for sale signs. They normally give a contact telephone number. To take advantage of property offered in this way you, obviously, have to be in the area and you will probably need to speak Italian. If you do not speak Italian it is worth a trial phone call. You never know your luck! If the person who answers do= esn't speak English there may be a local English speaking person – perhaps = in your hotel – who would make contact on your behalf. As a last resort phone your lawyer. He should be ab= le to find out the necessary details for you and, if you wish, make arrangements = to view. He will, of cours= e, charge for this work but the saving of estate agents fees will make his cha= rges look cheap.

Local newspapers

Individuals place advertisements in the "For Sale= " section of the local paper. Once again, the ability to speak Italian is an advantage.

"Freesheets"

In some towns and in popular tourist areas in the countryside there are free local news sheets, similar to those in the UK. In some places there are specialist free property papers. &nbs= p; All are likely to have adverts from private sellers. In some areas estate agents produce their own free sheets, distributed outside their offices.

Specialist local property press

In some areas there are specialist magazines which exi= st primarily to carry advertisements from private individuals selling their property. Some have jus= t a local coverage, others a regional or even national coverage. Go and browse through a coup= le of newspaper kiosks and see what is on offer. Buy them all. They will give you a good ge= neral guide to prices.

There are also several more "glossy" lifesty= le publications, covering property (particular more expensive property) in main tourist areas such as Tuscany= . Again, buy the lot. They will be full of useful information.

Specialist British property press

Private individuals advertise in the main specialist B= ritish property press such as Homes Overseas and World of Property. Also try more general publications= such as Daltons Weekly and Exchange & Mart, especially for cheaper property. You may also = find advertisements from private sellers in The Sunday Times, Weekend Telegraph & Mail on Sunday. Generally speaking private sellers advertising in the British press = are British.

Internet

There is a huge amount of property available for priva= te sale on the Internet. F= inding it can sometimes be tricky. Remember that you should search in Italian as well as in English. Be extra careful when buying= over the internet.

Property shows

Some of the international property shows have a section where private individuals can post details of property for sale. Contact the show organisers = for details.

Auctions

Property in Italy can be bought at auction, just as in England.

Some auctions are voluntary, others run by court order= .

Prices can be very attractive. A few years ago, at the heig= ht of the last recession, there were incredible bargains with prices, perhaps, 30= % of "value". Now auctions usually offer less spectacular bargains but can still be attractive. This is bec= ause, particularly in many judicial auctions, the process is intended first and foremost to recover someone's debt. Once that and the considerable costs have been covered there is litt= le reason to press for a higher price, even though the owner will ultimately receive the excess.

Buying a property at auction is not simple for someone= who does not live in the area and it is vitally important that you have taken a= ll the normal preparatory steps – including seeing a lawyer – befo= re you embark on the process.

The procedure leading up to the auction is basically t= he same whether the auction is a judicial auction or a voluntary auction.

First, you must know that the auction is taking place.= They are usually advertised = 6 to 8 weeks in advance. Aucti= ons ordered by the court will be advertised by order of the court in the local press. Notices will als= o be posted in the area.

Second, you must find out what is in the auction. Brief details of the propert= y to be sold are published. = These details of the property will mean nothing to you. The place could be derelict or nex= t door to a nuclear power station – or both. You will need to inspect the property and decide whether it is of interest. This is a time consuming and poten= tially costly process. Remember that= you could have to inspect twenty properties to find three you might like and th= en you might be outbid on all three. &nb= sp; An alternative to personal inspection is to get someone to do it for you. This is not as satisfactory but a local estate agent will, for a fee, go to look at the property and give you a description of it. If you're lucky he might pos= t or email you some photographs. His fee, about £200 if the property is close to his office, wi= ll probably be less than the cost of travel. Some people buy blind. This is for real poker players.

Thirdly, you will need to check out the legal situatio= n of the property before the date of the auction. Most of the steps needed in = an ordinary purchase will be required (see below).

Fourthly, many properties on sale by auction are not i= n the best of condition. You will therefore need to get estimates as to the likely cost of repairs or improvements so as to make sure that the price you bid is not so high as to make the project non-viable.

Fifthly, you will have to appoint a lawyer to act on y= our behalf at the auction. = You would be brave or foolish not to be represented. The lawyer will explain precisely = what will need to be done for this particular auction. You will have to tell him the maximum price you want to offer and pay him the bidding deposit – a refundable deposit levied by the auctioneer in order to allow you to enter a bid. Your will also have to g= ive him your personal details (marital status, occupation, nationality, passport number etc) and a deposit of (usually) 20% of the price you are offering, less the bidding deposit. The full depos= it is paid across at the time your bid is accepted.

You do not need to attend the auction – the lawy= er will be able to do so for you. He will probably require a power of attorney for that purpose. He will, of course, charge y= ou for this work. Get an estimate.

Even though you do not need to be present, an auction (especially a judicial auction) is a most interesting event, so you might w= ant to go along.

Although the prices at auction can be very attractive = you must bear in mind that you will face additional costs over and above those = on a normal purchase. These = are likely to raise the overall costs of buying from the normal 12% – 15%= of the price to perhaps 14% - 17% of the price paid. The extra costs include the = fees paid to your lawyers for dealing with the auction.

It is also possible to buy a Italian property at aucti= on in Britain= . This is very rare. The auction acts simply as a preliminary sale of the property. The sale will need to be formalised in Italy in the usual way (see b= elow).

Renting instead of Buying

If you are retiring there is a lot to be said for temporarily renting a place in the area where you are thinking of living. It is best to do this for a full y= ear before deciding whether to live there. Allowing for time thereafter= to find and buy a property probably means a 12 to 18 month rental. Try to rent something simila= r to what you are thinking of buying and do not rent unseen - take a short holid= ay to find your rental property.

If you rent you are less likely to commit yourself to a purchase in an area you turn out not to like. It also avoids the expensive proce= ss of having to sell the property and buy another, either in Italy or back in England. The overall cost of moving w= ithin Italy is likely to be about 11% of the price o= f your new property, 8% being the fees on the purchase of the new property (a lower figure than you paid when you bought because you are a resident) and 3% bei= ng your share of the estate agents' fee for selling the old one. A move back to England= would (depending on the value of the property bought) be likely to cost about 5% sales expenses in Italy and 3% purchase expenses in England.

There are drawbacks to renting:

1. In the recent past property prices in many areas have risen rapidly. For example, if 2 years ago = you had been buying in Tuscany or Umbria then delaying 18 months would probably have cost you about 15% - 20% in increased property cost. This is a lot more than your= money would have made if invested, so the delay would have cost you money.

2. The rent you paid out is dead money. &nbs= p; This would probably be about 5% of the value of a property per annum= .

3. You want to get on with your life, especially if you have just retired.

4. Moving is stressful. You will = have to do it twice rather than once.

5. Moving into temporary accommodation can produce a lack of attachment to the area, which can mean that you don't commit to it and give it a fair try. You are always looking back over y= our shoulder at England<= /st1:place> rather than forward to Italy.

6. It can be hard to find good accommodation available on an 18 month let.

If you are thinking of a holiday home it can also make= sense to rent rather than buy. The biggest drawback to owning a property overseas is that you feel compelled to take all your holidays there. You are paying for it so you should use it! If you invested the mo= ney spent on the home it would generate a good income, which would pay for a holiday anywhere in the world. Of course, renting is never as good as owning your own home. You do not know the quality = of what you will find on arrival. You won't be able to leave your clothes there and so travel light. You won't have friends there= and so feel part of the community. You won't be able to offer the use of the property to family and friends. You may find that yo= ur investment of the cash saved has performed less well than the house would.<= /p>

Inspecting Property

Whatever property you are thinking of buying you should think about having it inspected be= fore you commit yourself to the purchase. = It costs just as much and causes just as much disruption to repair property in Italy as in England, so you don't want any surprises.

In fact – foolishly – very few buyers of property in Italy do this.

A new property will be covered by a short guarantee ru= nning from the date of handover and covering minor but not trivial defects in a n= ew property. The property = will also benefit from a guarantee in respect of major structural defects that w= ill last for 10 years. As a subse= quent purchaser you assume the benefit of these guarantees. After 10 years you are on yo= ur own! For property more than 10 years old (and, arguably, for younger property too) you should consider a survey.

If you are buying a rural property that is being split= off a larger property you must use a surveyor to establish your boundaries.

If you decide on a survey there are a number of options available to you.

Do it yourself

There are several things that you can do yourself. These will help you decide when to instruct a surveyor to do a proper survey and help direct him to any specif= ic points of interest.

Checklist – Do-it-yourself inspection of property
Task	4
Title
&n= bsp; Check that the property corresponds with its description in the title
&n= bsp; Number of rooms
&n= bsp; plot size
Plot
&n= bsp; Identify the physical boundaries of the plot?
&n= bsp; Is there any dispute with anyone over these boundaries?
Are there any obvious f= oreign elements on your plot such as pipes, cables, drainage ditches, water tanks etc?
Are there any signs of = anyone else having rights over the property? Footpaths, access ways, cartridges from hunting etc?
Garden/Terrace
&n= bsp; Are any plants, ornaments etc on site not being sold with the property
Pool
&n= bsp; Is there a pool? If so:<= /p>
&n= bsp; = ; What size is it?
&n= bsp; = ; Is it clean and algae free?
&n= bsp; = ; Do the pumps work?
&n= bsp; = ; How old is the machinery?
&n= bsp; = ; Who maintains it?
&n= bsp; = ; What is the annual cost of maintenance?
&n= bsp; = ; Does it appear to be in good condition?= = ;
Walls – Stand back from property and inspect f= rom outside
&n= bsp; Any signs of subsidence?
&n= bsp; Walls vertical?
&n= bsp; Any obvious cracks in walls?
&n= bsp; Are walls well pointed?
&n= bsp; Any obvious damp patches?
&n= bsp; Any new repairs to walls or re-pointing?
Roof – inspect from outside property
&n= bsp; Does roof sag? &= nbsp;
&n= bsp; Are there missing/slipped tiles?
&n= bsp; Do all faces of roof join squarely?
&n= bsp; Lead present and in good order?
Guttering & Downpipes – inspect from outsi= de property
&n= bsp; All present?
&n= bsp; Securely attached?
&n= bsp; Fall of guttering constant?
&n= bsp; Any obvious leaks?
&n= bsp; Any recent repairs?
Enter Property
&n= bsp; Does it smell of damp?
&n= bsp; Does it smell "musty"
&n= bsp; Does it smell of dry rot?
&n= bsp; Any other strange smells?
Doors
&n= bsp; Signs of rot?
&n= bsp; Close properly – without catching?
&n= bsp; Provide proper seal?
&n= bsp; Locks work?
Windows
&n= bsp; Signs of rot?
&n= bsp; Close properly – without catching?
&n= bsp; Provide proper seal?
&n= bsp; Locks work?
&n= bsp; Excessive condensation?
Floor
&n= bsp; Can you see it all?
&n= bsp; Does it appear in good condition?
&n= bsp; Any sign of cracked or rotten boards
Under floor
&n= bsp; Can you get access under the floor?
&n= bsp; If so, is it ventilated?
&n= bsp; Is there any sign of rot?
&n= bsp; How close are joists?
&n= bsp; Are joist ends in good condition where they go into walls?
&n= bsp; What is maximum unsupported length of joist run?
&n= bsp; Is there any sign of damp or standing water?
Roof Void
&n= bsp; Is it accessible?
&n= bsp; Is there sign of water entry?
&n= bsp; Can you see daylight through the roof?
&n= bsp; Is there an underlining between the tiles and the void?
&n= bsp; Is there any sign of rot in timbers
&n= bsp; Horizontal distance between roof timbers
&n= bsp; Size of roof timbers (section)
&n= bsp; Maximum unsupported length of roof timbers
&n= bsp; Is roof insulated – if so, what depth and type of insulation?
Woodwork
&n= bsp; Any sign of rot?
&n= bsp; Any sign of wood boring insects?
&n= bsp; Is it dry?
Interior walls
&n= bsp; Any significant cracks?
&n= bsp; Any obvious damp problems?
&n= bsp; Any sign of recent repair/redecoration?
Electricity
&n= bsp; Check electricity meter. &nbs= p;
&n= bsp; = ; How old is it?
&n= bsp; = ; What is its rated capacity?
&n= bsp; Check all visible wiring. <= /p>
&n= bsp; = ; What type is it?
&n= bsp; = ; Does it appear in good physical condition?
&n= bsp; Check all plugs
&n= bsp; = ; Is there power to plug?
&n= bsp; = ; Does plug tester show good earth and show "OK"
&n= bsp; = ; Are there enough plugs?
&n= bsp; Lighting
&n= bsp; = ; Do all lights work?
&n= bsp; = ; Which light fittings are included in sale?
Water
&n= bsp; Do all hot and cold taps work?
&n= bsp; Is flow adequate?
&n= bsp; Do taps drip?
&n= bsp; Is there a security cut off on all taps between mains and tap?
&n= bsp; Do they seem in good condition?
Hot Water
&n= bsp; Is hot water "on"? If so, does it work at all taps, showers etc?
&n= bsp; What type of hot water system is fitted?
&n= bsp; Age?
Gas
&n= bsp; Is the property fitted with city (piped) gas? If so:
&n= bsp; = ; Age of Meter
&n= bsp; = ; Does installation appear in good order?
&n= bsp; = ; Is there any smell of gas?
&n= bsp; Is the property fitted with bottled gas? If so:
&n= bsp; = ; Where are bottles stored? &nbs= p;
&n= bsp; = ; Is it ventilated to outside of premises?
Central Heating
&n= bsp; Is the property fitted with central heating? If so:
&n= bsp; = ; Is it "on"?
&n= bsp; = ; Will it turn on?
&n= bsp; = ; What type is it?
&n= bsp; = ; Is there hear at all radiators/outlets?
&n= bsp; = ; Do any thermostats appear to work?
&n= bsp; = ; Are there any signs of leaks?
Fireplaces
&n= bsp; Is property fitted with any solid fuel heaters? If so:
&n= bsp; = ; Any sign of blow back from chimneys?
&n= bsp; = ; Do chimneys (outside) show stains from leakage?
&n= bsp; = ; Do chimneys seem in good order?
Air conditioning
&n= bsp; Which rooms are air conditioned?
&n= bsp; Are units included in the sale?
&n= bsp; Do the units work (deliver cold air)?
&n= bsp; What type of air conditioning is it?
&n= bsp; How old is it?
Phone
&n= bsp; Does it work?
&n= bsp; Number
Satellite TV
&n= bsp; Does it work?
&n= bsp; Is it included in the sale?
Drainage
&n= bsp; What type of drainage does property have?
&n= bsp; If septic tank, how old?
&n= bsp; Who maintains it?
&n= bsp; When was it last maintained?
&n= bsp; Any smell of drainage problems in bathrooms & toilets?
&n= bsp; Does water drain away rapidly from all sinks, showers and toilets?
&n= bsp; Is there any inspection access through which you can see drainage taking pla= ce
&n= bsp; Is there any sign of plant ingress to drains?
&n= bsp; Do drains appear to be in good condition and well pointed?
Kitchen
&n= bsp; Do all cupboard open/close properly?
&n= bsp; Any sign of rot?
&n= bsp; Tiling secure and in good order?
&n= bsp; Enough plugs?
&n= bsp; What appliances are included in sale?
&n= bsp; Do they work?
&n= bsp; Age of appliances included?
Bathroom
&n= bsp; Security and condition of tiling?
&n= bsp; Ventilation?
Appliances
&n= bsp; What appliances generally are included in sale?
&n= bsp; What is NOT include in sale?
Furniture
&n= bsp; What furniture is included in sale?
&n= bsp; What is NOT include in sale?
Repairs/Improvements/Additions
&n= bsp; What repairs have been carried out in last 2 years?
&n= bsp; What improvements have been carried out in last 2 years/10 years?
&n= bsp; What additions have been made to the property in last 2 years/10 years?
&n= bsp; Do they have builders receipts/guarantees?
&n= bsp; Do they have building consent/planning permission for any additions or alterations?
Defects
&n= bsp; Is seller aware of any defects in the property?

Estate Agent's Valuation & "Survey"<= /h3>
It may be possible to arrange for another local estate= agent to give the property a quick "once over" to comment on the price asked and any obvious problem areas. = This is far short of a survey. It is likely to cost about £300.

Mortgage Lenders Survey

This is no substitute for a proper survey. Many lenders do not ask for = one and, where they do, it is normally fairly peremptory, limited to a check on whether it is imminently about to fall over and whether it is worth the mon= ey the bank is lending you.

Italian Builder

If you are going to do a virtual demolition and rebuil= d then it might make more sense to get a builder to do a report on the property. A reputable and experienced builder will also be able to comment on whether the price is reasonable for= the property in its existing state. Make sure you ask for a written quotation for any building work proposed. As in any cou= ntry it is as well to get several quotes, though this can be tricky. There is a lot of work for builders at the moment.

Italian Surveyor

The person doing the survey is usually the geometra. Your lawyer can put you = in touch with the right people. In most rural areas there will be limited choice. If you prefer you can = select "blind" from a list of local members supplied by the surveyors' professional body. The = cost of a structural survey (perizia srutturale) is typically £500 - £1500.

You will find that the report is different from the so= rt of report you would get from an English surveyor. Many people find it a little "thin", with too much focus on issues that are not their primary concern. It will, hardly surprisingly, usually be in Italian. You will need to have it translated unless you speak very good Itali= an and have access to a technical dictionary. Translation costs amount to = about £80 - £100 per thousand words, depending on where you are located and the complexity of the document. Incidentally, always use an English person to translate documents from Italian into English. An alternative to translatio= n of the full report would be to ask your lawyer to summarise the report in a le= tter to you and to have translated any areas of particular concern.

A few Italian surveyors, mainly in the popular areas, = have geared themselves to the non-Italian market and will produce a report rather more like a British survey. T= hey will, probably, also prepare it in bilingual form or at least supply a translation of the original Italian document.

UK Qualified Surveyor based in Italy

A number of UK surveyors – usually those with a love of Italy= – have seen a gap in the market and have set themselves up in Italy to provide British style structural surveys. As in this country they usua= lly offer the brief "Homebuyers" report or the fuller "Full Structural Survey". This= is not as simple as it would first appear. To do the job well they must= learn about Italian building techniques and regulations, which are different from those in Britain. Without this knowledge the r= eport will be of limited value. Prices are generally slightly more expensive than for an Italian rep= ort, but it will be in English and so avoid the need for translation costs. Your UK lawyer should be able to recommend a surveyor able to do a survey in your area. Alternatively, look for adve= rtisers in the main Italian Property magazines.

Check they have indemnity insurance covering the provi= sion of reports in Italy<= /st1:place>. Check also on the pers= on's qualifications and experience in providing reports on Italian property and = get an estimate. The estima= te will only be an estimate because they will not know for sure the scope of t= he task until they visit the property and because travelling time means that visits just to give estimates are not usually feasible.

UK based Surveyor

Some UK surveyors provide reports from a base in the UK. These can be very good but travell= ing tie often makes them impractical – especially in remote areas –= and expensive. Make the same checks as for a UK surveyor based in It= aly.

Timescale

Most surveys can be done in 7 – 10 days.

Contracts "subject to survey"

This is unusual in Italy= . Legally there is nothing to = stop an Italian preliminary contract containing a get out clause (condizione risolutiva) stating= that the sale is conditional upon a satisfactory survey being obtained. It is unlikely to meet with the ap= proval of the seller or his agent unless the transaction is unusual. In an ordinary case the sell= er is likely to tell you to do your survey and then sign a contract.

General

Whichever report you opt for its quality will depend i= n part on your input. Agree cl= early and in writing the things you expect to be covered in the report. If you to not speak Italian (and t= he surveyor doesn't speak good English) you may have to ask someone to write on your behalf. Your UK lawy= er would probably be the best bet. Some of the matters you may wish to think about are set out below. Some of these will involve y= ou in additional cost. Ask wh= at will be covered as part of the standard fee and get an estimate for the ext= ras.

Checklist – Things you may= ask your Surveyor to do
Task
Electrical condition and continuity check
Drains check including assessment of drain to point = where they join mains sewers or septic tank
Water quality check if property used a well
Septic tank check
Adequacy of foundations
Rot check
Check on cement quality in a property constructed ou= t of cement
Check of under-floor areas, where access cannot easi= ly be obtained
Check on heating and air conditioning
Check on pool and all pool related equipment and hea= ting
Wood boring insect check.
Evidence of Asbestos
Evidence of Radon gas – if it is in an affected area.

Useful Names & Addresses

Mortgaging your UK P= roperty
The loan wi= ll probably be very cheap to set up You will probably a= lready have a mortgage. If y= ou stay with the same lender there will be no legal fees or land registry fe= es for the additional loan. There may not even be an arrangement fee. If you go to a new = lender many special deals mean that the lender will pay all fees involved.	You will pa= y UK in= terest rates which, at the time of writing (June 2005), are higher than Italian rates British rates are a= bout 5.5% variable. Italian rates vary from about 3.75% variable. Make sure you compa= re the overall cost of the two mortgages. = Crude rates (which, in any case, may not be comparable as they are calculated differently in the two countries) do not tell the whole tale.<= span style=3D'mso-spacerun:yes'> What is the total monthly = cost of each mortgage, including life insurance and all extras? What is the total amount required to repay the loan, including all fees and charges?
The loan re= payments will be in £s Sterling= = If the funds to rep= ay the mortgage are coming from your £ Sterling earnings then the amount you have to pay will not be affected by fluctuat= ions in exchange rates between the £ Sterling and the Euro. At the = time of writing (Januar= y 2002) most experts are predicting that the pound will fall sharply in value against the new Euro= . Equally, if the &po= und; Sterling falls = in value then your debt as a percentage of the value of the property decreases. Your property will be wort= h more in £ Sterling terms but your mor= tgage will remain the same.	If the &pou= nd; Sterling increa= ses in value against the Euro a mortgage in Euros would become cheaper to pay of= f Your loan of €= ;60,000 (now worth about £37,000 at €1 =3D £0.62p) would only cost about £30,000 to pay off= if the Euro lost 20% to about £0.50. This seems unlikely.<= /o:p>
You will be familiar with dealing with British mortgages and all correspondence and documentation will be in English	If you are going to let the property it will not be p= ossible to get Italian tax relief on the British mortgage interest See "Renting Y= our Property"
You can tak= e out an endowment of PEP mortgage or Pension Mortgage or Interest Only mortgage, = none of which are available in Italy Normally only repay= ment mortgages are available in Italy	Many people= do not like the idea of mortgaging their main home – which they may only j= ust have cleared after 25 years of paying off an earlier mortgage!=
You will pr= obably need no extra life insurance cover This can add consid= erably to the cost of the mortgage, especially if you are getting older.<= /p>	Some academ= ics argue that, in economic terms, debts incurred to buy assets should be sec= ured against the asset bought and assets in one country should be funded by borrowings in that country

Mortgaging your Italian Property=
You will pay Italian interest rates which, at the time of writing (January 2002), are lower than UK rates British rates are a= bout 5.5% variable. Italian rates vary from about 3.75% variable. Make sure you compa= re the overall cost of the two mortgages. = Crude rates (which, in any case, may not be comparable as they are calculated differently in the two countries) do not tell the whole tale.<= span style=3D'mso-spacerun:yes'> What is the total monthly = cost of each mortgage, including life insurance and all extras? What is the total amount required to repay the loan, including all fees and charges?	The loan wi= ll probably be expensive to set up Arrangement fees, inspection fees, notaries’ fees and land registry fees will come to about 5% of the amount borrowed.
If you are = going to let the property you will usually be able to get Italian tax relief on the mortgage interest See "Renting Y= our Property"	You will fu= rther fees to pay to clear the record of the mortgage off your title once it has been paid off This will usually b= e a problem only if you want to sell the property during the two years follow= ing paying off the mortgage.
The loan re= payments will usually be in Euros = If the funds to rep= ay the mortgage are coming from rental income paid to you in Euros this will give you something to spend them on!	The loan re= payments will usually be in Euros = If the funds to rep= ay the mortgage are coming from your £ Sterling earnings then the amount you have to pay will be affected by fluctuations= in exchange rates between the £ Sterling and the Euro. At the = time of writing (Januar= y 2002) most experts are predicting that the pound will fall sharply in value aga= inst the new Euro. Equally, if the &po= und; Sterling falls = in value then your debt as a percentage of the value of the property increases in £ Sterling terms. Your property will be wort= h more in £ Sterling terms but your mor= tgage will also have increased in value.
Many people= do not like the idea of mortgaging their main home – which they may only j= ust have cleared after 25 years of paying a mortgage!	You will be unfamiliar with dealing with Italian mortgages and all correspondence and documentation will be usually be in Italian
Some academ= ics argue that, in economic terms, debts incurred to buy assets should be sec= ured against the asset bought and assets in one country should be funded by borrowings in that country	Normally on= ly repayment mortgages are available – i.e. mortgages where you pay off the capital and interest over the period of the mortgage
You may be = able to set all or part of your interest charges against any tax on rental income=	You will pr= obably need extra life insurance cover This can add consid= erably to the cost of the mortgage, especially if you are getting older.

Buying a Property in Italy

The Law

As you would expect, this is complicated. A basic textbook on Italian property law might extend to 500 pages.<= span style=3D'mso-spacerun:yes'> There are certain basic prin= ciples that it is helpful to understand.

1.&n= bsp; The main legal provisions relating to property law = are found in the Civil Code. The analysis of rights reflects the essentially agrarian society of late 18th Century Italy and pays limited attention to some of the issues that, today, would seem mo= re pressing. That has only partly been remedied by the later additions to the code.

2.&n= bsp; The civil code declares that foreigners are to be treated in the same way as Italian people as far as the law is concerned.

3.&n= bsp; Italian law divides property into two classes ̵= 1; moveable property and immovable property. The whole basis of own= ership and transfer of ownership depends on which classification property belongs = to. The distinction is similar to the English concept of Real and Personal property but it is not exactly the same. Immovable property includes = land and buildings, but not the shares in a company that owns land and buildings= .

4.&n= bsp; The sale of immovable property – basically la= nd and buildings - located in Italy must always be governed by Italian law.

5.&n= bsp; The form of ownership of land is almost always abso= lute ownership. This is simi= lar to what we would call freehold ownership. There are other lesser prope= rty rights, including "surface rights" (diritto di superficie) which a= llows someone to build on land and own the buildings BUT NOT THE LAND THEY STAND ON. On the expiry of the surface right the owner of the land becomes the owner of the building.

6.&n= bsp; It is possible to own the buildings – or even parts of a building – on a piece of land separately from the land itself. This is of part= icular relevance in the case of flats, which are owned "freehold".

7.&n= bsp; Where two or more people own a piece of land or oth= er property together they will generally own it in undivided shares (comunione). That is to say the piece of = land is not physically divided between them.&nb= sp; Each owner may, in theory, mortgage or sell his share without the consent of the others – though the others might have certain rights of pre-emption (the right to buy the property in preference to any outsider).<= span style=3D'mso-spacerun:yes'> On the death of one of the o= wners the property will pass by inheritance in accordance with his will or the ru= les of Italian law, if those apply.

8.&n= bsp; Where a building or piece of land is physically div= ided between a number of people a condominium (condominio) is created. The land is divided into pri= vately owned parts – such as an individual flat – and communally owned areas. The management o= f the communally held areas is up to the owners of the privately held area, but can be deleg= ated to someone else. If the= re are more than four owners they must appoint an administrator. If there are more than ten co-owners there must be a set of rules governing their conduct.

9.&n= bsp; In the case of a sale of land certain people may ha= ve a right of pre-emption. T= hese include a tenant farmer cultivating the land or, if there is no such farmer= , to tenant farmers on adjoining land.

10.&= nbsp; Transfer of ownership of immovable property is usually by simple agreement. This will have to be in writing as only a written contract can be registered. That agreement binds both the parties to it but is not effective as far as the rest of the world is concerned, who are entitled to rely upon the content of the land register (= pubblici registri immobiliari). [lp2] <= span style=3D'mso-spacerun:yes'> Ownership can also be = acquired by possession, usually for 20 years.

11.&= nbsp; Other rights – short of ownership – can exist over land. These include rights of way, tenancies, life interests, mortgages and option contracts. Most require some sort of formalit= y in order that they are valid against third parties but are always binding as between the people who made the agreements.

12.&= nbsp; There are TWO land registers. Each area maintains a tax register (catasto). In this all the land in the district is divided into plots and assessed for tax purposes. [lp3] <= span style=3D'mso-spacerun:yes'> The second register is the deed and mortgage register (conservatorie dei pubblici registri immobiliari). &= nbsp; Not all land is registered here. Land is registered in = the name of the individual owner. The entries (size, boundaries etc) do not necessarily correspond in = the two registries!

Enough of that. Now for the practical s= tuff.

General Procedure=

The general procedure when buying a property in Italy seems, at first glance, similar to the purchase of a property in England. Sign a contract. Do some checks. Sign a Deed of Title. This is deceptive. The procedure is very differ= ent and even the use of the familiar English vocabulary to describe the very different steps in I= taly can produce an undesirable sense of familiarity with the procedure. This can lead to assumptions= that things that have not been discussed will be the same as they would in England= . This would be a wrong and dangerous assumption. Work on the basis that the system = is totally different.

Choosing a lawyer=

The Notary Public ("Notaio&quo= t;)

The notary is a special type of lawyer. He is in part a public offic= ial but he is also in business, making his living from the fees he charges for = his services. Notaries also exist in England but they are seldom used in day to day transactions.

Under Italian law only a legalised private deed of sal= e (scrittura privata autenticata) or a public deed approved and witnessed by a notary (atto pubblico) can be registered at the Land Registry.

Although it is possible to transfer legal ownership of property such as a house or apartment by a private agreement not falling in= to these categories and although that agreement will be fully binding on the people who made it, it will not be binding on third parties. Third parties – includ= ing people who want to make a claim against the property and banks wanting to l= end money on the strength of the property – are entitled to rely upon the details of ownership recorded at the Land Registry (conservatorie dei pubblici registri immobiliari). So if you are not registered= as the owner of the property you are at risk.

The notary also carries out certain checks on property= sold and has some duties as tax enforcer and validator of documents to be presen= ted for registration. For e= xample, he will normally check that the property has been declared for tax purposes= , that it is free of mortgages and other charges e= tc.

His fee is fixed by law.

Price up to	Cumulative total basic fee (approx.= )
€5,10= 0	€1,00= 0
€20,6= 00	€1,30= 0
€51,6= 00	€1,75= 0
€258,= 250	€2,65= 0
€516,= 289	€3,15= 0
€1,03= 3,000	€3,82= 2
€2,58= 2,000	€4,44= 2

This fee is his basic fee. If he undertakes extra work = or the documentation is unduly long it will increase. = [lp4] <= /p>

The notary is, in theory, appointed by the Buyer but, = in many cases – particularly with new property – the Seller will stipulate the notary to be used. &nbs= p; This is a practical time and cost saving measure. The notary has already draft= ed the documents gathering together all the bits of land bought by the Seller and = then split off the various individual plots to be sold. It makes sense for him to de= al with all the resultant sales. Otherwise all of the powers of attorney etc would need to be produced before lots of different notaries, potentially all over the country.

The notary is strictly neutral. He is more a referee than so= meone fighting on your behalf. He is, in the usual case, someone who checks the papers to make sure that they comply with the strict rules as to content and so will be accepted by the l= and registry for registration.

Many Italian notaries, particularly in rural areas, do= not speak English – or, at least, do not speak it well enough to give adv= ice on complex issues. Very= few will know anything about English law and so will be unable to tell you about the tax and other consequences in England of your plans= to buy a house in Italy= . In any case, the Buyer will = seldom meet the notary before the signing ceremony and so there is little scope for seeking detailed advice. It is, in any case, rare for notaries to offer any comprehensive advice or explanation, least of all in writing, to the buyer.

For the Engli= sh buyer the notary is no substitute for also using the services of a specialist UK lawy= er familiar with Italian law and international property transactions. This is the clear advice of = every guidebook, of the Italian & British governments and of the Federation of Overseas Property Developers, Agents and Consultants (FOPDAC). It is therefore baffling why so ma= ny people buying a property in Italy do not take this necessary step.

Italian lawyers (avvocati)

Most Italian people buying a home in Italy w= ill not use the services of a lawyer (as opposed to the Notary Public (Notaio)) unless there is something unusual or contentious about the transaction.

English lawyers (solicitors)

For English people the services of the Notary are unli= kely to give them all the information or help they need to buy a home in Italy.<= span style=3D'mso-spacerun:yes'> They will often require advi= ce about inheritance issues, the UK tax implications of their purchase, how to save taxes, surveys, mortgages, currency exchange etc which is outside the scope of the service of the Notary. &= nbsp; They should retain the services of a specialist UK lawy= er familiar with dealing with these issues. The Buyer's usual solicitor = is unlikely to be able to help as there are only a handful of English law firms with the necessary expertise.

The price

This can be freely agreed between the parties. Depending on the economic cl= imate there may be ample or very little room for negotiating a reduction in the asking price. At the mo= ment (January 2002) the s= cope is limited for popularly priced properties in the main cities and tourist areas, which are in short supply. &nb= sp; There is, however, probably rather more than the estate agent suggests. Italians HAGG= LE when it comes to the price of property – or almost anything else for = that matter!

How much should be declared in the deed of sale?

For many years there was a tradition in Italy (= and other Latin countries) of under declaring the price actually paid for a property when signing the deed of sale (rogito). This was because the taxes a= nd notaries fees due were calculated on the basis of the price declared. Lower price, less property transfer taxes for the Buyer and less capital gains tax for the Seller. Often the price declared was= only ¼ of the price actually paid. = Magic! The= days of major under declarations have now largely gone. In rural areas you can still sometimes come under pressure to under declare to a significant extent, but= it is now rare. In many ar= eas the Seller will still suggest some more modest form of under declaration. Under declaration is illegal= and foolish. There are seve= re penalties. .

Nonetheless you may find that you have little choice b= ut to under declare. The Sell= er will often refuse to sell unless you do. Fortunately, there is a semi-legitimate "grey area" for manoeuvre over declared price, ra= ther like doing 40 mph in a 30 limit. &nbs= p; It is wrong but you will not get into serious trouble. Seek advice from your lawyer

Where must the money be paid?

The price, together with the taxes and fees payable, is usually paid by the Buyer to the Seller in front of the notary. This is the best and safest way. You can, in = fact, agree to pay in whatever way and wherever you please. So, for example, in the case= of a British Seller and a British buyer the payment could be made in £ Sterling by bank transfer. This can prod= uce some complications, particularly in a rural area where the notary has no experience of such transactions.

Try to avoid arrangements, usually as part of an under-declaration, where part of the money is handed over in cash in brown-paper parcels. Ap= art from being illegal it is dangerous at a practical level. Buyers have lost the bundle = - or been robbed on the way to the notary's office. Sometimes there is a suspici= on that the Seller, who knew where you were going to be and when, could be involved.

General Enquiries and Special Enquiries

Certain enq= uiries are made routinely in the course of the purchase of a property.

These inclu= de, in appropriate cases, a check on the planning situation of the property. This enquiry will reveal the position of the property itself but it will not, at least directly, tell you about its neighbours and it will not reveal general plans for the area. &n= bsp;

If you want= to know whether the authorities are going to put a prison in the village or run a n= ew road through your back garden (both, presumably, bad things) or build a motorway access point or railway station 3 km away (both, presumably, good things) you will need to ask. There are various organisations you can approach but, just as in England= , there is no single point of contact for such enquiries. If you are concerned about w= hat might happen in the area then you will need to discuss the position with yo= ur lawyers at an early stage. There may be a considerable amount of work (and therefore cost) invo= lved in making full enquiries, the results of which can never be guaranteed.

Normal enqu= iries also include a check that the seller is the registered owner of the property and that it is sold (if this has been agreed) free of mortgages or other charges.

If the pers= on who sells to you goes bust within 2 years of the sale his creditors may be able= to take possession of the property. There is some protecti= on for the person who bought in good faith but It can still be sensible to make so= me enquiries about the seller or to obtain a guarantee.

In order to= advise you what special enquiries might be appropriate your lawyer will need to be told your proposals for the property. Do you intend to rent it out= ? If so is it on a commercial basis?= Do you intend to use it for busine= ss purposes? Do you want to extend or modify the exterior of the property? Do you intend to make interi= or structural alterations?

Agree in ad= vance the additional enquiries you would like to make and get an estimate of the = cost of those enquiries.

The community of owners (condominio= )

This is a d= evice familiar in continental Europe but most unusual in England.

The basic i= dea is than when a number of people own land or buildings in such a way that they = have exclusive use of part of the property but shared use of the rest then a condominio is created. Houses on their own plots wi= th no shared facilities will not be a member of a condominio.

In a condominio the buyer of a house or= an apartment owns his own house or apartment outright – as the English w= ould say, "freehold" – and shares the use of the remaining areas= as part of a community of owners. It is not only the shared pool that is jointly owned but (in an apartment) the lift shafts, corridors, roof, foundations, entrance areas, parking zones etc.

The members= of the condominio are each responsible for their own home. They, collect= ively, agree the works needed on the common areas and a budget for those works. They then become responsible for p= aying their share of those common expenses, as stipulated in their title.<= /p>

The communi= ty is managed by an elected committee and appoints a president and secretary R= 11; both of whom are residents in the community.

Day to day management is usually delegated to an administrator, who need not be a resi= dent in the community. There is of= ten also a resident caretaker.

The charges= of the condominio are divided in the proportions stipulated in deed creating the condominio You will pay the= same condominio fees whether you use the place all year round or only for two weeks holiday. Of course your other bills (= water, electricity etc) will vary with usage.

The condominio should provide not only= for routine work but, through its fees, set aside money for periodic major repairs. If they do not – or if the amount set aside is inadequate – the general meeting can authorise a supplemental levy to raise the sums needed.

The rules s= et by the condominio are intended to improve the quality of life of residents. They could, for example deal= with concerns over noise (no radios by the pool), prohibit the use of the pool a= fter 10.00 p.m., ban t= he hanging of washing on balconies etc. More importantly they could ban pets or any commercial activity in t= he building. These regolamenti di condominio are an important document. Every buyer of a property in= a condominio should insist on a copy= of the rules. If you do not speak Italian you should have them translated or, at least, summarised in English.

Be careful = when buying a property in a condominio.<= /i> Disputes are common and the = legal framework governing the condominio<= /i> is somewhat lacking compared to other Latin countries.

=

&q= uot;Vacant Possession"

In Italy t= here is a tendency to sell the property stripped bare.   If you want the sale to incl= ude light fittings, fire places etc you must say so.

=

The Surveyor (Geometra)<= /h2>
Especially = when buying in rural areas you will almost certainly need the services of a geometra.   This will not be to carr= y out a structural survey but to establish the planning status of the property and its boundaries. He may also be needed to help subdi= vide a larger plot of land of which you are buying a part.

=

His fees wi= ll vary from about £600 to £1200 depending on the complexity of what he need to do.

=

Often the geometra will be linked to the sel= ling agent or know the owner.   In a small rural community there will be few surveyors and few agents, so this is not surprising.   You the= n have the choice between using the local = geometra – with the suspicion he might not be entirely independent –= or appointing someone from further afield.   This has two drawbacks.   Travelling time adds to the = cost of the work and he will not have the intimate local contacts upon which lif= e in Italy depends.   Generally I pr= efer using the local person unless there are strong contra-indications.
=

Sometimes t= he geometra's work will be done before signing the initial contract compromesso (see below), someti= mes afterwards.

=

Initial contracts=

In Italy most sales start with a preliminary contract.    The type of contract w= ill depend upon whether you are buying a finished or an unfinished property.   Signing any of these documen= ts has far-reaching legal consequences, which are sometimes different from the consequences of signing in similar document in England.   Whichever type of contract you are asked to sign, always seek legal advice before signing.

Who prepares them?

Generally the preliminary contract is prepared by the = estate agent – who is professionally qualified in Italy<= /st1:PersonName> – or by the developer.

Estate agent's contracts are often based on a pre-prin= ted document in a standard format.

Some contracts coming from Estate Agents are legally m= uddled and not properly thought through. &nb= sp; They can blur or mix different types of contractual obligation, often referring to mutually exclusive concepts in the same document – for example, referring to it as a contract of sale and an option contract.

Sometimes the contracts are extremely one sided, givin= g [lp5] = the Seller all of the rights and taking away all of the rights of the Buyer.

It is very important that these contracts are not just accepted as final.   In m= ost cases they will need to be modified. = In some cases they will need to be modified extensively.

If you are buying a Finished Property

You will be invited to sign one or more of three diffe= rent documents.   Each has different features.=    Each has different legal consequences. Each is appropr= iate in certain circumstances and inappropriate in others.

Offer to buy

This is [lp6] <= span style=3D'color:red'> a formal written offer from the potential buyer to the potential seller. It w= ill state that you wish to buy the stated property for a stated price and that = you will complete the transaction within a stated period.   The offer will normally be accompanied by the payment of a deposit to the estate agent or Seller.   The deposit is not fixed but= will usually range from 2% to 5% of the price offered.   In return for this deposit t= he property should be taken off the market.

The offer must be in writing.

This document can bind you. Unless you stipulate that it is not binding it is not a mere enquiry as to whether the seller might be interest= ed in selling.   If he says = that he accepts the offer then you (and he) become legally bound to proceed with= the transaction.

Generally we do not like written offers.   We prefer= the idea of making a verbal enquiry as to whether the seller would accept a cer= tain price and, once he says yes, for a binding bilateral contract of sale (compromesso) to be signed.    Often, however, the lo= cal practice is to make formal offers. &n= bsp; It is then a case of "when in Rome, do as the Romans".   Just make sure that the offer is very clear and that it specifies that it is not binding.   If it is a bin= ding offer make sure that it stipulates any key conditions to which it is subject.   E.G. "This offer is only binding if I am offered a mortgage from X for at least €50,000 at an interest rate no higher than X%" or "This offer is subject to a satisfactory survey".

Reservation/Option Contract

These are relatively rare but can be useful.

This is a written document in which the seller agrees = to take a stated property off the market for a fixed period and to sell it at a stated price to a stated person at any time within a stated period.

The seller will usually require that any person taking= up his offer pays him a deposit. Once he has received this deposit the seller must reserve the property for you u= ntil the end of the period specified in the contract.

You will see that this is similar to an English "= Option Contract".   If you = want to go ahead and buy the property you can but you are not obliged to do so.<= span style=3D'mso-spacerun:yes'>   If you do not go ahead you l= ose your deposit.

The contract could contain special "get out clauses" stipulating the circumstances in which the buyer will be enti= tled to the refund of his deposit if he decides not to go ahead.   The drafting of these clause= s is of vital importance. See your lawyer.

If you do want to go ahead you can exercise the option= at any point up to the end of the agreed period.

If the seller refuses to go ahead the buyer is entitle= d to claim compensation.

Full preliminary contract ("Compromesso")

The compromess= o is, in most parts of Italy, the most common type of document. &nb= sp; It is also known as the cont= rato preliminare di vendita.

It is an agreement that commits both parties.   The seller must sell a stated property at a stated price to a stated person on the terms set out in the contract.   The buyer mus= t buy.

Other types of preliminary contract – binding on= ly either the Buyer (promessa d'acquisto) or the Seller (promessa di vendita) are somet= imes seen and have different legal consequences from the compromesso.   Because they are relatively rare I am not considering them further in this book.

The compromesso is the most far reaching of the three documents cov= ered in this section of the book and so it is particularly important that you are satisfied that it contains all of the terms necessary to protect your position.   Take legal advice.   Remember that u= nder Italian law by signing and completing this contract you become, in some senses, the owner of the property, although yo= ur rights in respect of it will not be finalised until the payment of the bala= nce of the price of the property and the signature of the Public Title Deed.

The contract will contain a variety of "routine&q= uot; clauses.

·         The seller and buyer should both be stated fully.

·         The property should be described fully, both= in an everyday sense and by reference to its land registry details.

·         If the property is part of a condominium the common parts (pool etc) should be described.

·         A date for the signing of the deed of sale (= rogito) will be fixed or the contract will permit either party to requ= ire the signing of the rogito at any point by giving notice to the other.

·         A statement will be made as to when possessi= on will take place – normally, on the date of signing the title.

·         The price is fixed.

·         A receipt for any deposit is given.

·         The property should be sold with vacant possession.

·         The property should be sold free of any char= ges, debts or burdens and all bills should be paid up to date before signing the= rogito

·         It will provide for who is to pay the costs = of the purchase.

·         It may confirm the details of any agent invo= lved and who is to pay his commission.

·         It will set out what is to happen if one or = both of the parties break the contract. <= /span>

·         It will establish the law to cover the contr= act and the address of the parties for legal purposes.

It will probably also contain some "conditional clauses" (clausola risolutiva).   These are clauses that say, in effect, if X is not true or does not happen then the deal is off and I get my deposit money back.

Examples might be:

·         The seller has good title.   You might not have been able= to get confirmation of this before signing the compromesso, especially if you were under pressure to sign quickly or lose the property.=

·         The seller has planning permission.

·         You will be successful in an application for planning permission – for example, to build a pool.

·         There are no pre-emption rights or they will= not be exercised.

·         The property is to be surveyed (or inspected= for mortgage purposes) and the sale is conditional upon a satisfactory outcome = to that inspection.

·         The Seller is required to fix various things= or complete some work on the property.

·         You are applying for a mortgage and the sale= is conditional upon that mortgage being offered.

·         The sale is conditional upon the sale of your existing property within a certain time.

These all need careful drafting if there are not to be= any "loopholes".

If the buyer or seller drops out of the contract or otherwise breaks it various arrangements may be made.

A deposit is paid at the time of signing the contract.=

Normally a special type of deposit is payable by the Buyer.   If he fails to complete he will lose the deposit. &n= bsp; If the Seller fails to satisfy the conditions imposed upon him and to complete he will have to return double the deposit paid.

Alternatively the contract may provide for a deposit t= o be paid as a simple part of the price of the property.   The contract can provide for= all or part of this deposit – and any other sums paid up to the relevant moment – to be lost if the Buyer does not proceed.

It is important to understand the difference.

The amount of this deposit varies from place to place = and Seller to Seller.   It is= sometimes the "standard" 10% we are used to in the UK but often it is 20%, 30% o= r even 33%.   The larger deposit= is a mixed blessing.   Obvious= ly it puts more strain on your cashflow and puts you at greater exposure if anyth= ing goes wrong and you have to recover it from the Seller.   Getting money back is never = as simple as paying it over, however strong your legal position!   On the other hand, if you ha= ve paid 30% this acts as a very real barrier to the Seller pulling out of the transaction – or entering into a transaction where there are conditio= ns he is not going to be able to meet. &= nbsp; This is because if he can't go ahead he will usually be required to = give you back double that amount – 60% of the price of the property.

If, as is often the case, you are to pay a part of the estate agent's fees on top of the price of the property you will often be expected to pay these at the time when the compromesso is signed.   This will typically be 3% of the price of the property.

If the parties fail to comply with their obligations t= here is the ultimate remedy of seeking a court order. As in any country this is very muc= h a last resort as it is costly, time consuming and (as in any country) there i= s no guarantee of the outcome of a court case.   If a court order is made in = your favour this order can be registered at the land registry.

You are buying an Unfinished Property

Reservation contrac

[lp7] T= his allows you to reserve a plot when you see it and allows you time to sign on= e of the other types of contract when you have made the necessary enquiries.

Full preliminary contract

There are three likely types of contract in this case.=

Contract for immediate sale of the land

You sign a contract agreeing to sign title deed in res= pect of the land – and anything the Seller has so far built on it – now.   This involves payi= ng for the land and work so far undertaken in full at this stage.

At the same time you enter into a contract to build yo= ur house on the land.   This= will normally be an appalto.   The contract contains detail= ed provisions as to what will happen, for example, if any changes are needed to the works agreed or costs rise and as to arrangements for inspection and handover of the works.

As the building continues it automatically becomes the property of the buyer.   = The Buyer, of course, has the obligation to pay the agreed price, usually by instalments dependent upon the progress of the building work.

This has the great advantage of securing the money you= pay to the builder.    I= f the builder goes bust you own the land and everything built on it.   It only really works for pro= perty built on its own plot rather than, say, apartments.   It can be tax and cost ineff= icient.

Contract "on plan"

You agree to buy a property once it has been built and= agree to make payments in stages as the construction progresses.   Sometimes the payments are dependent upon the progress of the building works. On other occasions they are due on= set dates.   The latter are n= ow the more common, though less attractive to the Buyer.

Once the property has been built you will sign the dee= d of sale and pay the balance of the price.   It is only then that you bec= ome the owner of the property and register your title.   Until then if the builder go= es bust you are simply one of many creditors.

The contract can provide for an independent guarantee = to secure completion of the construction in the event, for example, that the seller went bust.   Remem= ber that big companies and honourable men go bust.   Rolls Royce.   Barings Bank.   Enron.

Where possible it is much better to have separate cont= racts for the purchase of the land and subsequent building work.

Contract to buy once the property has been built

You agree to buy a plot of land and building.   You agree to pay once it has= been built.   Simple!   You take title and pay the m= oney at the same time.   This = is really the same as buying a resale property.   This type of contract is lit= tle used.

Other documentation

Has the property got planning permission/a building li= cence?

You should be given a full specification for the prope= rty, a copy of the community rules and constitution if the property shares common facilities and a copy of any agreements you have entered into regarding ong= oing management or letting of the property.   All are important documents.=    Pay particular attention to = the specification.   It is not unknown for the show flat to have marble floors and high quality wooden kitchens but for the specification to show concrete tiles and MDF.

Key points – a checklist

Checklist – Signing a contract

Property i= n the course of construction

Existing P= roperty

Are you c= lear about what you are buying?

Are there= any "extras" (furniture etc) included in the sale?

Have you = taken legal advice about who should be the owner of the property?

Have you = taken legal advice about inheritance issues?

Are you c= lear about boundaries?

Are you c= lear about access?

Have you = seen the seller's title?

Have you = seen an up to date land registry extract?

&nbs= p;

Are you sure you can change the property as you want= ?

&nbs= p;

Are you sure you can use the property for what you w= ant?

&nbs= p;

Connected to water, electricity, gas etc?

&nbs= p;

Have you had a survey done?

Have you = made all necessary checks OR arranged for them to be made?

Have you = included "get out clauses" for all important checks not yet made?

Is your m= ortgage finance arranged?

Is the se= ller clearly described?

If the se= ller is not signing in person, have you see a Power of Attorney/Mandate to author= ise the sale?

Are you f= ully described?

Is the pr= operty fully described? Identification?   Land Registry details?

Is the pr= ice correct?

Are any p= ossible circumstances in which it can be increased or extras described fully?

Are the stage payments fully described?

Does contract say when possession will be given?

Are arrangements for stage payments satisfactory?

Is there a receipt for the deposit paid?

Is the date for completion of the work agreed?

In what capacity is deposit paid?

Does the property have planning permission/licence to build?

Does property have a habitation licence?

Is the da= te for signing the rogito agreed?

Does cont= act provide for the sale to be free of charges and debts?

Does cont= ract provide for vacant possession?

Which not= ary is to act?

Is the es= tate agent's commission dealt with?

What happ= ens if there is a breach of contract?

Are there= any financial guarantees of satisfactory completion?

Are all t= he necessary special "get out" clauses included?

Steps between signing the contract and signing the Deed of Sale= (rogito)

Searches

If you were pressured into signing a preliminary contract (compromesso) without doing searches or seeing proof of title do= it now.   The sooner you fin= d a problem the sooner you can fix it or take protective action.<= /span>

Registration = of the compromesso?

It is possible to register the written preliminary contract at the Land Registry,= so protecting your rights against third parties.   This can sometimes be a good= idea, particularly if there is going to be a long period from the signing of the = compromesso and the signing of the= rogito.   It does, however, increase t= he costs of the purchase.

Powers of Att= orney

Very often it will not be convenient for you to have t= o go to Italy= to sign the rogito in person.   Sometimes there may be other things that, in the normal course of events, would require your personal intervention but where it would be inconvenient for you to have to deal with them yourself.

Just as often you will not know whether you will be available to sign in person. Completion dates on Italian property are notoriously fluid and so you could plan to be there but suffer a last minute delay to the signing that m= akes it impossible.

The solution to this problem is the Power of Attorney.=    This document authorises the person appointed (the attorney) to do whatever the document authorises on behalf of the person granting the Power (the grantor).   Please note that being appoi= nted under a power of attorney is nothing to do with being a lawyer.   Anyone can be appointed R= 11; though you need to choose the person with care as you are giving them exten= sive power to do things on your behalf.

The most sensible type of Power to use will be the Ita= lian style of Power that is appropriate to the situation.   The power will be signed in = front of a notary either in the UK or in Italy.   If it is signed in front of = a UK nota= ry it has to be ratified by, of all people, the Foreign and Commonwealth Office f= or use overseas.    This sounds very grand but is actually quick and simple.

The type of Italian Power of Attorney that you will ne= ed depends on what you want to use it for.&nb= sp; Your specialist English lawyer can discuss your requirements with you and prepare the necessary document. &= nbsp; Alternatively you can deal directly with the Italian notary who will ultimately need the Power.

In theory an English style Power should be sufficient,= but in practice the cost and delay associated with getting it recognised can be unacceptable.

Even if you intend to go to Italy to sign it is sensible = to think about granting a Power "just in case".   It is not something that can= be done at the last moment.   From decision to getting the document to Italy will take at least 7 an= d more likely 10 days.   If you = are able to go the Power will not be used.

Even if you have granted a Power of Attorney, if you g= et the opportunity to go to Italy at the time of the signing it is worth doing so.   It is quite interesting but,= more importantly, you will be able to check the house to make sure that everythi= ng is in order before the rogito is signed.

Tax identification number

You will need to obtain your codice fiscale before you sign the deed of sale.

This is a simple process (usually) that will be initia= ted by your lawyer or the estate agent.

Getting the money to Italy

There are a= number of ways of getting the money to Italy.

Elec= tronic Transfer

=

The most pr= actical is to have it sent electronically by SWIFT transfer from a UK bank directly= to the recipient's bank in Italy.   This costs about £10 - £35 depending on your bank. &nb= sp; It is safer to allow two or three days for the money to arrive in a = small local branch [lp8] , despite everyone's protestations that it will be there the same day.

=

Europe has now (January 200= 2) introduced unique account numbers for all bank accounts. These incorporate a code for the identity of the bank and branch involved as well as the account number of t= he individual customer.   Th= ese are known as IBAN numbers.   They should be quoted, if possible, on all international currency transfers.

=

You can sen= d the money from your own bank, via your lawyers or via a specialist currency dea= ler.

=

For the sum= s you are likely to be sending you should receive an exchange rate much better th= an the "tourist rate" you see in the press.     There is no such= thing as a fixed exchange rate in these transactions.   The bank's official inter ba= nk rate changes by the second and the job of the bank's currency dealers is to make a profit by selling to you at the lowest rate they can get away with!<= span style=3D'mso-spacerun:yes'>   Thus if you do a lot of busi= ness with a bank and they know you are "on the ball" you are likely to= be offered a better rate than a one off customer.   For this reason it is often = better to send it via your specialist UK lawyers, who will be dealing with large numbers of such transactions.   This also has the advantage = that their bank, which deals with international payments all the time, is less likely to make a mistake causing delay to the payment than your bank for wh= ich such a payment might be a rarity.

=

You or your= lawyers might use a specialist currency dealer to make the transfer of funds instea= d of a main UK bank.   Such de= alers often give a better exchange rate than an ordinary bank.   Sometimes the difference can= be significant, especially compared to your local branch of a high street bank.   The author recent= ly carried out a spot check.   His secretary, anonymously, asked a major high street bank to convert £50,000 into Euros and send= it to Italy= .   They offered a rate of 1.6125.   A currency deal= er offered 1.6311.    T= his is a saving of €930 – or £575.

=

Although th= ese dealers use major banks actually to transfer the funds you need to make sure that the dealer you are dealing with is reputable.   Your money is paid to them, = not to the major bank, as so could be at risk if the dealer was not bonded or otherwise protected.

=

However you= make the payment make sure you understand whether you or the recipient is going = to pick up the receiving banks charges. = If you need a clear amount in Italy you will have to make allowances for these, either by sending a bit extra or by asking your UK ba= nk to pay all the charges. Make = sure you have got the details of the recipient bank, its customer's name, the account codes and the recipient's reference precisely right.   Any error and the payment is likely to come bank to you undeliverable – and may involve you in bea= ring the cost of it being converted back into £ sterling.

=

The bank in= Italy w= ill make a charge – which can be substantial – for receiving your money = into your account.

Bank= ers Drafts

You can arr= ange for your UK bank to issue you with a bankers’ draft (bank certified cheque) which you can take to Italy= and pay into your bank account.   Make sure that the bank knows that the draft is to be used overseas = and issues you with an international draft.

=

Generally t= his is not a good way to transfer the money.   It can take a considerable t= ime – sometimes weeks – for the funds deposited to be made available for your use.   The recip= ient bank's charges can be surprisingly high.   The exchange rate offered ag= ainst a £ sterling draft may be uncompetitive as you are a captive customer= .

Cash=

This is not recommended.   You will n= eed to declare the money on departure from UK and on arrival in Italy.<= span style=3D'mso-spacerun:yes'>   Even then, if you declare £200,000 or so they will think you are a terrorist or drugs dealer!   That suspicion can have far reaching consequences in terms of listings in police "dodgy people&quo= t; files and even surveillance.   To add insult to injury the exchange rate you will be offered for ca= sh (whether you take £ Ster= ling and convert there or buy the Euros here) is usually very uncompetitive and = the notary may well refuse to accept the money in his account.   Don't do it.

Exchange control and other restrictions= on moving money

For EC nati= onals there is no longer any exchange control when taking money to or from Italy. =   There are some statistical re= cords kept showing the flow of funds and the purpose of the transfers.

=

When you se= ll your property in Italy you will be able to bring the money back to England if you wish to do so.=

Final checks about the property

All of the = points outstanding as must be resolved to your satisfaction, as must any other poi= nts of importance to you.

Fixing the completion date

The date st= ated in the contract for signing the rogito= could, most charitably, be described as flexible or aspirational.   Often it will move, if only = by a day or so.   For this rea= son it is not sensible to book your travel to Italy until you are almost su= re that matters will proceed on a certain day.

Checklist – Steps before complet= ion

Checklist – Steps to be taken before signing the escritura

Property in the course of construct= ion

Existing Property

Prepare Power of Attorney

Check what documents must be produce= d on signing the rogito=

Confirm all outstanding issues have = been complied with

Confirm all other important enquirie= s are clear

Confirm arrangements (date, time, pl= ace) for completion with your lender if you have a mortgage

Confirm arrangements (date, time, pl= ace) for completion with notary

Send necessary funds to Italy=

Receive rules of community

Insurance cover arranged?

Sign off = work or list defects

Proof of = payment of community fees

<= /span>
&nbs= p;

Proof of = payment of other bills

=

The deed of sale (rogito)

To be registered at the Land Registry – and so p= rotect your ownership of your property from claims by third parties – your purchase must be either by way of a legalised private document (scittura privata autenticata) or p= ublic title deed (atto pubblico).   The deed of sale signed is c= alled the rogito.

The vast majority of overseas buyers buy by way of an = atto pubblico signed in front of a notary (notaio).   This must be signed in front= of a Italian notary either by the parties in person or someone holding power of attorney for them.

Generally it is at the moment of signing that the titl= e to the property is transferred into your name.

At the same time as the rogito is signed the balance of the price is paid to the Seller, usually be way of= an Italian bankers draft handed over in front of the notary.

If you are taking out an Italian mortgage it is also a= t this time that the paperwork in relation to the mortgage will be completed, agai= n by the notary.

A;lso at this time the various taxes and stamp duties = and the notaries fees are paid.

The rogito= will contain a variety of "standard" clauses, largely replicating thos= e in the contract.

It will contain a statement of the price and a stateme= nt that the notary has advised you of your fiscal obligations arising out of t= he sale.

Formalities

Certain procedures are followed at the signing of the = rogito.

The parties are identified by their passports or ident= ity cards.   This will normal= ly be done, initially, by the notary's clerk and then also by the notary.

The notary's clerk may also go through the content of = the rogito with the parties.   This tends to be very superf= icial and often the person concerned will have limited English.

The parties will then be ushered into the presence of = the notary.   In addition to = the buyer and seller it would be possible for the group to comprise also the notaries clerk, your lawyer, a translator, a representative of your mortgage lender, the estate agent and any sub-agent appointed by the estate agent. Most of these people are there to receive money! Needless to sa= y, if they all turn up it can get a little loud and confusing!

Translations

If you do not speak Italian an interpreter should be p= resent when you sign the rogito.   The attitude of notaries whe= n it comes to assessing when an interpreter is necessary varies enormously.   The Italian version of the deed should be followed by the translation in English.<= /p>
Steps taken after the rogito has been signed

The taxes must be paid.

Once the taxes are paid your title and any mortgage sh= ould be presented for registration at the land registry.    This should be done as quickly as possible.   He= who registers first gets priority.

After several months the land registry will issue a certificate to the effect that the title has been registered.

The cost of buying a home in Italy

There are fees and taxed payable by a buyer when acqui= ring a property in Italy. They are sometimes known as comple= tion expenses or completion or closing costs.&n= bsp; They are impossible to predict with total accuracy at the outset of a transaction.   This is be= cause there are a number of variable factors that will not become clear until lat= er.

We can, however, give a general guide.

These costs are calculated on the basis of the price t= hat you declared as the price paid for the property in the rogito.   The= size of these expenses, coupled with the Italian dislike for paying tax, has led= to the habit of accidentally under declaring the price in the rogito.   The= se days are now largely over and we can only suggest that the full price of the property is declared. See &qu= ot;How much should I declare" above.

Notaries Fees

These are fixed by law, so are not negotiable.   They will depend on the type= of property being bought and its price.

Typical fees would be:

Price up to €<= /p>

Charge €

€6,= 500

€1,= 000 +VAT (20%)

€23= ,000

€1,= 200 +VAT (20%)

€55= ,000

€1,= 400 +VAT (20%)

€23= 0,000

€2,= 300 +VAT (20%)

€46= 5,000

€2,= 600 +VAT (20%)

€93= 0,000

€3,= 300 +VAT (20%)

€1,= 600.000

€3,= 800 +VAT (20%)

€2,= 400,000

€4,= 500 +VAT (20%)

As a general guide, if you wish to avoid the detailed calculation, allow 1%. These charges may be highe= r in complicated and unusual transactions.

If you have asked the notary to do any additional work= over and above the transfer of title to the property or for any advice there wil= l be additional charges.

= Taxes

&n= bsp;

VAT (IVA &#= 8211; imposta sul valore aggiunto)

This applies only to properties bought from a company = or business.   It is 10% of = the declared purchase price of the property unless the property is classified a= s a "luxury dwelling", in which case (in certain circumstances) the rate is 20%.   The meaning of luxury dwelli= ng is defined.   This VAT is sometimes, but not always, included in the price of the property quoted to you. Check to see whether it = is in your case.

Stamp Duty.

This is charged instead of VAT on properties bought fr= om private individuals.   Th= e rate is usually 7%.   Some his= toric properties bear a reduced rate of 3%. There is a = fixed charge of € 168.00 when the purchase is subject to VAT.

Real Estate Taxes (imposte ipotecaria e catas= tale)

If bought from an individual= they are 3% of the value of the property.

If bought from a company the= y amount to approximately € 336.00.

Local Tax

This is based on the official tax value of the propert= y (valore catastale) – not at all the same as the market value.   It varies from 0.4% to 0.8% = of that value depending on the local Council.

Mortgage Costs (if applicable)

If you are taking out a mortgage there will be additio= nal costs.   See section on R= aising Finance above. These typically amount to 4% of the amount borrowed.

Estate Agent's Charges (if payable by the buyer= )

If an estate agent has sold the property his fees are = often split between the Buyer and Seller. &= nbsp; If this is so in your case then you are likely to pay 3% of the true price paid.    This = can be varied by agreement.   See "estate agents" above.

These fees will be subject to IVA.

Miscellaneous Other Charges

Architect's fees, Surveyors fees, UK legal fees (typically 1%),= first connection to water, electricity etc.   Most of these will be subjec= t to Italian IVA at varying rates, b= ut your English lawyers fees will be outside the scope of English VAT.

Overall Costs of Acquisition

In the case of a house bought without a mortgage this = is likely to amount to about 15% of the declared price of the property.

Key points – property under construction

When buying a new property the key points to look out = for are:

·         Make sure you understand exactly what you are buying.   How big is the property?   What will it = look like?   How will it be finished?   What applianc= es are included? What facilities wil= l it enjoy?

·         Think about who should own the property so a= s to minimise tax and inheritance problems

·         Make sure the contract has all of the necess= ary clauses required to protect your position

·         Try to obtain a bank guarantee if you are bu= ying "off plan"

·         Be clear about the timetable for making paym= ents

·         Think about whether you should forward buy currency

·         When you take delivery of the property consi= der carefully whether it is worth incurring the expense of an independent surve= y to confirm that all is in order with the construction and to help draft any "snagging list".

Key points – resale properties

When buying a resale property the key points to look o= ut for are:

·         Make sure you understand exactly what you are buying.   Are the boundar= ies clear?    What furni= ture or fittings are included?

·         Think about whether to have the property surveyed, especially if it is nearly 10 years old and your statutory guaran= tee will soon be expiring

·         Think about who should own the property so a= s to minimise tax and inheritance problems

·         Make sure the contract has all of the necess= ary clauses required to protect your position

·         Think about whether you should forward buy currency

·         When you take delivery of the property make = sure that everything agreed is present

Special points – old properties

When buying an old property – by which I mean a property built more than, say, 50 years ago, there are one or two additional special points to look out for:

·         Are you having a survey?    Not to do so can be an expensive mistake.

·         Are you clear about any restoration costs to= be incurred?   Do you have estimates for those charges?

·         Are there any planning problems associated w= ith any alterations or improvements you want to make to the property?

·         When you take delivery of the property make = sure that everything agreed is present

Special points – rural properties

·         Such properties have often acquired a number= of rights and obligations over the years.   Are you clear about any obligations you might be taking on?

·         Are you clear about your boundaries?

·         You are probably buying for peace and quiet = and the rural idyll.   Are yo= u sure that nothing is happening in the vicinity of your property that will be detrimental?

·         If you have any plans to change the property= or to use it for other purposes, will this be permitted?

·         If you intend to build on the site be very c= lear about minimum permitted plot sizes – which can vary up to 25,000 M2 – and other planning limitations.

Special points – city properties

·         City properties will usually be apartments, concerning which see below.

·         Unless you are used to living in a city R= 11; and, in particular, a continental city – do not under estimate the no= ise that will be generated nearby.   If you are in a busy area (and you are likely to be) this will go on until late at night.   Ho= w good is the sound insulation?

·         Are your neighbouring properties occupied by full time residents, are they weekday only "pieds à terre"= or are they holiday homes.   Think about security issues.

·         If you intend to use a car, where will you p= ark?

Special points – apartments and houses sharing facilities

·         Have you thought about a survey of the property?    Will it= include the common parts?    This can be expensive.

·         Make sure you understand the rules of the community – see below.<= /p>

·         Make sure you understand the charges that wi= ll be raised by the community.

·         Make contact with its administrator.   Ask about any issues affecti= ng the community.   Are there any major works approved but not yet carried out?   Make sure that the contract = is clear about who is responsible for paying for these.

·         Make contact with owners. Are they happy with the community = and the way it is run?   Reme= mber that no-one is ever fully happy!

·         Understand how the community is run.   Once you are an owner try to attend the general meetings of the community.

Other things to do when you buy a property=

·         Insure the property and its contents.

·         Make a full photographic record of the property.   This is usefu= l in the event of an insurance claim and for your scrap book.

·         Make arrangements for your bank to pay your = ICI (local property tax), water &a= mp; electricity bills etc.

·         Make a will in the Italian form covering your assets in Italy.    This will usually mean making small changes in your existing UK will as well.

·         Appoint a Fiscal Representative.   This is your point of contac= t with the Italian tax office.   He will also usually complete and file your annual tax return.   Your lawyer may provide this service or should be able to suggest a suitable person.

Useful Names & Addresses

Owning a Property in Italy

Bank accounts

Who can open a bank account?

Anybody. You will need to prove that you ar= e over 18 and provide the bank with proof of your identity, your address in Italy and the various other bits and pieces of information that will vary from ba= nk to bank. In these days of international terrorism anything to do with the movement of money from one country to another gives rise to enquiry.

The type of bank= account that you will open will depend upon whether you are resident on non-residen= t in Italy (See below). For most practic= al purposes there is little difference between the two types of account except that only officially imported funds can be paid into the account.

Which bank should you use?

Banking needs vary dramatically from person to person.= If you are retiring to Italy or running a business there you may need a full and fairly sophisticated banking service.   If, ho= wever, you are a tourist with a holiday home your banking needs are likely to be v= ery simple. Most British people f= all into this category. For them = there is virtually no difference between the service offered by any of the major Italian banks. The two major considerations when choosing between Italian banks will be the convenience factor - whether the bank is located near your property - and the question = of whether the staff at the bank speak English. If you do not speak Italian, you m= ay prefer, at least initially, to deal with a bank where the staff speaks your= own language.   In many small towns you will have no choice= of bank.

We believe that = it is important to deal with your local bank if at all possible. It will make you feel part of a lo= cal community and, more importantly, will make the local community feel that you want to be part of them. Who = knows, your bank manager might even take you for lunch!

If you have the = luxury of a choice between various convenient banks that speak English, perhaps the most significant factor to take into account would be the bank's charging structure for receiving money. Italian banks charge for absolutely everything. Some charge a lot more than others= for the simple task of receiving money that you sent from England= .

If you choose to= use Barclays or another "British" bank, remember that they are a sepa= rate Italian entity and that you are likely to receive the same service as from = any other Italian bank.

Some Italian ban= ks offer excellent – and, for non-residents, really useful – Internet banking facilities.

Which type of account?=

Most people will= operate a simple current account (conto cor= rente) and will ask the bank to make payments of the electricity, water and other bills by direct payment from that account.    There are no cheque guarantee cards in <= st1:PersonName w:st=3D"on">Italy, yet cheques are still widely accepted – if reluctantly – because of= the severe penalties that result from abuse of a cheque (See below).

Italian banks ge= nerally pay very little interest on current accounts.   No change there then.   It is therefore sensible als= o to have a deposit account. Most = banks will arrange for the balance on the current account over a certain sum to be transferred automatically into an interest bearing account. Interest rates in Euroland are low= .

If your needs ar= e more sophisticated than this, study carefully the various types of account avail= able to you. These, and the terms = of conditions of use, differ substantially from the accounts you may be famili= ar with in England.

"Bad" Cheques

Do not even thin= k about writing a cheque on your Italian bank account if there are not sufficient f= unds in that account to cover the value of the cheque.   This is a criminal offence.<= span style=3D'mso-spacerun:yes'>    Bounced cheques also l= ead to substantial bank charges and later problems with your bank and others.

Your existing UK account

There is no reason why you should not retain this acco= unt when you move to Italy. It will probably be convenient to = do so.

"Offshore" Accounts

These are the su= bject of considerable mystique. Many p= eople resident in Italy think= that by having an offshore bank account they do not have to pay tax in Italy. This is not true. They only do not pay the tax if th= ey illegally hide the existence of the bank account from the Italian taxman. This is dealt with more fully in t= he section on taxation below. Th= ere is no reason why you should not have an offshore bank account either as the ow= ner of a holiday home in Italy or as= a person resident in <= st1:PersonName w:st=3D"on">Italy but y= ou should only do so for good reason. <= /span>If you are thinking of taking up residence in = Italy= you should take detailed financial advice.= This would include advice on the issue about the location of bank accounts.

Key Points

Whichever bank y= ou use and whichever account you open the two most important messages are:

·      =             &nb= sp; Learn = to write the date in Italian and use the Italian 7 rather than the English 7 w= hen writing cheques.

·      =             &nb= sp; Rememb= er that in Italy numbe= rs are written differently.   €5,500.00 is written €5.500,00.

·      =             &nb= sp; Keep a= close eye on your bank statements and reconcile them to the payments you sent to = Italy and the items you paid out in Italy.

·      =             &nb= sp; Make s= ure that you do not write cheques when there are insufficient funds in the acco= unt to cover those cheques.

Taxes

See the section = on taxation for more details.

Electricity, gas, water & telephone bills

Electricity

Electricity is u= sually supplied by the national electricity company, ENEL.

You will need to= sign a contract for the supply of electricity.   You will need proof of ident= ity (your passport) and a copy of your title deeds or your rental contract.

Connectin= g to the supply
When you buy a n= ew property it will have to be connected to the electricity supply. You will sign a contract stimulati= ng the amount of electricity you want (the peak Wattage that you think that you wi= ll need) and the tariff you want to subscribe to. Do not under estimate the amount of power you may consume, particularly during the winter months. If you contract for too little pow= er then your supply will keep on cutting out at times of the demand - which is precisely when you needed most. The extra cost of contracting for, for example, 6 kW instead of 3 kW is well wo= rth spending.   This would be enough to run to electric fires, a washing machine, an electric cooker and = the few lights at the same time. = It is adequate for most medium-sized homes.   Some holiday homes have ridiculously limited wattage.

When you take ov= er an existing property you will take over the supply that is already connected to it. You will have to ask the = electricity company to put the supply into your name and in order to do this will need = to produce all of your usual documents (passport, proof of residence, bank acc= ount details etc.) and complete application form. In the main tourist areas this is a well-trodden and painless path.   There is a small fee for this.   If you feel that the supply connected to the property is not going to be adequate for your needs then y= ou can at this stage ask for it to be upgraded. There will be an additional fee to= pay.

You can ask your= local electricity office to make a special reading of the meter when you take over the property.

If your house is= not already connected to the electricity supply make sure that you get a quotat= ion for collecting the property before you commit yourself to the purchase. The cost can be considerable.=

Paying

There are several different tariffs available from the Electricity Company. Check them carefully.

Electricity is q= uite expensive in Italy.   Non residents pay more than residents.   <= /span>

If you are think= ing of renting the property it is better to go for the standard tariff because otherwise inconsiderate tenants can run-up enormous electricity bills by connecting to the supply at costly times.

You will be bill= ed, typically, every two months with the standing challenge being paid in advan= ce and the consumption in arrear.   Electricity bills can most conveniently be paid by direct debit from your Italian bank account. The Electricity Company is quite quick to cut-off non-payers – though the= y must send you a warning first.   As the warning will be sent to the house (probably empty) this does not solve = the problem.    As the inconvenience of arriving at your house late at night to find you have been disconnected is considerable, make sure that there are sufficient funds in = your bank account to cover the likely charges.

Wiring

Electrical wirin= g in Italy is done differently from in England. Do not be tempted to have a friend= ly English electrician re-wire your property in Italy= . If the authorities find that this = has been done and that the wiring does not comply with their standards they can condemn it and disconnect the electricity supply. In any case, mixed or incompatible wiring is dangerous both to you and to any workmen working in the premises.=

Voltage

Almost all prope= rty in Italy is now connected at 220 volts.   Any property still connected at 125 volts can be converted.

Interruptions of Supply

These are surprisingly common, especially outside main cities and major tourist areas.   Things are getting better. &nb= sp; Much of the problem stems from old infrastructure. Cuts can vary from a split second = to many hours.

Get a UPS (uninterruptable power supply) to protect computers and other vital equipment. = Get a surge protector to guard sensitive devices.   Both are cheap.

TV

Because of different transmission systems British TV s= ets don't work in Italy.   They can often be modified t= o do so.

Gas

Mains gas is only available in larger towns and cities. The way of connecting to the mains supply and billing for the gas supplied are similar to electricity.

Rural and town properties will use bottled gas. It is usually brought to your door. The gas is Butane.   The company will carry out a safety check on your appliances before they will a= llow you to sign a contract of supply.

Some apartments = and other developments in urban areas buy bottled gas in huge quantities and st= ore it in their own gas tanks. Yo= u can also do this in your own property in a rural area.

Telephone

Telephone connec= tions are readily available in all areas.

The way of conne= cting to the system and billing for the calls is similar to electricity.<= /span>

Water

Connecting

Water supplies i= n Italy are from your local municipality – comune.   The adequacy of the supply a= nd the rules for contracting for and using water vary from place to place.   Water is almost always metered. If you do not have a= meter you would probably be well advised to have one fitted, especially if you are using your house as a holiday home. The cost of connection is small. Contact your local water company.

If your house is= not already connected to the mains water supply make sure that you get a quotat= ion for connecting the property before you commit yourself to the purchase. The cost can be considerable.=

Shortgages

Despite huge engineering projects the rural tourist pa= rts of Italy are still short of water.   The explosion in tourist numbers – and ever increasing per capita consump= tion – means that the authorities are barely holding their own.   Have a storage tank fitted.<= /p>

The result is restrictions on supply, particularly in = summer months.   Some properties= were in the past built with a separate water tank (deposito) that could be filled by tanker.   This system has been reinsta= ted in some areas so that properties have an emergency supply.

Paying

Water prices in = Italy vary enormously. Most water companies bill every six months. The best way to pay is by direct debit from your bank.

Cost varies form= area to area.   Allow £4 per M3.   This can add up to = quite a large bill.   If you do= n't pay then, after a warning, you will be cut off.

Plumbing

Italian plumbing= is, in the nicest possible way, different from English plumbing! Just like you should not usually a= sk your English electrician to wire an Italian home so you are ill-advised to = use your English plumber to plumb an Italian home.

Hot Water

There are many d= ifferent types of water heater. There = is a much greater variety in the marketplace than there is in England= . When installing a heater make sure= that it is adequate to deal with the times when the property is fully occupied by people who take lots of showers. &nbs= p; Many "standard equipment" heaters and hot water tanks in o= lder properties were far too small.

Quality

All Italian tap = water is drinkable – unless marked otherwise.= Not all water from wells is drinkable. Not all of the water that is drink= able tastes nice!

Wells

A well is a good thing! Even though you may no= t use it for drinking water it will be an excellent and cheap way of watering your garden or filling your swimming pool. Some wells dry up in the summer.&nb= sp; Some have gone salt, so are useless.   If your property has a well = and you think that it is going to be important to you make sure that your right= s to it and its water are protected in your contract of purchase. If you want to use your well for drinking water you should get it checked by the health department or by your local water company who will issue a certificate that it is fit for human consumption.

Septic Tanks

Most rural Itali= an properties depend upon a septic tank for their drainage. For city dwellers this is a strange concept but there is nothing wrong with it. A septic tank is, essentially, a f= ilter that treats sewage by breakin= g it down bacteriologically before discharging relatively harmless water into the ground. There are two types of septic tank commonly found in Italy. The older type dealt only with the= waste from toilets, leaving the waste from sinks baths etc. to be deposited in a gravel soak away and thus to be dispersed, without treatment, into the surrounding ground. More mode= rn septic tanks deal with all wastewater from toilets and sinks. It is all treated and ultimately dispersed.

Septic tanks hav= e a natural lifespan, which can be extended by careful treatment but cannot be = extended indefinitely. If you have to replace an old-fashioned tank you will have to do so with a new style tank. You will need planning permission.

If you are repla= cing the tank make sure that the size is adequate for your requirements. It should be based on the maximum = use of the house and the amount of water that would be generated by people used to having lots of baths showers etc. If you install a tank that is too small you will simply have to have= it emptied with monotonous frequency and considerable cost. If you install a large tank emptyi= ng will be a rare event and, more importantly for maintenance and longevity, w= ill not just be a means of disposing of excess volumes of liquid.

If you are buyin= g a house with a septic tank have it checked by your surveyor.

Swimming Pools

Swimming pools a= re expensive. There is not just = the capital cost of building the pool (typically about £10,000 for a mode= st pool) but there is the annual cost of maintaining the pool. That can be several thousand pound= s if you are often absent from the property and thus require a professional maintenance company to come in and treat it - often twice per week in the summer months.

If you wish to p= ut pool into an existing property you will need permission to do so. This will involve an application f= or what we would call planning permission (permesso di costruire) from your local town hall.   The process is swifter if entrusted to a local builder/pool specialist.

Cable/Satellite TV

As in England= , cable television is only available in cities and large towns.

Satellite televi= sion is available throughout Italy. There are, potentially, some 200 stations available for you covering most of the European languages. The stations are, of course, the s= ame stations that are available throughout Europe. Some are free. Others are scrambled and require s= ome form of decoder to allow reception. These, of course, involve payment.&= nbsp; Please note that if you are a BSkyB user your UK card does not authorise yo= u to receive pictures in = Italy becau= se BSkyB do not have a licence to operate outside Britain. Despite this, many holidaymakers a= nd British residents in Italy happi= ly use their British cards.

The Condominio bill

You will be resp= onsible for payment of your community bill. This is the bill for the services that you enjoy jointly with other people living in your block of apartments or complex of houses sharing comm= on facilities. See the explanation above as to the way in which that bill is calculated.

These charges are usually billed either monthly or quarterly. The rules of your community will s= pecify the arrangements for billing.

Property insurance

Most foreign own= ers of property in Italy take = out a multi-risk household policy. = Many Italians do without insurance completely.   The choice is yours.

A multi risk pol= icy covers the fabric of the building, its contents and any civil responsibility landing upon the owner of the property other than in certain specified circumstances such as liability incurred in connection with the use of a mo= tor car.

Alternatively in= surance is available for the building (edif= icio) or contents (contenuto) separately.   =

Premiums are comparatively cheap in rural areas, more expensive in Rome and the main tourist areas.

There are four i= mportant points to bear in mind when choosing a suitable policy.

1.&n= bsp;     Make s= ure that the level of cover is adequate.

Just as in Eng= land, if you under-insure the building and the worst happens the company will not= pay you out for the full extent of your loss.&= nbsp;

The amount for which you should be covered as far as civil liability = is concerned should be a minimum of one million Euros and preferably higher. Because the risk of a claim under = this category is small the premiums for this part of the insurance are low and so high levels of cover can be provided at low cost.

The amount of cover you should have for the building itself should be= the full cost of reconstruction of the building. If you own an apartment then the c= ost of the buildings insurance for the whole block of apartments should be include= d in your service charge. You will= then only need contents and public liability insurance.

As far as contents are concerned, you should make a detailed estimate= of the value of your furnishings and possessions likely to be in the property = at any time. Remember to allow f= or items such as cameras that you may take with you on holiday.   Pay particular attention to = the details of this policy and study the small print about what you have to spe= cify when taking out the insurance and any limitations on claims that can be made against it. Notice in particu= lar whether there is a requirement to stipulate items of high value. If you have any items of high valu= e it is worth having them photographed and, possibly, valued.   The insurance company might specify security measures that must be in place in your home. If you do not use them you may fin= d that you are not covered.

2.&n= bsp;     If you= are using the property as holiday accommodation (or spend long periods away from home) you must specify a policy which is a holiday policy. If you do not you are likely to fi= nd that one of the conditions of the policy is that cover will lapse if the property is empty for 30 or 60 days. = Premiums will be higher for holiday homes because the risk is higher= .

3.&n= bsp;     If you intend to let your property you must notify the insurance company and comply with any requirements of the insurance company with regard to the lettings. Otherwise your cover could be void.   Your pre= miums will be higher.

4.&n= bsp;     If you= need to make a claim, make it quickly. There are usually time limits for doing so. If the claim involves the theft or break-in you will usually have to report the matter to the police. This should normally be done immed= iately after discovery of the incident and in any case within 24 hours. The claim should be notified to the insurance company without delay. Check the maximum period allowed in your policy, which could be as little as 48 hours. As with all-important documents in Italy the c= laim should be notified by recorded delivery post.   Make the claim by registered= post.

There are some <= st1:country-region w:st=3D"on">UK based insurance companies who offer cover in respect of properties in Italy. The main advantages in dealing wit= h a UK comp= any are that the documentation is likely to be in English and that if you have to m= ake a claim the claim will be processed in English. There are some Italian companies t= hat also have the facility for dealing with claims in English. This should not be under estimated= as an advantage. Unless your Italia= n is fluent you would otherwise have to employ somebody to deal with the claim on your behalf or to translate what you have said into Italian -- something th= at is never entirely satisfactory.

Other expenses

There will, inev= itably, be other expenses involved with owning property. These will include routine repairs, maintenance etc. <= /span>

As a very genera= l guide we find that the basic annual cost of owning a holiday home in Italy is about 2% of the value of the property if it is a self-contained property= and about 3% if it is a property in a community sharing common facilities.    This basic cost includ= es routine repairs and maintenance, insurance, local taxes, standing charges f= or water electricity etc. It doe= s not include major repairs or renovations, consumables such as electricity and w= ater or your personal taxation on income derived from the property. It will be higher if the property = has its own pool.

Taking your car

Non Res= idents

If you are not r= esident you have to take your car. It= is, curiously, still not permitted for a foreigner to own a car in Italy.   This is almost certainly in = breach of EU law.   <= /span>

You can keep you= r UK car = in Italy for up to 1 year.

Many non residen= ts do own Italian cars "unofficially".

Residen= ts

If you can avoid= it, don't.

You will be much= better buying a "new" car when you arrive in Italy= . It is much safer to drive a car wi= th the steering wheel on the left-hand side. This is particularly so if you were driving in towns or in country a= reas without the benefit of a passenger to help you check for oncoming vehicles = when overtaking. You will also fin= d that it is much easier to get spare parts. Even if you think your present car is sold throughout Europe you will find that there are many parts that are different on the UK model because its steering wheel is on the right-hand side. It is also widely reported that a = local car makes you less visible in the community and thus less likely to be burg= led.

Cars in Italy are generally more expensive than in England but even so, selling = your car here and buying another one when you arrive can be beneficial.

If you insist on= taking your British car you will be able to use it on Italian roads for a maximum = of six months per year without converting it to an Italian car by having it te= sted and re-registered in Italy. It can only lawfully be used on It= alian roads when it complies fully with the requirements necessary for use on Eng= lish roads including the requirements that the vehicle is tested and taxed. Insurance will only be available f= rom British insurance companies and you will have to disclose to the company the fact that the vehicle is used primarily abroad.

If you intend to= keep the vehicle in Italy for m= ore than six months in any year you must officially import the vehicle into Italy. This can be an expensive bureaucra= tic nightmare.

If you are resid= ent in Italy and bought the vehicle tax paid in another EU country you should be able to import it free of VAT.

If you bought the vehicle tax free or in another country you will have to pay the VAT immedia= tely upon arrival in Italy. You will then need the customs certificate confirming that the vehicle is free of Italian VAT or that the = VAT has been paid.   You will= also have to pay the registration fees and tax.

As I have alread= y said, it is far better not to do this.

General=

Many people tota= lly ignore all these rules and keep a UK registered car in Italy for years.   Be careful t= hat the insurance is valid.   This can be difficult.   The authorities are making some efforts to stop this abuse.

= Driving Licence=

Whether you buy = a car in Italy or import your own car you will have to decide what to do about your driving licence. Until recently it wa= s a legal requirement that if you were going to stay in Italy= you must convert your foreign driving licence into an Italian driving licence. There was a certain = amount of paperwork involved in this exercise but it did not involve taking an Ita= lian driving test. Following the l= atest European union directive on the mutual recognition of driving licences this= is no longer required for EU nationals but it can still be a good idea to obta= in the Italian driving licence. = It can reduce problems on roadside checks and, in any event, you will be forced to= do so in the likely event that at some stage you pick up a penalty point under= the Italian traffic system.

Taking your furniture

As a British (or= other EU) citizen you will be able to take your possessions with you to Italy.   You do not need permission n= or do you need to pay taxes or customs duties.

The most practic= al way is to use a specialist removal company, who will charge about £2,000 = for taking the contents of a medium size house from the UK to the south of Italy.

If you wish you = can take the items out yourself.   You may be asked for an inventory in Italian.

Taking your pet

The reductions r= egarding the importation of pets to and from Italy= have changed dramatically over the last few years.   Get up-to-date information b= efore making any plans. Do this by contacting your local vet or the British Ministry of Agriculture - or whate= ver it is called this week.

You are allowed = to bring in most domestic pets but if you own something exotic it is best to check first. Animals other than ord= inary pets would require a special importation certificate from the Italian Minis= try of Agriculture. That could ha= ve conditions attached to it.

Your main decisi= on is whether you intend ever to bring the pet back to this country. If so you will have to comply with= the British rules for the importation of pets into the United Kingdom which are more stringent than the rules regarding the importation of pets into Italy. Essentially, in this case, you wil= l need one of the new pet passports. Most people obtain this passport on a "better safe than sorry" basis.<= span style=3D'mso-spacerun:yes'>   Do this early.   See your vet at least six mo= nths before your departure. It usu= ally costs about £250.

If you know that= you are not going to want to bring your pet back to this country then all you need = to take the pets to Italy is an export certificate from the Ministry of Agriculture and a health certificate issued within fifteen days of your departure by an approved vet.   If the animal is a dog or ot= her animal susceptible to rabies and you are travelling via France then it will require a rabies vaccination certificate. Cats must be vaccina= ted against various ailments.

You are generall= y only allowed to take two animals into Italy= at any time. This is for each traveller and does not prevent you from coming back and bringing more anima= ls later.

Once you arrive = in Italy see a vet. They will tell you= what vaccinations are advisable.

Useful Names & Addresses

Income Tax Rates – 2001 (payable 2002)=
Income from €	To €	Rate (%)<= /p>
0	15,000	23
15,000	29,000	29
29,000	32,600	32
32,600	70,000	39
70,000	No upper limit	45

NI Contributions & Entitlemen= t to UK benefits
	Class 1	Class 2/4=	Class 3
Maternity Allowances	Yes	Yes	No
Unemployment Benefit	Yes	No	No
Incapacity Benefit	Yes	Yes	No
Widows Benefit	Yes	Yes	Yes
Basic Retirement Pension	Yes	Yes	Yes
Additional Retirement Pension	Yes	No	No

Asset	Value – Local Currency=	Value – £s=
Current Assets<= /b>
Main home
Holiday home
Contents of main home
Contents of holiday home
Car
Boat
Bank Accounts
Other Cash type investments
Bonds Etc
Stocks & Shares
PEPs
Tessas
ISAs
SIPS
Other
Value of your business
Value of share options



Future Assets
Value of share options
Personal/Company Pension – likely lump sum
Potential Inheritances or Other Accretions
Value of endowment mortgages on maturity
Other

Mortgaging your Italian Property=
Advantages	Disadvantages<= /o:p>
You will pay Italian interest rates which, at the time of writing (January 2002), are lower than UK rates British rates are a= bout 5.5% variable. Italian rates vary from about 3.75% variable. Make sure you compa= re the overall cost of the two mortgages. = Crude rates (which, in any case, may not be comparable as they are calculated differently in the two countries) do not tell the whole tale.<= span style=3D'mso-spacerun:yes'> What is the total monthly = cost of each mortgage, including life insurance and all extras? What is the total amount required to repay the loan, including all fees and charges?	The loan wi= ll probably be expensive to set up Arrangement fees, inspection fees, notaries’ fees and land registry fees will come to about 5% of the amount borrowed.
If you are = going to let the property you will usually be able to get Italian tax relief on the mortgage interest See "Renting Y= our Property"	You will fu= rther fees to pay to clear the record of the mortgage off your title once it has been paid off This will usually b= e a problem only if you want to sell the property during the two years follow= ing paying off the mortgage.
The loan re= payments will usually be in Euros = If the funds to rep= ay the mortgage are coming from rental income paid to you in Euros this will give you something to spend them on!	The loan re= payments will usually be in Euros = If the funds to rep= ay the mortgage are coming from your £ Sterling earnings then the amount you have to pay will be affected by fluctuations= in exchange rates between the £ Sterling and the Euro. At the = time of writing (Januar= y 2002) most experts are predicting that the pound will fall sharply in value aga= inst the new Euro. Equally, if the &po= und; Sterling falls = in value then your debt as a percentage of the value of the property increases in £ Sterling terms. Your property will be wort= h more in £ Sterling terms but your mor= tgage will also have increased in value.
Many people= do not like the idea of mortgaging their main home – which they may only j= ust have cleared after 25 years of paying a mortgage!	You will be unfamiliar with dealing with Italian mortgages and all correspondence and documentation will be usually be in Italian
Some academ= ics argue that, in economic terms, debts incurred to buy assets should be sec= ured against the asset bought and assets in one country should be funded by borrowings in that country	Normally on= ly repayment mortgages are available – i.e. mortgages where you pay off the capital and interest over the period of the mortgage
You may be = able to set all or part of your interest charges against any tax on rental income=	You will pr= obably need extra life insurance cover This can add consid= erably to the cost of the mortgage, especially if you are getting older.

Checklist – Signing a contract
Property i= n the course of construction	Existing P= roperty
Are you c= lear about what you are buying?
Are there= any "extras" (furniture etc) included in the sale?
Have you = taken legal advice about who should be the owner of the property?
Have you = taken legal advice about inheritance issues?
Are you c= lear about boundaries?
Are you c= lear about access?
Have you = seen the seller's title?
Have you = seen an up to date land registry extract?
&nbs= p;	Are you sure you can change the property as you want= ?
&nbs= p;	Are you sure you can use the property for what you w= ant?
&nbs= p;	Connected to water, electricity, gas etc?
&nbs= p;	Have you had a survey done?
Have you = made all necessary checks OR arranged for them to be made?
Have you = included "get out clauses" for all important checks not yet made?
Is your m= ortgage finance arranged?
Is the se= ller clearly described?
If the se= ller is not signing in person, have you see a Power of Attorney/Mandate to author= ise the sale?
Are you f= ully described?
Is the pr= operty fully described? Identification? Land Registry details?
Is the pr= ice correct?
Are any p= ossible circumstances in which it can be increased or extras described fully?
Are the stage payments fully described?	Does contract say when possession will be given?
Are arrangements for stage payments satisfactory?	Is there a receipt for the deposit paid?
Is the date for completion of the work agreed?	In what capacity is deposit paid?
Does the property have planning permission/licence to build?	Does property have a habitation licence?
Is the da= te for signing the rogito agreed?
Does cont= act provide for the sale to be free of charges and debts?
Does cont= ract provide for vacant possession?
Which not= ary is to act?
Is the es= tate agent's commission dealt with?
What happ= ens if there is a breach of contract?
Are there= any financial guarantees of satisfactory completion?
Are all t= he necessary special "get out" clauses included?

Checklist – Steps to be taken before signing the escritura
Property in the course of construct= ion	Existing Property
Prepare Power of Attorney
Check what documents must be produce= d on signing the rogito=
Confirm all outstanding issues have = been complied with
Confirm all other important enquirie= s are clear
Confirm arrangements (date, time, pl= ace) for completion with your lender if you have a mortgage
Confirm arrangements (date, time, pl= ace) for completion with notary
Send necessary funds to Italy=
Receive rules of community
Insurance cover arranged?
Sign off = work or list defects	Proof of = payment of community fees
<= /span> &nbs= p;	Proof of = payment of other bills

Price up to €<= /p>	Charge €
€6,= 500	€1,= 000 +VAT (20%)
€23= ,000	€1,= 200 +VAT (20%)
€55= ,000	€1,= 400 +VAT (20%)
€23= 0,000	€2,= 300 +VAT (20%)
€46= 5,000	€2,= 600 +VAT (20%)
€93= 0,000	€3,= 300 +VAT (20%)
€1,= 600.000	€3,= 800 +VAT (20%)
€2,= 400,000	€4,= 500 +VAT (20%)

Table of Contents

The European Union (EU)

Useful Addresses & Telephone Numbers At the end of each section I include a list of useful addresses and telephone numbers. &nbs= p; Any organisations referred to in the section should (with a bit of luck!) be in the list.

Finding a Property in Italy

UK based estate agents

Estate Agent's Valuation & "Survey"<= /h3> It may be possible to arrange for another local estate= agent to give the property a quick "once over" to comment on the price asked and any obvious problem areas. = This is far short of a survey. It is likely to cost about £300.

UK Qualified Surveyor based in Italy

UK based Surveyor

Raising Finance to Buy a Property in Italy

UK Mortgages

= UK company

Buying a Property in Italy

Full preliminary contract

Contract for immediate sale of the land

Contract "on plan"

Contract to buy once the property has been built

Other documentation

Steps between signing the contract and signing the Deed of Sale= (rogito)

Getting the money to Italy

Final checks about the property

The cost of buying a home in Italy

Useful Addresses & Telephone Numbers
At the end of each section I include a list of useful addresses and telephone numbers. &nbs= p; Any organisations referred to in the section should (with a bit of luck!) be in the list.

Estate Agent's Valuation & "Survey"<= /h3>
It may be possible to arrange for another local estate= agent to give the property a quick "once over" to comment on the price asked and any obvious problem areas. = This is far short of a survey. It is likely to cost about £300.