Purchasing property in Italy from the UK

Property Search and Legal Requirements

The initial step in acquiring property in Italy is to determine the location and type of property that best aligns with your needs. Popular areas include the romantic city of Venice, the picturesque Tuscany region, and the breathtaking Amalfi Coast. It's essential to acquaint yourself with Italian property law and engage the services of an Italian lawyer or notaio (notary) to handle the legal aspects of the transaction.

Financing Your Italian Property Purchase

Your Italian property purchase can be financed using a UK mortgage, an Italian mortgage, or cash. UK banks generally require a more substantial deposit and may have less favourable terms than Italian banks. To save on international money transfers, consider using a currency exchange specialist instead of a traditional bank. These specialists often offer more competitive exchange rates and lower fees, helping you save on your GBP to EUR transfers.

The Property Buying Process in Italy

The Italian property buying process typically involves three main steps:

1. Signing the Proposta d'Acquisto: This is the initial purchase proposal, outlining the property's details, the agreed-upon price, and any conditions of the sale. Both the buyer and seller sign this document.
2. Signing the Contratto Preliminare di Vendita: This is a preliminary sales agreement, where both parties agree to the terms of the sale. The buyer pays a deposit, usually 10% to 30% of the purchase price.
3. Signing the Rogito Notarile: This is the final sales contract, which must be signed in the presence of an Italian notaio. The notaio will then register the property transfer and provide you with a copy of the deed.

Taxes and Fees

When buying property in Italy, you will need to pay various taxes and fees, including:

• Property Transfer Tax (Imposta di Registro): Paid by the buyer, this tax is generally between 3% and 9% of the property's purchase price, depending on the property type and location.
• Notaio fees: These fees typically range from 1% to 2.5% of the property's value.
• Land Registry fees (Imposta Catastale): Ranging from 1% to 2% of the property's value, these fees cover the registration of the property transfer.

Maximising Value on GBP to EUR International Money Transfers

To ensure you're getting the best value on your international money transfers, consider the following tips:

1. Use a currency exchange specialist: These specialists often provide competitive rates and asset you to make any larger payments at the right times.
2. Set up a forward contract: This allows you to mitigate the risk around currency transactions.* Whatever rate you book when the contract is agreed, you are guaranteed that rate for the agreed time of settlement. You are committed to the rate you’ve booked regardless of how it moves after the fact. However, the commitment of a forward contract often brings stability and certainty when planning for your property purchase.
3. Monitor exchange rates: Keep a close eye on the GBP to EUR exchange rate to transfer funds when the rate is most favourable.

*Equals Money can only offer forward contracts to facilitate payments for goods and services