Buying, Selling and Renovating Property in Italy

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Buying, Selling and Renovating Property in Italy

Find out what to do:

1. Before Buying Property in Italy
2. Before Renovating Property in Italy 
3. Before Selling Property in Italy

1. Before Buying Property in Italy

Before buying a property there are certain things, specific to Italian property, that should be verified. 

Condition checks

Check the condition of the following: 

Apartment buildings:

• Roof: check condition as replacement can be very expensive. Check also for heat insulation.
• Exterior walls and façades: apartment owners may be responsible for repair and repainting and so establish when they were last redone and when it is next expected. Also look for cracks in the plaster.
• Window frames: the quality of the frames greatly affects the heat and sound insulation of the building. Check if the windows close properly; check if double glazing may be necessary.
• Mechanical systems: water system, taps and pipes; heating and the condition of the boiler (old boilers do not conform to new rulings); electrical system and unprotected or external wiring; lifts; electric gates.
• Humidity: damp in walls can be difficult to eradicate. In particular, check the north- and east-facing walls.
• Make sure all service charges are declared.
• Establish if there are renovation works planned for the building that have already been approved and which are the responsibility of the owners.

Country houses:

• Access road: check the condition, and in case of heavy rains, check if there is water drainage.
• Electricity and phone: if the property is not serviced by electricity or telephone lines, be aware that the property owner pays for the set up of lines and poles; installation may take a long time.
• Drinking water: make sure that water comes from the public water source. Well water is not safe to drink and may not always be available.
• Septic tank: if the property has a septic tank for sewerage, check that it complies with current legal requirements. If not, it will need to be replaced

Check the property may be sold

A property or building on offer is not necessarily legally "saleable". Experts advise a buyer never to take for granted that the seller may sell the property in its current state. A small modification or addition made to a building without correct permits can block the sale.

For a property to be legally available for sale, it must have a livability license and be proven to conform to the cadastral and urban planning. This is certified by an architect or surveyor and is stated in the Relazione Tecnica di compravendita, a technical report required for the sale.

Managing Expenses

Costs over and above purchase price that should be budgeted for are:

• Commission for the real estate agency
• Taxes payable to the notary
• Notary's fee
• The Technical Report of Sale (Relazione Tecnica di compravendita)
• The Energy Performance Certificate (Attestato di Certificazione Energetica)
• The move and furnishing the property

Examine the Zone Planning

It is important to understand future plans for the area around a property. This can be done by examining the Piano Strutturale Comunale, the Municipal town plan which shows what can be built and where; and the Piano Paesaggistico Regionale or "Landscape Plan" (every region has one; they differ from place to place). This indicates any development restrictions that might be in place to preserve the region.

Constraints and limitations

Examine the Regolamento Urbanistico Comunale (the town planning rules) to establish if the property is subject to building or development constraints. There are areas and buildings where an owner may make changes as they please; some where only certain things are allowed, and others where no changes may be made.

The main constraints are:

• Vincolo archeologico - archaeological constraint
• Vincolo paesaggistico-ambientale - Landscape/environmental constraint
• Vincolo idrogeologico - hydro-geological constraint
• Aree a rischio idraulico e di frana - areas with potential hydraulic and landslide risk
• Aree boschive - woodland areas

2. Before Renovating Property in Italy

The Regolamento Edilizio is the set of rules governing building activities within a municipality in relation to the zone plan.

Examine the Regolamento Edilizio (municipal building regulations) to check that any desired alterations may legally be made, and in what way. There are frequently restrictions on changing the external appearance of a building such as major changes to windows.

Benefits for Residents of Italy

Certain allowances are available to tax-paying residents of Italy.

Tax deduction

The Government allows tax deductions on some works; these must be requested before work begins. Allowances are as follows:

• 36% for maintenance, renovation and restoration of the building (see the AngloINFO INFOrmation Page Building Renovation: Tax Advantages in Italy).
• 20% for the purchase of furniture, computers, televisions and energy-efficient household appliances if the house is under renovation.
• 55% for works improving the energy efficiency of the building, including roof and window frames, and replacement of heating systems.

It is important to note that VAT on renovation work is 10 percent.

Extension of residential buildings 

The Piano Casa House Plan is a law of limited duration in force until 31 December 2010. This allows an increase in the volume of a property.

• Extensions: property volume of detached and semi-detached residential buildings may be extended by up to 20%, but may not exceed 350 square feet for a maximum of 70 square meters.
• Demolition and reconstruction: where a structure is demolished and rebuilt, the new extension may increase the property volume up to 35%.
• Non-residential buildings: excluded.

Renovation costs

In Italy, there are administrative costs payable by a property owner in addition to the charges to the architect and the construction fees to the builder for materials and labour. Additional payments may include:

• Fees to the Municipality (Costo di costruzione)
• Primary and Secondary Urbanisation; these are taxes used by the municipalities for services
  • Primary: works required for residential areas - roads, bridges, sewage system, public lighting
  • Secondary: schools, sport facilities, cemeteries, health facilities

Other professional costs can include:

• Survey of the building (by an architect or surveyor)
• Structural design (by an engineer)
• Plumbing, heating, electrical systems projects (required by law by qualified technicians)
• Geological survey (by a geologist)
• Cadastre - the updating of DOCFA document after completion of the work (by a surveyor)

3. Before Selling Property in Italy

To increase the value of the property and to aid the sale, sellers can enhance a property's desirability by ensuring: 

• The property smells good
• Walls have been recently painted
• Furniture is well arranged (not cluttered) and there are fresh flowers in a vase
• Floors are polished
• Rooms are well lit (by natural or artificial light)
• Bathroom, toilet and kitchen are clean
• Garden and/or terrace is well maintained and plants, trees and hedges are tended

Listing the good and bad points of the property and then if possible, investing in some renovation work to improve the bad or enhance the good usually helps to increase the commercial value.

Property appraisal

A property should be assessed by a technician, architect or surveyor, who provides a written appraisal report which can be compared with other estimates made by real estate agents. This helps to a establish the real market value and can quicken a sale as a buyer can see that the real value of the property has been ascertained.

Technical certification

The Relazione Tecnica di compravendita (Technical Report of Sale) is a document prepared by an architect or surveyor, which serves to guarantee the cadastral and urban planning conformity of the property, and therefore its salability.

The technician assesses that the conditions of the site are consistent with what is stated on documents lodged with the Land Registry and Urban Planning. A notary cannot draft a deed of sale without the Technical Report. If one is not available, the notary will instruct a technician to do it. Sellers are therefore recommended to have the technical assessment done before putting their property on the market to ensure a smoother path to sale.

Energy certification

The Attestato di Certificazione Energetica (Energy Performance Certificate) is a document prepared by a qualified technician that certifies the energy performance of the building and attributes it to an energy class (A to G) according to the consumption of energy required for heating it.

Legally, it is the seller's obligation to provide this certificate at the property conveyance (unless otherwise agreed with the buyer). In the case of a building certified as class G (the lowest energy rating) a notary may accept a self-certification issued by the seller.

Information by Archit. Paolo Bulletti, Paolo Bulletti Design Bureau, Architecture Landscape Interiors
Via Cinque Giornate 15, 50129 Firenze, Italy
Tel. +39 055 474 981 / Fax +39 055 474 981 / www.designbureau.it / click to e-mail / Skype: bullettip
Copyright © 2009 Paolo Bulletti Design Bureau - All Rights Reserved

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