What is a property survey report?
This is a report issued by a qualified professional regarding the current condition and future performance of the property and sorrounds on visual evidence.
Why do I need a property survey report?
It is in generally in your best interest to know everything about a property before you make a major investiment. Given language barries, different laws and regulations and buiding pratices in Italy, it is strongly recommended that you get try to know as much as possible up front and avoid potential pitfalls. An estate agent will generally tell you that everything is "fine" and problems can be "easily resolved"... of course they will as it is their interest to sell the property and get their percentage! An indipendent professional's report will give you an objective technical assessment on the property and outline the intervention work and costs necessary.
Can I get a property survey done without visiting Italy?
Of course! this is a very common request especially with the advert of web based real estate agent. You simply need to inform your estate agent that you have authorized us to carry out an inspection and provide us with some basic details. We will take care of the rest. you will then be e-mailed (and subsequenty posted) the report after which we will arrange a telephone conversation to deal with any arising questions.
How much does a property survey report cost?
Fees are determined by the size, age, value, location, and complezity of the property as well as any specific request you may have. We will be happy to provvide you with a quotation once you supply us some photographs to get an idea of the property.
We I be able to attend the inspection?
Yes, we encoutage our clients to acome along on the inspection. It's the best way to learn obout the property. It's also the perfect time to ask question about specific concerns you may have. Our report will address these specific concerns along with the items we normally cover.
How long will the report take?
Once the property has been inspected, it typically takes up to 5 working days for completetiob of a written report. We will provide you with a comprehensive report and not a simple cecklist and prefer to discuss the results in a dedicated meeting (or o telephone conversation). In some cases it may be necessary to do some follow-up work (checks at land registry office or municipality etc.) this may create small dalays.
How gets a copy of the property survey report?
Your report is confidential and will only be given to other parties with written consent.
What qualifications do licensed professional have?
Engineers are licensed by the "Italian Order of Engineers/Architects or College of Geometras". At a minimum, they have completed an accredited, degreed/diploma program, have passed a comprehensive state exam.
Do you have insurance?
Yes. We have professional liability insurance. But the most importabt quality is our accontability as a professional. We stand behind our work and are legally and ethically accountable to you.
What aspects of the property does the property survey report deal with?
Our report will cover structural elements such as roof, load bearing walls, floor construction and slabs, and foundation, We will also examine services such as waste water and septic tank, drainage, plumbing & central heating and utilities supply. The weatherproofing details will be rewiewed such as esternal windows & doors with considetations on dampness (including condensation and leaks). We also address common elements/party walls, roofs floors and property antrance. As well as potential consequences on the property resulting from earthquake flood & landslide risk.
Why do I need plans?
These plans be used as a basic to look at alternative solution for future modifications. However once decided, they are mandatory for planning permission application in Italy where the proposes modification are comparet to the existing state of the property.
What are the plans composed of?
Generally the plans are made up of the site overwiew, floor plans, 4 elevations and 2 signicant vertical sections in both directions. The client will receive three copies of the plans.
Can I get a set of plans drawn up without visiting Italy?
Yes! This is a very common request especially with the advent of web-based real estate agents. You simpli need to inform your estate agent (if you are not yet owner) that you have authorized us to carry out the take off and provide us eith some basic details. We will take care of the rest. You posted three copies of the plans.
How much does a such a survey cost?
Fees are determined by the size, state, location, and complexity of the property. In general, the fees average about 500 euro however this may fluctuate. We will be happy to provide you with a quotation once you supply us with some photographs to get an idea of the property.
Purchase Assistance- FAQs
How does the purchasing process work in Italy?
There are generally two distinct steps in the house purchasing process in Italy.
The first step is the signign of the preliminary contract where a deposit is made and both parties are committed. The second is the completion of sale. The process is overseen by an Italian notary public ( who represents the state) to ensure that rhe deed of sale is correctly prepared that the agreed purchase price paid to the vendor and the land registri is updated. He also makes sure thet all payable fees or taxes are collected. A deposit of about any where between 10% and 30% is paid at the preliminary contract (compromesso di vendita). The final deed of sale occurs about 4-12 week later given the public notary time to carry out a series of stands checks. A qualified professional is also required to carry out a series of technical verification.
Why do I need a preliminary contract?
The preliminary contract commits the buyer and sekker. This means that the seller takes the property off the market. If you decide to pull out of a preliminary contract, you will lose your deposit. If the seller soes so, he will have to return double the deposit paid. A number of therm ans conditions are drawn up in this contract which need to be worded with the help of an expert as such contracts may have far reaching consequences. A properly drafted preliminary contract needs to be exhaustive and can be used to force a sale through in a court of law.
What are the various taxes and fees payable?
The taxes payable can be summarized as follows Estate agents generally up about 3% of the agreed price. Stam duty of registation tax is levied on the declared value of the property (imposta di registro) and is around 3% for residents of the property and 10% for non-resident or second home buyers. This can vary significantly depending on how the property is classified. The notary generally has a minimum fee of about 1500 euro.
How does declared price work?
Taxes and notary fees are based on the declared price of a property. In Italy it is common practice to under declare the value of a property althrough this is not advisible. The minimum amount that you van declare without attracting the attention of the tax police is 100 times the ratable value of the property incicated in the land registry. Under declaring in rural areas can potentially give the neighboring farms the right to purchase the property using declared price as the reference.
Why do I need a preliminary contract?
The preliminary contract commits the buyer and sekker. This means that the seller takes the property off the market. If you decide to pull out of a preliminary contract, you will lose your deposit. If the seller soes so, he will have to return double the deposit paid. A number of therm ans conditions are drawn up in this contract which need to be worded with the help of an expert as such contracts may have far reaching consequences. A properly drafted preliminary contract needs to be exhaustive and can be used to force a sale through in a court of law.
What are the various taxes and fees payable?
The taxes payable can be summarized as follows Estate agents generally up about 3% of the agreed price. Stam duty of registation tax is levied on the declared value of the property (imposta di registro) and is around 3% for residents of the property and 10% for non-resident or second home buyers. This can vary significantly depending on how the property is classified. The notary generally has a minimum fee of about 1500 euro.
How does declared price work?
Taxes and notary fees are based on the declared price of a property. In Italy it is common practice to under declare the value of a property althrough this is not advisible. The minimum amount that you van declare without attracting the attention of the tax police is 100 times the ratable value of the property incicated in the land registry. Under declaring in rural areas can potentially give the neighboring farms the right to purchase the property using declared price as the reference.
When do i pay?
Deposit are payable at the signing of the preliminary contract. The balance is paid upon completation deed of sale (rogito) together fees and taxes.
Why can't I simply use an estate agent insead of Our Toscana?
Purchaising a property is generally one important step in a longer process. At a later stage you will probably want to renovate or restore the property. Getting us involved up front simply means continuity. This goes from an objective evaluation of the property during the search phase, dealing with the purchase contract if you decide to go ahead, and later work with you to draw up plans and supervise work on site. Our approach is more of a partnership where we really look afther your interests. Estate agent are in the business of selling you the property at best possible price to get their percentage.
When does legal title of the property pass to me?
Oncel land registry records are updated a certificate is issued. This may occour few months after deed of sale.
What does conveyancing entail?
This is simply the legal process or the paperwork in buying and selling property. The notary and studio tecnico oversee the process and in particular: check that the property belongs to the vendor as per deed. Ensure that property title is transferred correctly and arranging registration of title. Check that there are no outstanding loans greater than the selling price. There are no aoutstanding bebts (unpaid taxes, bills etc) . Identify any rights of way or other pre-empion rights. Certificate that the property is suitable as a dwelling ( certificato di abitabilità). That the property is build in accordance with planning prermission/building regulations. Look out for restrictions (listen building and area development plans etc.). Waiver of compulsory purchase by neighbours through declaretion.
Restoration Plans & Submittals - FAQs
What kind of documentation is necessary for restructuring?
The minimum documentation necessary for restructuring includes cadastral reference and layout, site layout, floor plans, 4 elevations, significant vertical sections, documentary photographs and a technical report. With the introduction of recent building regulations, it is now mandatory to demonstrate that the dwelling can be potentially adapted for handicap use and is in compliance with national thermal & insulation requirements. All plans need to show the actual state of the property and the proposed modifications as well as a superimposed plan that highlights areas of demolition and reconstruction at a glance. A declaration of an engineer, architect or geometra is also required.
What does “cadastral layout” mean?
The land registry office in Italy keeps records of building types, sizes, uses and location used for paying property taxes. This is a very important register and demonstrates who has legal title on the property. The supplementary graphic documentation is an archive is known as the “catasto” which unfortunately is frequently inaccurate and sometimes 2-3 years out of date. The cadastral layout is simply a reference map that formally identifies the property from an public administrative standpoint.
What happens if I want to convert a barn into a dwelling?
This generally means that the cadastral use of the building changes from a rural building into a dwelling. This incurs payment of special stamp duty and “change-of-use tax” which can be up to 10% of the restructuring costs. On top of that there will be an ongoing yearly property tax known as ICI (Imposta Comunale sugli Immobili). There are also a number of building regulations that need to be adhered to such as minimum ceiling height, thermal and insulation values of external walls and roof etc.
How long will it take to get draw up plans for restructuring?
Drawing up plans can sometimes be quite an iterative process. Some customers have very clear ideas about what they want while others need to “see” the visual effect to compare solutions and gradually make decisions. Once we have “established” the modifications required, the plans will be drawn up within a two week period.
What if I only need to roof the house and do some minor renovation work?
In many cases it suffices to notify the town hall in writing that work will commence on a specific date. This is generally referred to as a DIA (Data Inizio Attività) and is used in the majority of cases except for changes in the structures volume. The town hall has a period of 20 days after submission to comment or intervene if necessary. Work may commence any time after this 20-day period. Unfortunately, the DIA still requires the standard documentation as mentioned previously as the onus is on the qualified professional to ensure that all building regulations and laws are adhered to. In some cases it necessary to get clearance from the Sovraintendenza dei Belli Arti for listed buildings of architectural/natural significance or the Province if the restructuring is within prescribed distance of a provincial road. In these cases, an additional 2 months will be necessary.
When do I need planning permission and how long does it take?
Planning permission is required for the construction of new buildings or modifications that incur changes the cadastral volume. Once submitted, the competent authorities (generally local town hall) have 3 months to reach a decision.
How much do planning application taxes cost?
The town hall administrative taxes applied to a DIA is about 50 euro whereas full planning costs can vary from 80 to 145 euro.
How long is planning permission valid for?
Once planning permission has been granted, you have to officially commence work within 1 year (by formal notification in writing) and complete works within 3 years of the grant date.
Might I get refused planning permission?
We prefer to discuss any potential planning permission issues with the technical staff at the local town hall to get their views and interpretations of planning regulations up front. This transparent practice generally makes the review process much more simpler with little or no time wasting on both sides. This means we will generally know about any conditions/restrictions that may be prescribed beforehand.
How does living in a seismic zone impact the process?
The whole seismic resistance issue is been taken very seriously by the Italian Government given the magnitude of earthquake risk and the number of buildings with little or no resistance (estimated to be about 65%) The objective of the new stringent regulations is to examine the seismic characteristics of a building whenever restructuring/renovation occurs and make improvements to reduce loss of life. The process may vary slightly: depending on the restructuring work necessary, an analysis of the constructions seismic resistance characteristic needs to be carried out both for the current state and proposed alterations. The improved seismic resistance needs to comply with anti-seismic requisites laid out by regional laws. The associated calculations, analysis and detailed plans are deposited at the Genio Civile (Public Office of Civil Engineering) before work commences on site. The Genio Civile occasionally carries out a series of spot checks to ensure compliance. An additional cost for this service is normal.
Can I get a detailed estimate of restructuring costs?
Once we have established a clear idea on scope of works, quality, materials employed and timing, a bill of quantities can be drawn up to which we can apply a detailed cost schedule.
When do I pay?
Payment for documentation and permits is due upon issuance of planning permission or 20 days after the work commencement notification (DIA).
Will I get all documentation in English?
Most of the documentation will be in Italian as it is purely for administrative purposes. However where your approval is required on a matter, we will ensure that you will have all decision making information in English.
Declaring Property Value - FAQs
What's the big deal about “declaration” of the property value?
Up to now, the declaration of the property's value in official documents in Italy has nearly always been significantly lower than the actual of commercial value. This was considered to be a common practice as the taxes levied on the sale of a property are up to 10% of this declared value (e.g. second homes)
Isn't there a significant risk with the taxman?
Of course, however the common practice was to stay above the land registry or cadastral value of the property. Declaring above this amount automatically meant no tax assessments. As a further precaution, the difference between the declared and commercial value would have been paid in cash … very risky business!
How much is this “cadastral” value compared to the market or actual value?
The answer depends on how recently the land registry was updated for the property. This value generally gets revised whenever a renovation or a modification occurs to a property. Based on a recent survey published in the Repubblica newspaper, new buildings would be valued at about 33% of the commercial value, however for older properties, the assigned values are somewhat aged and are sometimes as low as 15%!
How is this minimum declarable value calculated?
Simply by taking the so-called rendita catastale (notional rental income) and multiplying it by 115. For land, commercial property etc this multiplying factor changes.
Where do I find the rendita catastale?
This can be found by doing a land registry search or by simply referring to the deed of sale. It is the same number used to calculate ICI tax.
So what happens as of 2006?
Based on the budget approved for 2006, the taxes will be levied on the cadastral amount and the actual market value will have no fiscal implications whatsoever even though it appears on the deed.
Is there a downside?
Perhaps! Given that notary fees are based on the declared transactional value, this amount is likely to skyrocket. To offset this effect, a 20% discount is being imposed on the their fees.
So why is the government introducing this new procedure?
Perhaps for a number of reasons. To date, there is no official record of real estate transactions that reflects the market value and understanding the trends in property is still a bit of a guessing game. The fact that the cadastral values are much lower than actual doesn't necessary mean it's going to stay that way forever. Over the past 5 years, the land registry has made leap-frog improvements. This will certainly create an incentive to update the existing values assigned to properties. In fact some municipalities have already started revising the cadastral category and classes to boost local ICI taxes. In any case, as things stand, it makes real estate more attractive than before.
Is this new procedure applied to all properties?
No. It is only applied to dwelling or residential properties meaning the likes of commercial buildings and land are excluded.
Do I need to do anything in particular?
Yes. Speak with your notary if you are buying in early 2006. They will be able to give you the operational details soon.
41% Tax Breaks (for 2006) FAQs
How does this tax break work?
If you do a restoration job that costs you say 40,000 euro, you can follow a specific procedure that allows you to get back 41% of the this amount or 16,400 euro in the form of tax relief over the following 10 years which is equal to 1640 euro per annum. This is tax relief on your Italian income tax locally known as IRPEF.
What are the objectives of this scheme?
Reduce tax evasion, give the Italy a facelift & eliminate the submerged or “black” economy
And if the restoration job is worth 150,000 euro?
The same rule applies, but there's a cap of 48,000 euro on this scheme. That's to say you to get back 41% of the this amount or a max of 48,000 euro and not 61,500 euro.
Do I need to be a resident?
You need do your annual tax returns in Italy to benefit from this scheme which means you'll have some sort of job or activity in Italy. For fiscal purposes, you are considered a resident if in Italy for more than 6 months per year.
How do I apply for such tax relief?
The procedure requires that all works be officially documented with invoices and payments. A professional needs to be hired to submit plans and technical report to the local Comune and compile the paperwork on your behalf.
When do I see the benefits?
As mentioned above, the benefits kick in immediately over the following 10 years of tax returns.
ICI Taxes - FAQs
What is ICI Tax?
ICI pronounced Ichy stands for Imposta Comunale sugli Immobili and is the local taxed levied and spent by the Municipality or Comune in which the property is located.
How do I calculate ICI to be paid for my second home?
ICI for second homes is generally calculated applying a 0.7% ICI tax on notional rental value assigned to the property and multiplying by 105. See the applicable coefficient HYPERLINK "http://www.finanze.it/dipartimentopolitichefiscali/ici/delibere/ toscana.htm?anno=2005"here
Example:
If the house's notional rental value is 150 euro, then the ICI payable is 150x105x7/1000 = 110.25 euro
Where do I find the notional rental value?
This is written on the deed of sale and is referred to as rendita catastale.
When do I pay ICI?
ICI is payable in two 50% instalments due December 20th and June 30th. You can get the payment forms with bank details from you local Comune.
Where do I pay it?
Payment is generally made through your bank or post office. You must keep the stub for proof of payment.
Does each house co-owner have to pay ICI separately?
Yes. It is not possible for one owner (say husband) to cover 100% of ICI due. Two payments are necessary (from both husband and wife)
Can I pay in one instalment?
Yes. In fact this is much more convenient for non-residents and is payable on June 30th.
Does the Comune or tax authorities send me an ICI bill?
No. The system requires the tax payer to proactively pay their ICI taxes. Missed payments will automatically incur fines of up to 200% of the amount due .
If I buy a house during the year, how much ICI tax do I have to pay?
If the deed of sale goes through say September 17th, then you are liable for October, November and December or 3/12 of the yearly ICI due. The deed of sale on of before the 15th of the month means you have to add that month to the ICI due. In our example, September is excluded.
