Proprety Investment in Triest
REAL ESTATE INVESTMENT IN TRIESTE
Trieste is a city in constant expansion. An rich area full of history, culture and natural beauty.
- Compared to other major cities of Italy real estate prices are very low.
- Good profitability.
- Trieste is an university and scientific town and the proprieties can be rented during the owner's absence.
- Trieste has an excellent quality of life.
The Alpha Real Estate is specialized in real estate investment.
Professional assistance .
Contact us for more informations
Via Pozzo di Crosada n. 7/a Trieste 34121
telefono: +39 348 41 40 398 fax: 040 2605423
How to buy a house
When you find a house you firstdo an offer but before the offer is very important to investigate the title of the property, if is regularly registered, that it belongs to the person who is undertaking to sell it and if there are loans on it.
The offer of purchase must be in writing. Then, if the offer has been accepted it can be verbally communicated. Once the vendor signs it accepting the offered price this means that he undertakes not to sell the property to anybody else until a certain date. The offer of purchase, once accepted, is legally binding.
The Compromesso is drawn up and this is a legally-binding document which states the agreed sale price, the completion date (Rogito) and any information and rights the property has.
Once this contract is signed and a deposit of about 10%-30% of the purchase price is paid, the seller may only withdraw if he pays back to the buyer the deposit plus an amount of money which is equal to the deposit itself.
Should the buyer wish to withdraw, he will lose his deposit in its entirety. The non breaching party can either sue the other party for the specific performance of the preliminary agreement or terminate such agreement and seek damages.
There are two types of agreement: one is a public document, the other a private contract. The notary can both drawn up public documents or authenticate private deeds.
The deed of purchase, final contract or ‘atto notarile’ is usually signed after the compromesso – which is not mandatory as the definitive contract can be immediate – and only when all the documentation is available. It is signed by both parties, the balance is paid and the property is officially transferred.
To buy a house you have to get the Fiscal Code (it is an identification code which will be used any time you will need to deal with the Authorities) and open an bank account.
THE COST OF YOUR PROPERTY:
The total fees for buying a property are approximately 10 to 20 per cent of the purchase price. Anyway, it may vary from case to case. Plus the real estate agency commission which is around 3% of the purchase price + VAT (I.V.A.) 22% of the fee.
Stamp duty (Imposta di Registro) – Land registry tax (Imposta Ipotecaria) – Cadastral Tax (Imposta catastale)
These are the 3 main taxes you have to pay when you purchase your home in addition to other minor taxes.
The “cadastral declared value” of the property on the final contract usually represents the basis upon which the these 3 taxes are applied, and it can be considerably less than the commercial value. However, the “rule of the cadastral value” is not always applicable. For instance, if the buyer purchases a property as a company and not as a private entity, the base upon which taxes are applied is represented by the commercial price of the property.
The amount of these 3 main taxes varies depending upon the type of property as well as the subjective characteristics of both the seller and the buyer:
Deeds of purchase stamped at the appropriate stamp duty = if the seller is a PRIVATE OWNER – REAL ESTATE AGENCY – DEVELOPER or RESTRUCTURING COMPANY that sells after 5 years from completion of work and opts out of the VAT regime:
Stamp duty: 2% for primary home (always applied on the cadastral value);- 9% for second homeapplied on the cadastral value if the buyer is a private entity applied on the purchase price if the buyer is a business entity>> €1,000 is its minimum payment due.
Land registry tax: €50 (fixed rate)
Cadastral tax: €50 (fixed rate)
Purchase subject to VAT (Value Added Tax) = if the seller is a DEVELOPER or RESTRUCTURING COMPANY that sells within 5 years from completion of work or that sells after 5 years from completion of work and opts to charge VAT on the sale:
VAT (applicable on the purchase price agreed and stated in the act by the parties): 4% for primary home;- 10% for second home; 22% for luxury home.
Stamp duty: €200 (fixed rate)
Land registry tax: €200 (fixed rate)
Cadastral tax: €200 (fixed rate)
Please note that all the taxes list above are valid as a general rule. However, we strongly advice the potential buyer the quotation of that very property before buying it to be sure of the amount of taxes that will be due.
A fee is paid to the Notary for the preparation of the final contract and generally only the buyer pays for the notary expenses.
But note that notary fees can also be requested for the preparation of the preliminary agreement of sale (and therefore not only for the deed) if the parties involved decide to also produce the compromesso with the notary in order to register a certified copy of the deed with the Land Registry.
Annual Taxes on the Ownership of a Property
An annual tax including 3 elements: IMU (it won't be charged on primary homes unless it is a luxury home), TASI (tax on municipal services, such as road maintenance or street lighting and cleaning, etc.) and TARI (refuse/garbage tax). All home owners, both resident and non-residents, must pay for these taxes. The payment is divided into two tranches.
IMU is applied on the cadastral value of the property plus a revaluation of 5%.
Also TASI is applied in a similar way. TARI is calculated from the property square metres.
In case of renting out your property for a long period of time, the tenant will pay for TARI.
If you buy a property which is part of a group of properties which share some communal areas then you will be required to pay condominium expenses. They vary as to the type and size of communal areas on the property.