Buying Guide

Whether you have already found the Sicilian property of your dreams and want to know “What's next?” or you are still considering the possibility of investing in a Sicilian home, it is important that you have a good understanding of the property buying process in Sicily as it is highly likely that it will differ in some way from systems in place in your own county. Whilst the buying process in Sicily is not difficult and there are no restrictions on foreigners purchasing property here in Sicily , there are a standard set of procedures which govern a sale. This short guide aims to explain each of the key phases in an easy to follow step-by-step way.

Locating Your Property

Finding a suitable property in Sicily may be demanding for foreigner purchasers. Whilst there are numerous estate agents in most desirable towns and resorts in Sicily , they normally speak very little English and a large percentage of property sales are never handled by them. These are the private sales conducted away from the brightly lit offices and colourful ‘For Sale ' boards you might be familiar with in the UK or America.

House In Sicily is here to help you with this step. We not only deal with all the estate agents in our area, but we also have a huge number of contacts with private sellers and land owners. We are true Property Locators and will attempt to find you a property to match your exact needs.

Legal Representation

Once you have found the property of your dreams, the next step is to decide whether or not you wish to appoint your own legal representative to handle the purchase. There is no legal requirement for you to do this, so it will be your own decision as to whether you would like this added level of security. When selecting legal representation, ensure that your firm of lawyers are fluent in both the Italian language and Italian property law.

House In Sicily work with a large international law firm who have multiple Italian lawyers on their staff. They also have an office in Palermo , Sicily . We would be happy to pass on contact details if required.

Securing Your Purchase

Once you have decided on your purchase the next step is to secure your purchase. The actual purchase process is a two part affair. Initially you will enter into a preliminary contract or compromesso agreement with the vendor, where you will pay a deposit to secure you purchase. To complete your purchase you will go To Act or l'atto . Both of these phases are explained in more detail below.

The Preliminary Contact – Compromesso

This contract is drawn up by our nominated notaio and will become the first legally binding document you will sign during your property buying adventure.

The compromesso agreement will stipulate items such as:

• Agreed purchase price
• Property details and land boundaries etc.
• Amount of deposit to be paid (normally between 10% - 20%)
• Completion date (normally between 30-90days in the future)
• Any clauses or stipulations you wish to add to this agreement. For example “offer is subject to receiving confirmation that no existing mortgage is associated with this property”

It is important to remember that this agreement, signed by both parties, is legally binding and is not something to be entered into lightly. It is certainly not the same as putting in a verbal or even a written offer in the UK for example. There are stern penalties involved for both parties should either decide to pull out of the agreement at this stage.

The Act

This is the final part of the buying process and will take place in the notaio's office, with both vendor and purchaser present to sign the relevant paperwork.

During the compromesso period, the notaio will have performed his due diligence obligations and ensured that all paperwork required to complete the sale has been produced.

If you do not speak Italian to a very high level, then it will not be possible for you to sign the act without having either an Italian translator present, or by signing over Power of Attorney to an Italian speaker you trust to act on your behalf. House In Sicily can arrange both of these items for you, should this be a requirement during your property purchase.

During the Act, the notaio will read through the paperwork in great detail and ask both parties to confirm several aspects of the purchase and sign where required. The notaio will then take his payment and the purchase tax payments which he forwards to the local tax authority on your behalf. Remember, that the notaio is an Italian government representative and acts for neither the vendor nor purchaser and so there is no risk of this payment not reaching its intended recipient.

Buying Costs & Taxes

The costs associated with purchasing property in Sicily can be somewhat confusing at first glance. It is House In Sicily 's policy to provide you with a clear understanding of all the associated buying costs before you make a decision to buy a property in Sicily.

House In Sicily Fees

House In Sicily act as Property Locators. Our fee is calculated at 3% of the agreed purchase price, with a minimum fee of €5000. This fee includes our services before, during and after your property purchase. We will locate properties which fit your requirements and escort you during your initial viewing trips. Once we have located a suitable property we will liaise with the agents/private vendors your legal representatives, and the notaio. We will assist you in obtaining your codice fiscale (tax code) and set up your bank account here in Sicily , both of which are mandatory requirements when purchasing a property in Sicily.

House In Sicily are not estate agents and do not act like them. Our service goes far beyond what a normal estate agent will provide you and our charges are often cheaper too. Our fee is payable once you have signed the compromesso (preliminary contract agreement)

Estate Agent Fees

Estate agent fees in Sicily and across Italy are higher than in many other countries, especially in the UK . This can be a reason why many vendors in Sicily still choose the private option when it comes to selling their home. The fee a Sicilian estate agent fee will charge is normally between 6-8% of the purchase price, split equally between the buyer and seller.

Notaio Fees

This is the fee you pay at the final act to the notaio for performing his due diligence procedures, drawing up the purchase paperwork, reporting the purchase to the authorities and ensuring that your tax liability is calculated and paid for. Fees normally vary between notaio's and can vary depending on the value of the sale and it's complexity. House In Sicily work with a number of highly professional and reliable notaio's who give us the best rates for their services. You should allow between €2000-€3000 for their fee under normal circumstances.

Legal Fees

These fees can vary dramatically depending upon the law firm you chose and the amount of work the are required to do in order to provide you with the legal assurances you seek. You should allow a minimum of €1000 for there services, and obtain a written quotation from them as to what their costs will be and what this will cover.

Geometra Fees

Very often property purchases in Sicily require the services of a geometra. It is a geoemetra's responsibility to perform some of the conveyancing requirements associated with the purchase of your home. Depending upon the complexity, fees can range between €500 to €5,000.

Italian Translation Fees

For non-italian speakers, we can provide translation services. This is a mandatory requirement during the final act, unless you have signed power of attorney over to a fluent Italian speaker. We can also provide written translations of other documentation associated with the purchase of your home. The fee for this service is dependent upon exact requirements, but you should budget between €250-€500

Property Registration Tax

This can be the largest fee you will pay during your property purchase. This is the tax paid to the Italian government when buying a home in Italy . This is collected via the notaio during the final act. There are a number of different ways this is calculated depending upon your personal circumstances:

Purchase Of An Old Property (ie: not a new build)

Tax payable when purchasing existing property is:

3% - if this is your first home purchase, and will be (within the next 18 months) considered your main home. I.E. You commit to becoming an Italian resident within this time period.
The 3% calculation is however not based upon the property sales value, but its catastale value, which is determined by the local council and is often far lower then the market value of the property.
7% - if this is not your first home (etc) in Italy , or you are a foreign purchaser who does not intend to become an Italian resident during the next 18 months.
The same rule applies as before, in that the 7% tax liability is based on the castastale value of the property.

Purchase Of A New Build Property

There is a different set of tax rules which cover the purchase of newly built homes in Sicily.
Instead of you paying the normal 3% or 7% purchase tax, instead you pay a small Land Registry Tax payment (normally under €200), and then the Italian equivalent of value added tax (IVA) on the purchase price of your new home.

This ranges from:
4% - If this is your first home and you are, or you will become a resident of Italy
10% - If this is your second home, or you are a foreign purchaser with no intention of becoming an Italian resident within the next 18 months.
20% - If your new home has been classified as “luxury home”. Properties with swimming pools fall into this category.
House In Sicily will advise you if this is the case when you are looking at one of our new build properties we have for sale.

Land Registry Tax

A small tax, often under €200, payable when first registering newly built homes only.

Cadastral Tax

Another small tax again under €200, payable when first registering newly built homes only.

VAT/IVA

The following fees are normally subject to Sicily 's value added tax (IVA) . With the exception of the IVA payable on newly built homes (as described above), the normal rate of IVA is 20%.

• Any estate agent fees
• Other professional fees such as geometra, notaio, legal representation.