Is it your dream to search the Italian countryside for a run-down, traditional trullo and renovate it into a beautiful home? If so, do you know how much this would really cost?
This charming property (pictured above) is located in Puglia and is on the market for just €100,000. But what about the other costs involved? We go through the extras:
These costs are usually divided equally between the buyer and vendor, ranging from 3-8% of the property sale price. Confirm the percentage that your agent charges before you begin searching for a home, to ensure that you know exactly how much you can afford.
This fee completely depends on the sale price. A lower selling price equals a higher percentage, but the percentage will not exceed 2.5-3% of the total cost of the property.
This tax is charged upon completion of the sale and is charged at 3% for a main residence. Those that are not resident in Italy will be charged a greater registration tax of 7%. This rises to 10% for agricultural property. Those buying a brand new property are exempt from the tax, but are instead liable to pay VAT. This is charged at 4% for a main residence, 10% for non-residents and up to 20% for a second home or luxury property.
Land registry tax
This is charged in a fixed lump sum of around €130 for a main resident or at 1% of the purchase price for non-residents.
These taxes must be paid to the notary, who will then direct them to the correct government departments.
Alongside these charges, there are always additional costs to consider, such as surveyor, solicitor and architect fees. You may also have to pay to connect to the water, electricity or gas mains.
You should also budget for a good overseas property insurance policy, to protect your new investment.