What it’s like for Non-Residents
If you are looking for information on mortgages in Italy, read on as it has been properly articulated in this article. It is a market which has a limited offer but there is an offer nonetheless. It is not necessary to be an Italian citizen to be able to purchase properties in Italy. Find more information about this from a fiscal point of view, in this article about mortgages in Italy for non residents.
Type of VisaPrevalent among Non-Resident Buyers
There are several types of visas made available by the Italian government. A lot of people who purchase properties in Italy are interested in the elective residency visa, which is a visa made available by the government intended primarily for people who want to retire in Italy, not necessarily older people only but anyone who has stopped working.
Mortgage Value
Youcan get a mortgage in Italy up to 50 to 60 percent of the market value of the house generally. You can also get up to 80% in some cases. It varies from case to case. So,there would be a pretty substantial down payment. But one advantage is that mortgages are cheaper as compared to what it is in America in many places. So,it is a good idea to invest in Italy in 2022 especially in real estate
Documents and other Requirements
In order for you to get a mortgage, you may need to have a residency permit in some cases. So, it is better to consult it with an attorney beforehand.The person applying for one must be 18 years of age or older. The longest-term loan, however for someone over 60 years is 15 years. You also must have a proof of fixed and stable earnings and an employment contract without a completion date.In addition to that, any supporting documents that you have must be translated into Italian via the Apostille process. The Apostille process is the recertification of the documents from some other country by the due procedure laid down by the law of the land.
Law of the Land
The bank then reviews your personal information, financial information and the property information as well after which a bank originated property inspection is done. After the inspection, a complianceand evaluation report are generated for the bank. A title check is then done by the Notaio who represents the local state government who is responsible for overseeing the entire process and making sure all the deeds are recorded correctly and the taxes applicable in the transaction is also conveyed by the Notaio. It usually takes about six to ten weeks to go through the process and have the funds released.You can also use a power of attorney at the signing sometimes and sometimes not. You may want to check that.
Transfer of Loans from Seller to Buyer
Some loans are assumable. If there is a seller you’re dealing with and they have got a really nice loan going say for example at 1% which is a possibility given that the interest rates are very low these days, it would only save you some cost if you want to assume their loan. That would be a little light on your pocket if you are planning to invest in Italy in 2022.
Taxes and other Charges
Even if you are not assuming a loan, if it is your first home in Italy, you pay less taxes and less registration feesout of which stamp duty is 2% instead of the regular 9% if you are already living in Italy or if you are planning to move there within 18 months from the date of purchase. In addition to that you would also get 6 months to register the property. Not to get scared of the 9% value, it is not the total value of the property but the cadastral value – which is the value that was allocated to that property potentially when it was constructed or built or the 1940s when it was registered. Realtors in Italy do charge a fee to the buyer and that rate is generally around 3% depending on the cost and most of the agencies would require the amount to be paid at the time of exchange of contracts. Other than these there can be some very fewer substantial charges as well. Those are nothing as compared to what we have already covered here.
