This brings up another point.  If you sign a lease on the agreement that something additionally is done to the house, don’t count on it happening – at least not quickly.  Three months into my six months lease I canceled my request for a phone line to be put in.  It had been agreed that it would be installed entirely at my own expense, and I wasn’t willing to do that for a period of three months or less.  Also, the doorbell of that apartment was to be fixed the week after I moved in.  Electricians came now and then throughout the six months and fiddled with the doorbell, but it never worked.

Agencies

Agencies advertise in free papers, regular papers, and in their office windows.  You’ll immediately recognize a real estate agency by the window full of ads for the different apartments or houses they have available to rent or sell at that time.  Generally, if you don’t see it there, they don’t have it, but it never hurts to ask and I got one apartment doing just that.

Before you begin working with an agency, check that their fees are acceptable.  In rental agreements most agencies charge a month’s rent for a six-month lease, two month’s rent for a year lease, and a steadily higher amount for longer leases, but not at that same rate. To most Americans these rates seem ridiculous, as a rental agreement which included only a couple hours of their time will earn them not just a month’s rent or more from you, but an equivalent amount from the landowner as well. 

When selling property, agents usually charge between 2.5% and 3% of the final sale price.  This is paid on the completion of the sale.  As the buyer, you’ll find yourself paying the agency, plus taxes and fees to other people involved in the transaction.

When you find a home an agency is advertising that you like, you’ll set an appointment to go out and view the property with the agent.  If you’re looking for a house in the country, you may want to line up several at once, and the agent may just give you directions and a key for you to see them yourself.  In a busy agency, or for a popular piece of real estate, you may have to be added to a waiting list to see the place, and only if each person before you who goes to look doesn’t sign a contract would you get to take a look yourself.

After coming to an agreement on a lease or purchase, both parties sign the contract.  This, however, is not yet a legal agreement until the appropriate francobollo, tax stamp, has been purchased and affixed.  I found that out several months into my first lease.  While the agents did help me out with a landlord whom wanted to overcharge me on utilities and make use of my security deposit during the lease, they never bothered to finalize the lease with a francobollo, so if anything had come to court, it would have been my fault for not having taken care of it myself.

Leases are arranged so that payments are made either to the owner or to the rental agency.  At the end of the lease, the agents come to re-inspect the property and see that no damage has been accrued, and that final payments are complete.

Renting

Real estate agencies are the safest route to take in renting, since they are licensed professionals familiar with all of the laws regulating rental agreements.  They not only assist in finding your new home, and write up the legal paperwork, but continue to act as intermediaries concerning all problems concerning your lease which may later arise.  For instance, if something breaks and the landlord will not fix it, you would contact the agency.  At the same time, if you did not pay your rent, the landlord could have the agency take care of the problem rather than handling it herself.  As I just described above, agencies are not always as discriminating and helpful about the law and your rights as a renter as they could be.

Local papers also advertise apartments and houses for rent, but word of mouth is the Italian way.  Universities have message boards where apartments or rooms for rent are commonly posted.  Aimed at students, these often have shorter leases, but can contain some of the best deals out there.  However, if you want something long-term it’s still worth asking.  These same message boards and newspapers are a great place for you to post an ad for specifically what you are looking for.  Going these routes will get you a cheaper deal, at least cutting out the cost of the agency.

Foreigners are often assumed to be rich.  A friend of mine was introduced by one Italian to a group of his friends as being American and having come to Italy with ‘due sachi di soldi,’ proverbially meaning a lot of money - which certainly wasn’t the case.  I experienced this problem often when looking for an apartment.

Rental rates generally increase by a small percentage each year in accordance with the government’s annual cost of living reports.  Rent is sometimes paid quarterly, and a common lease is for four years, plus another four years.  You can find yearly leases, and more short-term housing is available in university or high tourism areas.

Furnished housing is not very common, as Italians do not regularly move around like Americans do.  Short-term tourist housing is furnished and fully equipped, but otherwise partially or unfurnished apartments are the norm.

‘Unfurnished’ housing means exactly that; there will be no fixtures, such as lights, of any sort, along with no kitchen appliances.  If you’re renting, you might consider partially furnished lodgings, which would generally include fixtures and appliances.  Furnished housing comes with furniture, but usually without plates, cooking supplies, or linen.  In furnished housing, the renter is responsible for regular repairs, and the owner is only responsible for large repairs.

Renter Rights

Renters have a lot of rights in Italy, at least if they have residency status.  The irony is that landlords are not legally permitted to ask if a renter has this status.  Therefore it is generally assumed that if you are foreign you don’t have residency, creating a marked preference of western foreigners by landlords.

Stability is important in Italy, so Italian law makes it difficult for you to lose your job or lose your home.  Evictions can become long and drawn out, even if the tenant is not paying his or her rent.  A case must first go to court, which involves an additional waiting period.

Buying

The only thing you need to buy property in Italy is a tax code, codice fiscale, so that you can pay property tax.  You should be able to even get a temporary codice without other visas and permits if you wish to buy before you’ve taken care of long-term visas.  This is the kind of information, however, that might change depending on which official you ask.

The first part of home buying in Italy is called the Compromesso di vendita.  When both parties agree on a price, they sign this contract, and you pay an initial 10%-30% of the total sale price.  If the seller pulls out, they are required to pay additional funds back to the prospective buyer.  A notary public oversees this, and the same person is required to oversee the sale’s completion, il rogito notarile. They are generally paid 2.5% of the declared land value of the purchase.

The completion of the sale is generally quicker than in other countries, because fewer checks will be made on the property.  If you’re looking for reassurances, have the property checked out yourself, and hire a lawyer to check for restrictive clauses or debts involved in the property.

At this point you would need to pay a land registration tax and a separate land registration fee.  Italy has special laws to help families purchase their first home, so as a resident, your new home in Italy would fall under these prima casa regulations, and your registration tax will cost you much less.  You would normally pay 10% of the statutory value, but under prima casa that drops to just 3%.  If you do not yet have residency status, then you would have to pay the full 10%.

If you are buying brand new property, you’ll need to pay a Value Added Tax (VAT) of 9%.  If your new purchase is classified as luxury property, the tax jumps to 19%.  Additionally you’ll have the 1% stamp tax.  All taxes are calculated using the declared land registry value.

Even as a non-resident homeowner in Italy, you could become liable for all sorts of Italian taxes, including income tax.  Check out the details of your particular situation to cover your back.

Mortgages

Italian mortgages require a 30% payment of the purchase price, and can be repaid over a 5-25 year span.  You must have all mortgages repaid by the age of 70.  Possible income from renting the property is not considered when lenders assess your mortgage eligibility.