The beautiful villas and stunning landscapes for hikes are some of the reasons Canadians buy property in Italy. Besides, the country has a better quality of life, a lower cost of living, and cheaper apartments.
Luckily, there are no restrictions for Canadians buying property in Italy. However, you must follow the purchasing process and provide the correct documents, and you also need to know the tax implications and choose the right payment method to seal the deal.
Now that you know Canadians can buy property in Italy without restrictions, your next worry is how to do the purchasing process. This step-by-step guide on how to buy foreign property in Italy will help you through the process.
Once you decide to move to Italy, start searching for your next home early. Most home sellers post the houses on the internet for advertisement. Scroll through until you see the house of your dreams.
Search in various locations, depending on where you want to live. Selecting the location narrows down the choices making it easier to choose a house. However, do not make any transactions online without seeing the home in person. Some buyers have fallen victim to fraud.
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If you don’t have a location where you want to settle, you can explore some on the internet. Find out the pros and cons of living in those locations. If you are buying a home for renting to tourists, check if the area is popular with tourists to make maximum profits.
You can hire an Italian real estate agent to advise you on the best places to buy a house. However, your selection depends on your needs and budget. Property in some parts of the state is more expensive than in others.
Choose the property that fits your needs. Some home buyers prefer city houses, while others will buy a home on a farm ranch. Ensure the house is near essential amenities like schools and worship centers. If you don’t drive, get to a place easily accessible by public transport.
As a Canadian, finding the right property to buy in Italy can be challenging. Although most people advise you to use the internet to search, the pictures can be deceiving. A perfect way to find property in Italy as a Canadian is using property agencies and agents.
While looking for a house on the internet is less tiring, you still need to send someone to view the property for you physically. Hire a property agency or an individual real estate agent to work with.
You can send the agent to a specific house you saw on the internet to confirm its condition. Alternatively, since agents help people to look for homes, they know many properties on sale. You can state your budget, and the agent will suggest a house they saw.
The language barrier is a challenge you will get when finding a real estate agent in Italy. To overcome this challenge, hire a real estate agent from Canada, who will then connect with an Italian real estate agent.
Can Canadians buy property in Italy? Canadians can effortlessly buy property in Italy, but some regret their purchase. Buying property in a different country exposes you to scams, and you can easily fall victim if you are not keen.
Some ways to protect yourself from scams are;
The pictures you scroll through the internet are beautiful and inviting. The language used in advertising could also be convincing. However, never buy property without seeing it in person.
Those pictures on the internet could be different from the property on sale. Also, some of those houses are too old and have many problems. Others require an entire repair on plumbing and electric wiring.
Most times, the owners don’t post these problems. Once you buy the house, you will incur another cost of repairs, which could total an amount close to the buying price. To avoid such inconveniences, travel to Italy to view the houses. You can also hire a contractor to check if the house has a hidden problem, like plumbing and wiring.
You will come across fake owners of properties advertising houses for sale. Once you pay the seller, they disappear, and you get into trouble. Court cases concerning real estate property take long and are draining and expensive, which is not what you want.
Always check if you are buying from the owner of the property. Ask for the titles and registration of the property and ensure the names on the documents match the owner’s identification. You would instead hire a lawyer to verify that the seller owns the property.
Besides viewing the house in person, you should only buy a property from a seller willing to meet you in person. Most scammers will ask you to do all the transactions through the mail, and once you send the cash, they disappear.
Once you get the property of your dreams and verify that the seller is the owner, the next step is getting a payment method. Some buyers apply for bank loans or a mortgage, while others save cash to buy a home.
Choose a financial institution with a reasonable loan rate if you want a loan. Luckily, getting loans in Italy is not hard, even for Canadians. Once you meet the bank’s requirements, you are good to go.
When you apply for a mortgage, the bank will send a surveyor to inspect the property. You will get a mortgage approval if the property passes all the bank’s tests.
When applying for a loan, you must consider all the taxes you will pay when buying property in Italy. For example, you will pay a registration tax, Notary fee, land registry tax, and VAT. Other fees are legal fees and agent fees.
Registration tax ranges between 3 and 7 percent, while you could pay up to 22 percent of VAT. The tax amount depends on the value of the property and if it is new or old.
To relocate from Canada to Italy, you must register your stay in the country. The registration also applies to people planning to stay for over 90 days.
Pro Tip: Remember to exchange your money at a reliable currency exchange provider when making international payments. The good news is that KnightsbridgeFX provides consistent bank-beating exchange rates to help you save more during purchases.
Besides the taxes, other legal requirements when buying real estate property are depositing one percent of the total price. This is applicable when you make an offer to buy the house. The deposit signifies that you are a serious buyer.
Once you sign the contract to buy the house, you will pay a deposit of 10 or 20 percent of the buying price. You will then agree with the seller on how to pay the rest of the amount.
You could lose the money if you pay the deposit and fail to proceed with the other payments. Also, the seller cannot change their mind to stop selling the property after you make payment. So if it happens, they should pay you to double the deposit.
Canadians can buy property in Italy effortlessly. There are no restrictions on owning property in this country, but you must conduct thorough research to avoid scammers. Also, do not transact before seeing the house and meeting the seller.
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