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Buying in Italy, what do I need to know?
We deal with all of the Italian banks and the UK banks that operate in Italy, as well as a number of European investment banks. Dealing with so many banks allows us to offer you the best deal whatever your circumstances.
After years of operating in Italy and due to the volume of business that we introduce to banks, we regularly negotiate lower interest rates and fees than you would normally be offered by the banks.
What type of property can I get a mortgage on?
We can arrange mortgages for individuals or companies to buy main homes; second homes; rental or investment properties; off-plan properties and commercial properties.
Equity release mortgages are available.
What currency will my mortgage be in?
All Italian banks will provide mortgages in Euros, but we can also arrange mortgages in other currencies such as US Dollars, Sterling and Swiss Francs.
What is the maximum loan amount (LTV%)?
Depending on the valuation of the property or purchase price, non-residents can borrow up to 80% for purchases and equity release. All mortgages are subject to income, but some banks will also take rental income into consideration.
What is the minimum loan amount?
The minimum loan amount that Somerset Mortgages will consider is €75,000.
How long is the term of the mortgage?
The mortgage term can be from 5 - 30 years.
How much will the bank charge me?
Generally the banks will charge you a 1% arrangement fee, however we will negotiate on your behalf to reduce this.
Do I need life assurance?
Yes, life assurance is mandatory. We can help you arrange this at minimal cost.
Which mortgage types are available?
Both capital repayment and interest only mortgages are available for both purchase and equity release.
Interest rates
The interest rate will depend on the currency of the mortgage. For example, if a Euro mortgage was selected then the EURIBOR (European Interest Offered Rate) would apply, plus the bank's margin. Rates are available from 3.4%.
Fees and Taxes
Estate Agent Commission - Approximately 3% each from the buyer and the seller.
Notaries Fees - Fixed in bands depending on the price of the property.
VAT - Imposta sul valore aggiunto (IVA) - 10% if bought new from a developer. 4% if the property will be your main residence. 20% if the property is designated deluxe. If IVA applies then the other purchase taxes are reduced.
Stamp Duty - Imposta Ipotecaria 2% or Imposta Catastale 1%.
Registration Tax - Imposta de registro - 7%.
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When buying property overseas, we recommend that you seek professional tax and legal advice.
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