Disclaimer: Whilst every care is taken to be accurate we cannot accept any responsibility regarding the information provided.

Choosing Calabria

Calabria has become an interesting destination for second home buyers and investors alike only very recently. Since the late nineties tourism has been on the rise and as a result more and more people have discovered this hidden pearl of the Mediterranean. The first holiday home buyers were the better off people from the northern Italian cities who could easily drive down to the south. Since the introduction of low-cost Ryanair flights from Stansted, the region has attracted huge interest from British and Irish investors looking for a bargain in the sun.

Choosing the Tyrrhenian Coast

Tourism is currently concentrated in the area around the airport of Lamezia Terme, with the areas around Tropea and Capo Vaticano being the most popular ones. If you are looking to buy to let, good returns are possible in this area as the season is a lot longer then on the Ionian coast.

Selecting a property

If you are looking for a second home or possibly a (partial) retirement home any area that catches your attention will obviously do. If you desire to make a good investment for resale or letting there are more considerations to make. The first choice must therefore be clear, are you buying primarily for your own use, or are you looking to invest your money in Calabria?

In terms of increase of value the area known as the province of Vibo Valentia has had some of the steepest price hikes of southern Italy, in excess of 10% in 2005, before the area became easily accessible to the British. This trend is expected to continue if not increase as it is here that visitors find some of the most stunning coastlines combined with lively towns and a good tourist infrastructure. This success pulls Italian and foreign homebuyers alike as well as big numbers of Italian tourists whilst foreign visitors are on the rise. This is an important fact if you are looking to let. Generally speaking good rental income is possible May-September with August being the peak, for properties close to the seashore or scenic residences with pools and other services on site or nearby.

Once you have decided on “our” part of Italy, you are welcome to join one of our regular inspection trips. These are available most of the year at a subsidized price of £50.00 per person (min 2 pax) and include 2 nights in a local hotel, airport transfers and of course viewing of the area and project selected together with advice on the buying process. We generally take reservations for 2 people as all decision makers should be present. You will be accompanied by one of our team who will take time to show you what we have on offer, introduce you to the beautiful surrounding area and help you enjoy a real taste of Italy.

However, before you book your eventual viewing trip, you need to know how you will finance your eventual purchase. See more about this under “Obtaining a Mortgage” below.

Reserving your property

Once you have determined which property suits you and fits your budget (see next chapter) we require a non-refundable fee of £2000. The preliminary buying agreement will be drawn up and you have time to shop around for mortgages and asses your eligibility.

Obtaining a mortgage

There are of course several ways to finance your new purchase, the easiest and quickest paying with your savings or releasing equity from your UK home. Obtaining a UK mortgage is also a possibility but many like to take advantage of the low interest rates in Euroland by applying for an Italian mortgage.

In this case there are some important facts that may be different from the UK. In Italy mortgages can be for anything between 10 and 30 years, with a 20% or 30% deposit required. The property will need to be independently valued by a surveyor (Geometra) and there are requirements regarding your income.

As for lending criteria, your monthly mortgage payments must not be more than 30% of your gross income (loan commitments of more than 12 months will be deducted from your gross income for calculation purposes). We advise you to ascertain how you will finance your eventual purchase before booking a viewing trip so that you know what your budget is.

There are a number of UK banks with offices in Italy. They can advise you on Italian mortgages as well as service in English.

Sample mortgage
Property value: 130.000 €
Deposit: 30.000 €
Mortgage: 100.000 €
Duration: 30 years
Monthly repayments: 506 € per month at 4,294% ISC variable rate.

The preliminary buying agreement

Also known as “compromesso”, the preliminary buying agreement is a legal document that binds the seller to the buyer regarding a specific property at an agreed price. For off-plan projects Italian law requires a lot of documentation to be attached, such as the detailed plans, site plan with the property clearly marked, a specification of construction work to be undertaken including materials used (brand or quality of tiles, fittings etc.), building permits and insurance documents just to mention a few. The agreement is determined by the developer, and we recommend translation and/or explanation by a legal professional such as an Italian law firm in the UK.

It is common to pay a deposit between 20% and 50% at the time of signing the preliminary buying agreement.

Taxation

When buying a home from a developer Italian VAT is applicable.

If you are buying a second home it is set at 10% of the selling price of the property.

If you intend to transfer your residency to Italy and you are buying your first home there it is 4%.

There is no capital gains tax in Italy if you sell your house after 5 years, use the proceeds to buy another house in Italy or have used it mostly as your primary home. In all other cases the capital gains needs to be declared as income.

The notary act

When your house is completed you can be asked to inspect and approve it before proceeding with the notary act. The final deeds need to be done with help of an Italian notary at their office. It is recommended to attend in person with a translator to make sure you understand all and hand over the value papers to conclude the sale. VAT is applicable at this moment.

Furnishing your property

We can sometimes help you furnish your home. For the larger projects the developers often have furnishing packs you can choose from.

Using your property and running costs

It is common to pay up to €1000 a year for communal services such as gates, roads, lights, elevators and pools. This amount should be specified in the preliminary agreement and tied to the euro inflation rate.

Letting and managing your property

We can help you let your property and manage keys and organise maintenance.

Our commitment to you

We pride ourselves on our consistently transparent and ethical business principles. Our service to you is to bring you nearer your home in southern Italy, with full peace of mind and customer service second to none!