As anticipated in one of our previous article, a few Municipalities in Italy have given the possibility to Italians and Foreigners to purchase properties for the symbolic sum of €1.
Very soon there will be further opportunities of buying properties in Italy for €2.
First of all, those houses are sold through a public auction, which means that you need to know how to participate to a bidding.
If you are not familiar with the process you can appoint an expert lawyer who will represent you during the entire procedure.
Also, if there are other a few more competitors with the aim to buy the same property, you might need to bid for a higher amount, not just 1€, with the consequences that you will spend more than you expected.
The 1€ or 2€ home purchase does not include Notary fees, property transfer taxes, guarantee policy. Moreover, properties sold for this symbolic price need major renovations.
Also, the property taxes aspect needs attention if you wish to avoid penalty and fines from the tax office (Agenzia delle Entrate).
Furthermore, you are required to obtain work permits to be able to start the renovations. This involves costs for a Geometra and/or Architect.
Depending on the condition of the property, some require more consistent works than others.
You usually need to cover at least €15,000 costs for renovation works, but it is most likely that you will spend more.
Moreover, as anticipated in one of our previous article, you might need to employ few professionals, especially if you are not a local or if you do not speak the Italian language.
A deposit as a guarantee is commonly required when you firstly make you application. In passed occasion the deposit was equal to €15,000, but other Municipalities might ask for a lower amount as a deposit.
This will be returned once works are finished, and if renovation works are completed within a certain time (usually 3 years).
About Residency: do you need to move your residency or not?
It is not always requested to move your residency in the town where you are buying a €1 or €2 home, however some towns sell on the condition of moving to the area or start a business in that town. In one of the next competitions, in particular the Salemi in Sicily one, you will probably not need to move your residency.
Is there a term wishing which renovation works need to be completed?
This is an important aspect, and what you need to know if that once you submit your renovation plan, this plan must usually be completed within three years.
In case you do not complete works within the requested time, you will lose your deposit, and in some cases the Municipality can have the right to regain the ownership of the house.
Considering the limited time frame, you need to make good consideration whether to demolish the house and rebuilt it from scratch, or make works on the existing property. This decision will obviously be evaluated with an expert professional.
Even if you will not incur in such a cheap investment of just 1€ this might end up being a convenient buy anyway. The things to be taken into consideration are all the aspects mentioned above, and being assisted by a good professional who will help you avoiding issues.
If you aim to spend 1€ in total, than this is not the right solution for you as you need slightly more than that in your pocket.