Hi

has anyone any experience of any Qualta developments.

they have some developments in Spain,and a pre release currently in in Lamezia, Calabria which
I am considering.

any feedback would be appreciated.

Wild Rover,

I have no experience of this company myself so cannot answer your question.

However, I have one of my own.
I have heard a lot about Italy and Calabria inparticular recently, from many sources. It sounds great (I love Italy - I have never invested there but have holidayed there frequently) but is it not the case that buying a property in Italy is one of the most expensive places to buy in terms of closing costs, taxes etc.....

Do people think it is still worthwhile even because of this?

If you are thinking about this area then I would highly recommend that you check with the local council to make sure that planning permission for the development has been granted.

I have heard of some cases where permission has not been granted, depite the fact that deposits are being taken by the developers.

Buyers should do as much due diligence as possible before making an offer and handing over any money. Unlike France for example, there is no cooling off period in Italy and once a proposta d'acquisto irrevocabile (irrevocable offer) has been accepted by the vendor, it becomes a binding contract.

Caveat Emptor.

Apart from your general travelling expenses and the cost of obtaining a mortgage if you are going down this route, you need to remember that transaction costs associated with buying property in Italy are not only among the highest in Europe, but also that Italy has mêlée of confusing property taxes. These will vary considerably, however, according to the price and location of the property, whether the property is new or old, whether you are buying as a resident or non-resident, via an agent, privately or from a limited company, whether your are buying buildings or just land.

It is not that easy to accurately determine transaction costs a priori. However, the following summary should help:

The imposte consist of indirect real estate taxes and registration fees you pay on top of the purchase price at completion. The Notaio sends these taxes along with the deeds and documents to the land registry to ensure that registration of the transaction is complete. Theyareapplicable either at a fixed, standard or reduced rateand are known as:

Imposta di registro: This tax is applied whenever there is a new registration of title. Transactions will be taxed either at a fixed amount of €168 or as a percentage (7%) of the value declared at the Atto.

Imposta ipotecaria: This tax is applied when applications are made to make changes (cancellations, additions and amendments etc) to the public register and when there is an application to lodge new or to discharge previous mortgages and restrictive covenants etc. Even if you are buying a property without a mortgage for example, the Notaio still has to lodge this information at the public register and so your transaction will be taxed either at the fixed amount of €168 or as a percentage (2%) of the value declared at the Atto.

Imposta catastale: This tax is applicable when applications are made to the Land Registry to transfer existing registered titles. Transactions are again taxed either at a fixed amount of €168 or as a percentage (1%) of the value declared in the Atto.

The imposte are paid either on the full purchase price or the revised valore catastale (cadastral value) of the property. Because the revised cadastral value is much lower than the market value, buyers pay lower taxes if they choose this option. If the parties opt for the revised cadastral value, they still have to declare the full purchase price, however, because the Revenue Agency wants to see the vendors’ income appear on their tax returns.

Failure to indicate the full purchase price will result in the tax liability being applied to the full purchase price rather than on the revised cadastral value. In addition a penalty of 50% to 100% applied on the difference between the tax paid and the tax due.

Land is taxed separately:

Imposta di registro 15%
Imposta ipotecaria 2%
Imposta catastale 1%

The following example should help to provide a guideline indication: asking price 420,000 euro with a valore catastale of 200,000 euro: Iposte @ 10% 20,000 euro ( or 3,336 euro if this is going to be your prima casa)

Value of land say 30,000 euro: Imposte @ 18% = 5400 euro

On top of this there are the bolli and diritti per trascrizione plus the Notary's and real estate agency fees.

IVA (value added tax) is paid when you buy a house directly from the developers or builders within 4 years from when it was finished. The rate is either 10% or 4% (for prima casa).

IVA of 20% is paid on a luxury property purchased directly from builders or developers within 4 years from when it was finished.

If you buy a luxury property either from a private individual, a company, or directly from builders or developers after 4 years from when it was finished, you don’t pay IVA but you do pay the 7%, 2% and 1% for the imposta di registro, imposta ipotecaria and imposta catastale respectively.

There’s no prima casa concession on luxury properties. Prima casa applies to your primary dwelling and not a second holiday home.

Thanks for your replies.

The development is being marketed by Property Showrooms, and the price is inclusive of 10% IVA. I'll check if the Land Tax is payable on top of that, as i had assumed the only other costs would be legal.
thanks again.

Always pays to check everything and never assume anything. Apart from solicitors fees, you will have to pay a fee to the Notaio. Make sure you get a breakdown of all costs.

The other thing you will need to have your solicitor check are any contractual clauses that pertain to the cost of maintenance of any access roads and shared areas for example.