Real Estate Acquisition

The acquisition of real estate requires thorough legal preparation, as procedures, formal requirements, and regulatory frameworks already differ significantly between Germany and Italy. Key distinctions arise in particular with regard to the role of the notary and the sequence of contractual steps.

In Italy, alongside the notarial deed, the so-called preliminary agreement (compromesso) plays a central role. It establishes binding obligations and is usually accompanied by a substantial down payment. Given its far-reaching implications and the limited possibilities for withdrawal, both the property and the preliminary agreement should always be carefully reviewed prior to signing in order to identify risks at an early stage.

A meticulous due diligence is therefore indispensable not only for acquisitions but also for sales, to minimize legal and economic risks and to ensure the transaction rests on a secure foundation. The same applies to real estate transactions in Germany, where particular attention must be paid to entries in the land register, existing lease agreements, and planning or zoning requirements.

Preliminary Agreement

The preliminary agreement (compromesso) in Italy is a binding contract that is typically accompanied by a down payment of up to 10% of the purchase price. Unlike in Germany, it can be concluded without any formal requirements and is legally valid even without notarial certification. Withdrawal is generally only possible under very limited circumstances. It is therefore essential to carry out a thorough legal review of both the property and the contract before signing, in order to avoid future risks.

Notarial Deed of Sale

The notarial deed of sale is the formal contract that effects the transfer of ownership and must be executed before the competent notary. It typically sets out all agreements between the parties in their final form and serves as the basis for verifying the chain of title, the transfer of ownership rights, and the subsequent registration in the land register and cadastre. Deviations from the preliminary agreement are generally only permitted under very limited conditions. A careful legal review prior to signing is therefore strongly recommended.

Public Law Considerations

Before completing a real estate purchase, the building’s compliance with planning and construction law must be carefully assessed. A key issue is whether a valid building permit has been granted and whether the construction was carried out in accordance with the approved plans. It is equally important to determine whether later modifications were duly authorized or whether subsequent legalization procedures are required. Furthermore, one must verify that the current use complies with applicable regulations and that any intended change of use is permissible and capable of approval. Addressing these aspects is essential to ensure legal certainty, to avoid future objections by the authorities, and to safeguard the long-term value of the property.

Tax Aspects of Real Estate Transactions

The acquisition of real estate is invariably linked to specific tax implications, which vary depending on the country, the nature of the property, its intended use, and the status of the purchaser.

In Italy, buyers must typically account for real estate transfer tax (imposta di registro), and in certain commercial transactions also value-added tax (VAT). From the time of acquisition, ongoing property-related taxes apply, such as IMU or TARI. Given the complexity of the Italian tax framework, particularly in cases involving non-resident buyers or mixed private and commercial use, early clarification is essential to avoid unexpected liabilities.

In Germany, real estate transfer tax (Grunderwerbsteuer) is levied on the purchase price, with rates varying between federal states. Once ownership has been transferred, annual property tax (Grundsteuer) becomes due, based on the assessed value of the property and the applicable municipal multiplier. In addition, rental income is subject to income or corporate tax, and in certain cases – especially commercial acquisitions – value-added tax (VAT) may also apply.

To ensure both legal certainty and economic efficiency, I work closely with specialised tax advisors in Italy and Germany. This integrated approach allows for the precise assessment of tax consequences and, where possible, their optimisation within the framework of the transaction.