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Palazzi, a convent and a lighthouse: The state properties Italy is auctioning off

Fancy buying a villa in Florence or a palazzo in Piacenza? Now's your chance. The Italian government is auctioning off dozens of historic buildings across the country, starting from this month.

Published: 3 October 2019 10:44 CEST
Palazzi, a convent and a lighthouse: The state properties Italy is auctioning off
All photos courtesy of Agenzia del Demanio.

The Italian government announced this summer that it would be auctioning off dozens of state-owned properties in the hopes of raising up to a billion euros, ranging from an ex-convent in Venice to army barracks, half a golf course, and a lighthouse.

The details of the 93 properties for sale are now online ahead of the auctions, the first of which are to be held on October 16-17.

Italy owns a large number of buildings, donated to or confiscated by the state over the years, which stand unused and are costly for authorities to maintain.

The government hopes the auctions will raise around €950 million. But even if the properties only go for their starting prices, €145 million will be raised, which the government has saiid will help fund its expensive vote-winning policies such as those on pensions and welfare.

After months of tussling with Brussels over plans for even more public spending, the Italian government hopes the money raised from the sale of property will give it some leeway.

Italy is weighed down by €2.4 trillion in public debt – the highest in Europe after Greece.

But whether or not this property sale will help Italy dig itself out of this deep financial hole, there's no doubt it's good news for anyone interested in buying and restoring a unique piece of Italian history. 

The Agenzia del Demanio (Italy's state property agency) has listed the properties online ahead of the auctions, complete with photos, drone videos and virtual tours of the properties. While many are priced in the millions of euros, there are also some more modestly-priced properties going under the hammer. 

From grand palazzi and a convent in Venice to a lighthouse in Calabria, here are some of the properties you could bid on.

Villa Camerata, Florence

A former noble residence set in parkland on the slopes of the Fiesole hill, to the north-east of Florence. Starting price: €7.4 million.

Palazzina Magnani, Bologna

This once grand two-story villa in Marconi, central Bologna, is complete with a typical Bolognese arcaded gallery overlooking a garden. Starting price: €1.9 million

Palazzo Costa Ferrari, Piacenza

A historic palazzo in central Piacenza, a short distance from central Piazza Cavalli. This vast renaissance-style building has three internal counrtyards. Starting price: €3.1 million

Ex-convent of San Salvador, Venice

By far the most expensive property up for auction is this former convent in central Venice. No doubt this large, prestigious property will be snapped up by a hotel developer with its central location, large courtyard and frescoed halls. Starting price: €28 million

Lighthouse, Calabria

Built in 1923, this lighthouse is the last on the Ionian coast of Calabria, about 100 metres from the sea. Sold as part of a small complex of buildings, it's immersed in unspoilt nature. Starting price: €309,000

Fort Barbarigo, Venice

This very unique plot of land comes with its own ruined fort, dating back to 1800 and currently belonging to the italian navy. It's in Ca Roman, on the southern edge of the coastline that separates the Venice lagoon from the sea, and forms part of the UNESCO-listed area of central Venice and its lagoon. Starting price: €690,000

Army outpost, Cuneo

This mountain hut at 1,900km above sea level, once a remote army base, is at the beginning of hiking trails through the Valle Varaita. Starting price: €130.000.

See mall 93 listings and find further information on the official Agenzia del Demanio website.

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PROPERTY

Five expensive mistakes to avoid when buying a house in Italy

Italy may be known for property bargains, but the purchase process itself isn't cheap - and certain mistakes can make it far more costly for buyers.

Published: 27 June 2024 11:05 CEST
Five expensive mistakes to avoid when buying a house in Italy

There’s always a lot to keep in mind when buying property, but the Italian purchase process may be quite different to what you’re used to in your home country.

As well as involving high taxes and fees, it’s likely to be more complex and formal in some ways – and this can lead to potentially costly pitfalls.

The Local spoke to three Italian property law experts at legal firm Mazzeschi to find out what foreign buyers should be aware of before they sign anything. 

1) Check your estate agent’s contract

If you use a real estate agency in your Italian home search, normally you’ll need to sign a contract with them. That contract should stipulate their fees, their duties, and their tax information.

There is one other thing in the contract which potential buyers must look out for: an exclusivity clause, meaning the potential buyer may use only that estate agent in their property search for a set period of time.

“Usually in Italy estate agents like using this exclusivity clause. It is normally the same for sellers as it is for buyers. It means you cannot have another estate agent and usually contracts say this, “says Caterina De Carolis, Lawyer at Mazzeschi.

READ ALSO: How to avoid hidden traps when buying old property in Italy

“If the time frame is not yet up, and the potential buyer uses another agency, they may still be liable to pay the agency fee for the initial estate agent they entered their contract with,” she adds.

Some contracts might not have an exclusivity clause. It’s always worth double-checking.

“If you use another agency to find a house, you’ll be liable to pay the agency with the exclusivity clause in the contract around 2-5 percent of the house’s sale price,” says De Carolis.

“The exact percentage is always in the contract.”

2) Make sure to agree on a price beforehand

This rule is universal, and may sound obvious. But there are costly consequences in Italy if the price is not formally agreed and written down.

Lawyers at consultancy firm Mazzeschi urge their clients to make sure the full price of the property is declared in the transfer deed (l’atto di trasferimento).

This is because if you resell at a market price higher than your purchase price, you are subject to pay a capital gains tax called plusvalenza. Plusvalenza is the difference between purchase and sale price.

Checking the price of the property beforehand will save you in the long run. Photo by Kirill KUDRYAVTSEV / AFP.

3) Don’t change your mind – it will cost you

If the potential buyer has signed a binding proposal (proposta vincolante) – the process before a preliminary contract is drawn up – it becomes less straightforward to withdraw from the purchase.

“This is because the binding proposal in Italy is a lot more formal,” says Mario Mazzeschi, Head of and Attorney at Law of Mazzeschi Consultancy. 

The binding proposal works similarly to an offer. When the potential buyer puts forth their offer, the potential seller decides whether or not to accept. The period of time for this part depends on the proposal drawn up.

READ MORE: Five things non-residents need to know about buying property in Italy

If, before the time is up, the potential buyer decides to withdraw their offer for any reason, they will likely lose their deposit.

“This deposit is usually around 5-10 percent in most cases, so the buyer will have to pay that,” says De Carolis.

“If the buyer decides to withdraw, they are usually liable to pay the seller twice the amount of the deposit.”

If the proposal is not accepted by the potential seller, the potential buyer pays nothing.

4) Don’t pay anything before the preliminary contract is signed

With the exception of the above, buyers are advised not to pay anything until the preliminary contract is signed. The preliminary contract allows both parties to set out clear guidelines.

“The buyer should check with a lawyer before signing the preliminary contract as it will save them in the long run,” says Mazzeschi.

A notary should be present at this signing, adds Giuditta De Ricco, Lawyer at Mazzeschi Consultancy.

“Notaries are public functionaries. They are never on the side of the buyer or the seller, but for sure a notary is needed.”

“They are completely neutral and often it is wiser and safer for the potential buyer to put their deposit into the notary’s escrow account so the notary can transfer the money to the potential buyer.” 

5) Have the property checked beforehand

While the notary will normally check the paperwork before the sale goes through, you’ll need a different professional to check the property itself.

It may then be in the buyer’s best interest to hire a contractor themselves (this will normally be a qualified geometra, or surveyor) to get the structure of the building checked out and detail any faults or repair work needed.

This should be done before the negotiation stage, as unless there is something specific in the preliminary contract you may lose anything you have paid by pulling out of the purchase at this stage.

“The only way out of this after signing a contract is if you can prove the seller acted maliciously,” says Mazzeschi.

Key vocabulary

Transfer deed – l’atto di trasferimento

Binding proposal – proposta vincolante

Notary – notaio

Preliminary contract – contratto preliminare di vendita

Final contract – atto di vendita or rogito notarile

Deposit – caparra

Surveyor – geometra

Estate agent – agente immobiliare 

Please note that The Local cannot advise on individual cases. For more information about how you can buy property in Italy, contact a qualified professional. 

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