Buying Land in Italy

So we want to buy a small piece of land (which, incidentally, appears to be owned by no less than 12 different people - but that's another story!) adjacent to our house.

It's only of agricultural use with no prospect of receiving building permission.

Our estate agent (who we trust) tells us that there's a 'designated price/hectare' which we will have to pay.  Our neighbouring farmer (who also has an interest in buying the land) says that we are being misled and that there is no 'designated price/hectare'!

Does anyone know which (if either!) is right?

Can of worms alert! 

Italy is a free market economy, therefore you get the price you can for selling something.  EXCEPT that the AGenzie del Territorio decides what that 'thing is worth'  and if you pay too little you can the AdE on your back wanting more tax because you paid too little.  most AdE's now have a dedicated team to squeeze more money out of the hapless contributor.  So, both are correct.  You can pay what you like and pay 11% tax on the top for agricutlural land-  get a perizia giurata done and attach it to the atto.  Then hope that they dont do a verifica within 2 years and send you a bill.

There are others on the forum who are more conversant with this subject and I would defer to their input, however we did go through a process several year's ago purchasing an adjacent parcel of agriculture designated land. The main issue for us was the right of adjacent land owners, provided they were "registered farmers," to within one year, purchase the property from you for what you paid. We were advised to secure signed waivers from anyone who might qualify prior to purchase. There was only one possibility who refused to sign a waiver. We went to the "agriculture bureau" and learned that the neighbor in question was not registered as a farmer, therefore could not exercise the option and we went ahead with the transaction. You might want to check to see if there is anyone adjacent who might have such an option. As far as the 'designated price/hectare' is concerned, that issue did not enter into our purchase. Good luck. Fred

After what has been said by Modicasa I would have thought any extra tax would not be a great deal, unless they can also fine you for what they think was under purchased? What would concern me more would be the 12 owners.... Again though if the amount was not great, I would still likely go for it. Anything like the small plot of land we insisted went into our sale, which was only about 12SQM, but covered the only entrances.. It was owned by 7 people, 3-4 were dead and the others very, very old. Likely we are the only surviving part owners now.

Steve's right - 12 owners is no fun.  You will need all 12 to sell, plus all the confinant neighbours to waive their right to prelazione.  Probably some are dead and there are successions to do before the sale can be done.  However, that's the agent's job, not yours - but you do need to keep on top of it.

'Can of worms' indeed Modicasa!!

Our next door farmer (who is presumably registered as such and will therefore have the right to buy it from us) has suggested that he buys the land and sells us the half we really want.  Hmmmmm  

Meanwhile one of the 12 owners is officially 'mentally incompetent' and about to have brain surgery.  This means (we understand) that a surveyor/geometra has to be hired to assess the land and a judge has to decide whether or not she should sell it.

Oh joy!

And the judge has to decide for how much he should sell, and appoint someone to sign in his place - its going to be a long process....... good luck.

Well, the AdE use the land prices from their own website to decide how much the land should have been sold for so you can look it up. I know this as it's just happened to us - 2 weeks before the 2 years were up! However, the price you choose to pay for it is up to you but you'd be well advised to not make it too far from those values becuase as Steve said they will apply the back tax, plus fine, plus interest.

We also had 12 owners (2 of whom died - one in Spain - during the process of buying). It's not impossible but it is a long process and the owners are likely to be unwilling to pay for a successione (formal inheritance) if the amont they receive will be less than the cost of the successione (€5-600 each heir in these parts).

We're just in the process of buying 2 small extra parcels of land and are paying roughly the same as the AdE value of the land even though it is very, very high (36,000 a hectare!). Otherwise we know we'll just get picked up by the AdE.

People should be aware that the AdE do this with houses too not just land!

The prelazione rights (whereby a registered farmer has 1st option on any neigbouring farmland which can be exercised up to 12months after the sale) are very real and in fact the worst happened to a friend of mine. Having said that we risked it and just didn't do anything to the property for 12 months after the atto. Why did we risk it? Becuase in most cases the successione had not been done by the heirs of the long-dead neighbours. It's still a risk unless you get in writing that they do not want to buy it.

Your farmer neighbour may be making the best offer to be honest. It sounds like he'll have the prelazione rights anyway so he'd have first refusal. If you bought it of him at least you'd only be dealing with one person. Who would pay for splitting the parcel of land (if it needs doing)? That could be up to €1000 depending on where you live. I'd let him take all the hassle and make sure you get it agreed in writing how much you will pay for the bit you want.

What a very helpful post.  Thank you.

In fact there is nothing to stop you signing a compromesso with the farmer for the bit you want - the risk is all his - and then he goes ahead and buys the whole lot and does the frazioneamento and then sells on to you - - could be worth thinking about.