France or Italy: where to buy property
Many property buyers see between Italy and France have more similarities than differences. In both countries, transactions are often conducted under the impression of the rest, demand the object of one price category, or apartments cost 200-250 thousand euros, or a Villa for a few million.
However, among our countrymen more popular than Italy. Data Wordstat (Yandex) show that Russians are turning to resources about real estate in Italy three times more often than the materials of French housing. Statistics Tranio.com reflects a similar trend: the site receives two times more requests for houses and apartments in Italy than in France.
| Italy | France |
|---|---|
|
The favorable climate
Opportunities for shopping A good attitude towards foreigners |
|
| Cheaper housing More advanced More profitable |
Lower costs on clearance deals More favorable terms Above the quality of health care Better developed |
Similarities: climate, visa and shopping
In Italy the most popular Liguria, Tuscany and Emilia-Romagna, and in France — Cote d’azur. These regions are located in the same climate zone, their resorts are equally popular.
In Italy, France and the bathing season lasts from may to October, the ski from November or December to April. Campers in both countries, almost not feel the difference in temperature of air and water. On the coast are equally hot, the ski resorts are equally cold and snowy.
| Italy | France | |
|---|---|---|
| The swimming season | May – October | May – October |
| The temperature in summer, °C | 22-28 | 20-23 |
| Water temperature in summer, °C | 20-26 | 20-23 |
| Ski season | December – April | November – April |
There is a fundamental difference in immigration laws. Both countries are members of the Schengen agreement and the conditions for obtaining visas are the same. Residence permit and citizenship are available on similar principles. Neither in France nor in Italy there are no special privileges for buyers of real estate.
None of the countries is not Russophobia. According to the world economic forum (WEF), in 2013, Italy and France took the next 79 th and 80-th place in world ranking of friendliness towards foreign tourists. These countries scored 6.2 points out of 7, which is considered a good indicator.
Local residents say that the Russians are becoming easier to integrate into the European culture. “Despite prevailing in France clichés and stereotypes, the image of the Russian tourist is changing for the better. However, the type of “new Russian”, who is indifferent to the environment and to which everything is permitted, everything else subsists from the public consciousness. However, becoming more numerous middle class, whose members arrive for a holiday or permanent residence. Prestige markets attractive for investments,— the Basque and the azure coasts and in Paris the Russians are welcomed with open arms,” says Jean-Marc Miara, a representative of the company AS et Associés.
However, Katerina Dankina, managing Director of Love Calabria, believes that mental attitude to Russians in Italy: “Caused by this feature of mentality, and our historical, political connections. What Italian does not like to discuss Berlusconi, Putin and a joint holiday in Sardinia!”.
And Italy and France are popular destinations for shopping tourism. According to Global Blue, among European cities after London, Madrid and Barcelona the best for shoppers is the Paris. The list includes Italian cities: Rome and Milan occupy the 5-th and 11-th place, respectively.
However, among Russians the most popular shopping tours in Italy. In this country most often go for designer clothing, which is much cheaper than in Russia. For example, shoes Manolo Blahnik in Moscow you can buy for about 900 euros, and in Milan shoes of the same brand costs 600 euros. In boutiques, this Italian city 30 % of buyers — Russian. France is less popular because luxury goods in the country are slightly cheaper, than in Russia. Unlike Italy, where the greatest demand is for cosmetics and perfume.
Differences: the cost of purchasing and real estate registration, mortgage, taxes
In some areas of France ahead of Italy. According to the Numbeo, in France a higher standard of living (index is equal to 139,31) than in Italy (100,99). And the TTCI ranking in 2013 France took the seventh place in the world (after Switzerland, Germany, Austria, Spain, UK and USA). The index of competitiveness in travel and tourism since 2007, experts expect the WEF. The rating is based on several factors, among which environmental conditions, security, development of transport and tourism infrastructure, health care, and the number of objects of cultural heritage. Italy’s rating is considerably less, this country got 26th place.
However, there are areas in which Italy is better than France. For example, in Italy more developed tourism infrastructure and lower crime. In addition, in this country below the cost of processing the transaction with the primary property and for the maintenance of housing.
The purchase and registration of real estate
When buying a resale property average total cost when placing trades in Italy and France are almost identical and ranged from 7 to 14-15 %. However, in France the real estate Commission pays often only the seller, and in Italy — the seller and the buyer in equal shares. Given this fact, in France, the buyer often brings lower costs when making the deal than in Italy.
The associated costs of the buyer for the purchase and registration of real estate, %given AS et Associés, Global Property Guide
| Italy | France | |
|---|---|---|
| Registration fee | 3-7 | — |
| Tax land cadastre | 1 (or 129,11 Euro) | 0,6 |
| Notary fees (including VAT and fee for registration) |
1-2,5 | 2-7 |
| The services of lawyers | 1-2 (+22 % VAT) | — |
| Commission of a realtor | 2-4 (+22 % VAT) | 4,5 – 8,0 |
| Just | 7-14 | 7,1 – a 15.6 |
When you buy a primary real estate to pay VAT, which in Italy varies from 4 to 22 % depending on the type of object, and in France is 20 %. “The acquisition of new facilities in Italy, the buyer usually pays 10 % VAT and the costs for notary fees and reach about 2-3 thousand euros. The Commission to the realtor and the lawyer sometimes not paid. But if you buy both primary and secondary real estate total costs amount to 12-13 %”,— says Kateryna Dancina.
Mortgage lending
French banks provide more favorable conditions for mortgage lending because it offers lower rates than in Italy.
However, in France, slightly higher additional costs when obtaining a mortgage: for example, notary fees are approximately 2% of the loan amount (in Italy — 1-1,5 %), and insurance often mandatory, in contrast to Italy.
Terms of mortgage lending in Italy and Rantiidine Lowell Finance
| Italy | France | |
|---|---|---|
| Fixed rates, % | Of 2.85 to 5.5 | 2,60 – 3,50 |
| The maximum loan amount, % | 60 | 60 |
| Loan term, years | 3-15 | 5-25 |
| The minimum loan thousand Euro | 150 | 80 |
| Age maximum years | 75 | 75 |
Housing
Contain the more expensive real estate in France: a year the owners of the apartment with an area of 80-100 m2 paid a total of approximately 3,700 euros, while in Italy the owners of similar facilities spend an average of 2 700 euros.
But in France, cheaper utilities. According to Numbeo, the cost of electricity, heating, water and garbage in this country amount to an average 142 euros per month, while in Italy is 159 euros.
Property taxes higher in France. In this country there are two types: taxe foncière (paid by the owners, regardless of whether they live in the house) and taxe d’habitation (paid by the tenants, the owners or tenants). According to Opinion Way, the owners of property in France spend on taxes to an average of 1 342 euros per year. In Italy, the real estate is taxed annually at a rate of 0.4 to 0.7 %, which establish the municipalities. For homes and apartments that are used as a primary residence, the tax is 200-400 euros per year.
As a rule, the services of a management company in France is more expensive but insurance is cheaper than in Italy.
The approximate cost of maintenance of the apartment
with an area of 80-100 m2 euros per year
| Italy | France | |
|---|---|---|
| Utilities (water, gas, electricity, the garbage disposal) |
1 800 | 1 400 |
| Real estate taxes | 0 300 | 1 300 |
| Facilities management company | 0 300 | 0 800 |
| Insurance | 0 300 | 0 180 |
| Just | 2 700 | 3 680 |
Taxes
In France, higher than in Italy, taxes not only on property but also on everything else to incomes of physical persons and legal entities, wealth, capital gains and inheritance. In Italy, only above the maximum VAT rate.
Tax rate, %
| Italy | France | |
|---|---|---|
| Income tax | 23-43 | 0-49 |
| Wealth tax | — | 0-1,5 |
| Corporate tax | 27,5 | 15 – 33,33 |
| Income tax from renting |
23-43 | 35,5 – 60,5 |
| Tax on capital gains | 23-43 | 40,5 – 54,83 |
| Inheritance tax | 4-8 | 5-60 |
| VAT | 4-22 | 20 |
The price
Average prices for many products, consumer goods and services is higher in Italy. However, the difference is small. For example, bread is only 25 cents more than in France, the figure is 20 euros. Cigarettes and cinema tickets are more expensive in France.
The average cost of goods and services, Numbeo Eurodance
| Italy | France | |
|---|---|---|
| Milk (1 l) | 1,21 | 0,93 |
| Wheat bread (500 g) | 1,53 | 1,26 |
| Rice (1 kg) | 1,89 | 1,69 |
| Eggs (12 pieces) | 2,48 | 2,58 |
| Cheese (1kg) | Of 11.57 | 12,43 |
| Apples (1 kg) | 1,78 | 2,30 |
| Water (1.5 l) | 0,41 | 0,74 |
| Cigarettes (1 pack) | 5,00 | 7,00 |
| Levi’s 501 jeans | 81,81 | 84,26 |
| Summer dress | 34,27 | 40,60 |
| Nike Sneakers | 89,27 | Of 88.52 |
| A subscription to a fitness club for 1 month |
49,47 | 44,11 |
| Movie ticket | 8,00 | 9,50 |
Transport infrastructure
According to the world economic forum, France ranks fourth in the world for quality of roads, sixth place in the quality of railway infrastructure and 17-th place by the level of development of air transport. In Italy the transport service is very worse: air transport occupies 70-e a place in the world, ground — 57-E.
Transport infrastructure: places in the world ratingagencies WEF (2014)
| Italy | France | |
|---|---|---|
| The quality of infrastructure air transport |
70 | 17 |
| The quality of the roads | 57 | 4 |
| The level of development train infrastructure |
29 | 6 |
The Russians will not know the difference in time of flight from Moscow to Paris or Rome: in both cases the journey takes about four hours. Flights to the Italian cities (Bologna, Catania, Milan, Naples, Rome) performed by Aeroflot, Transaero, Air Baltic, Air One and Alitalia. To French cities (Lyon, Marseille, nice, Paris) from Moscow you can fly the flights of “Aeroflot”, “Russia”, “Transaero”, Aigle Azur and Air France. To other cities can be reached by Charter flight or by train.
“Thanks to the regular flights of such airlines as “Aeroflot” and “Ukraine International Airlines”, there is a rapid rise in demand for property in nice among Russian buyers. Russian Railways also contributes to the growing consumer activity of Russians on the Cote d’azur: since recently, runs a new direct train from Moscow to nice”,— says Maria Petrova, administrator of sales Nice Pebbles.
Transport rashodnie Numbeo
| Italy | France | |
|---|---|---|
| Taxi (1 km) | 1,30 | 1,50 |
| The public transport |
1,45 | 1,60 |
| Travel card (1 month) | 35,00 | 46,50 |
| Gasoline (1 liter) | 1,59 | 1,36 |
Facilities
France and Italy — the most popular tourist destinations in the EU along with Spain. According to Eurostat, among the tourist regions in Italy are the most sought after Emilia-Romagna and Veneto, and in France — Ile-de-France.
According to the WEF, the level of development of tourist infrastructure Italy ranks first in the world, with France in 17th place. Among Russian tourists in great demand Italy: according to Rosstat, in 2012, the country received the eighth place in the rating of attendance, while France got the 15th place.
Medical services
According to the world health organization (who) medical services in France are 23% higher (3 420 USD. per year per capita) than in Italy (2 632 us$). Index Numbeo claims that the level of health care in France is higher (indicator is of 82.58) than in Italy (65,78). This trend reflects the data and WEF: France ranks sixth in the world in terms of development of health and hygiene, Italy — 29-e a place.
In addition, France is the world leader in thalassotherapy: there are nearly 50 specialized centers, 1 200 mineral springs (20% of the total number of sources in Europe) and more than 100 facilities. Annually they are visited by 550 thousand people, 10 % of which are foreigners.
Safety and crime
According to the WEF, France occupies 62nd place in the world for organized crime, Italy — 132-th place. However, Eurostat data indicate that crime is higher in France: from 1999 to 2009, there were 50% more crimes than in Italy.
These countries share a common problem: the resorts are infested with pickpockets and thieves on motorcycles, picking out handbags for women. In all large cities there are disadvantaged areas. For example, in Paris’s 19th and 20th districts, in Rome — surroundings of Rome.
Maria Petrova describes the situation in the main resort of the côte d’azur: “Like in other European resorts, in nice there is a certain share of petty theft, but we don’t think our customers can feel safe here. For nice is characteristic of a relaxed attitude to life, and it’s worth mentioning that the local government is making a concerted effort to make tourists feel safe and comfortable”.
Yulia Kozhevnikova, Tranio.Ru
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