Frequently asked question
1. Who is the developer and owner of Palazzo Portinari?
The Developer and owner of the asset is LDC RESIDENCES. LDC Group is based in Taiwan, but has successfully built hotels and Residences throughout the world, including several projects in Italy. This is their first project in Florence, using an Italian Limited Company for the purpose.
2. Will there be parking spaces available for purchase at the building?
Palazzo Portinari will have a very limited number of underground parking spaces, which are not available for purchase, so as to keep them available for guests and apartment owners on a temporary basis. Florence has a limited traffic zone ("ZTL") in the city centre and there are special restrictions to vehicles in this area. Palazzo Portinari is right in the centre of Florence, so the ownership of a car is practically unnecessary for most purposes. There will be an arrangement with a local garage to provide a valet parking service on request.
3. What is the estimated construction duration of the residential units available for sale?
The completion of the construction works for the residential units available for sale at Palazzo Portinari, is planned for December 2021. The common areas will be ready at the same time.
4. Which fixtures, finishes & equipment are included in the purchase price?
The apartments will all be sold with finished bathrooms, all floors, doors, windows, heating and cooling system and the utility supplies in place. They do not include the supply and fitting of the kitchen units.
5. Can I choose my own specification for floorings, bathrooms etc.? Can the developer carry out modifications to my property according to my preferences?
So as to allow as much choice as possible for the future owners, the apartments at Palazzo Portinari will be finished to a first fix level and left to be fitted out when a purchaser is identified. Obviously, as the project nears conclusion, a choice will have to be made as to how to finish any unsold units.
Should a buyer require a different set of finishes from those included in the purchase price, a discussion will be had with the development team, to check the technical feasibility as well as the financial and time impact. The same would apply for any other modifications requested by the buyer during construction.
It is also possible for buyers to bring in their own external interior designer to work with the LDC team.
6. Which utility connections will be provided?
The apartments will be provided with connection to the following utilities, whose supplier must be chosen and contracted by the buyers:
Heating and air conditioning (provided and centrally accounted by LDC)
Telephone and WiFi
TV and satellite antenna (terrestrial / free channels)
7. What is the process of purchasing a residential unit?
The purchasing process consists of the following stages. Once a buyer has selected a property, an offer must be made to the owner to purchase the specific unit at the offered price. If accepted, the buyer can choose to pay a 1% booking fee, which blocks the sale of that single apartment for a limited period (30 - 60 days depending on the development stage) while the buyer can consult banks and consultants, safe in the knowledge that it cannot be sold to others. This amount will be deducted from the purchase price at the time of signing the Final Purchase Agreement or withheld if the buyer decides to withdraw.
The second phase is the signing of a Preliminary Purchase Agreement, which can also be signed in front of the Notary. The Preliminary Purchase Agreement is a legally binding agreement that establishes all the terms and conditions in relation to the transaction, in addition to the various guarantees of the seller. At this stage an additional payment of 20% of the purchase price will be made.
The final stages of the process are two:
a) the Final Purchase Agreement (the "deed") always in front of the Notary. This will only be signed once the work has been completed and the property is confirmed as fully compliant, at which point the balance will be due plus all taxes and transaction fees.
b) Being an historic building, the Palazzo is listed by the Superintendency, which means that the state can exercise the right of first refusal to purchase the properties (possibility that it will not exercise because it does not repurchase fractionated assets). The Notary will therefore have to inform the Superintendency of the sale, keep the balance amount in an escrow account, and after 60 days of silence-consent, release the payment to the seller, who can formally deliver the keys to the owners. The Notary will register the deeds of ownership at the land registry with the name of the new owner
8. How much do I have to pay for transfer fees, legal/notary fees, taxes etc.?
4% of the purchase price for cases of primary residences that are not classified in the luxury category A/1 (noble type house), A/8 (villa) and A/9 (castle, palace of eminent artistic or historical value);
10% of the purchase price for cases of non-primary residences that are not classified in the luxury category A/1, A/8 and A/9 and are sold by the constructor (even if not completed at sale) or have undergone rebuilding works (completed at sale);
22% for luxury residences (A1) and in any other case.
All the apartments in the building, with the exception of the Penthouse, are included in the 10% VAT category.
In addition to VAT, the transaction is subject to registration tax, cadastral tax and mortgage tax of € 200 each.
The buyer should consider that he will also have to pay the following:
Notary fees (approx. € 4-5,000) on the purchase price depending on the amount and complexity of the contract. Fees owed to any lawyer a Buyer chooses to instruct. Any fees of a buyer's lawyers.
Real estate agency fees at 2% + IVA/VAT (if purchased through an agent / broker)
9. Which annual taxes will I have to pay ?
Real estate assets are subject to local taxes IMU, TASI and TARI, regulated by the municipality. A calculation can be made to assess the overall annual cost for each apartment, but it is generally not more than about 0,5% of the value of the apartment, annually.
10. Are there any restrictions or special regulations when a non-Italian purchases property?
The non-Italian purchaser must obtain an Italian tax code. However, the request for the tax code does not imply other tax obligations in Italy. Residents of different countries have different reciprocal arrangements with Italy, and these should be checked in advance with a lawyer.
The LDC Residences tax advisor will be able to support buyers
11. What amenities will be in the other areas of the Palazzo Portinari? Can I use them?
The rest of the palazzo is made up of:
- a Residenza d'epoca, with thirteen luxurious suites, available for rent by the night or for longer periods.
- Retail shops with access from the street or from the central courtyard
- Fine Dining Restaurant and lounge bar
- SPA area, with indoor pool, sauna, steam bath, massage rooms, gym
- Club lounge area (only for Club Members)
It will be possible to take out a membership of the SPA and Club, by separate negotiation. Club Members will also be entitled to a discounted rate in the bars and restaurant, in LDC Hotels everywhere as well as access to Villa Ortaglia country house (ldchotels.com/en/hotels/villa-ortaglia) and its 25 x 12 mt external swimming pool
The apartments being sold at Palazzo Portinari will have staffed entry points with a daytime concierge. The access will operate entirely autonomously from the commercial areas and from the Residenza d'epoca.
16. Who will manage the common areas? What common area charges do I have to pay? How many votes am I entitled to with my residence? What are the rights and obligations of homeowners?
In Italy, a condominium ("condominio") is governed by law and co-ownership of its common areas is mandatory. Condominium charges cover the expenses for the maintenance of common areas, common parts and services, such as the electricity for the common areas, lights in the walkways, staircases, lifts, cleaning of the common areas, building property insurance, security and so on, along with the salary of the condominium administrator. Condominium charges are based on several factors (surface area, floor, terraces, etc.) and each unit is assigned a share of common parts. These shares are specified in what are known in Italy as the ‘percentage allocation tables’ (the "millesimi"). Each homeowner pays condominium charges according to the "millesimi". The "millesimi" are also used to determine votes and majorities in homeowners' assemblies. Before you make an offer on any of the apartments, you will be made aware of the millesimi of that apartment and be given an estimate of the annual maintenance costs.
Until all the units are sold, the Owner will be in charge of preparing and adopting the condominium's regulation and the "millesimi", as well as paying for the unsold share of the condominium costs.
17. Who can clean and maintain my residence? What management services and privileges can I enjoy? Costs?
The Palazzo will offer a full service to the owners of the apartment management, for an annual fee, providing a "one stop shop" for all the needs of the buyers. As such, they will provide regular checks of the apartment in their absence, monitor and pay bills, and oversee any necessary maintenance work. They will also provide housekeeping and maid service for owners and their guests as well as other concierge services listed below.
Palazzo Portinari will also provide a tourist rental service upon request (stays of less than 30 nights) through the LDC Hotels hotel group, which will manage the Residenza d'Epoca, using the owners' apartments as part of rental units for their guests. In order to make this service attractive to all owners wishing to rent their apartments, LDC will allow guests who book through them to use the SPA services in the Palazzo and including the use of the swimming pool, BBQ and tennis court at Villa Ortaglia, outside Florence. These privileges will not be transferable by the owner to their guests, if the apartment is not rented through LDC Residences.