There are no restrictions on foreigners buying property in South Italy, but an English speaking representative is essential.

'After the initial offer stage, a compromesso is signed committing both parties to the sale and establishing the terms and conditions of the final contract. 'At this point you are expected to pay a deposit of 10 per cent of the purchase price (30 per cent on a new build property). Withdrawing from the sale from here on will lose you your deposit, though if the vendor pulls out they have to pay you double the deposit value.

'Between one and three months after signing the compromesso, the rogito is signed. This is the final contract and is drawn up by a notary and signed in front of him or her. You will have to pay the final balance to the vendor at this point, and arrange to pay the notary fees and other taxes that are due. These include purchase tax at 3-10 per cent, surveyor's fees and notary charges, for which you should budget another 2-3 per cent.

'In Italy, both buyers and sellers pay estate agency fees of between 3-8 per cent, and often the buyer is expected to pay all the agent's charges. Whether buying a new build or resale property you should budget approximately 15 per cent of the purchase price for all up front fees and taxes relating to the transaction.

'In running a property you will also liable to annual property tax and rubbish tax. The council tax, called ICI, it is paid to the local commune. The amount due is dependent on the size of the house and on the commune in which it is located. In the South of Italy it is generally significantly less than the north because the property values are lower.

A ricevuta fiscale (fiscal receipt) is required for tax purposes on any restoration work undertaken. The document also acts as a guarantee should any dispute arise. N.B. If you don't ask for a fiscal receipt for labour hired, the unwritten rule is that you get a 'discount' equal to the 20 per cent VAT - although by law the IVA tax should always be included in estimates and paid.

Significantly, for those looking to purchase for investment, capital gains tax (CGT) is not applicable if the owner sells after five years' ownership; selling prior to five years incurs a charge on a sliding scale depending on the number of years of ownership, it is a further reason why Italy it is a great place to invest.