BUYING PROPERTY IN ITALY: A COMPLETE GUIDE FOR EXPATS IN ITALY
Dreaming of owning a home in Italy? This comprehensive guide to buying property in Italy is tailored for expats, retirees, and international investors seeking to navigate the country’s unique real estate landscape. Discover up-to-date insights on market trends, legal requirements, and the step-by-step buying process, including essential information on taxes, hidden costs, and financing options.
Learn about the best regions to invest, from Tuscany’s rolling hills to vibrant city centers, and get expert advice on avoiding common pitfalls. Whether you’re searching for a holiday retreat or a long-term investment, this guide empowers you to make informed decisions and purchase Italian property with confidence, turning your dream of la dolce vita into reality.
BUYING PROPERTY IN ITALY: AN OVERVIEW
Italy continues to captivate expats, retirees, and investors with its rich culture, stunning landscapes, and vibrant lifestyle. Buying property here is both a dream and a strategic investment, but navigating the Italian real estate market requires understanding its unique legal framework and market dynamics. This overview highlights Italy’s diverse property options, from rustic farmhouses to modern city apartments, and the importance of thorough due diligence, including securing a fiscal code and opening a local bank account before purchase.
The Italian property market in 2025 shows resilience and growth, driven by rising demand in key regions like Tuscany, Lombardy, and Sicily. Foreign buyers benefit from reciprocity agreements, while legal steps such as the proposta d’acquisto, compromesso di vendita, and rogito notarile ensure transparent transactions. With expert guidance and awareness of costs, taxes, and mortgage options, expats can confidently invest in Italy’s evolving real estate landscape and enjoy the benefits of owning a home in this timeless country.
Why Italy Is a Top Choice for Foreign Property Buyers
Italy’s global appeal is rooted in its rich cultural heritage, breathtaking landscapes, and enviable lifestyle. From the vineyards of Tuscany to the bustling streets of Milan, Italy offers a diverse range of environments and property types. Whether you’re seeking a rustic farmhouse, a seaside villa, or a chic urban apartment, the Italian market caters to every taste and budget.
The country’s Mediterranean climate, world-class cuisine, and vibrant social scene make it a perennial favorite for those seeking a better quality of life. Italy’s strategic location in the heart of Europe also provides easy access to neighboring countries, making it ideal for both permanent residents and those looking for a second home or vacation retreat.
Italy’s Real Estate Market Outlook for 2025
As of 2025, Italy’s real estate market is experiencing renewed momentum. The post-pandemic recovery, coupled with a surge in global tourism and remote work trends, has driven demand in both urban and rural areas. Key trends include a rising interest in eco-friendly and smart homes, revitalisation of historic city centers, and increased foreign investment, particularly in regions like Tuscany, Lombardy, and Sicily.
Short-term rental properties remain attractive investments due to robust tourism, while government incentives for restoring older properties are encouraging buyers to consider renovation projects. Property prices are rising in prime locations, but many regions still offer excellent value compared to other Western European markets. Understanding these trends is crucial for making informed decisions and capitalizing on Italy’s dynamic real estate landscape.
Can Foreigners Buy Property in Italy? Here’s What You Need to Know
Italy welcomes foreign buyers, but the process is governed by specific rules. EU and EEA citizens face minimal restrictions, while non-EU buyers must ensure their home country has a reciprocity agreement with Italy, meaning Italians can buy property in your country under similar conditions. The UK, US, Canada, Australia, and many others have such agreements, but it’s always best to check with the Italian Ministry of Foreign Affairs or a legal expert before proceeding.
Eligibility and Reciprocity Agreements Explained
Reciprocity agreements are crucial for non-EU buyers. If your country allows Italians to purchase property there, you can generally buy in Italy. For example, UK citizens post-Brexit can still buy property in Italy thanks to existing agreements. However, some nationalities may face restrictions or require additional documentation, so due diligence is essential.
If you plan to reside in Italy, you may also need a residence permit, especially for extended stays. EU citizens and those from EEA countries or stateless persons residing in Italy for over three years face no such limits. Always verify your eligibility and consult with a property lawyer to avoid surprises during the purchase process.
Essential First Steps: Fiscal Code and Italian Bank Account
Before you can buy property in Italy, you’ll need a Codice Fiscale, an Italian tax code required for all official transactions, including property purchases, opening bank accounts, and paying taxes. You can obtain this at any Italian tax office or consulate abroad, and many real estate agents will assist with the process. Expect it to take up to three weeks.
An Italian bank account is also essential. Most transactions, including deposits, taxes, and utility payments, must be made from a local account. Opening an account typically requires your Codice Fiscale, a valid passport, and proof of address. While some banks allow non-resident accounts, it’s often easier to open an account in person, or through a lawyer with Power of Attorney if you cannot be present.
How to Buy Property in Italy: The Legal Process Step-by-Step
The Italian property purchase process is meticulously regulated to protect both buyers and sellers. Understanding each stage is vital to avoid costly mistakes and ensure a smooth transaction.
Step 1: Offer to Purchase (Proposta d’Acquisto)
Once you’ve found your ideal property, the first formal step is the Proposta d’Acquisto—a written offer to buy. This document outlines your proposed price and terms, and is usually accompanied by a small deposit (often 5% of the purchase price) held in escrow. The seller has a set period (typically 1–2 weeks) to accept or reject the offer.
If accepted, the property is taken off the market while due diligence is performed. If the seller declines, your deposit is refunded. This stage is not legally binding, but it signals your serious intent and secures your place in negotiations.
Step 2: Preliminary Contract (Compromesso di Vendita)
The Compromesso di Vendita (preliminary contract) is a legally binding agreement that sets out the final terms and conditions, including the sale price, payment schedule, completion date, and any contingencies. At this stage, a larger deposit (typically 10–30%) is paid. If the buyer withdraws, they forfeit the deposit; if the seller withdraws, they must pay double the deposit to the buyer.
This contract also triggers legal checks, including title verification, debt searches, and compliance with zoning laws. For rural properties, neighbors may have pre-emptive rights, so the contract must be notified to them, who then have a month to exercise their right of first refusal.
Step 3: Final Deed of Sale (Rogito Notarile)
The Rogito Notarile is the final contract, signed in the presence of a notary (Notaio), who acts as a neutral legal authority. Both parties (or their representatives) must be present, and the notary reads the contract aloud, ensuring all parties understand the terms. Non-Italian speakers must have a qualified translator present.
At this point, the buyer pays the remaining balance, notary fees, taxes, and any mortgage costs. The notary registers the sale with the land registry, and you receive the keys to your new property. The entire process, from offer to completion, typically takes 2–4 months, depending on due diligence and financing arrangements.
Post-Purchase Steps: Registration and Utilities
After completion, it’s crucial to register the property with the Agenzia delle Entrate (Revenue Agency) and update the land registry records. This makes your ownership official and ensures you receive all property-related correspondence. Next, transfer utilities (electricity, water, gas, internet) into your name—your agent or lawyer can assist with these administrative steps.
Who You Need on Your Team When Buying Property in Italy
A successful property purchase in Italy relies on assembling the right team of professionals. Each plays a critical role in safeguarding your interests and ensuring a smooth transaction.
The Role of the Notary (Notaio)
The Notaio is a public official required for all property transactions in Italy. They verify identities, ensure the property is free of liens or debts, collect taxes, and register the sale with the authorities. The notary’s impartiality protects both buyer and seller, and the buyer typically selects (and pays for) the notary.
Notaries are responsible for reading the contract aloud and confirming that all legal requirements are met. Their involvement is your guarantee that the sale is legitimate and that you’ll receive clear title to your property.
Do You Need a Real Estate Agent in Italy?
While not mandatory, working with a registered Agente Immobiliare (real estate agent) is highly recommended, especially for foreigners. Agents provide invaluable local knowledge, help negotiate prices, and facilitate communication between buyer and seller. Look for agents registered with official Italian real estate associations and with experience working with international clients.
Agent commissions typically range from 3% to 10% of the purchase price and may be split between buyer and seller. Always clarify fees and services upfront to avoid misunderstandings.
Should You Hire an Italian Property Lawyer?
Although not required by law, hiring an Avvocato (property lawyer) is strongly advised. A lawyer will conduct due diligence, review contracts, check for hidden liabilities, and negotiate terms on your behalf. They can also act with Power of Attorney if you cannot be present in Italy for key stages of the process.
Legal counsel is especially important for complex transactions, rural properties, or when language barriers exist. The peace of mind and protection a lawyer provides are well worth the additional cost.
Surveyors and Structural Checks (Geometra/Architetto)
A Geometra (surveyor) or Architetto (architect) should inspect the property before you commit. They assess the building’s condition, check for structural issues, and ensure compliance with local planning and energy regulations. For older or rural properties, a survey is essential to uncover hidden problems that could lead to costly repairs down the line.
Hidden Costs and Taxes When Buying Property in Italy
Buying property in Italy involves more than just the purchase price. Understanding the full scope of costs and taxes will help you budget accurately and avoid surprises.
Registration, Mortgage, and Notary Fees Explained
Registration tax (Imposta di Registro) is charged at 2% of the cadastral value for primary residences and 9% for second homes or investment properties. The cadastral value is often lower than the market value, but it’s crucial to verify this with your notary or agent. Mortgage tax is 2% of the loan amount (or 0.25% for primary residences).
Notary fees typically range from 1% to 2.5% of the purchase price, depending on the property’s value and complexity. Legal fees are around 1% to 2%, while agent commissions can be 3% to 10%. Land registry fees are usually 0.5% to 1%, or a flat rate for lower-value properties. VAT (IVA) is 10% for new properties and 22% for luxury homes.
Recurring Costs: Annual Taxes, Utilities & Maintenance
Once you own a property, you’ll be responsible for annual taxes such as the Imposta Municipale Unica (IMU), which applies to second homes and investment properties. Primary residences are often exempt unless classified as luxury. Other recurring costs include TARI (waste collection tax), utility bills, and maintenance expenses.
Condominium fees may apply for apartments or shared properties, covering communal areas and services. Always factor these ongoing costs into your budget to ensure long-term affordability.
Capital Gains Tax and VAT Rules
Capital gains tax applies if you sell a non-primary residence within five years of purchase. The rate is typically 26% on the profit, but exemptions exist for primary residences or if you’ve owned the property for more than five years. VAT (IVA) is charged on new builds and luxury homes but not on most resale properties. Understanding these rules is vital for tax planning and maximizing your investment returns.
Can Foreigners Get a Mortgage in Italy?
Securing a mortgage in Italy as a foreigner is possible, but the process can be more stringent than for residents. Italian banks such as UniCredit and Intesa Sanpaolo offer mortgage products for non-residents, but terms and requirements vary.
Mortgage Options and Requirements for Expats
Non-resident buyers typically need a higher down payment, often around 30% of the property’s value, with banks covering up to 70%. Interest rates may be slightly higher than for residents, reflecting the increased risk. Required documents include your passport, Codice Fiscale, proof of income, bank statements, and a credit report from your home country.
Some banks require you to open an Italian bank account and may insist on in-person meetings. Mortgage approval can take several weeks, so start the process early and work with a broker or lawyer familiar with expat financing.
Tips for Getting Pre-Approved as a Non-Resident
Getting pre-approved for a mortgage before you start your property search strengthens your negotiating position and speeds up the purchase process. To improve your chances, maintain a strong credit history, provide clear documentation of your finances, and consider working with a mortgage broker specializing in expat clients. Be prepared for additional scrutiny and allow extra time for approval.
Does Buying Property in Italy Grant Residency?
Owning property in Italy does not automatically grant you residency or citizenship. However, there are pathways to residency for property owners, especially through investment programs.
The Investor Visa: Path to Residency Through Real Estate
Italy’s Investor Visa (Golden Visa) program allows non-EU citizens to obtain residency by making a significant investment in the country. While direct property purchases alone do not qualify, investing at least €250,000 in an innovative startup, €500,000 in an Italian company, or €2 million in government bonds can grant you a two-year visa, renewable for three years. Real estate can be part of your financial profile when applying for long-term residency or citizenship, but it’s not a standalone route.
If you plan to live in Italy long-term, consult with an immigration lawyer to explore residency options and ensure your property investment aligns with your goals.
Pitfalls to Avoid When Buying Property in Italy
Italy’s property market offers incredible opportunities, but it’s not without risks. Being aware of common pitfalls will help you avoid costly mistakes and enjoy a smooth purchase experience.
Common Challenges: Bureaucracy, Liabilities, and Language Barriers
Italian bureaucracy is famously complex, and property transactions can be delayed by slow administrative processes, missing documents, or unclear regulations. Always allow extra time for each stage and work with professionals who understand the system.
Properties may have hidden liabilities, such as unpaid taxes, mortgages, or legal disputes. Thorough due diligence by your lawyer and notary is essential to ensure you’re not inheriting someone else’s problems. Language can also be a barrier, as most legal documents are in Italian, use bilingual professionals or certified translators to avoid misunderstandings.
Renovations, Zoning Laws, and Energy Compliance
Many buyers are drawn to Italy’s historic homes, but renovating older properties comes with challenges. Strict zoning and heritage protection laws may limit what changes you can make, and obtaining permits can be time-consuming and expensive. Energy efficiency standards are increasingly enforced, so budget for upgrades to heating, insulation, and windows if necessary.
Buying Rural or Historic Properties: What to Watch For
Rural and historic properties often come with unique regulations, such as pre-emptive rights for neighboring landowners or tenants. Ensure all boundaries, rights of way, and land use permissions are clearly defined. Check for compliance with local building codes and be aware that some properties may require extensive (and costly) restoration to meet modern standards.
How to Avoid Property Scams in Italy
Unfortunately, property scams do occur, especially targeting foreign buyers. Always view the property in person, meet the seller, and verify their identity and ownership. Never pay money to unverified accounts or intermediaries. Use established agents, lawyers, and notaries, and insist on seeing all documentation before transferring funds. If a deal seems too good to be true, such as the €1 house schemes, investigate thoroughly before committing.
Where to Buy in Italy: Top Regions and Property Prices
Italy’s regions each offer unique lifestyles, investment potential, and property prices. Whether you crave city life, coastal relaxation, or rural tranquility, there’s a perfect spot for every buyer.
Most Popular Regions for Expats and Investors
Tuscany remains a favorite for its rolling hills, vineyards, and Renaissance cities like Florence and Siena. Lombardy offers cosmopolitan living in Milan and scenic beauty around Lake Como. Rome (Lazio) combines history, culture, and urban vibrancy, while Veneto attracts buyers to Venice and Verona. Sicily and Apulia offer sun-drenched coastlines, affordable homes, and rich local traditions.
Other sought-after areas include Liguria (Italian Riviera), Piedmont, Sardinia (Costa Smeralda), and Umbria. Each region has its own character, climate, and property market, so research thoroughly and visit in person before deciding.
Property Prices by Region (2025 Update)
Prices vary widely across Italy. As of 2025, Milan averages €4,300/m², Rome €3,800/m², Florence €4,100/m², and the Amalfi Coast €5,200/m². In contrast, Sicily averages €1,600/m², and the national average is around €1,855/m². Properties in Italy are often 33%–47% cheaper per square meter than in the UK, offering excellent value for money6.
Cheapest Places to Buy Property in Italy
If you’re seeking affordability, consider towns like Caltanissetta and Ragusa (Sicily), Biella (Piedmont), Reggio di Calabria (Calabria), Isernia (Molise), Trapani (Sicily), Alessandria (Piedmont), and Vibo Valentia (Calabria). These areas offer properties at a fraction of the prices seen in major cities, though they may require more renovation or offer fewer amenities.
The €1 House Scheme: Dream or Dilemma?
The much-publicized €1 house scheme allows buyers to acquire abandoned homes in depopulated towns for a symbolic price. However, buyers must commit to renovating the property (often at a cost of €20,000–€50,000+) within a set timeframe and pay a deposit (typically around €5,000). While the scheme offers a unique opportunity, it’s best suited to those prepared for the challenges of restoration and rural living.
Alternative Ownership: Co-Ownership with August
For those who want the benefits of an Italian holiday home without the full responsibility, co-ownership models like August offer a modern solution.
How August’s Shared Ownership Model Works
August curates collections of up to five renovated, luxury holiday homes across Europe, including Italy. Buyers purchase a share, which entitles them to use the homes for an average of 12 weeks per year. August handles all maintenance, management, and local administration, providing a hassle-free experience.
This model allows you to enjoy the Italian lifestyle without the stress of full ownership, ongoing maintenance, or complex bureaucracy. It’s ideal for those who want flexibility, convenience, and cost efficiency.
Timeshare Alternative: Enjoy 12 Weeks in Italy Without Full Ownership Stress
Unlike traditional timeshares, August’s co-ownership model gives you a real stake in the properties, with clear legal rights and the ability to sell your share. You benefit from professional management and a diverse portfolio of homes, making it a popular choice for modern buyers seeking flexibility and value.
Trusted Tools and Services for Expats Buying in Italy
Navigating the Italian property market is easier with the right tools and expert support. Trusted real estate platforms like Idealista, Immobiliare.it, Casa.it, and Properstar offer thousands of up-to-date listings, advanced search filters, and access to local market data, helping you compare properties and spot the best opportunities across Italy’s diverse regions. These platforms also connect you with vetted, registered real estate agents who understand both the local landscape and the unique needs of expat buyers, ensuring you have guidance throughout the process.
Beyond property search, working with experienced professionals, such as bilingual agents, notaries, and property lawyers can help you navigate Italy’s legal requirements, avoid scams, and overcome language barriers. Many banks now provide online services in English, making it easier to open accounts and manage payments remotely. For international transfers, services like Wise offer secure, low-fee options for moving large sums to Italy, while organizations like Experts for Expats can connect you with trusted legal, tax, and relocation advisors. Using these tools and networks ensures a smoother, safer buying experience and maximizes your investment in Italy.
Expert Guidance from Trusted Advisors
Experts for Expats connects buyers with vetted Italian property specialists, tax advisors, mortgage brokers, and legal professionals. Their free introduction service helps reduce the stress of buying abroad and ensures you have reliable support at every stage.
Search and Buy with Top Italian Real Estate Platforms
Leading property search platforms include Idealista, Immobiliare.it, Casa.it, Trovocasa.it, and Wikicasa.it. These sites offer extensive listings, market insights, and tools to help you compare prices and find your ideal property. Properstar is another useful resource for searching properties and finding reputable agents.
Save on Transfers: Using Wise for International Payments
When transferring large sums internationally, services like Wise offer secure, low-fee solutions with mid-market exchange rates. Wise allows you to track your payments and avoid hidden charges, making it a smart choice for expats moving funds to Italy for property purchases.
Conclusion
Buying property in Italy as an expat is an exciting journey filled with opportunity and reward. By understanding the legal process, assembling a trusted team, and being aware of the costs and potential pitfalls, you can secure your dream home with confidence. Whether you’re drawn to the romance of Tuscany, the vibrancy of Rome, or the tranquility of Sicily, Italy’s property market welcomes you with open arms. Use this guide as your roadmap, and take the first step toward la dolce vita today.