Learn How to Buy Property in Italy as a Non-Resident!
In 2023, over 5 million non-residents chose to make Italy their home, which is unsurprising given the country offers a unique mix of work-life balance, whether one is looking for a peaceful rural retreat in Tuscany or a bustling urban experience in Rome or Milan.
People are drawn to Italy not only for its renowned cuisine, art, and architecture but also for its healthcare system, which ranks among the best in Europe.
In this blog, we'll take a detailed look at the process of purchasing property in Italy, from legal requirements to financial considerations, helping you navigate your dream of owning an Italian property.
Table of Contents
Can Non-Residents Buy Property in Italy?
The good news is that Italy welcomes foreign property buyers. There are no restrictions on non-residents purchasing real estate, whether it's for investment, a second home, or relocation.
Italy operates under a principle of reciprocity, meaning that citizens of countries that allow Italians to purchase property can likewise buy property in Italy.
Most nationalities are eligible, including citizens from the European Union (EU), the United States, the UK (post-Brexit), Canada, Australia, and more.
However, it's always advisable to check for any specific bilateral agreements with your home country before proceeding.
An Overview of the Italian Property Market for Non-Residents
The Italian real estate market has remained relatively stable. In 2024 buying property in Italy comes with its fair share of challenges and opportunities.
Prices in some rural and southern areas remain affordable, while demand for properties in tourist hotspots like Tuscany, the Amalfi Coast, and Rome continues to rise.
Italy's "1 euro home" scheme, where abandoned homes are sold at symbolic prices to buyers willing to restore them, continues to attract international attention.
However, these projects often come with strict renovation deadlines and additional costs, so buyers should carefully consider the commitment involved.
The market is expected to experience steady growth, especially in areas with high tourism appeal. As Italy continues to recover from the pandemic, many buyers see property in Italy as both a lifestyle investment and a hedge against inflation.
Property Types in Italy
Italy's real estate market is highly diverse, offering everything from luxury villas and historic estates to affordable village houses and modern apartments. Non-residents have the freedom to buy any type of Italian property, but it's important to be aware of regional variations in price and availability.
Here are a few options you could choose from:
City Apartments
Properties in cities like Rome, Florence, and Milan can be pricey, but they offer strong rental potential and steady appreciation.
Countryside Villas
Tuscany and Umbria are known for their picturesque landscapes and centuries-old farmhouses, often set on expansive plots.
Coastal Properties
Italy's extensive coastline offers seaside homes on the Amalfi Coast, in Puglia, Sicily, and Sardinia.
Coastal properties tend to have high demand, especially for vacation rentals.
Historic Homes
Italy is famous for its ancient palazzos, castles and homes that date back centuries.
Buying a historical property might require restoration and upkeep but adds unique charm and potential value.
Average Property Prices per Region/City in Italy
| City/Town | Average Price /㎡ |
|---|---|
| Rome | €3,500 - €6,000 |
| Milan | €4,500 - €7,500 |
| Florence | €4,000 - €6,500 |
| Venice | €4,000 - €7,000 |
| Naples | €2,500 - €4,000 |
| Bologna | €3,000 - €4,500 |
| Verona | €2,500 - €4,000 |
| Siena | €3,000 - €5,000 |
| Trieste | €2,000 - €3,500 |
| Pisa | €2,500 - €4,500 |
| Lucca | €3,000 - €4,500 |
Note: These numbers represent a general estimate for residential properties in Italy, in 2024 and may fluctuate depending on the specific location and market conditions at the time of purchase.
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Buying Property in Italy: A Step-by-Step Guide
Buying property in Italy follows a structured process, but it's crucial to work with professionals who can guide you through the legal and administrative complexities.
The following process is simply a guideline.
Finding the Right Italian Property
Many buyers start their search through local real estate agencies or international property websites that list Italian homes.
We highly recommend you work with a local real estate agent to find the right property for you. An estate agent within the Italian region you're most intrigued by will provide experience and understanding of the specific property market of that area. An 'agente immobiliare' as they're known in Italy will also help with negotiations.
To avoid potential fraud, look for agents that are registered with the Chambers of Commerce.
Making an Offer: 'Proposta d'Acquisto'
Once you've found a property, the next step is to make a formal offer.
This offer, also known as the Proposta d'Acquisto, typically in writing, includes the price you're willing to pay and the timeframe for completing the purchase. If accepted, you will usually make a deposit to secure the property. This is usually, 1-3% of the purchase price.
Preliminary Contract: 'Compromesso' or 'Contratto Preliminare'
When the offer is accepted the next phase involves signing a preliminary contract.
This contract outlines the terms of the sale, including the price, the timeline for finalising the purchase, and any conditions - such as repairs or zoning permissions.
At this point, a deposit of 10-30% of the purchase price is required. This deposit is non-refundable if the buyer pulls out of the sale without good reason.
It's vital to hire a notary, locally known as a "notaio", a legal professional who ensures the sale is legally binding and that all taxes and paperwork are correctly filed.
Final Contract: 'Rogito'
The sale is completed with the signing of the final contract, known as the "Rogito".
This is usually done in the presence of a notary and both the buyer and the seller.
At this stage, the remainder of the purchase price is paid (if paying in one go), and the ownership of the property is transferred to you.
Registering the Property
After the completion of the Italian property purchase, the notary will register the transfer of ownership with the land registry in Italy.
Once registered, the Italian property officially belongs to you.
Legal and Tax Considerations When Buying a Property in Italy
Legal Representation for Your Property Purchase
Although it's not required by law, it's highly advisable to hire a bilingual lawyer experienced in Italian real estate transactions. They can help navigate legal issues such as zoning regulations, building restrictions, and property disputes.
Italian property law is known to be complex, especially for historical or rural properties.
Italian Property Taxes
When buying a property in Italy, buyers are subject to various taxes, which vary depending on the type of property and its intended use:
- Registration Tax (Imposta di Registro): Ranges from 2% to 9% depending on whether the property is a primary residence or a second home.
- Value-Added Tax (VAT or IVA): Usually applies only to new properties purchased from a developer. VAT can be as high as 10%.
- Notary Fees: These typically range from 1% to 2.5% of the property value, depending on the complexity of the transaction.
- Local Property Tax (IMU): Non-residents owning a second home in Italy will be required to pay IMU, which varies depending on the property value and location.
In addition, if you plan to rent out your property, you will need to declare rental income to the Italian tax authorities, even if you pay taxes in the UK.
Financing Your Italian Property Purchase
Getting a Mortgage for Your Italian Home
Foreign buyers are allowed to take out mortgages from Italian banks, though the process can be more stringent for non-residents.
Most banks will lend up to 60-70% of the property's value, but your ability to secure a mortgage depends on your financial profile and the property itself.
Interest rates in Italy have remained relatively low, making financing attractive. However, it's important to shop around and compare offers from different banks or work with a mortgage broker who specialises in overseas property.
The Impact of Currency Exchange
Non-residents from outside the Eurozone should be aware of currency exchange fluctuations when transferring funds to purchase a property in Italy.
Working with a currency exchange specialist, like ourselves at EasyFX, can help reduce costs and lock in favourable exchange rates, potentially saving people thousands just on the transfer of money to buy an Italian property.
Unlike high-street banks and other money transfer providers, we do not add any transfer fees for sending money to Italy and our team of experts supports you in getting a great exchange rate, at the right time, to suit your overseas property needs.
To see our current international money transfer rates, you can create an account in less than 15 minutes, or talk to our team, contact us today!
Restoring and Renovating Italian Properties
Many non-residents are drawn to Italy's older properties, especially those in need of renovation. While restoring a historic farmhouse or villa might sound romantic, it's crucial to be prepared for the complexities involved, some of these include:
Permits and Permissions
Significant renovations often require permits from local authorities, especially if the property is historically protected.
Architects and Contractors
Hiring local professionals who understand Italian building codes is essential.
Restoration projects can take longer than expected, so factor in delays and additional costs.
Some regions in Italy will offer tax incentives for restoring and preserving historic buildings, which can help offset renovation costs.
Buying Property in Italy as a Non-Resident: A Summary
Buying property in Italy as a non-resident is not only feasible but can be incredibly rewarding.
From navigating the legal process to understanding the tax implications and financing options, careful planning is key to making your dream of owning a home in Italy a reality.
Whether you're looking for a vacation home, an investment property, or a permanent residence, Italy offers a wealth of opportunities for foreign buyers. By working with the right local professionals and staying informed, foreign nationals can enjoy a new chapter in an Italian property.
Let Us Make Buying Property in Italy, Easy.
With over 20 years experience of supporting customers with property purchases worldwide and in Italy, the team at EasyFX can help you make your dreams of owning an international home, come true.
Unlike high-street banks, we're experts in foreign exchange.
Our dedicated account managers are here to support and guide you through the whole international money transfer process.
The aim is to provide you with a competitive exchange rate for your large international money transfers with no added-on transfer fees, potentially saving you thousands on your Italian property purchase.
As an FCA and FINTRAC-authorised and regulated Electronic Money Institution, your money will always be secure and safe in segregated client accounts.
We have helped over 40,000+ happy customers make their foreign exchange for purchasing property overseas, Easy.
If you'd like to discuss your international property requirements, or any international money transfer needs, with a real currency exchange broker, then please get a free transfer quote today or contact us directly, our team are waiting to help!
Need to send money to Italy? We can help!
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If you'd like to receive a free transfer quote, please contact our team today!
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