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How to buy a house in Italy as a foreigner?
Before you buy a house in Italy, read our guide on the requirements and other important information you should keep in mind.
Purchasing property in Italy as a foreigner involves several legal and administrative steps. This guide will answer your questions and explain how to buy a house in Italy.
This guide covers average property prices, the requirements for foreign buyers, and the taxes and costs involved in buying and owning a home in Italy. You’ll also find a step-by-step overview of the process to help make your purchase as smooth and straightforward as possible.
Requirements for foreigners looking to buy a house in Italy
Foreigners can buy property in Italy, although certain administrative checks are required to verify that the funds and money transfers used for the purchase are legal.
You’ll also need to complete several legal and administrative steps before the purchase can be completed. Here’s a closer look at each requirement.
1. Requirements based on your country of origin
EU citizens can buy property in Italy under the same conditions as Italian buyers. Non-EU citizens, on the other hand, typically need a valid residence permit to purchase property without limitations.
If you’re a non-resident foreigner, your right to buy property in Italy may depend on reciprocity rules. This means that if Italians can purchase property in your country, you can typically do the same in Italy.
2. Do I need a visa or a residence permit?
Italy does not require a minimum period of residence or a specific visa for property purchases. This means you can buy real estate as a tourist or complete the transaction from abroad.
Owning a home in Italy does not automatically give you residency or citizenship. You’ll still be limited to the usual tourist allowance of 90 days in any 180-day period.
3. Purchase restrictions
You can own as many properties as you like, but certain areas are off-limits or restricted for foreigners. Rural and border farmland, for instance, often requires special authorization.
Apart from these exceptions, foreign buyers can purchase most types of property and enjoy full ownership rights.
4. Documents needed
To buy property in Italy, you’ll need to prepare the following documents and paperwork.
- Valid passport: Make sure it is in good condition and valid for long enough to complete all the necessary procedures.
- Codice Fiscale: This Italian tax identification number is required for almost all property-related transactions in Italy.
- Italian bank account: It isn’t required, but it will make it easier to manage property payments, as well as future taxes and utility bills.
How much does a house cost in Italy?
In Italy, property prices are usually calculated per square meter. The highest prices are in the north, where most of the industrial and business activity is concentrated.
In contrast, the south is dominated by agricultural and rural land, making it more affordable.
Price per square meter by region
- Northern Italy: In cities such as Milan, Venice, Bolzano, and Bergamo, property prices typically range from about $4,000 to $6,150 per square meter.
- Southern Italy: In Naples, Cagliari, Palermo, or Caltanissetta, the cost per square meter ranges from $760 to $3,750, depending on the neighborhood.
- Central and Western Italy: In cities such as Rome, Florence, Genoa, and Turin, prices per square meter range from $2,600 to $4,380.
- Eastern Italy: Along the Adriatic coast, in cities such as Bari, Trieste, Rimini, and Ancona, prices range from $1,900 to $2,620.
Generally, a property’s price depends on things like how close it is to train stations, its energy efficiency, and its structural and visual condition.
Property prices compared to average incomes in Italy
The average net monthly salary in Italy is around $1,850 to $2,050. This means most locals need a mortgage to afford a medium to large home, whether new or used.
Affordability varies widely depending on where you’re from and how your income compares to local housing prices in Italy.
Annual living expenses for a home in Italy
If you own an apartment or live in a residential complex, you’ll have to pay community fees. These cover shared costs like heating, cleaning common areas, garden maintenance, and repairs to the building’s exterior and roof.
You should also factor in utility costs such as electricity, gas, water, and home internet service.
Finally, if you have home insurance, you should include it in your budget. Basic insurance is typically required with a mortgage, while multi-risk coverage is optional.
Home insurance typically costs around $540 per year, in addition to estimated annual housing expenses of roughly $2,700–3,240.
Taxes when buying a house in Italy
Property taxes in Italy depend on the type of property you buy and whether it will be your primary residence. Here’s a simple breakdown of what you pay when buying and after you become the owner.
Taxes on the purchase
There are two tax options here. If you buy from a private seller, you pay a registration tax based on the property’s cadastral value, usually 2% if it’s your first home.
As a foreign national, you are eligible for this benefit if you establish legal residence in the municipality where the purchase was made within 180 days.
If it’s a second home or you’re a non-resident, the tax is 9%. But if you buy from a developer within five years of construction, you don’t pay registration tax.
Instead, you pay VAT based on the property’s purchase price. The rate is 4% for a primary home, 10% for a second home, and 22% for luxury properties.
Income tax
If you sell a property within five years of buying it, any profit is taxed at a flat rate of 26%. After five years, you can sell the property without paying this tax.
Recurring taxes
The annual property tax in Italy, known as IMU, mainly applies to luxury homes and second homes.
Primary residences are exempt from this tax. However, non-resident owners must pay local property taxes, which are set by each municipality and generally range from 0.4% to 1.06% of the property’s updated cadastral value.
Steps for buying a house in Italy
To make buying a home in Italy easier, we’ve created a step-by-step guide. It will help you keep track of the important details throughout the process.
1. Find a property using various methods
There are several ways to search for property in Italy, depending on your budget, location, and how involved you want to be in the process.
- Online real estate platforms: This is where you’ll find the widest range of homes for sale, listed by both agencies and private sellers. Two of the most well-known platforms are Idealista and Immobiliare.
- Traditional real estate agencies: These agencies can guide you through the entire buying process and give you access to exclusive property listings. Two of the most popular are Gabetti and Tecnocasa, both of which have local offices you can visit.
- Direct contact with property owners: You can also visit neighborhoods you’re interested in and look for “For Sale” signs. This lets you contact owners directly and negotiate without an agent.
2. Initial negotiations
Once you’ve found a property you’d like to buy, the next step is to submit a formal offer. This document outlines your proposed price and how long the seller has to accept it.
You’ll usually need to make an initial deposit, which is a percentage of the purchase offer. If the seller accepts the offer, both parties can move forward with the purchase process.
3. Technical and legal review of the property
Before completing the purchase, it’s advisable to hire an independent lawyer to review the property’s legal documentation. You should also verify the property’s cadastral and planning records to ensure there are no outstanding compliance issues.
It’s also important to check the home’s structure and basic services. This helps you plan for future costs and may influence the final price.
4. Signing of the preliminary contract
When both sides agree on the terms, they sign a preliminary contract called a “compromesso.” It outlines the deal, the handover date, and proof that the property has no debts or legal issues.
You’ll also need to pay a main deposit, typically 10%–20% of the property price. The process must be overseen and registered with the Italian tax authorities.
5. Final signing and property registration
The purchase is finalized with a public notary, who is the only official allowed to legally certify property sales in Italy. The notary reads the deed and confirms that the remaining payment has been made.
After that, the buyer and seller sign the documents so the property can be registered with the land registry.
Avoid these common mistakes
- Payments without a contract or documentation: Sometimes, to move things faster, foreign buyers pay in cash or transfer money without written proof, which can result in scams.
- Failing to include protective clauses: If you need a mortgage, make sure the preliminary contract includes a clause that lets you get your deposit back if the bank rejects your application.
- Relying solely on the real estate agent for legal advice: These are sales agents who help with property deals, so they are not qualified to carry out detailed legal reviews.
How to pay for a house in Italy
In Italy, there are several legal ways to pay for your new property, all of which are protected under the country’s regulations.
- Bank draft: This is a very common option. It’s issued by an Italian bank and guarantees that the money is secure and ready for the seller.
- Notary escrow account: This is the safest option for foreign buyers. The money is kept in a notary-controlled account and is only released to the seller once the property is officially registered in the buyer’s name.
- Direct bank transfer: This is usually used for the initial deposit, and it should always be backed by a signed agreement.
Restrictions on the movement of funds
There are generally no restrictions on transferring money to Italy from abroad, provided you can demonstrate the lawful source of the funds.
To comply, you’ll need to provide proof like tax returns, sale contracts, inheritance papers, or any documents showing the money is legally sourced.
Mortgages: Differences between residents and non-residents
Foreign nationals can obtain mortgages in Italy, but the terms vary depending on their immigration status.
Legal residents must have a permanent job contract in Italy or, if self-employed, show local tax returns. In these cases, banks may finance up to 80% of the property’s value.
For non-residents, lending requirements are generally stricter. Banks typically require that mortgage payments stay below 35% of monthly net income.
You’ll also need to submit translated and apostilled tax returns, payslips, and credit reports from your home country. On top of that, banks in Italy usually only finance 50% to 60% of the property value for non-residents.
This means you’ll need to cover the remaining 40%–50% yourself, plus another 10%–15% for taxes and notary costs. Fixed mortgage rates usually range from 3.2% to 3.8%, with repayment periods of 15 to 25 years.
Payment options
Paying in full at the notary can speed up the process and improve your bargaining power. However, Italy places limits on large cash transactions, so property purchases are generally completed through the banking system.
Another option is rent-to-buy. You pay an initial deposit and fixed monthly payments for three to five years, which go toward the final price. At the end, you pay the remaining amount and officially buy the property in front of a notary.
Transfer fees to consider
If your savings aren’t in euros, banks may charge high fees for international transfers and use poor exchange rates, which can make the property more expensive overall.
Tips before buying a house in Italy
Buying property in Italy can be complicated without the right information. That’s why we’ve put together a list of tips to help you pay attention to the key details during the process.
1. Don’t skimp on hiring a lawyer
An independent lawyer can review the property’s legal status, identify potential issues, and help protect you from fraud or unfavorable contract terms.
2. Watch out for hidden post-purchase costs
Make sure you account for both the property price and the extra costs and taxes after buying. A good rule of thumb is to add 10%–15% on top to cover hidden expenses.
3. Prioritize your connectivity
Having reliable internet is key when buying property in Italy, as it lets you browse listings, compare areas, and contact agents or owners directly.
It also helps you stay connected with your lawyer and real estate agent, no matter where you are. That’s why Holafly’s monthly plans are a good option while you’re buying property in Italy.
You can choose between a 25 GB plan or unlimited data, with coverage in more than 160 countries and the option to share it across multiple devices.
You also get the Always On feature, which adds 1 GB of free monthly backup data in case you run out or cancel your plan.
If you’re only going to Italy for the purchase, Holafly’s Italy eSIM is a good option, with unlimited data for however many days you need.
4. Rent before buying
To get a better sense of a property’s location and the surrounding area, it’s a good idea to rent there for a while. This helps you understand key factors like access to public services and transport, and whether it’s a safe place to live.
Frequently asked questions about buying a house in Italy
In Italy, a notary is mandatory to complete the purchase and validate the deed. A lawyer and real estate agent are optional, but they can help make the process easier and faster.
If you use an Italian company with foreign ownership, or if you’re married to an Italian citizen, there are no reciprocity limits and you can buy property freely like a local.
No, owning property doesn’t automatically give you Italian residency. You still have to follow the usual tourist immigration rules.
As the new homeowner, you are responsible for paying the outstanding taxes for the current year and the previous tax year.
Agents usually charge a 3%–4% commission on the sale price, normally split between buyer and seller unless one side agrees to pay it all.
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