Buying Property in Italy [shocking guide!]

Before writing this guide on buying property in Italy, I thought, "Why not see what's already out there?" So, I combed through the sea of online advice and stumbled upon two shocking truths that nobody dares to mention:

1. Let's start with a reality check. In Italy, the law doesn’t actually require a notary to verify the urban legality of the property. Instead, they rely on a statement from the seller in the deed of sale. Yes, you heard that right! It could very well be inaccurate—whether out of ignorance or, worse, intentional deceit.
2. After signing the preliminary contract and handing over a hefty deposit, a shady seller could legally rent out the property or, brace yourself, even sell it to someone else entirely.

Luckily, there’s an effective way to dodge these pitfalls. And I will let you in on the secret in just a moment.

So, let’s cut to the chase!

The buying process: from offer to completion

1] Steps to Buying Property in Italy

When buying property in Italy, the process typically follows a simple three-step path:

1. Offerta – The initial offer.
2. Preliminare registrato – The preliminary contract, where you put down a deposit of 10-30%.
3. Rogito – The final deed, where the balance is paid.

But since we don’t live in a perfect world, and often these checks haven’t been done in advance, I recommend adding some extra steps to safeguard your investment. Here’s what a more cautious, five-step process looks like:

1. LOI (Letter of Intent) – This non-binding letter of interest freezes the deal for a negotiated period (typically 30-60 days), allowing the seller to provide all the documents needed for due diligence. Importantly, no money changes hands at this point.
2. Offerta – Once the due diligence is complete, you proceed with the offer.
3. Preliminare registrato – This is where a minimal initial payment is made.
4. Preliminare trascritto – Here, you sign a more formal preliminary contract and pay the substantial deposit of 10-30%. This step is crucial as it marks the point where the property will be officially “yours”, and the seller cannot back out without severe financial penalties.
5. Rogito – The final act, where you settle the remaining balance and officially become the property owner. This step involves a meeting at the notary's office, where the notary reads the deed aloud in Italian. You can bring a translator if needed. Once everyone is satisfied, the deed is signed, and you become the legal owner of the property.

2] Conducting Property Due Diligence

The professional handling the due diligence will need to consult several key offices to verify all aspects of the property:

• Catasto – is where you’ll obtain the visura catastale (cadastral survey) and the planimetria catastale (cadastral map). With these two documents, you can determine the property’s cadastral value, which is essential for calculating calculating property taxes. Furthermore, the official map allows you to compare the registered layout with the property’s actual condition, identifying any potential illegal modifications or discrepancies.
• Urbanistica – You can access official building permits at the local urban planning office in the municipality where the property is located. These records detail not only the original authorization for construction but also any history of condoning, changes, or modifications. This step is crucial for cross-referencing what was officially authorized with the latest cadastral map to ensure compliance.
• Conservatoria – This office holds all formal records of property transfers, including sales, inheritance, donations, adverse possession, and more. The visura ipotecaria (mortgage survey) can also be obtained here. This survey will reveal any voluntary or judicial liens, foreclosures, seizures, or other encumbrances that might impact the transfer of ownership.

Once you've established a clear legal, cadastral, and urban planning overview, you’re ready to proceed to the next step: making the offer.

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3] Making an Offer and Negotiating

The irrevocable purchase offer is a document that commits the buyer to purchase the property and pay an agreed deposit, if the seller accepts the offer within a specified timeframe (usually 7-15 days).

Drafting the offer can be quite detailed. To help streamline the process and avoid potential errors, the FIAIP ^[1] (Italian Federation of Professional Real Estate Agents) and the FIMAA ^[2] (Italian Federation of Mediators and Business Agents) provide specialized pre-printed forms. These templates are a great resource and highly recommended—they make the task much easier.

Tip: To negotiate the best price, ensure your due diligence includes a thorough economic appraisal of the property. This should reflect not only the property's current value, but also the Days on Market (DOM)—two critical factors that can heavily influence the final agreed price.

5] The Preliminary Contract (Compromesso)

In Italy, you’ll hear people throw around terms like “compromesso” (an old-school term) and “preliminare” (the more accurate one) as if they were the same thing. Don’t worry—they are!

By definition, the preliminary contract (or preliminare) is a legally binding agreement that obligates both the buyer and the seller to enter into a final sales contract. This document must therefore include all essential details, such as the identities of the buyer and seller, the property details, price, payment terms, and more.

Here’s where things get interesting: some purchase offers include a clause stating that, upon acceptance by the seller, the offer automatically “transforms” into a preliminary contract under Article 1326 of the Civil Code ^[3].

6] Now, for the Big One: Registered vs. Transcribed Preliminary Contracts

Here’s the scoop:

• All preliminary contracts must be registered with the Agenzia delle Entrate (Italian Revenue Agency) within 30 days. This registration provides a “certain date” and stronger evidence in case of legal disputes.
• Registration costs €200, plus €16 for every four pages (or 100 lines), and a fee of 0.5% of the deposit or 3% of any advance payments.

However, if you finalize the preliminary contract with a notary, it is both registered and transcribed with the Public Registry. This transcription is a form of official publication that ensures the buyer is safeguarded against potential fraud. It’s crucial, as transcription locks down the deal, making any fraudulent actions by the seller virtually impossible.

Given that a hefty advance is often paid at the preliminary stage, this layer of protection is absolutely vital (and pretty much a no-brainer).

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7] The Role of a Notary in Italian Property Transactions

Given all this, you can see why notaries in Italy are like Hollywood A-listers! The notary prepares the contracts, identifies both the buyer and seller, checks for any liens or encumbrances on the property, registers the contracts, and calculates and pays the taxes. They really do it all. But—there’s a catch.

So, How Can You, as the Buyer, Be Sure of Urban Planning Compliance?

Once again, due diligence or an urban-cadastral compliance report becomes your best friend. This compliance report is legally required in some regions, like Tuscany and Emilia-Romagna.

Important Note: While more and more notaries are requesting a compliance declaration, it’s not yet mandatory. So, make sure to demand it! This report will give you peace of mind.

8] Finalizing the Sale and Transferring Ownership

In my experience, this is the easiest step—as long as everything up to this point has been done right! So I won’t dwell too much here. The transfer of ownership and payment of property purchase taxes in the notary’s office are really just a formality.

However, I do have three quick tips that I often share with my clients:

1. Money Transfer: There’s no need to open a bank account in Italy to pay the balance for the property. You can use the notary’s Escrow account, and they will handle the payments on your behalf. This is my preferred option and certainly the safest.
2. Power of Attorney (PoA): If you like simplifying your life (and saving yourself a plane trip just to sign a contract), you can authorize a trusted person to act on your behalf. A PoA will save you time and money—definitely worth considering!
3. Real Estate Lawyer: A real estate lawyer is absent in most transactions between Italians. But a lawyer is almost always present for deals involving foreign buyers, especially those that are complex or high-value. Over the years, I've worked with many lawyers and learned to spot the best. If you're curious about choosing the right lawyer, check out my guide on Italian real estate lawyers.

These tips can help make the final steps as smooth and stress-free as possible!

Real estate buying process in Italy vs USA

The process in Italy is more formal and time-consuming, focusing heavily on the role of the notary, whereas in the U.S., the process is often faster, more flexible, and competitive, with contingencies providing options to withdraw without financial penalties.

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Is buying property in Italy a good investment?

If you've had the chance to read any of my other articles, you’ll already know: I’m not just a real estate agent with 15 years of experience, but also a real estate investor. Along with my family, we’ve bought properties in Italy for rental income, and even picked up some fabulous holiday homes by the sea (think Santa Margherita Ligure and Porto Cervo).

Now, since real estate investment is my bread and butter, it’s hard for me to stay impartial. But with that in mind, if I compare the average property prices in Italy to those in other Mediterranean countries with similar charm, I have to say—the market here is still quite a bargain.

And no, I’m not talking about those €1 homes! Sure, they’re a marketing goldmine and have done wonders for Italy’s international image. But personally, I’d rather snag a property for €30,000 with no strings attached for renovations, right in the location of my choice, than one of those €1 deals.

Overall, buying a home in Italy is an excellent choice for anyone looking for a balanced investment. Whether you’re aiming to send your kids to practically free universities, planning to enjoy retirement in a country bursting with beauty, or interested in buy-to-let properties with decent returns (yup, still possible here!), Italy has something for everyone. And let’s not forget the HNWIs—if you’re one, Italy is ready to welcome you with open arms and attractive tax breaks (yes, you read that right!).

Questions to Ask When Buying Property in Italy

I know the feeling—when you find your dream home, you just want to sign that offer immediately. But buying a property is serious business; it involves a significant investment of your resources, and you need to be thorough. Before you sign, I recommend asking these essential questions:

• Who is the owner? Is it a private individual or a legal entity?
• How many owners are there? Make sure to clarify this, as multiple owners can complicate the transaction.
• How long has the property been on the market? A long listing time could indicate underlying issues.
• Have there been previous offers? If so, why were they declined? Was it due to price or some other factor?
• When did the current owner purchase the property? Understanding the property’s history can offer insights into its market value.
• What is the origin of the property? Was it acquired through purchase, donation, or inheritance?
• Has the urban planning documentation been reviewed? In other words, is the property compliant with building and zoning regulations?
• What are the ordinary condominium fees? Are any extraordinary fees expected? Are there any ongoing legal disputes in the condominium?
• Has the property benefitted from the 110% bonus? This could affect the structure or value.
• What is the agency’s fee? It’s best to know upfront to avoid surprises.
• Is the furniture included in the price? Clarify what’s staying and what’s going.
• Are there specific planning regulations or restrictions on the property? Any limitations could affect your plans.
• Is the area classified as a seismic or hydrogeological risk zone? Ensure that the property complies with seismic regulations if required.
• Does the property have a certificate of habitability? This is essential for legal living conditions.
• Have there been any issues with leaks, dampness, or other known structural defects? You’ll want to know about any past or potential problems.

Asking these questions will help you avoid unpleasant surprises and ensure you’re making an informed decision. Taking the time to get the answers now can save you significant headaches later!

Documents to Ask Before Signing an Offer

To minimize risks, here’s a quick checklist of essential documents you should request from your real estate agent—or directly from the seller if you’re buying without an agent—before signing any purchase offer:

• Deed of Provenance (Atto di Provenienza) – verifies the property’s ownership history.
• Cadastral Compliance Certificate – Confirms that the property’s layout matches the official records.
• Certificate of Habitability (Dichiarazione di Abitabilità) – ensures the property meets legal living standards.
• Cadastral Survey (Visura Catastale) – provides information about the property’s registration, classification, and location.
• Cadastral Map (Planimetria Catastale) – shows the official floor plan, which you can compare with the actual state of the property.
• Energy Performance Certificate (Attestato di Prestazione Energetica, or APE) – indicates the property’s energy efficiency.
• Certificate of Compliance for Installations – verifies that electrical, plumbing, and heating systems meet current regulations.
• Mortgage Inspection (Ispezione Ipotecaria) – checks for any liens, mortgages, or encumbrances on the property.

Having these documents on hand will provide a clear picture of the property’s legal status, helping you make a safe and informed investment.

Elena Manzhos: Mother of two beautiful children, wife, and real estate agent for over 15 years. More than 20 years ago,  I moved to Italy from Eastern Europe. I have always had a deep-seated passion for houses; as a child for the Barbie house, and now as a real estate professional, my love for luxurious properties is unwavering.
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