Can Foreigners Buy Property in Italy [insights]

Italy has always been synonymous with “La Dolce Vita,” but it's become more than just a dream destination in recent years. It's turning into a convenient place to establish residence. A tempting flat tax for high-net-worth individuals (HNWI), affordable education, and excellent real estate opportunities are catching the eyes of many savvy investors.

Lucky for me!

I, too, am a foreigner who, 20 years ago, moved from a tiny village in Eastern Europe to the beautiful hills of Tuscany. And then, love brought me to Milan.

So, believe me, I fully understand the emotions of those looking to buy a home—the nagging doubts and endless questions. One of the big ones: “Can I, as a foreigner, even buy a house in Italy?”

Relax. Breathe deeply. I’m here to answer all your burning questions.

Forza (a kind of “Let’s dive in”)!

Can foreigners buy property in Italy?

In other words, any foreigner can buy a house in Italy, as long as one of the following conditions is satisfied:

• You hold an EU or EFTA country passport.
• You have a valid Italian residence permit.
• You hold any passport and meet the condition of reciprocity.

Just to clarify, here’s the list of countries:

• EU Countries (27): Belgium, Bulgaria, Czech Republic, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland, and Sweden.
• EFTA Countries (4): Iceland, Liechtenstein, Norway, and Switzerland.

What is the condition of reciprocity?

Can Australians, Canadians, or Americans buy property in Italy?

Here’s a handy table for you. If anything is unclear or your country isn’t listed, feel free to reach out to me. For more complex cases, I recommend consulting a real estate attorney.

Legal and bureaucratic aspects

Once you’ve confirmed that you can invest in Italy, you'll need to navigate a few legal steps. Let me give you a quick overview.

1] Legal Documents You Need

You won’t believe how simple this is! In addition to your passport, the only essential document you need to buy property in Italy is your Italian fiscal code ("codice fiscale").

Where can you get this magical fiscal code? If you’re already in Italy, just head to the Agenzia delle Entrate (Italian Revenue Agency) for an instant issuance. You can request it at your country’s Italian Embassy or Consulate, if you’re still abroad. All you’ll need is your passport!

Remember, without a fiscal code, the notary cannot register the contract, so the deal cannot go through.

2] Non-Italian-Speaking Buyers

Here’s one of the most common questions I get: "Can a foreigner who doesn't speak Italian take part in a notarial act?"

Absolutely! You can buy property even if you don’t speak Italian.

If you don't speak the language, the notary will require the presence of a bilingual interpreter and the preparation of all documents in dual languages. Additionally, two witnesses are required when signing the documents—one of whom must speak both your language and Italian.

If you’d like to skip the hassle of interpreters and witnesses, you can opt for a special notarial power of attorney (procura speciale notarile).

Have Questions About Any of These Steps?
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3] How to Transfer Money

To complete the transaction, you can either open a bank account with an Italian bank or ask your notary to provide an Escrow account (conto Escrow), where you can deposit the funds.

The notary, acting as the guarantor, will handle the transfer of funds to the seller and ensure all formalities are completed. I always recommend choosing the notarial escrow account for extra peace of mind.

4] Legal steps of buying property in Italy

The property purchase process in Italy is quite different from Anglo-Saxon countries and others. Typically, the steps involved are as follows:

1. LOI (Letter of Interest) – This is a non-binding document in which you, as a foreign investor, express your interest in starting negotiations to buy a specific property. Essentially, it’s the starting point of negotiations, allowing you to conduct due diligence, assuming your real estate agent hasn't already done so. At this stage, all conditions, including price, are still negotiable.

2. Irrevocable Purchase Offer (Offerta irrevocabile di acquisto) – Unlike the LOI, this document is formal, legally binding, and irrevocable, usually involving an initial deposit. Once the seller accepts your offer, they receive the agreed deposit, and the offer becomes a preliminary contract. At this point, your real estate agent must register the preliminary contract with the Agenzia delle Entrate (Italian Revenue Agency) and pay the corresponding taxes.

3. Notarial Preliminary Agreement (preliminare notarile or compromesso) – To further secure the purchase, I recommend signing the preliminary agreement in the presence of a notary. During this step, you typically pay an additional deposit, usually around 20% of the purchase price. The notary again will register the preliminary contract with the Agenzia delle Entrate (Revenue tax office) and the Conservatoria dei Pubblici Registri (Public Registers Office). This second registration prevents the seller from renting or selling the property to another person. Now you see why this step is crucial!

4. Final Sale Agreement (Atto di Compravendita) – This is the final and simplest step if all the previous steps were completed properly. The final deed is signed in the presence of the notary, who will handle registration, transcription, and tax payment.

Additionally, the roles of the leading players in the transaction differ from other countries:

• The notary plays a central role in Italy, replacing the roles of real estate attorneys and escrow agents.
• The real estate agent must be licensed and is legally required to act impartially.
• The most important and binding contract is the "preliminary contract" or "compromesso," which outlines all terms for the future sale.
• In Italy, home inspections or negotiations for repairs and price adjustments must be completed before signing the preliminary contract.
• Buyers typically do not have a personal attorney because the notary and real estate agent represent both parties. However, I recommend that foreigners hire a lawyer to safeguard their interests.

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5] Understanding Taxes and Fees

Buying a home in Italy comes with a handful of costs. Here’s a list of them – fingers crossed I don’t forget any!

• Registration tax for the preliminary agreement
• Purchase taxes (click here for more info)
• Notary fees
• Real estate agent’s commission
• Property taxes

And just when you thought it was over, here are a few more surprises you might encounter:

• Bank and currency exchange fees
• Due diligence costs
• Lawyer’s fees
• Power of attorney
• Translation costs
• Witnesses
• Utility setup fees
• Insurance
• Condo fees
• Renovation costs

Did I miss anything? Feel free to let me know!

6] Financing

I'll be blunt: this is the part of my job I can’t stand. To make things even better, Italian banks are notoriously reluctant to grant mortgages to foreigners, especially if you don't have any income in Italy.

My advice to all my clients? Reach out to Auxilia Finance [2], a financial broker fully owned by FIAIP. They offer a free pre-qualification service, which is a good starting point.

But don’t get too excited just yet—even with pre-qualification, the bureaucratic journey to secure a mortgage in Italy will be more complicated than in your home country (wherever that may be).

Good luck!

Residency options when buying property in Italy

To keep things simple, here are some key points that tend to confuse most of my clients – so let’s make it crystal clear:

• Buying property in Italy does not give you residency.
• A non-EU citizen (like an American) can stay in Italy for no more than 90 days.
• EU citizens can stay as long as they want in any EU country.
• Non-EU citizens who want to stay longer than 90 days must apply for a residency permit.
• Owning property doesn’t automatically qualify you for a residency permit, but it can help non-EU citizens in obtaining certain types of visas.
• The Golden Visa allows foreigners to enter and reside in Italy if they invest at least €2 million in Italian government bonds, €1 million in Italian companies, €500,000 in innovative Italian start-ups, or donate at least €1 million to public interest projects.

And now, brace yourself for this next line – it's terrible, but necessary:

I’ve been in real estate for 15 years, but visas are not my area of expertise. Please reach out to a lawyer who specializes in immigration for further assistance.

Sorry!

FAQs

Can you buy a property in Italy without being citizen

Yes, you can purchase property in Italy without citizenship, provided you hold an EU or EFTA passport, a valid residence permit, or any passport with verified reciprocity.

How to choose a notary

My advice is always this: choose a notary near you—or more precisely, near your property in Italy—who speaks your language (or at least English), responds promptly and thoroughly, and charges fees that are in line with the market. You can check out Notariato website [3] for a list of all Italian notaries.

How to choose a lawyer

My advice is to make sure your lawyer specializes in real estate law. A true expert in the field. I work with a lawyer who also collaborates with FIAIP [4], Italy’s largest association of real estate agents, and has supported me for over 10 years. If you need more details, feel free to contact me!

Are you about to buy a house and want to know its real value?
Contact me right now... with the ‘Rogiti in chiaro’ service you will receive notarial deeds of properties sold in the same building!

Do I need an Italian bank account?

No, you don't need an Italian bank account. In fact, in recent years, opening a bank account as a non-resident has become more challenging due to stricter banking regulations. To transfer funds to purchase a property, you can use the notary's escrow account, and for utility payments, you can use a foreign bank account.

How long does it take to buy a property in Italy?

It all depends on whether the seller has all the necessary documents, especially the building permits.

Sometimes, retrieving these permits from the local planning office can take months. In Milan, I’ve waited as long as 6 months; in other Italian municipalities, the timeframe is around 30-60 days!

On average, it takes 3 months to buy a property in Italy. In the best-case scenario (if all documentation is ready), it could take 30 days, but in the worst-case scenario, it can drag on for 6 months or more.

Can you rent out your property in Italy?

Absolutely! You can rent out your property, but rental income will be subject to taxation. For more details, check out "Income-related taxes"

What are the benefits of buying a property in Italy?

Buying property in Italy comes with many perks, including access to rich culture and history, a high quality of life, strong tourism potential for rental income, a favourable climate, very affordable properties in some regions, tax incentives, and breathtaking natural landscapes. My personal favourite? The quality of life and the red wine!

Do you get residency by buying property in Italy?

NO! Buying a property in Italy doesn’t automatically grant you residency, but it can help in certain cases.

Elena Manzhos: Mother of two beautiful children, wife, and real estate agent for over 15 years. Frankly, I don't know what is more complicated. More than 20 years ago,  I moved to Italy from Eastern Europe, where I taught English. 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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