I’ve dedicated this page to the quirkiest questions that might pop into your mind as a foreigner—because, hey, I was once in your shoes too! Twenty years ago, I traded Eastern Europe for Italy, and let me tell you, I felt like Audrey Hepburn zipping around Rome on a Vespa with Gregory Peck, head full of unanswered questions.
With 15 years of solid experience in the real estate industry, I've decided to transform my agency into a Vespa. Yep, we’re here to whisk you around the wonderful (and sometimes chaotic) world of buying property in Italy.
And here’s my promise: if you don’t find the answer you’re looking for, just drop me a message. I promise to respond to you too!
To make things easier, I’ve sorted all those burning questions into a few key areas:
Why buy property in Italy?
Can foreigners buy property in Italy and which are the legal requirements?
Foreigners can absolutely snag that dream property in Italy if they're waving an EU/EFTA passport, holding a valid residence permit, or satisfying the famous "reciprocity" rule. This rule essentially means that if an Italian citizen can buy property in your country, you can buy property in Italy.
The only legal requirement? The legendary codice fiscale—the magical code you can obtain instantly and for free at Agenzia delle Entrate (the Italian Revenue Agency). Read Can Foreigners Buy Property in Italy for more info.
Where and why to buy
Please tell me why you want to buy in Italy, and I’ll show you the perfect location. Yes, the why comes before the where. Here are a few examples? Picture yourself sipping an espresso in a sunny piazza, reconnecting with your roots where your great-grandfather once harvested grapes, enrolling in a university without breaking the bank, renovating a historic stone home to resell, escaping the urban rush for a slower pace, or taking full advantage of the flat tax incentives.
Whatever your reason for investing, there’s a location that fits your dream. To help you decide even faster, check out my guide!
Can Americans buy property in Italy?
Americans can purchase properties in Italy (read more) without being Italian citizens or residents. Thanks to reciprocity agreements, your dream of owning a slice of the Italian countryside is within reach. Just obtain a codice fiscale, and you're all set!
Where do most people find their real estate agent?
In Italy, most people find their real estate agents by contacting professional associations, like FIAIP or FIMAA, where they can find licensed agents. Social media is another popular spot, especially for finding agents who are used to working with international clients. Reminder: please verify an agent’s credentials through the Chamber of Commerce. (for more details: How to find a real estate agent in Italy)
Legal aspects of buying property in Italy
Do I need a lawyer to buy a property in Italy?
Most real estate transactions between Italians happen without a lawyer. That’s because the real estate agent and the notary impartially handle and verify all the documents.
Legal disputes in Italian real estate are rare, but… when a foreign buyer is involved, I do recommend having a lawyer on your side—especially if the property has a high price tag or the agent lacks experience with international clients.
Here’s a tip on how to choose the best real estate lawyer for your needs!
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What is the best app to buy properties in Italy
For buying properties in Italy, APP of Idealista.it and Immobiliare.it are top choices, offering the widest range of listings across the country. These apps are the closest to the familiar Zillow experience, giving you a comprehensive view of the Italian market. If you're looking for luxury properties, LuxuryEstate.com is the go-to, featuring high-end listings throughout Italy.
These user-friendly platforms can help you navigate Italy’s unique real estate landscape. For more insights, check out the full article.
How to hire a reliable property lawyer in Italy
Since any lawyer can suddenly declare themselves a real estate maestro, you need to play detective.
You can hire a reliable English-speaking property lawyer asking FIAIP or FIMAA (the two main Italian Federation of Professional Real Estate Agents).
Our agency's attorney, for example, not only boasts years of experience but also teaches for the FIAIP—practically making them a real estate guru. Alternatively, the Ordine degli Avvocati di Milano offers a list of vetted attorneys.
How do I arrange power of attorney?
Steps to arrange a power of attorney (PoA) in Italy:
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If you’re in Italy, visit a notary with your passport, Italian tax code (codice fiscale), the identity document and tax code of the person who will act on your behalf. This process is quick since it only requires the principal’s signature, and the agent doesn’t need to be present.
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If you’re outside Italy, you’ll need to go to a local notary and create a PoA, which must be translated into Italian. An apostille is required if the country is a signatory of the 1961 Hague Convention. If not, you must legalize it at the Italian Consulate.
More info? Just read my blog on Power of Attorney in Italy.
Can I have a survey done?
Absolutely! A survey is essential for precisely determining property boundaries, and in Italy, it’s typically conducted by a geometra, a specialized surveyor. They’ll also map out the terrain’s height variations, so you’ll know what exactly you’re working with.
How long can a purchase offer last?
The standard duration for a purchase offer is 7 days. However, this can be extended in special cases—such as when the seller is abroad or when multiple owners are involved. Ultimately, it’s a matter of practicality: the shorter the offer period, the less time the seller has to seek a better deal.
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What’s the difference between a Condition (“Condizione”) and a Clause (“Clausola”)?
People often confuse the terms, but they’re quite different. A clause requires fulfillment from one of the contracting parties, while a condition depends on a third party.
Difference between a resolutive clause and a suspensive condition?
Conditions in a purchase offer can be resolutive or suspensive. A resolutive clause cancels the offer upon a specific event, while a suspensive condition puts it on hold until something happens. For instance, if the buyer needs mortgage approval, the offer remains in effect only if the bank greenlights the loan by a certain date.
Difference between a deposit (caparra) and an advance payment (acconto)
An advance payment (“Acconto”) is just a portion of your final upfront price. If the deal falls through, the seller has to give it back—unless they feel like asking for damages because you didn’t seal the deal, but that’s another story!
Now, a deposit (“Caparra”) is a different animal. It’s not only a chunk of the price paid in advance, but it also acts as a safety net for both you and the seller. If you back out, the seller keeps the deposit. If the seller decides to call it off, they have to return double the deposit to you!
From my experience in real estate, almost every deal involves a confirmatory deposit instead of an advance payment. Why? Two simple reasons:
- It’s a straightforward way for both sides to protect themselves in case things go south.
- The registration tax (duty stamp) on a confirmatory deposit is a mere 0.5%, compared to a hefty 3% on an advance payment.
Difference between Confirmatory Deposit (“Caparra confirmatoria”) and Penal Deposit (“Caparra Penitenziale”)
A confirmatory deposit gives the non-breaching party the right to seek compensation for additional damages and even demand specific performance of the contract to buy or sell the property. On the other hand, a penal deposit only covers the monetary compensation—no extra damages, no enforcing the deal beyond that. It’s all about whether you want the option to push for more if things go wrong!
Can you withdraw from a Purchase Offer?
A purchase offer is a commitment from the buyer to purchase the property. Once the seller accepts it, the buyer is locked in and can’t back out without facing consequences.
However, as long as the seller hasn’t accepted, the buyer is free to reconsider. So, the seller can review other offers until they accept one.
Can you withdraw from a Preliminary Contract?
Yes, you can withdraw from a preliminary contract by signing a mutual termination agreement, known as a “risoluzione consensuale”, which dissolves the contract. If a suspensive condition hasn’t been met, there are no penalties. Otherwise, expect penalties, usually equivalent to the deposit amount, as specified in the contract.
Is it risky to buy property in Italy?
Buying property in Italy can be risky, but with the right knowledge, you can navigate the pitfalls. Common mistakes include encountering shady agents, taking advice from unqualified sources, and skipping due diligence. Thoroughly checking for hidden debts, structural issues, or even illegal construction is essential. Rushing to sign binding offers without proper checks can also lead to financial loss, as Italian law allows sellers to keep deposits even if they back out.
Prepare yourself, research, and always consult professionals to ensure a smooth purchase.
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Can a US citizen buy a home in Italy?
Yes, a U.S. citizen can buy a home in Italy with ease. Thanks to a reciprocity agreement, Americans have the same rights as Italians to purchase any type of property—whether it's a home, commercial space, or industrial property.
While residency isn’t required, you will need an Italian tax code (codice fiscale) to complete the transaction. Be aware that owning property doesn’t automatically grant residency or citizenship, but it’s entirely possible to own a piece of Italy.
For more details, visit my full article.
Financial considerations and costs
Is it a good investment to buy property in Italy?
Yes, buying property in Italy can be a good investment, especially in high-demand areas like Milan. Italy attracts a range of tenants, from students to professionals and retirees, offering steady rental income opportunities.
Average gross rental yields are between 3% and 7%, depending on the property's location. Key factors like demographics, infrastructure, and proximity to universities make certain areas more lucrative. Italy’s stable rental market can provide reliable returns over time for long-term investors focused on passive income.
Registration of the purchase offer
The registration process is the fiscal step between an accepted purchase offer and the final sale. Once the seller accepts the offer, it must be registered with the Agenzia delle Entrate (Italian Revenue Agency) within 30 days of acceptance.
Here’s what registration entails:
- A fixed registration tax of €200,
- 0.5% of the deposit amount if it’s a confirmatory deposit, or 3% if it’s an advance payment,
- And, of course, the trusty €16 stamp duty, which is applied for every 100 lines of the purchase offer and any attachments.
This process locks in the offer, moving you one step closer to owning your Italian property!
Taxes associated with buying property in Italy
Buying property in Italy involves a few taxes, such as: “Stamp duty”, which varies based on the seller and property type: private individuals pay 2% for a primary residence and 9% for a second home, while builders pay VAT at rates 4% for a primary residence, 10% for a second home or 22% for a luxury home. You'll also encounter “mortgage” and “land registry” fees—€50 if buying from an individual or €200 from a builder. All payments go to the notary, who takes care of it!
Who covers closing costs in Italy?
In Italy, all closing costs are on the buyer's shoulders. This includes purchase taxes and notary fees. Optional extras might include costs for a real estate agent, translator, lawyer, power of attorney, property appraisal, due diligence, and even currency conversion.
Do I need an Italian bank account?
Nope! You don’t actually need an Italian bank account to buy property. Every notary in Italy has an escrow account where you can deposit the necessary funds. The notary then takes care of all the payments on your behalf.
Are the advertised prices negotiable?
Most of the time, yes! Property prices are usually negotiable, though each location and property has its own set of unwritten rules. Before jumping into negotiations, I always advise my clients to get a property appraisal. This way, you have a solid starting point for your offer.
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How much will a restoration cost?
Renovation costs in Italy can vary widely, ranging from €500 to €3,000 per square meter. It all depends on the type of work you’re planning, the quality of materials, and the property’s location. Whether you dream of a simple refresh or a high-end makeover, these factors will ultimately shape your budget.
Is there any capital gains tax to pay when I sell my Italian property?
You create a capital gain every time you sell a property for more than what you paid.
If you're a private individual and it's been more than five years since you bought the property, you won't owe any tax on capital gain. If you're a legal entity, then capital gain will be taxed.
What percentage do most realtors charge?
In Italy, most real estate agents charge a commission that typically ranges between 2% and 5% of the property's sale price + VAT. However, rates can vary based on location and property type, especially for luxury or international transactions, where the commission might be higher. For more details, you can check out the full article.
Additional questions for International buyers
Can I buy a car in Italy?
Yes, a foreigner can buy a car in Italy if they have a codice fiscale (Italian tax code) and either residency (the simpler option) or domicile in Italy (a bit more complex).
If you’re an EU citizen, establishing residency is straightforward: just submit a declaration at the local town hall where you intend to live. If you’re from outside the EU, you’ll need to obtain a residence permit.
Difference between residency and domicile
Residency is where you live most of the time—your stable home base. Domicile, however, is the primary place where you conduct your business and interests, which can differ from where you actually live.
For example, John lives with his family in Florence (that’s his residency), but he runs a business in London, where he spends most of his working hours (that’s his domicile).
How to find an English-speaking property finder in Italy?
To find an English-speaking property finder in Italy, you may contact FIAIP, the biggest professional association of realtors in Italy. Start by looking for someone with experience in handling international clients, holding a valid license, and having insurance. You will be saving yourself time and minimizing risks.
How to transfer ownership of property in Italy
To transfer property ownership in Italy, you must sign a deed of sale at an Italian notary, who ensures it’s recorded in the Real Estate Register. There are two types of property transfers: by gift (no payment) or by sale (with payment). Both require notarial authentication and incur taxes.
Heirs can legally contest a gift deed, while a sale deed is less risky for buyers. Working with a notary secures the process, giving it legal and fiscal validity.
For more details, visit the full article.
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How to find out who owns a property in Italy
There are two methods to find out who owns a property in Italy: you can request a Visura Catastale from the Agenzia delle Entrate, or consult the Conservatoria dei Registri Immobiliari. Attention: the Cadastre may not be up-to-date and is not probative.
How to find cadastral value of property in Italy
To find the cadastral value of a property in Italy, you’ll need a Visura Catastale, which provides essential property details like the cadastral income. This can be obtained through the Agenzia delle Entrate online or in person. You'll need either the property’s address or cadastral ID. The cadastral value is crucial for calculating taxes like IMU or registration fees, so having accurate data is key to budgeting.
Which are the questions to ask when buying property in Italy
Before rushing into a property purchase in Italy, ask essential questions to avoid issues. Find out who owns the property and if there are multiple owners, as this can complicate the process. Ask how long the property has been on the market and if there have been previous offers, as these might indicate potential problems. Clarify urban planning compliance, condominium fees, and any special regulations. Also, check for seismic risks and structural defects.
Understanding these details will help you make a well-informed investment decision.
Documents to ask before signing an offer
The Deed of Provenance verifies ownership history, while the Cadastral Compliance Certificate ensures the layout matches records. The Certificate of Habitability confirms the property is legally livable, and the Cadastral Survey provides classification and location data. Finally, review the Cadastral Map for an accurate floor plan.
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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