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Our Guide to Buying Real Estate in Italy will help you navigate the entire process: from choosing the perfect region and preparing documents to signing the contract with a notary and registering ownership. Thanks to its diversity, Italy is ideal for both personal residence and investment, while transparent legislation makes the process accessible to international buyers. Subscribe to Erena.me — our Guide to Buying Real Estate in Italy is regularly updated with new materials.
Why Use Our Guide to Buying Real Estate in Italy?
Purchasing property abroad involves many questions: What taxes apply? How do you choose the right region? How do you arrange a mortgage and avoid legal risks? The Guide to Buying Real Estate in Italy not only answers these questions but also provides a step-by-step roadmap to help you avoid mistakes and save time.
Step 1: Define Your Goal and Budget
Purpose of Purchase
Our Guide to Buying Real Estate in Italy recommends considering your purpose when choosing a region:
•For personal residence, select comfortable regions with well-developed infrastructure: Rome, Milan, Florence, Bologna.
•For investment and rental purposes, tourist hotspots are ideal: the Amalfi Coast, Liguria, Sicily, Sardinia, as well as the iconic lakes of Como, Garda, and Maggiore.
Budget
According to our Guide to Buying Real Estate in Italy, property prices vary significantly depending on the region:
•Milan and Rome: €4,000–€10,000/m².
•Florence: €3,500–€7,000/m².
•Tuscany (countryside homes): €2,500–€5,000/m².
•Lakes Como, Garda, Maggiore: €3,000–€8,000/m².
•Sicily: €1,500–€3,000/m².
•Liguria: €2,500–€6,000/m².
Additional costs amount to 10–15% of the property’s price. For instance, when buying a home for €300,000, you should budget an additional €30,000–€45,000 for taxes, notary fees, lawyer services, and other charges.
Step 2: Research the Market and Regions
Our Guide to Buying Real Estate in Italy highlights that each region has its unique market characteristics:
•Milan and Rome: The most expensive and liquid markets.
•Florence and Venice: High rental demand from tourists, with prices ranging from €4,000 to €8,000/m².
•Tuscany: Popular among foreigners seeking second homes. Country villas start at €2,500/m².
•Lakes (Como, Garda, Maggiore): A luxury market with prices starting at €3,000/m², attracting steady demand from international buyers.
•Liguria, Sicily, Sardinia: Prices range from €2,000 to €6,000/m². Liguria is especially popular among Europeans due to its proximity to France.
Evaluate price growth potential, tourist appeal, and rental opportunities, as advised by the European Real Estate News Agency.
Step 3: Find Reliable Specialists
The European Real Estate News Agency recommends working with the following professionals:
•Real Estate Agent (Agente Immobiliare): Commission is 2–4% of the property price plus VAT (22%), usually split between buyer and seller.
•Lawyer (Avvocato): Fees range from 1–2% of the property price or a fixed rate (e.g., €2,000–€3,000).
•Notary (Notaio): A mandatory step. Notary services cost between €1,000 and €3,000, depending on the complexity of the transaction.
Choose professionals experienced in working with international clients to avoid language barriers.
Step 4: Prepare the Documents
To complete the transaction, you’ll need:
•Codice Fiscale (tax identification number);
•Passport;
•Proof of income (for a mortgage);
•Bank statement confirming funds.
Obtaining a Codice Fiscale is free through the tax office (Agenzia delle Entrate).
Step 5: Understand Taxes and Fees
Our Guide to Buying Real Estate in Italy emphasizes that taxes vary by property type and region:
•First home (prima casa): Registration tax is 2% of cadastral value (usually lower than market value).
•Second home: Registration tax is 9%.
•VAT (IVA): For new properties, 4% (prima casa) or 10% (second home).
Example: For a second home worth €300,000, the tax would be approximately €27,000 (9%).
Annual taxes:
•IMU: 0.4–1% of cadastral value (exempt for primary residences).
•TARI (waste collection): €200–€500 per year.
Step 6: Consider a Mortgage
Foreigners can obtain a mortgage in Italy under these conditions:
•Down payment: 30–40% of the property price.
•Interest rate: 2–4% annually (fixed or variable).
•Loan term: Up to 30 years.
Example: For a €300,000 property with a €200,000 loan at 3% interest, the monthly payment would be approximately €850.
Step 7: Assess the Property’s Technical Condition
The European Real Estate News Agency advises hiring a geometra (surveyor) to inspect the property’s condition. Cost: €500–€1,500. Ensure the following are checked:
•Utilities (water, electricity, gas);
•Building permits;
•Energy Performance Certificate (APE).
Step 8: Negotiating the Price
Negotiation is common in Italy, especially for properties that require renovation. The average discount ranges from 5% to 10%. For instance, for a property priced at €300,000, you could save between €15,000 and €30,000.
Step 9: Preliminary Contract (Contratto Preliminare)
Paying a deposit is a mandatory step. The deposit typically amounts to 10% of the property price. For example, for a €300,000 property, the deposit would be €30,000.
Step 10: Notarial Agreement (Rogito)
The main contract is finalized and signed in the presence of a notary. Notarial costs include:
•Notary fees: €1,000–€3,000.
•Registry registration: €300–€700.
Step 11: Ownership Registration
After signing the contract, the notary submits the documents to the land registry. Within 2–4 weeks, you officially become the property owner.
Step 12: Post-Purchase: Taxes and Maintenance
Key annual expenses include:
•IMU: 0.4%–1% of the cadastral value. For instance, with a cadastral value of €150,000, the tax would range from €600 to €1,500.
•TARI (waste collection): €200–€500.
•Utilities: €100–€300 per month.
•Insurance: €150–€500 per year.
Conclusion
Our Guide to Buying Real Estate in Italy is your trusted companion on the journey to purchasing a home or making an investment. Subscribe to Erena.me to learn more about each step of the process, legal intricacies, and regional specifics of the Italian market!
Explore Real Estate in Other Countries
If you’re interested in buying property abroad, check out our comprehensive guides for other destinations:
•Guide to Buying Real Estate in Spain: Discover all the steps, taxes, and legal aspects of purchasing a property in Spain. [Read more here].
•Guide to Buying Real Estate in Germany: Learn about the process, tax regulations, and costs associated with buying property in Germany. [Read more here].
Both guides offer valuable insights into the buying process, legal requirements, and associated costs in these countries.
