A foreigner's guide to buying property in Italy

Italy’s rich culture, stunning landscapes, and charming towns have long attracted foreign property buyers. Whether you're seeking a vacation home in Tuscany, a city apartment in Rome, or a retirement haven by the coast, Italy offers a wide range of opportunities. But how easy is it for foreigners to buy property there—and what steps are involved?

Can Foreigners Buy Property in Italy?

Yes—foreigners can buy property in Italy. However, the ease of doing so depends on your nationality.

• EU Citizens enjoy full rights and can buy without restriction.

• Non-EU Citizens are allowed to purchase property if there is a reciprocity agreement between Italy and their country (e.g., the U.S., Canada, and Australia qualify).

• If you’re a non-EU citizen and your country has no agreement, you may be restricted from buying unless you obtain residency.

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The Property Buying Process in Italy

1. Get a Codice Fiscale (Italian Tax Code)

This is required for all legal and financial transactions, including buying property. You can obtain it for free at any Italian Revenue Agency office or via an Italian consulate abroad.

2. Open an Italian Bank Account

All payments—including taxes, deposits, and fees—must go through an Italian bank account in your name.

3. Engage a Legal Consultant or a Real Estate Agent

A Lawyer will help you verify property titles, check for debts or liens, ensure legal compliance. A licensed agent will help you find properties and manage the initial negotiations. Agent fees typically range from 3 to 4 % of the purchase price.

4. Hire a Notary (Notaio)

The notary is a key figure in Italian real estate transactions. They:

• Draft the deed and check everything is formally compliant to the Italian laws and regulations

• Register the property

Buyers must pay the notary's fees, which usually amount to 1–2% of the property’s value.

From Offer to Ownership: Key Legal Steps

Step 1: Purchase Offer (Proposta d’Acquisto)

A formal offer to buy the property, often with a small deposit. If accepted, it becomes binding.

Step 2: Preliminary Contract (Compromesso)

Outlines the terms of sale, including the final price and deadlines. At this stage, you’ll pay a larger deposit (typically 10–30%).

Step 3: Final Deed (Rogito Notarile)

Signed in front of the notary. The remaining balance is paid, ownership is transferred, and the sale is registered.

Taxes and Costs to Consider

Be prepared for additional expenses beyond the purchase price. Here’s a breakdown:

Type of Expense	Typical Cost
Registration Tax (Primary Residence)	2%
Registration Tax (Second Home)	9%
VAT (on new builds only, when bought from developers within 5 years of completion of construction)	4% (primary residence)–10% (second home)
Notary Fees	1%–2%
Agent’s Commission	3-4%
Annual Property Tax (IMU)	Varies, depends on location and residency status

Note: If you plan to move in and declare the property as your prima casa (primary home), you’ll benefit from significantly reduced taxes.

Other Practical Tips

• Legal Assistance: Although not mandatory, hiring a lawyer who understands Italian real estate law is highly recommended.

• Due Diligence: Ensure the property is free of debts, code violations, or unauthorized modifications.

• Language Barrier: All contracts and legal documents will be in Italian. You may need a certified translator.

• Residency Status: Owning property does not grant you residency or a visa in Italy, but it may support your application if you intend to live there.

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Buying property in Italy can be a rewarding investment or lifestyle decision. The process is well-regulated, but involves multiple parties, legal procedures, and taxes. With the right preparation—and good local advice—you can secure your dream home in one of the world’s most beloved destinations.