Real Estate in Italy

Yes, foreigners can freely purchase real estate in Italy — apartments, houses, seaside villas, and commercial properties. EU citizens face no restrictions, while non-EU citizens only need to obtain a tax identification number (Codice Fiscale) and have a valid residence permit. The process follows the same legal framework as for Italians and is fully protected under EU law.

The process is simple and transparent. First, a property is selected and a preliminary agreement (Compromesso) is signed with a 10–20 % deposit. Then the notary conducts a legal verification of the documents, followed by the signing of the final deed of sale (Rogito Notarile) and registration of ownership under the buyer’s name. The entire process typically takes between 1.5 and 3 months. This procedure is the same for purchasing an apartment, house, or villa anywhere in Italy.

Property prices vary by region. The national average ranges from €2,000 to €3,000 per m². In Rome and Milan, apartments cost €5,000–7,000 per m², while in Tuscany, Liguria, or Lake Como areas, prices start at around €4,000 per m². In southern regions and smaller towns, homes can be purchased from €80,000–100,000. Coastal and tourist properties are traditionally more expensive but offer higher liquidity and rental returns.

Buyers pay a property purchase tax of 2–9 % of the property value, depending on whether it’s a new build or resale, notary and registration fees of around 1–2 %, plus stamp duty and minor administrative costs. Property owners also pay an annual IMU tax ranging from 0.4–0.76 % of the cadastral value. These taxes apply equally to locals and foreigners purchasing real estate for residence or investment.

For investment and rentals, Milan, Rome, and Florence are top choices — with high demand and strong liquidity. For seaside living, Tuscany, Liguria, Sicily, and Sardinia are popular, offering villas and beachfront apartments. Southern and central regions are more affordable but have strong growth potential. We recommend locations with tourism, infrastructure, and stable rental markets — these provide the best balance between price and return.

Yes, Italian banks offer mortgages to foreign buyers. Typically, a down payment of 20–40 % is required, along with proof of income. Loan terms extend up to 25 years, with interest rates averaging 3.5–5.5 % annually. A Codice Fiscale and Italian bank account are necessary. Mortgages are particularly beneficial for those buying homes for personal use or long-term investment.

Main yearly expenses include the IMU property tax (0.4–0.76 % of cadastral value), utilities (€600–5,000 per year, depending on property size and type), and condominium or community maintenance fees (€500–2,000 depending on the level of service). Rental income is taxed at 21 % under the Cedolare Secca system. Costs vary based on region, property type, and whether it’s used seasonally or year-round.

Foreign buyers need a valid passport, Italian tax number (Codice Fiscale), proof of funds, a bank statement for the money transfer, and, if applicable, a power of attorney. All documents are processed through a notary, and the purchase is registered in the national land registry, ensuring full legal protection for the buyer.

Yes, Italy has "1 Euro House" programs, but they are limited to certain towns and come with conditions. These offers appear in small villages that aim to attract new residents and restore abandoned homes. Buyers must cover administrative fees and renovation costs (typically €20,000–50,000) and begin restoration within a set period — usually 1–3 years. Such homes are intended for living or small business use, not for quick investment. It’s an authentic cultural experience — not a “free house,” but an opportunity to own a piece of traditional Italy.