How are Americans buying property in Italy?

Authored by the expert who managed and guided the team behind the Italy Property Pack

Everything you need to know before buying real estate is included in our Italy Property Pack

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries (Italy, Spain, France, Germany, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Italy. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At InvestRopa, we explore the Italian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Rome, Milan, and Florence. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can Americans legally buy property in Italy, and are there any restrictions compared to locals or other foreign nationals?

Americans have full legal rights to purchase property in Italy thanks to reciprocity agreements between the United States and Italy.

These agreements ensure that American citizens enjoy the same property ownership rights as Italian nationals and other EU citizens, with no nationality-based discrimination in the purchasing process. You can buy residential properties, commercial buildings, and vacation homes with complete ownership rights.

However, specific restrictions apply to certain property types that Americans should be aware of. Agricultural land purchases may require special permits or face limitations for non-residents. Properties classified as historical or artistic heritage require additional government approvals to preserve Italy's cultural patrimony. Coastal properties within 300 meters of the shoreline often need special government authorization due to environmental protection laws.

Unlike Americans, not all foreign nationals can freely purchase Italian property. Citizens from countries without reciprocity agreements with Italy face significant restrictions or outright prohibitions on property ownership.

It's something we develop in our Italy property pack.

Do Americans need a visa or residency to buy a home in Italy, or can they purchase as non-residents?

Americans can purchase Italian property as non-residents without requiring any visa or residency permit.

The Italian property ownership system separates property rights from residency status, allowing Americans to complete transactions while remaining US residents. You can buy, own, rent out, and sell Italian property without establishing Italian residency. Americans can stay in Italy for up to 90 days within any 180-day period under the Schengen Agreement for tourism or business purposes, including property viewing and purchasing activities.

Property ownership does not automatically grant residency rights or extend your permitted stay in Italy beyond the standard tourist visa-free period. If you plan to spend more than 90 days per 180-day period in Italy, you must apply for appropriate long-term visas regardless of property ownership.

The purchase process can be completed entirely remotely through power of attorney arrangements, eliminating the need for extended stays during the transaction process.

What kind of visa or residency permit is required if an American wants to live in the property full-time?

Americans planning to live full-time in their Italian property must obtain an Elective Residence Visa (Visto per Residenza Elettiva).

This visa category is specifically designed for financially independent individuals who can support themselves without working in Italy. The Elective Residence Visa requires proof of sufficient passive income, such as pensions, investment returns, or rental income from other properties. You must demonstrate annual income of at least €31,000 for single applicants or €38,000 for couples, though these amounts may vary by consulate.

Additional requirements include comprehensive health insurance valid in Italy, proof of accommodation (your owned property satisfies this requirement), and a clean criminal background check from US authorities. The application process typically takes 30-90 days through Italian consulates in the United States.

Once granted, this visa allows you to apply for a residency permit (permesso di soggiorno) upon arrival in Italy, initially valid for one year and renewable annually if you continue meeting the financial and other requirements. This visa prohibits employment in Italy but allows you to live in your property year-round.

Do Americans need to be physically present in Italy to complete the property purchase, or can it be done remotely?

Americans can complete the entire Italian property purchase process remotely without being physically present in Italy.

The key mechanism enabling remote purchases is the power of attorney (procura) system, where you legally authorize a trusted representative, typically an Italian real estate lawyer, to act on your behalf. This representative can sign all documents, attend notary appointments, and complete the final transaction at the notary's office. The power of attorney must be notarized in the United States and apostilled for recognition in Italy.

Remote property viewing is increasingly common through virtual tours, video calls with real estate agents, and detailed property documentation. Many American buyers successfully purchase properties they've only seen virtually, though in-person inspection is recommended for high-value transactions.

All required documents can be prepared and submitted from the United States, including your Italian tax code (Codice Fiscale) application, bank statements, and identification documents. Electronic fund transfers handle the financial aspects of the transaction securely.

The final deed signing (rogito notarile) at the notary's office is the only step traditionally requiring physical presence, but your legal representative can attend this crucial appointment on your behalf with proper power of attorney authorization.

What is the full step-by-step process for Americans to buy property in Italy, and what documents are required at each stage?

The Italian property purchase process follows a structured legal framework designed to protect both buyers and sellers.

1. **Property Search and Initial Viewing** - Research properties online through Italian real estate portals - Engage a local real estate agent for market insights - Arrange viewings in person or virtually - Obtain your Italian tax code (Codice Fiscale) from Italian consulates2. **Making an Offer (Proposta di Acquisto)** - Submit a formal written offer through your agent - Pay a good faith deposit (typically 1-5% of purchase price) - Specify conditions and timeline for the transaction - Allow 7-15 days for seller response3. **Preliminary Contract (Compromesso)** - Sign a legally binding preliminary sales agreement - Pay additional deposit (usually 10-20% of purchase price) - Property is removed from market - Set timeline for final completion (typically 30-90 days)4. **Due Diligence Period** - Notary conducts comprehensive property title searches - Verify building permits and compliance certificates - Check for outstanding debts or liens on the property - Obtain energy performance certificate (APE)5. **Final Contract Preparation** - Notary prepares the final deed (rogito notarile) - Arrange property surveys if required - Finalize mortgage arrangements if applicable - Prepare all financial documentation6. **Completion at Notary Office** - Sign final deed in presence of notary (or via representative) - Pay remaining purchase price and all associated fees - Receive property keys and ownership documents - Notary registers sale with land registry**Required Documents:**- Valid US passport- Italian tax code (Codice Fiscale)- Proof of funds and income statements- Power of attorney (if not attending personally)- Property documents (title deeds, permits, energy certificate)- Bank guarantee or certified check for payments

It's something we develop in our Italy property pack.

Is hiring an Italian real estate lawyer mandatory for Americans, and what are the risks if they don't?

Hiring an Italian real estate lawyer is not legally mandatory but is strongly recommended for American buyers navigating the complex Italian property system.

Italian property law operates under a civil law system with specific procedures and protections that differ significantly from US real estate practices. A qualified Italian real estate lawyer provides essential services including contract review, due diligence oversight, title verification, and legal representation during the transaction process. They ensure compliance with Italian tax obligations and can identify potential legal issues before they become costly problems.

The risks of proceeding without legal representation are substantial and can result in significant financial losses. Undiscovered property liens or debts can transfer to new owners under Italian law. Missing building permits or zoning violations can render properties unmortgageable or unsellable. Complex Italian tax obligations may result in unexpected penalties or additional costs. Contract clauses written in Italian legal terminology may contain unfavorable terms that non-native speakers miss.

Legal fees typically range from €1,500 to €5,000 depending on property value and transaction complexity, representing a small investment compared to potential risks. Many lawyers offer fixed-fee arrangements for standard property purchases, providing cost certainty for buyers.

Experienced Italian real estate lawyers also provide valuable local market insights and can recommend trusted local professionals including surveyors, tax advisors, and property managers.

Are mortgages available to Americans in Italy, and what are the typical interest rates, terms, and lender conditions in 2025?

Italian banks offer mortgages to American citizens, though terms are generally less favorable than those available to Italian residents or EU citizens.

Mortgage Factor	Italian Residents	Non-Resident Americans
Maximum Loan-to-Value	80-90%	50-70%
Interest Rates (2025)	2.5-2.79%	2.79-3.5%
Loan Terms	Up to 30 years	15-25 years
Income Requirements	Standard verification	Extensive documentation required
Debt-to-Income Ratio	Up to 40%	Maximum 30%
Minimum Property Value	€100,000	€200,000
Processing Time	30-45 days	60-90 days

American applicants must provide extensive financial documentation including three years of US tax returns, bank statements, employment verification, and proof of other assets. Monthly mortgage payments cannot exceed 30% of gross income, and total debt obligations cannot exceed 40% of income. Banks typically require life insurance coverage for the loan amount.

Major Italian banks offering mortgages to Americans include Intesa Sanpaolo, UniCredit, and Monte dei Paschi di Siena, though policies and rates vary significantly between institutions. Some banks specialize in non-resident lending and may offer more competitive terms.

Alternative financing options include US-based international mortgage providers and private lending arrangements, though these typically carry higher interest rates than Italian bank mortgages.

What are the best regions in Italy where Americans are currently buying for lifestyle, rental income, or capital appreciation?

American buyers are concentrating their Italian property investments in several key regions that offer distinct advantages for different investment strategies.

**Tuscany** remains the most popular region for American buyers seeking lifestyle properties and strong rental income potential. The Chianti region between Florence and Siena commands premium prices averaging €2,508 per square meter, with luxury properties in prime locations reaching €9,500+ per square meter. Florence attracts over 10.9 million tourist nights annually, ensuring strong short-term rental demand. Rural Tuscan properties offer lifestyle appeal and steady appreciation, particularly in UNESCO World Heritage areas like Val d'Orcia.**Rome and Lazio** provide excellent opportunities for both lifestyle and investment purposes. Central Rome properties average €3,590 per square meter, reaching €8,484 in the historic Centro Storico. With over 30.9 million tourist nights annually, Rome offers Italy's strongest rental market for short-term accommodations. Properties near major attractions and metro lines command premium rental rates.**Lombardy and Milan** represent Italy's strongest market for capital appreciation and professional rental demand. Milan properties average €5,500 per square meter in 2025, driven by the city's status as Italy's economic capital. The ongoing urban regeneration projects and 2026 Winter Olympics preparations are boosting property values significantly.**Puglia and Sicily** offer the highest rental yields in Italy, with properties in Bari and Palermo generating 6-8% annual returns. Property prices remain affordable at €1,422 per square meter in Puglia and €1,161 in Sicily, making these regions attractive for budget-conscious investors seeking high yields.**Northern regions** including Trentino-Alto Adige consistently rank highest for quality of life, with cities like Trento and Bergamo leading Italian liveability rankings. Properties here offer stability and steady appreciation, though rental yields are typically lower than southern regions.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Italy versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Which areas in Italy offer the highest gross rental yields and tourist traffic, and how does this compare to liveability rankings?

Italian rental yields and tourist traffic show interesting patterns that don't always align with quality of life rankings, creating distinct opportunities for different investor priorities.

**High-Yield Tourist Hotspots:** Southern Italian cities like Palermo in Sicily and Bari in Puglia offer the highest gross rental yields at 6-8% annually, supported by growing tourist traffic and low property acquisition costs. These markets benefit from emerging tourism trends as travelers seek authentic Italian experiences beyond traditional destinations. Sicily recorded 1.59 million tourist nights in Palermo alone, with significant growth potential as infrastructure improves.

**Established Tourist Markets:** Rome, Milan, and Florence generate massive tourist traffic with 30.9 million, 12.4 million, and 10.9 million annual tourist nights respectively. These cities offer strong rental demand but at lower yields (3-5%) due to higher property acquisition costs. However, they provide greater market stability and easier property management infrastructure.

**Quality of Life Leaders:** Northern Italian cities dominate liveability rankings, with Bergamo ranking first and Trento second in Italy's 2024-2025 quality of life index. These cities offer excellent infrastructure, low crime rates, and high environmental quality but generate lower tourist traffic and rental yields. Properties here appeal to long-term residents rather than short-term tourists.

**Balanced Opportunities:** Cities like Bologna and Verona offer moderate tourist traffic combined with good quality of life indicators, generating steady rental returns of 4-6% while maintaining strong long-term appreciation potential. These markets attract both tourists and long-term renters, providing diversified income streams.

The optimal choice depends on your investment strategy: maximize yields in emerging southern markets, pursue stability in established tourist destinations, or prioritize quality of life in northern cities for personal use and steady appreciation.

What is the current price per square meter for homes in key Italian cities and regions like Tuscany, Rome, Milan, Sicily, and Puglia?

Italian property prices vary dramatically across regions and cities, reflecting local economic conditions, tourism appeal, and infrastructure quality as of June 2025.

Region/City	Average Price per m² (€)	Market Characteristics
Milan	5,500	Economic capital, highest prices in Italy
Rome (Average)	3,590	Strong tourist and residential demand
Rome (Centro Storico)	8,484	Premium historic center locations
Tuscany (Average)	2,508	Popular with international buyers
Tuscany (Luxury Areas)	9,500+	Chianti, Val d'Orcia premium properties
Trentino-Alto Adige	3,482	High quality of life, Alpine regions
Lombardy (Average)	2,519	Industrial north, excluding Milan
Puglia	1,422	Emerging market, high rental yields
Sicily	1,161	Most affordable, growing tourism
Calabria	951	Lowest prices in Italy

**Premium Markets:** Milan leads Italian property prices at €5,500 per square meter, driven by its role as Italy's financial and fashion capital. Central Rome commands €8,484 per square meter in historic areas, while maintaining a city average of €3,590. Luxury Tuscan properties in sought-after areas like Chianti exceed €9,500 per square meter.

**Mid-Range Markets:** Northern regions like Trentino-Alto Adige average €3,482 per square meter, reflecting high quality of life and proximity to Austria and Switzerland. Lombardy outside Milan averages €2,519, offering access to economic opportunities at more affordable prices.

**Emerging Value Markets:** Southern regions present significant value opportunities, with Puglia at €1,422 and Sicily at €1,161 per square meter. These markets are experiencing growing international interest and tourism development, suggesting potential for appreciation.

**Budget Options:** Calabria offers Italy's most affordable property prices at €951 per square meter, appealing to buyers seeking maximum space and coastal access on limited budgets.

It's something we develop in our Italy property pack.

What are the main tax implications and annual property-related costs Americans should expect as foreign homeowners in Italy?

American property owners in Italy face several tax obligations and ongoing costs that vary based on property type, location, and usage patterns.

**Purchase Taxes and Initial Costs:**- **Registration Tax:** 2% for primary residences, 9% for second homes (calculated on cadastral value)- **Mortgage Tax:** 0.25% for primary residences, 2% for second homes- **Cadastral Tax:** Fixed €50 for primary residences, €200 for second homes- **Notary Fees:** 1-2% of purchase price- **Real Estate Agent Commission:** 3% of purchase price- **Legal Fees:** €1,500-€5,000 depending on complexity**Annual Property Taxes:**- **IMU (Municipal Property Tax):** Applies to second homes, rates vary by municipality (typically 0.4-1.06% of cadastral value)- **TARI (Waste Collection Tax):** Annual fee based on property size and municipality, typically €200-€800 annually- **TASI (Municipal Services Tax):** Some municipalities charge additional fees for local services**Income Tax Obligations:**- **Rental Income:** Subject to Italian taxation at rates up to 23% for non-residents- **Imputed Income:** Non-resident owners may owe tax on theoretical rental value even if property is empty- **Capital Gains Tax:** 26% on profits if selling within five years of purchase**Ongoing Maintenance Costs:**- **Condominium Fees:** €1,000-€4,000 annually for apartment buildings- **Utilities:** €1,200-€2,400 annually depending on usage- **Property Management:** 8-12% of rental income if using management companies- **Insurance:** €300-€800 annually for comprehensive coverage**US Tax Implications:**- Americans must report Italian property ownership and rental income to the IRS- Foreign tax credits may apply to reduce double taxation- FBAR and FATCA reporting requirements may apply depending on financial account values

What are the most common mistakes Americans make when buying property in Italy, and how can they avoid these pitfalls?

American buyers frequently encounter specific challenges when purchasing Italian property, often resulting from unfamiliarity with local practices and legal requirements.

1. **Skipping Professional Legal Representation** - **Mistake:** Assuming the notary represents their interests or that real estate agents provide adequate legal protection - **Solution:** Always hire an independent Italian real estate lawyer who represents your interests exclusively - **Cost of mistake:** Legal disputes, undiscovered liens, unfavorable contract terms2. **Insufficient Due Diligence on Property Status** - **Mistake:** Not verifying building permits, zoning compliance, or potential structural issues - **Solution:** Conduct comprehensive property surveys and legal checks before signing preliminary contracts - **Cost of mistake:** Unmortgageable properties, demolition orders, expensive retrofitting requirements3. **Underestimating Total Purchase and Ownership Costs** - **Mistake:** Budgeting only for the purchase price without considering taxes, fees, and ongoing expenses - **Solution:** Calculate total costs including 8-12% in purchase fees plus annual expenses of 2-4% of property value - **Cost of mistake:** Cash flow problems, forced property sales, inability to complete transactions4. **Language Barriers in Legal Documents** - **Mistake:** Signing contracts without fully understanding Italian legal terminology and obligations - **Solution:** Use certified translators for all legal documents and work with bilingual legal professionals - **Cost of mistake:** Unfavorable contract terms, missed deadlines, legal complications5. **Assuming Property Ownership Grants Residency Rights** - **Mistake:** Believing property purchase allows unlimited stays in Italy or EU countries - **Solution:** Apply for appropriate visas before planning extended stays, regardless of property ownership - **Cost of mistake:** Immigration violations, forced departures, visa complications6. **Choosing Properties Based on Emotion Rather Than Investment Logic** - **Mistake:** Falling in love with properties without analyzing rental potential, resale value, or practical considerations - **Solution:** Establish clear investment criteria and stick to financial analysis when making decisions - **Cost of mistake:** Poor investment returns, difficult property management, limited resale options7. **Inadequate Property Management Planning for Remote Owners** - **Mistake:** Not establishing reliable local property management before purchase - **Solution:** Research and contract reputable local management companies or develop reliable local networks - **Cost of mistake:** Property deterioration, rental income loss, emergency response problems

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Taxes for Expats - Buying Property in Italy as an American
2. My Lawyer in Italy - Italian Real Estate for Americans
3. Wise - How to Buy Property in Italy
4. Expat Focus - Italy Property Buying Guide
5. Italian Real Estate Lawyers - Property and Residency
6. A Place in the Sun - Italy Property Purchase Process
7. Italian Real Estate Lawyers - American Mortgages in Italy
8. The Global Economy - Italy Mortgage Rates
9. Dreamer Real Estate - Italy Investment Guide 2025
10. Idealista - Italy Quality of Life Rankings 2024-2025