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
Americans can legally purchase property in Italy with no significant restrictions compared to Italian citizens, thanks to a reciprocity agreement between the two countries.
The process involves obtaining an Italian tax code, opening a local bank account, hiring a notary, and completing several legal steps that can be done remotely through a power of attorney. While property ownership doesn't grant residency rights, Americans can secure mortgages from Italian banks and invest in various regions from Milan to Tuscany to Puglia.
If you want to go deeper, you can check our pack of documents related to the real estate market in Italy, based on reliable facts and data, not opinions or rumors.
Americans face no legal restrictions when buying property in Italy and can complete the entire process remotely using a power of attorney, though property ownership doesn't grant automatic residency rights.
Total purchase costs typically range from 10-20% of the property price, including registration taxes of 2-9%, notary fees of 1-2%, and various administrative costs, while non-resident mortgages require 40-60% down payments with interest rates between 2.7-3.5%.
| Aspect | Details | Cost/Requirement |
|---|---|---|
| Legal Status | Full ownership rights for Americans | No restrictions vs Italian citizens |
| Residency | Property doesn't grant residency | Separate visa application required |
| Remote Purchase | Possible with Power of Attorney | Document legalization required |
| Registration Tax | Primary residence: 2%, Second home: 9% | Based on cadastral value |
| Notary Fees | Mandatory for all transactions | 1-2% of purchase price |
| Mortgage Down Payment | Non-residents | 40-60% of property value |
| Interest Rates | Fixed or variable options | 2.7-3.5% as of 2025 |
Can Americans buy property in Italy without restrictions?
Americans can legally purchase property in Italy with no significant restrictions compared to Italian citizens or EU nationals.
This unrestricted access exists due to a reciprocity agreement between the United States and Italy, allowing Americans to buy residential, commercial, and land properties under the same conditions as locals. EU nationals have a slightly more streamlined process since they don't need to rely on reciprocity treaties, but the practical differences are minimal.
The reciprocity principle means that since Italians can buy property in the United States, Americans receive the same treatment in Italy. This applies to all types of real estate transactions, from apartments in Rome to countryside villas in Tuscany, with no caps on the number or value of properties an American can own.
Unlike some European countries that impose restrictions on foreign ownership, Italy maintains an open approach to international real estate investment. Americans face the same legal requirements, tax obligations, and procedural steps as Italian citizens when purchasing property.
It's something we develop in our Italy property pack.
What visa requirements exist for Americans buying and living in Italian property?
Property ownership in Italy does not automatically grant residency or visa rights to Americans.
Americans can visit Italy for up to 90 days within any 180-day period without a visa under the Schengen agreement. For longer stays, they must apply for appropriate long-stay visas, with the Elective Residency Visa being the most common option for property owners who want to live in Italy.
The Elective Residency Visa requires proof of stable, sufficient income that doesn't come from employment in Italy, such as pensions, annuities, or rental income. Applicants must demonstrate accommodation proof through property deeds or rental agreements, maintain health insurance coverage, and provide a clean criminal record. The application process occurs at Italian consulates in the United States, with all documents requiring proper translation and legalization.
Once in Italy, visa holders must apply for a residency permit (permesso di soggiorno) within eight days of arrival. The Elective Residency Visa specifically prohibits working in Italy, making it suitable for retirees or individuals with passive income streams.
Other visa options include investment visas for substantial business investments or self-employment visas for those planning to start businesses in Italy.
Can Americans complete property purchases remotely?
Americans can purchase Italian property without being physically present during the transaction.
The remote purchase process requires appointing a trusted representative, typically a lawyer or real estate agent, through a Power of Attorney (PoA). This legal document must be properly legalized through apostille or notarization if signed outside Italy, ensuring its validity under Italian law.
The appointed representative can handle all transaction steps, including signing preliminary and final contracts, making payments, and completing administrative procedures. Many Americans choose this route to avoid multiple trips to Italy during the lengthy purchase process, which can span several months.
Key documents for remote purchases include a valid passport, Italian tax code (Codice Fiscale), proof of funds, and the properly executed Power of Attorney. The representative must be explicitly authorized to act on behalf of the buyer in all property-related matters.
Remote purchases are particularly common for Americans buying vacation homes or investment properties, allowing them to secure Italian real estate while maintaining their primary residence and employment in the United States.
What is the step-by-step process for Americans buying property in Italy?
The Italian property purchase process follows a structured sequence of legal and administrative steps.
**Step 1: Obtain a Codice Fiscale (Italian Tax ID)**
This 16-character code is mandatory for all financial and legal transactions in Italy. Americans can obtain it from Italian consulates in the United States or directly from Italian tax offices.
**Step 2: Open an Italian Bank Account**
Required for paying property costs, taxes, and ongoing expenses. The process requires your Codice Fiscale, passport, and proof of income or employment.
**Step 3: Property Search and Offer Submission**
Work with real estate agents or search independently, then submit a written offer (proposta d'acquisto) with a small deposit, typically €5,000-€10,000.
**Step 4: Sign the Preliminary Contract (Compromesso)**
This legally binding agreement outlines all sale terms and conditions. Buyers pay a deposit of 10-30% of the purchase price at this stage.
**Step 5: Due Diligence and Legal Verification**
The notary and optional private lawyer conduct thorough checks on property titles, outstanding debts, zoning compliance, and legal status.
**Step 6: Final Deed Signing (Rogito Notarile)**
Conducted before a notary, this step involves paying the remaining balance, all taxes, and fees. The notary officially registers the property in the buyer's name.
**Step 7: Property Registration and Tax Payment**
The notary handles Land Registry registration while buyers complete tax obligations, including registration taxes and various administrative fees.
Essential documents include passport, Codice Fiscale, proof of funds, Power of Attorney (if buying remotely), marriage certificates (if applicable), and anti-money laundering declarations.
Are lawyers and notaries mandatory for American property buyers?
| Professional | Legal Status | Primary Functions |
|---|---|---|
| Notary (Notaio) | Mandatory | Ensures transaction legality, registers property deed |
| Private Lawyer | Recommended | Protects buyer interests, conducts due diligence |
| Real Estate Agent | Optional | Property search, negotiation, market guidance |
| Tax Advisor | Optional | Tax optimization, compliance guidance |
| Surveyor | Optional | Property condition assessment, valuation |
| Translator | Often Needed | Document translation, communication assistance |
| Mortgage Broker | Optional | Loan arrangement, bank negotiations |
What taxes and fees should Americans expect when buying Italian property?
American buyers face total purchase costs of 10-20% of the property price, including various taxes and professional fees.
Registration tax represents the largest cost component, charged at 2% of cadastral value for primary residences and 9% for second homes (non-residents typically pay the higher rate). Cadastral value is usually lower than market price, providing some cost relief for buyers.
Notary fees range from 1-2% of the purchase price, covering legal verification, document preparation, and property registration services. Real estate agency commissions vary from 2-5% of the purchase price, sometimes split between buyers and sellers depending on local customs.
Additional costs include fixed cadastral and mortgage taxes of €50 each, plus VAT on new properties ranging from 4-22% depending on property type and buyer status. First-time homebuyers may qualify for reduced VAT rates in certain circumstances.
Ongoing ownership costs include IMU (Municipal Property Tax) based on cadastral value, typically paid twice yearly. Primary residences are often exempt from IMU, while second homes face the full tax burden. Utility connections, maintenance, and insurance add to annual ownership expenses.
Don't lose money on your property in Italy
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Can Americans obtain mortgages from Italian banks?
Italian banks offer mortgages to Americans, though conditions are more restrictive for non-residents compared to Italian citizens.
Non-resident Americans typically need down payments of 40-60% of the property value, significantly higher than the 20-30% often required for residents. Loan-to-value ratios usually cap at 50-60% for non-residents, compared to up to 80% for Italian residents with stable local employment.
Interest rates for American borrowers range from 2.7-3.5% as of mid-2025, available in both fixed and variable rate options. Banks evaluate applications based on income stability, credit history, and debt-to-income ratios, with many requiring Italian guarantors or additional collateral.
Required documentation includes passport, Codice Fiscale, proof of income through tax returns and bank statements, employment verification, and detailed property information. Some banks require translated and apostilled documents, adding time and cost to the application process.
Successful mortgage approval strategies include starting applications early, maintaining organized documentation, considering larger down payments to improve terms, and working with specialized mortgage brokers familiar with non-resident lending requirements.
Which Italian regions are most popular with American buyers?
American property buyers gravitate toward specific Italian regions based on lifestyle preferences, expat communities, and investment potential.
Tuscany remains the top choice for Americans seeking the classic Italian experience, featuring rolling hills, world-renowned wines, and established expat communities in areas around Florence, Siena, and the Chianti region. The region offers a perfect blend of cultural richness, natural beauty, and international accessibility.
Rome attracts Americans interested in urban living combined with historical significance, offering strong expat networks, excellent transportation links, and diverse property options from historic center apartments to modern suburban homes.
Northern regions like Lombardy (Milan, Lake Como) appeal to Americans seeking urban sophistication and economic opportunities, with Milan serving as Italy's financial capital and Lake Como providing luxury lifestyle options. The Veneto region, anchored by Venice, offers romantic historic settings and tourism investment potential.
Southern Italy, particularly Puglia, increasingly attracts Americans seeking affordable Mediterranean lifestyles, with property prices significantly lower than northern regions while offering authentic Italian culture and growing expat communities.
These regions provide established English-speaking services, international schools, healthcare facilities, and cultural amenities that ease the transition for American residents and property owners.
What are the best Italian regions for American real estate investment?
| Region/City | Investment Type | Key Advantages |
|---|---|---|
| Milan | Rental Income | Financial hub, high rental demand, strong appreciation |
| Rome | Tourism/Rental | Constant tourist flow, stable market, diverse properties |
| Florence | Cultural/Tourism | Art heritage, student population, international appeal |
| Bologna | Student Housing | Major university city, affordable entry, steady demand |
| Puglia | Lifestyle/Growth | Low prices, Mediterranean appeal, emerging market |
| Lake Como | Luxury/Appreciation | International prestige, limited supply, wealthy clientele |
| Sicily | Value/Renovation | Lowest prices, renovation potential, government incentives |
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.
What are current Italian property prices by region?
Italian property prices vary dramatically between northern and southern regions, with significant differences between urban centers and rural areas.
Milan leads Italian property prices at over €5,000 per square meter as of 2025, reflecting its status as the country's economic powerhouse and international business center. Rome follows at approximately €3,330 per square meter, while Florence commands around €4,300 per square meter due to its cultural significance and tourism appeal.
Northern Italian cities generally command premium prices, with Bologna averaging €2,500 per square meter and offering more affordable entry points while maintaining strong rental demand from university students and young professionals.
Central regions like Tuscany show rural properties averaging €2,375 per square meter, though prime locations near major towns or with exceptional views command significantly higher prices. Liguria, featuring the Italian Riviera, averages €2,500 per square meter for coastal properties.
Southern Italy offers the most affordable options, with Puglia averaging €1,200 per square meter and Sicily around €1,000 per square meter, making these regions attractive for Americans seeking vacation homes or renovation projects with limited budgets.
It's something we develop in our Italy property pack.
What common mistakes do Americans make when buying Italian property?
American buyers often underestimate the total cost of property ownership in Italy, focusing solely on purchase prices while overlooking substantial additional expenses.
**Financial Miscalculations**
Many Americans fail to budget adequately for taxes, notary fees, agency commissions, and ongoing ownership costs. The 10-20% additional costs beyond purchase price frequently surprise first-time buyers.
**Language and Communication Barriers**
Attempting transactions without proper translation services or bilingual legal representation leads to misunderstandings about contract terms, legal obligations, and local regulations.
**Inadequate Due Diligence**
Rushing through property inspections, title verifications, and zoning compliance checks creates risks of purchasing properties with hidden debts, legal restrictions, or structural problems.
**Tax Misunderstandings**
Confusion about Italian tax calculations based on cadastral values rather than market prices, plus failure to understand ongoing tax obligations and reporting requirements to both Italian and U.S. authorities.
**Residency Assumptions**
Incorrectly believing that property ownership automatically grants residency rights or visa status, leading to immigration complications and unexpected legal issues.
Prevention strategies include working with experienced English-speaking professionals, conducting thorough property research, budgeting conservatively for all costs, and understanding legal requirements before committing to purchases.
How is rental income from Italian property taxed for Americans?
Americans owning rental property in Italy face tax obligations in both countries, requiring careful planning to avoid double taxation.
Italy imposes income tax on rental income earned by non-residents, with current rates at approximately 21% on gross rental income for non-residents. This flat tax rate applies to the total rental income before expenses, though certain deductions may be available for property maintenance and management costs.
The United States requires American citizens to report worldwide income to the IRS, including rental income from Italian properties. Americans must declare this income on their U.S. tax returns regardless of where they reside or whether taxes were paid in Italy.
The U.S.-Italy tax treaty provides mechanisms to prevent double taxation through foreign tax credits, allowing Americans to offset Italian taxes paid against their U.S. tax liability. However, proper documentation and professional tax preparation are essential to claim these credits effectively.
Additional considerations include currency exchange rate fluctuations affecting income calculations, potential state tax obligations depending on the owner's U.S. residence, and the need for professional tax advisors familiar with both countries' tax systems.
It's something we develop in our Italy property pack.
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.
Americans can successfully purchase property in Italy through a well-established legal framework that treats foreign buyers equally to Italian citizens, making the country an attractive destination for real estate investment and lifestyle changes.
The key to successful property acquisition lies in understanding the mandatory steps, associated costs, and tax implications while working with qualified professionals who can navigate the Italian legal system and ensure compliance with both countries' requirements.
Sources
- Taxes for Expats - Buying Property in Italy as an American
- Lexidy - How to Buy Property in Italy as an American
- My Lawyer in Italy - Italian Real Estate for Americans
- Global Citizen Solutions - Buying Property in Italy
- Wise - Getting a Mortgage in Italy
- A Place in the Sun - Property Purchase Costs in Italy
- Italian Consulate New York - Elective Residency Visa
- Idealista - Italian Regions with Rising House Prices
- Properstar - Italy House Prices
- Greenback Tax Services - Report Rental Income Foreign Property