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
Buying property in Italy as a foreigner is entirely possible, with EU citizens enjoying the same rights as Italian nationals and non-EU citizens able to purchase under reciprocity agreements.
As of June 2025, the Italian property market continues to attract international buyers, with new home prices having risen 9.35% in late 2024 and strong demand in regions like Tuscany, Lombardy, and emerging hotspots like Trentino-South Tyrol ahead of the 2026 Winter Olympics.
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.
Foreign property buyers in Italy need a Codice Fiscale (tax code) and must work with a mandatory notary, while EU citizens face no restrictions and non-EU citizens must verify reciprocity agreements between Italy and their home country.
Total closing costs typically range from 7-10% of the purchase price, including registration tax (2% for primary residence, 9% for second homes), notary fees (1-2.5%), and agent commissions (2-3%), with non-resident mortgages available at 50-60% loan-to-value ratios.
| Key Requirement | Details | Cost/Impact |
|---|---|---|
| Property Rights | EU citizens: Full rights Non-EU: Reciprocity required |
No extra cost if eligible |
| Mandatory Documents | Codice Fiscale, Italian bank account | Free to minimal cost |
| Closing Costs | Taxes, notary, agent fees | 7-10% of purchase price |
| Mortgage Options | 50-60% LTV for non-residents | 3.5-3.8% interest rates (2025) |
| Annual Property Tax | IMU tax on second homes | 0.4-1.06% of cadastral value |
| Capital Gains Tax | On sale within 10 years | 26% on gains (second homes) |
| Rental Income Tax | Flat tax option available | 21% cedolare secca |
Can foreigners buy any type of property anywhere in Italy, or are there restrictions?
EU citizens can buy any type of property anywhere in Italy with exactly the same rights as Italian citizens - no restrictions apply.
For non-EU citizens, Italy applies the "reciprocity principle," which means your home country must allow Italians to buy property there under similar terms. Most Western countries including the US, UK, Canada, and Australia have these agreements in place, so citizens from these nations can freely purchase residential and commercial properties.
There are some special restrictions to be aware of. Agricultural land and properties in areas of historical or cultural significance may have limitations aimed at protecting Italy's heritage. Swiss nationals face specific limits, such as maximum size restrictions for secondary homes.
The reciprocity check is crucial - if your country doesn't have an agreement with Italy, you won't be able to purchase property. Always verify your eligibility before starting the property search process.
Do I need a visa or residency before buying property in Italy?
You don't need any visa or residency status to purchase property in Italy - foreigners can buy while on a tourist visa or even from abroad.
However, owning property in Italy does not grant you residency rights or allow you to stay longer than normal tourist limits. Non-EU citizens can still only stay 90 days within any 180-day period without a visa, regardless of property ownership.
If you want to live in Italy after purchasing property, you'll need to apply for a relevant long-stay visa such as the Elective Residency Visa for retirees, an Investor Visa for substantial investments, or other appropriate visas based on your situation.
Property ownership can strengthen your visa application by demonstrating ties to Italy and financial commitment, but it's not a direct path to residency. Plan your visa strategy separately from your property purchase.
Can I buy Italian property remotely, or must I be physically present?
You can absolutely buy Italian property remotely without being physically present at any stage of the purchase.
The key is appointing a trusted representative - typically a lawyer or another individual - who can act on your behalf through a Power of Attorney (PoA). This is a common and legally recognized practice in Italy, used frequently by international buyers.
If you sign the Power of Attorney outside Italy, it must be properly legalized through apostille or notarization for use in Italy. Your representative can then handle everything from making offers to signing the final deed at the notary.
Remote purchasing requires extra trust in your representatives, so choose experienced professionals with proven track records. Many international buyers successfully complete entire transactions without ever visiting Italy during the purchase process.
What's the step-by-step process for buying Italian property, and what documents do I need?
| Step | What Happens | Documents/Requirements |
|---|---|---|
| 1. Get Codice Fiscale | Obtain Italian tax code (mandatory) | Passport, application form |
| 2. Open Bank Account | Set up Italian account for transactions | Codice Fiscale, passport, proof of address |
| 3. Make Offer | Submit written offer (Proposta d'Acquisto) | Small deposit sometimes required |
| 4. Sign Preliminary Contract | Legally binding agreement (Compromesso) | 10-30% deposit, all property details |
| 5. Due Diligence | Verify title, permits, certificates | Habitability & energy certificates required |
| 6. Final Deed | Sign before notary (Rogito Notarile) | Balance payment, all certificates |
| 7. Registration | Notary registers with land registry | Completed by notary automatically |
Essential documents you'll need include valid passport, Codice Fiscale, proof of funds, marriage certificate if applicable, and anti-money laundering declaration. Sellers must provide title deed, building permits, cadastral plans, habitability certificate (Certificato di AbitabilitĂ ), and energy certificate (APE).
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Is hiring an Italian lawyer mandatory, and how do I choose the right one?
A notary (notaio) is mandatory for all Italian property transactions - they're public officials who ensure legal validity, register the deed, and handle tax payments.
While a real estate lawyer isn't legally required, it's highly recommended for foreign buyers. The notary represents the state and remains neutral between buyer and seller, whereas a lawyer works exclusively for your interests, providing independent due diligence, contract review, negotiation support, and risk mitigation.
To choose a good lawyer, look for professionals with proven real estate experience and international client references. The best approach is getting recommendations from reputable agencies or checking with bar associations like the Ordine degli Avvocati. Ensure they speak your language fluently and have experience with cross-border transactions.
The lawyer's role goes beyond what the notary provides - they'll check for hidden debts, verify building permits, negotiate terms in your favor, and explain all legal implications in your language. For foreign buyers navigating Italian bureaucracy, this independent legal protection is invaluable.
Can I get an Italian mortgage as a foreign buyer, and what are the current terms?
Yes, both EU and non-EU foreign buyers can obtain mortgages from Italian banks, though non-residents face stricter criteria and must be from countries with reciprocity agreements.
As of June 2025, non-residents typically qualify for 50-60% loan-to-value ratios, meaning you'll need a 40-50% down payment. Interest rates for non-residents currently range from 3.5% to 3.8%, though some banks quote rates as low as 2.7% or as high as 4% depending on your profile.
Banks require extensive documentation including proof of income, credit reports from your home country, bank statements, the property sale agreement, and your Codice Fiscale. Maximum loan terms are usually 20-25 years, and most banks require the loan to be fully repaid before you turn 75.
The mortgage application process can take 6-8 weeks, so factor this into your purchase timeline. Working with a mortgage broker familiar with international clients can significantly improve your chances of approval and help you secure better terms.
What are all the taxes and fees I'll pay when buying Italian property?
| Cost Type | Amount | When Due |
|---|---|---|
| Registration Tax (Resale) | 2% (primary) or 9% (second home) | At closing |
| VAT (New Build) | 4% (primary), 10% (second), 22% (luxury) | At closing |
| Notary Fees | 1-2.5% of price + 22% VAT | At closing |
| Agent Commission | 2-3% + VAT (usually split with seller) | At closing |
| Translator Fee | €800-1,000 if needed | At closing |
| Land Registry Fees | €200-300 | At closing |
| Mortgage Registration | 0.25% of loan amount | If applicable |
Total closing costs typically range from 7-10% of the purchase price. New builds have different tax structures - you pay VAT instead of registration tax, plus potentially higher title insurance and builder fees. Always budget for the full 10% to avoid surprises.
What ongoing taxes will I pay after buying, and how can I minimize them?
Annual property ownership in Italy involves several taxes that vary based on property type and usage.
IMU (Municipal Property Tax) is the main annual tax, ranging from 0.4% to 1.06% of the cadastral value depending on your municipality and property type. Primary residences are exempt, but second homes and investment properties must pay. You'll also pay TARI (waste tax) annually based on property size and location.
For rental income, you can choose between the flat 21% cedolare secca tax or progressive IRPEF rates on 95% of gross rent. The flat tax is usually more advantageous for most foreign landlords. Capital gains tax of 26% applies if you sell a second home within 10 years of purchase - primary residences and inherited properties are exempt.
To minimize taxes, consider establishing primary residence status if you spend significant time in Italy, explore regional incentives for property renovation, and investigate special tax regimes for new residents. Some regions offer substantial tax breaks to attract foreign buyers and residents.
It's something we develop in our Italy property pack.
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 Italian regions are most popular with foreign buyers right now?
Tuscany remains the classic choice for foreign buyers, with Florence, Lucca, Pisa, and the Chianti wine region offering the quintessential Italian lifestyle of art, culture, and culinary excellence.
Lombardy, particularly Milan and the stunning Lake Como area, attracts buyers seeking business opportunities combined with lakeside luxury living. The Italian Riviera in Liguria, including glamorous Portofino, draws those wanting coastal beauty with easy access to France and Monaco.
Veneto continues to captivate with Venice's unique charm and Verona's romantic appeal, while Cortina d'Ampezzo is seeing increased interest ahead of the 2026 Winter Olympics. Other popular regions include Piedmont for wine enthusiasts, Apulia and Sicily for more affordable coastal properties with growing tourism potential, and Umbria for its unspoiled countryside.
The fastest-growing market as of June 2025 is Trentino-South Tyrol, experiencing unprecedented demand due to the upcoming Winter Olympics. This region offers excellent quality of life, stunning Alpine scenery, and strong capital appreciation potential.
Where should I buy for the best quality of life, rental income, and property appreciation?
- Trentino-South Tyrol - Highest quality of life in Italy, moderate rental yields, but fastest appreciation due to 2026 Winter Olympics
- Milan (Lombardy) - International business hub with high appreciation potential, moderate yields due to high prices, excellent infrastructure
- Florence (Tuscany) - Stable high demand from tourists and students, strong rental yields, consistent appreciation, timeless appeal
- Venice (Veneto) - Very high tourism demand ensuring strong short-term rental yields, moderate appreciation, unique market dynamics
- Apulia - Emerging destination with highest rental yields due to lower prices, growing tourism, excellent value for money
- Lake Como (Lombardy) - Premium market with wealthy tenant base, lower yields but strong capital preservation, ultimate prestige
- Sicily - Affordable entry prices, high rental yields, growing international interest, best for adventurous investors
- Rome (Lazio) - Stable market with consistent demand, moderate yields and appreciation, always in fashion
- Amalfi Coast (Campania) - Luxury market with seasonal high yields, limited supply ensures appreciation, spectacular locations
- Sardinia - Pristine beaches attracting wealthy tourists, seasonal but high yields, growing year-round appeal
What are current property prices per square meter across Italy?
As of June 2025, the Italian national average stands at €2,099 per square meter, but prices vary dramatically by location and property type.
Major cities command premium prices: Rome averages €3,000-4,000/m², Milan reaches €4,500-6,000/m², Florence sits at €3,500-5,000/m², and Venice matches Milan at €4,000-6,000/m². These cities saw new home prices rise 9.35% in late 2024, with existing homes up 3.43%.
More affordable options exist in rural Tuscany (€1,500-3,000/m²) and southern coastal regions (€1,000-2,000/m²). Emerging markets like inland Sicily and Calabria offer properties under €1,000/m², while luxury coastal areas like the Amalfi Coast and Costa Smeralda can exceed €8,000/m².
The trend for 2025 shows continued price growth, particularly in areas benefiting from infrastructure improvements and major events like the 2026 Winter Olympics. Rental prices are also rising, making buy-to-let investments increasingly attractive in tourist destinations and major cities.
What mistakes do foreign buyers commonly make, and how can I avoid them?
| Common Mistake | Consequence | How to Avoid |
|---|---|---|
| Not checking reciprocity | Can't legally buy property | Verify eligibility before property search |
| Skipping due diligence | Hidden debts, illegal buildings | Hire lawyer, check all certificates |
| Not using a lawyer | Missing crucial legal protections | Engage independent legal counsel |
| Underestimating costs | Can't complete purchase | Budget 10% for all closing costs |
| Assuming residency rights | Visa problems, forced departure | Plan visa strategy separately |
| Ignoring tax implications | Unexpected tax bills | Understand all tax obligations upfront |
| Poor remote purchase setup | Invalid documents, fraud risk | Properly legalize PoA, verify representatives |
| Not registering utilities | Service cuts, fines | Complete all post-purchase registrations |
| Buying without viewing | Unpleasant surprises | Visit or send trusted representative |
| Language barriers | Misunderstanding contracts | Use certified translators |
The biggest protection against these mistakes is working with experienced professionals who understand the Italian system and international buyer needs. Don't try to save money by skipping lawyers or proper due diligence - the risks far outweigh any savings.
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.
Italy's property market offers excellent opportunities for foreign buyers in 2025, with clear legal frameworks, diverse regional options, and strong appreciation potential in key areas.
Success requires understanding the reciprocity rules, budgeting properly for all costs, and working with qualified professionals who can navigate the Italian bureaucracy on your behalf. With proper preparation and guidance, your Italian property dream is entirely achievable.
Sources
- Global Citizen Solutions - Buying Property in Italy Guide
- Wise - Complete Guide to Buying Property in Italy
- Idealista - How to Buy Property in Italy as a Foreigner
- Get Golden Visa - Italy Property Purchase Guide
- Taxes for Expats - Buying Property in Italy as an American
- Italian Real Estate Lawyers - Property Purchase Process
- Traverse International Finance - Italian Mortgage Guide
- Global Property Guide - Italy Property Market Analysis
- Cushman & Wakefield - Italian Real Estate Trends
- Studio Paci - Italy Property Tax Benefits 2025