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
Are you considering investing in Italy’s real estate market? What are the legal steps, tax implications, and cultural nuances you need to understand before diving in? What challenges do foreign investors typically face, and how can you overcome them?
These are the questions we hear most often from foreign investors because we’re actively connected to this market. We’ve spent time working with local agents, developers, and investors, so we know what works—and what doesn’t. That’s why we’ve written this article: to provide a clear guide that answers the questions we get asked daily.
Our goal is to help you, as a foreigner, to navigate the property buying process in Italy with confidence. If you think there’s something we missed or want more details, let us know (please do!). Your input helps us refine and improve our advice for everyone.
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1) Invest in properties eligible for Italy’s “Superbonus” scheme to maximize profits through tax deductions for energy-efficient renovations
Investing in properties under Italy's "Superbonus" scheme can be a lucrative opportunity.
From 2020 to 2023, the scheme saw over €215 billion spent on home renovations, highlighting a massive interest in energy-efficient upgrades. This surge in renovations has not only improved property values but also made these properties more attractive to potential buyers. The initial offer of a 110% tax deduction for eligible renovations was a game-changer, although it was reduced to 90% in 2023 and further to 70% in 2024. Even with these reductions, the tax benefits remain significant, making it easier for investors to afford renovations and potentially increase their returns.
Energy-efficient upgrades don't just boost property values; they also lead to lower utility costs, which is a big draw for buyers and renters. The demand for such properties has been on the rise, thanks to the Superbonus, allowing owners to command higher prices and rental incomes. This trend is further supported by the strong performance of Italy's construction sector, which has been thriving due to the scheme.
For those considering investing, it's worth noting that the Superbonus has not only made renovations more affordable but also more appealing. The financial incentives provided by the scheme can significantly reduce the cost of upgrading properties, leading to higher returns on investment. This is particularly true in areas where energy-efficient homes are in high demand.
Moreover, the Superbonus has played a crucial role in revitalizing the construction industry in Italy. The scheme has provided a much-needed boost, ensuring that the sector remains robust and capable of meeting the growing demand for energy-efficient properties. This has created a favorable environment for investors looking to capitalize on the trend.
In summary, the Superbonus scheme offers a unique opportunity for investors to maximize their profits through energy-efficient renovations. By taking advantage of the tax deductions and the growing demand for such properties, investors can achieve substantial returns. The scheme has not only enhanced property values but also made them more appealing to buyers and renters, ensuring a steady stream of income.
Sources: Corinex, Credit Agricole, N26
The IntegrazioneMigranti.gov.it website, is a government resource for foreigners in Italy. In there, we found a detailed document on housing rights and legal requirements, available in multiple languages. Here’s a screenshot of the English version.
2) Consider Italy’s “1 Euro House” schemes, but be ready for high renovation costs and legal responsibilities
Imagine owning a piece of Italian heritage for just one euro.
Italy's "1 Euro House" schemes are a dream come true for many, offering a chance to buy a home in picturesque towns. These initiatives aim to revitalize charming but dwindling communities by attracting new residents. It's a tempting offer for anyone longing for a quaint Italian abode or a holiday retreat.
But here's the catch: while the house itself is cheap, renovation costs can be significant. You should expect to spend at least 20,000 euros on necessary repairs, professional fees, and guarantees. Depending on the property's condition, these expenses can skyrocket, sometimes reaching hundreds of thousands of euros. So, while the initial price tag is low, the total investment can be hefty.
Legal obligations are another crucial aspect to consider. Buyers are required to complete renovations within 356 days of purchase. Notary fees for registration and title deeds can add another 1,000 euros to your budget. Municipalities are strict about these deadlines, and missing them could mean fines or even losing your new home.
Despite these challenges, the "1 Euro House" scheme remains a fantastic opportunity for those ready to embrace the financial and legal commitments. It's a chance to own a slice of Italy, but it's essential to be prepared for the journey ahead.
Sources: Point Chaser, Immigrant Invest, Idealista
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.
3) Hire a local "geometra" in Italy to navigate property transaction and renovation bureaucracy for a competitive edge
Hiring a local geometra in Italy can be a real game-changer for property buyers.
These professionals have a deep understanding of Italian property laws and can ensure all your paperwork is spot on. This expertise is crucial because it significantly reduces the risk of legal issues, making sure the property's condition matches what's on file at the local municipal offices. Imagine buying a charming villa only to find out later that it doesn't comply with local regulations—this is where a geometra steps in to save the day.
There are stories of foreign buyers who tried to go it alone and ended up in a tangle of discrepancies regarding the property's condition and legality. These issues were only resolved after they brought in a geometra, underscoring the importance of having someone who knows the ropes. Local expertise is invaluable when navigating the complexities of Italian property transactions.
Another perk of hiring a geometra is that they can speed up the whole buying process. They make sure all the necessary documents and permits are in place, which means fewer delays due to bureaucratic red tape. This not only saves you time but also helps you avoid the extra costs that come with incorrect documentation. It's like having a fast pass through the often slow-moving Italian bureaucracy.
Plus, a geometra can offer insights into the local property market that you might not find elsewhere. They know the ins and outs of the area, from the best neighborhoods to potential pitfalls. This insider knowledge can be a huge advantage, especially if you're new to the region. Understanding local market trends can make a big difference in your investment.
In short, a geometra is not just a luxury but a necessity for anyone serious about buying property in Italy. They help you navigate the maze of regulations and ensure that your dream home doesn't turn into a legal nightmare. Having a local expert on your side can make all the difference in a smooth and successful property purchase.
4) Consider tourist-heavy areas for short-term rentals, but check local regulations that might restrict this rental type
Investing in short-term rentals in Italy can be a smart move due to the high influx of tourists.
In 2023, Italy welcomed over 57.25 million tourists, and by August 2024, nearly 49 million had already visited. This constant stream of visitors means there's a huge demand for places to stay, making short-term rentals a potentially lucrative opportunity.
Take Rome, for example. As of September 2024, there were 25,720 active Airbnb listings in the city. Hosts in Rome are doing quite well, with an average earning of €36,000 per year. The occupancy rate is a solid 84%, showing just how much people want to stay in these rentals.
But before you dive in, remember to check the local rules. While Italy's specific regulations aren't detailed here, cities like Paris and Barcelona have strict rules like licensing systems and rental day caps to manage housing issues. Knowing and following these rules is key to avoiding fines.
In tourist-heavy areas, short-term rentals can be a goldmine, but you need to be savvy about the local laws. This is especially true in places with high tourist traffic, where regulations can change quickly.
So, if you're thinking about investing, do your homework on the local market and regulations. This way, you can make the most of the booming short-term rental market without any legal hiccups.
Sources: Road Genius, Airbtics
5) Understand that Italy’s property market is highly localized, with trends and prices varying significantly even over short distances
The Italian property market is all about local variations.
Take Trentino South-Tyrol and Calabria, for example. In 2024, Trentino South-Tyrol boasted the highest house prices, while Calabria offered the lowest, with properties going for just €954 per square meter. This shows how much prices can differ even within the same country.
In cities like Milan and Rome, the story is even more interesting. Over the past decade, Milan's property prices have surged by 49%, making it a hot spot for buyers. Meanwhile, Rome has seen a 13% drop, highlighting how different factors can impact prices in major urban areas.
Even within Milan, there's a noticeable difference. The city itself is the priciest place to buy a home, with an average of €4,989 per square meter. But if you look at the nearby towns, you'll find much lower prices. This is a perfect example of how short distances can lead to big price changes.
These variations aren't just numbers; they reflect the unique characteristics of each area. Whether it's the bustling city life of Milan or the quieter surroundings of its neighboring towns, each location offers something different to potential buyers.
Understanding these local dynamics is key if you're considering buying property in Italy. It's not just about the country as a whole, but about the specific region or city you're interested in.
Sources: Idealista, Immobiliare.it, Global Property Guide
Get fresh and reliable information about the market in Italy
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
6) Know that cultural heritage laws may restrict renovations on historical properties
When buying a historical property in Italy, be aware that cultural heritage laws can limit renovations.
Italy is home to 60 UNESCO World Heritage Sites, more than any other country, even China. These laws are in place to protect these treasures, ensuring that Italy's rich history remains intact. For instance, in Venice, these laws have a big impact on how renovations are done. The city faces threats from over-tourism and climate change, and Venice has been nominated for the list of endangered monuments. This means that any renovation plans must carefully consider these laws to protect the city's unique heritage.
Take Pompeii, for example. The European Commission funded a project called the Major Pompeii Project, which shows how important it is to follow these laws. This project is a great example of how renovations must preserve historical significance. The regulatory framework ensures that any work done respects the site's history.
These laws aren't just about restrictions; they're about preserving the stories and architecture that make Italy special. If you're thinking about buying a property here, it's good to know that some historical properties are protected by cultural heritage laws. This means you might not be able to make all the changes you want, but you'll be part of preserving something truly unique.
Understanding these laws can help you navigate the process and make informed decisions. It's not just about owning a piece of history; it's about being a steward of it. So, if you're dreaming of a home in Italy, remember that your renovation plans might need to align with these cultural heritage laws.
Sources: Statista, Library of Congress
7) Network with local Italian agents for insights, as they understand specific market dynamics
Networking with local real estate agents in Italy can give you valuable insights into specific market dynamics.
These agents often have access to exclusive listings not found online, offering unique opportunities for buyers. For example, agents linked with Christie’s International Real Estate in cities like Rome, Milan, and Naples provide exclusive luxury property listings and personalized services.
Local agents know the ins and outs of neighborhood amenities and future growth potential, which is crucial for making smart investment decisions. Take the Parioli district in Rome, for instance; it's known for its elegance and appeal to luxury property seekers. Agents can also help you understand market trends, like the increase in sales observed in the second quarter of 2024.
Moreover, real estate agents in Italy are skilled negotiators, ensuring that buyers and sellers get the best possible deals. Their expertise is particularly beneficial in navigating the complex legal and bureaucratic processes involved in property transactions, a feature often praised by expatriates who have purchased properties in Italy.
By leveraging the knowledge and skills of local agents, you can better navigate the Italian real estate market and make more informed decisions.
Sources: Exclusive RE, Idealista, Metropolist
And to complement all the tips we’ve just shared, here’s a video from an Italian real estate agency certified by N.A.R. (National Association of Realtors). It explains what you should look for when choosing your real estate agent.
8) Consider rural properties for agriturismo conversions, as farm-stay accommodations are becoming increasingly popular
Investing in rural properties for agriturismo is a smart move because the number of agritourism establishments in Italy is rising.
In 2023, Tuscany alone welcomed nearly 1.3 million tourists to its agritourism accommodations, showing a clear interest in these unique experiences. People are increasingly drawn to the charm of rural Italy, especially after the pandemic, as they seek privacy and space away from crowded cities.
This trend is likely to continue, with more companies offering flexible work arrangements, allowing people to escape urban life more frequently. Agritourism isn't just about a peaceful retreat; it also offers significant revenue potential. While past revenues ranged from EUR 525 to EUR 1,733 per farm, there's plenty of room for growth.
Interestingly, agritourism can be more profitable than traditional farming. Some farms are already seeing higher revenues from these activities, making it a lucrative option for property investors. The appeal of authentic Italian experiences is undeniable, and rural properties can be transformed into charming farm-stay accommodations.
By investing in these properties, you can tap into the growing trend of agriturismo, offering guests a taste of the countryside while enjoying the financial benefits. The potential for growth in this sector is substantial, and with the right property, you can create a successful business that caters to the increasing demand for rural escapes.
Sources: Statista, ERSJ, Buy Heritage
We have made this infographic to give you a quick and clear snapshot of the property market in Italy. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Avoid properties with unclear ownership titles, as resolving these issues can be expensive and slow
When buying a property, be wary of unclear ownership titles.
In Italy, especially around 2023 and 2024, there were several high-profile cases where legal battles over unclear ownership titles dragged on for years. These disputes often led to hefty legal fees, sometimes reaching tens of thousands of euros, depending on how complicated the case was.
Real estate agencies have noticed that as property prices rise, disputes over ownership titles have become more common. This makes it crucial to do your homework before buying. Many buyers have shared stories about the headaches and costs they faced due to these unclear titles.
Resolving property title issues in Italian courts can take a long time, causing significant delays in property transactions. That's why both government and legal advisories in Italy keep warning about the risks of unclear property titles and stress the importance of getting professional advice.
It's not just about the money; the average time to sort out these issues can be substantial, often leading to frustrating delays in finalizing property deals. This is a common concern among potential buyers, and it's something you should definitely keep in mind.
So, if you're considering buying property in Italy, make sure to check the ownership titles thoroughly. Professional advice can save you a lot of trouble and ensure a smoother buying process.
Sources: idealista/news, Baker McKenzie, Chambers Global Practice Guides
10) Avoid properties in high seismic risk areas unless ready to invest in structural reinforcements
Buying property in Italy's high seismic risk areas can be risky and costly.
Italy is split into four seismic zones, with Zone 1 being the most dangerous. Regions like Friuli-Venezia Giulia, Veneto, Abruzzi, Umbria, Molise, Campania, and Sicily are in this zone, making them prone to strong earthquakes. If you're eyeing property here, be prepared for potential challenges.
In the last 30 years, Italy has seen over 190,000 seismic events, showing just how active the ground can be. Recent quakes in Molise and Catania in 2018 caused major damage, leading to expensive reconstruction. This highlights why investing in structural reinforcements is crucial if you want to protect your investment.
Repairing and rebuilding after an earthquake can be pricey, especially if the building wasn't designed with anti-seismic measures. Insurance premiums for earthquake damage are higher in Zone 1 unless the property meets anti-seismic standards. This financial aspect is something to consider seriously.
In these high-risk areas, structural reinforcements aren't just a good idea—they're essential. Without them, you might face hefty repair bills and high insurance costs. It's a significant factor to weigh when deciding where to buy.
So, if you're thinking about buying in these regions, be ready to invest in making your property earthquake-resistant. It's not just about safety; it's about protecting your financial investment too.
Sources: Seriana Edilizia, Italy House Hunting, Library of Congress
11) Know that property taxes in Italy vary widely by region and property type
In Italy, property taxes can vary widely based on the region and property type.
Each municipality sets its own tax rates, which means that the IMU tax can range from 0.86% to 1.06% of your property's cadastral value. This rate isn't just a random number; it depends on where your property is and what kind it is, like a home or a shop.
Then there's the TASI tax, another local charge that varies from 0.1% to 0.25% depending on the city. So, if you're eyeing a property in a bustling city, expect a different rate than in a quiet village.
The type of property you own also matters a lot. Residential properties have different tax rates compared to commercial spaces like shops or warehouses. If you're considering agricultural land, that's a whole other tax category.
These differences highlight the complexity of Italy's property tax system. It's not just about the location; the property's use and classification play a big role too.
So, when you're thinking about buying property in Italy, remember that taxes aren't one-size-fits-all. They can change based on a variety of factors, making it essential to do your homework.
Sources: Immigrant Invest, Expatica, Italy House Hunting
Don't buy the wrong property, in the wrong area of Italy
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
12) Look for deals in smaller towns or rural areas, as lower prices and growing rental demand align with remote work trends
In 2023 and 2024, smaller towns and rural areas have become hotspots for property deals.
With property prices in big cities like Rome and Florence soaring, regions such as Tuscany and Liguria are catching up as they started from a lower base. This means you can find more affordable options with the potential for appreciation. The shift to remote work has been a game-changer, allowing people to live where they want, not just where they work.
During the pandemic, many discovered the perks of working from anywhere, leading to a preference for less crowded, more spacious living environments. This has driven up demand in rural areas, where you can enjoy larger homes and outdoor spaces. Imagine sipping your morning coffee with a view of rolling hills instead of city skyscrapers.
Rental demand is also on the rise in these areas. Take Tuscany, for example, where rental values jumped significantly in 2023. This suggests a growing number of people are moving there, likely drawn by the allure of remote work and a better quality of life. It's not just about escaping the hustle and bustle; it's about embracing a lifestyle that offers more room to breathe.
People are increasingly leaving crowded cities behind, seeking the benefits of rural living. This trend is not just about finding cheaper homes; it's about finding a better way of life. With remote work here to stay, the appeal of rural areas is only set to grow.
So, if you're considering buying property, think beyond the city limits. Smaller towns and rural areas offer not just affordability but also a chance to invest in a lifestyle change. It's about finding a place that feels like home, with the added bonus of potential financial growth.
Sources: Savills, SSRN, Global Property Guide
13) Look for undervalued properties in Italy's lesser-known wine regions, as they are becoming popular with tourists and expats
In Italy, property prices in famous wine regions like Tuscany and Lombardy have skyrocketed, making them less affordable for many buyers.
But if you look at places like Veneto and parts of Piedmont, you'll find median listing prices around €730,000, which is significantly lower. This means these areas might be undervalued, offering a great chance for smart investors.
These lesser-known regions are becoming more popular, thanks to a rise in tourism and expats moving in. Take Veneto, for example; it's gaining attention with its historical cities and the upcoming 2026 Winter Olympics, which could drive up real estate demand.
Social media and news outlets are also buzzing about new wine hotspots, like Franciacorta in Lombardy. This area is catching the eye of wine lovers and tourists, adding to its charm.
Government efforts to boost tourism and improve infrastructure are making these regions even more appealing. These initiatives are drawing more interest from potential buyers who see the potential for growth.
So, if you're thinking about buying property in Italy, consider these emerging wine regions for a potentially smart investment.
Sources: Cellar Tours, The Private Collection
14) Have a local notary verify all property documents to avoid common pitfalls
Buying property in Italy can be a dream come true, but it comes with its own set of challenges.
In recent years, especially around 2023 and 2024, the Italian real estate market saw a spike in disputes due to improper documentation. A study by OS Law pointed out that verifying property ownership and the seller’s right to sell is crucial. This step is essential to avoid future ownership conflicts or claims.
Foreign buyers often stumbled into legal troubles because they didn't check property documents thoroughly. For example, Italy’s matrimonial property regime can complicate sales if the seller's marital status isn't clear. This is a common pitfall for foreign buyers unfamiliar with local legal nuances.
Italian real estate agencies have frequently reported errors in documentation that could lead to legal issues. According to article 1759 of the Italian Civil Code, real estate agents must disclose any known issues that might affect the transaction. This underscores the need for meticulous documentation and verification by a local notary.
To navigate these complexities, it's wise to have a local notary check all property documents. This ensures that everything is in order and helps prevent any unpleasant surprises down the road. Local notaries are familiar with the intricacies of Italian property law and can provide invaluable assistance.
Sources: OS Law, Italian Solicitor, NotaryCam
We made this infographic to show you how property prices in Italy compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Understand Italy’s complex inheritance laws, as they can impact property ownership and transfer, especially within estates
Italy's inheritance laws are notoriously complex and can greatly affect property ownership and transfer.
Imagine you're eyeing a charming villa in Tuscany; understanding these laws is crucial. For instance, Italy requires you to "add back" any lifetime gifts to the total estate value, which can complicate how assets are divided. This unique rule often leads to contested estates, keeping lawyers busy for years. The Italian Civil Code gives you ten years from the date of death to accept or refuse an inheritance, but this can change depending on how tangled the case is.
If you're a foreign investor, you might think you're off the hook, but not so fast. If the deceased was domiciled in Italy, Italian succession law might apply, potentially giving certain relatives a slice of the estate. This means you could find yourself navigating these legal waters, even if you're not Italian.
Then there's the forced heirship rule, which requires a portion of the estate to be reserved for close relatives. This rule adds another layer of complexity, making the distribution process even more intricate. So, if you're planning to buy property in Italy, it's wise to get familiar with these rules.
Take the case of Berlusconi's estate, for example. It shows how these laws can lead to prolonged legal battles. His estate became a legal maze, highlighting the potential for disputes due to the intricacies of Italian succession law.
In short, if you're considering buying property in Italy, understanding these inheritance laws is key. They can affect not just ownership but also how smoothly the transfer process goes. Being prepared can save you a lot of headaches down the road.
Sources: Stewarts Law, Buckles Law, Chambers Practice Guides
16) Look for regions offering incentives to restore abandoned properties, as this can be a profitable venture if done right
Italy is offering incentives to restore abandoned properties, making it a potentially profitable venture.
In 2023 and 2024, the Italian government rolled out bonus schemes like the Superbonus 90, Ecobonus, and Sismabonus, which provided tax credits for renovations and energy-saving improvements. These schemes were a game-changer for those looking to invest in property restoration.
Although some of these incentives were scaled back in 2025, the Bonus Ristrutturazione is still available. It offers a 50% refund on home improvement expenses, covering upgrades like window frames and energy-saving systems. This makes restoration more affordable and attractive.
In towns like Sambuca and Mussomeli, the "1 Euro House" schemes have been a hit. These initiatives sell abandoned properties for just €1, encouraging investment in restoration. This not only boosts local economies but also preserves cultural heritage.
These incentives are part of a broader effort to tackle the issue of unoccupied homes in Italy. With almost 1 in 3 houses unoccupied, according to ISTAT, these schemes aim to breathe new life into these properties and communities.
For those considering buying property in Italy, these incentives offer a unique opportunity. Whether it's through tax credits or purchasing a €1 house, the potential for a rewarding investment is significant.
Sources: The Ultimate Guide to the Italian Bonus System in 2023, ANSA, Passport and Adventure
Let's add some personal experience to the theory. This video, with over 2.7 million views, shares the inspiring story of Isis and Bertus, a Belgian-Dutch couple who restored a neglected farmhouse in northwest Italy. Through their journey, you’ll get a clear look at how Italy’s renovation tax incentives work in practice, including insights from locals in the video’s comments. It’s a 42-minute deep dive into the reality of turning a dream property into a home.
17) Focus on energy-efficient renovations to boost property value, as Italian buyers prioritize sustainability
In Italy, energy-efficient renovations are boosting property values.
Thanks to the "Superbonus" tax credit, nearly half a million homes have undergone energy upgrades. This program, which reimburses homeowners for making their homes more energy-efficient, has been a game-changer. The Italian government extended these incentives because they were so popular, making it easier for people to invest in eco-friendly improvements.
Italian buyers are now on the lookout for homes that help them save on utility bills and are kinder to the planet. This means properties with modern, eco-friendly features are in high demand. If you're thinking about buying a home in Italy, consider one that's already energy-efficient or has the potential for upgrades.
Investing in energy efficiency isn't just about saving money on bills; it's also about increasing your property's value. Homes with energy-efficient features are more attractive to buyers, and this trend is only growing. So, if you're planning to buy, think about the long-term benefits of a home that's kind to both your wallet and the environment.
For those looking to sell, making energy-efficient upgrades can be a smart move. These improvements can make your property stand out in a competitive market. Buyers are increasingly aware of the benefits of energy efficiency, and they're willing to pay more for homes that offer these advantages.
In the Italian real estate market, sustainability is becoming a top priority. Whether you're buying or selling, focusing on energy efficiency can give you an edge. It's not just a trend; it's a shift in how people value homes.
Sources: Italy's Superbonus Boosted Growth but Strained the Grid, Italy Energy Efficient Systems, Smart Investments to Increase Your Property Value in 2025
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.