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
Yes, US citizens can legally buy residential property in Italy in 2026, and the process is more straightforward than most people expect.
Italy welcomes foreign buyers under a "reciprocity" rule, which means Americans can purchase homes because Italians can do the same in the United States.
This blog post covers everything you need to know about buying property in Italy as an American, from taxes and mortgages to IRS reporting requirements, and we constantly update it to reflect the latest rules and market conditions.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Italy.
Can a US citizen legally buy residential property in Italy right now?
Can I buy a home in Italy as a US citizen in 2026?
As of early 2026, US citizens can legally purchase residential property in Italy without any special permits or restrictions thanks to the country's reciprocity principle that grants Americans the same property rights as Italian citizens.
The standard buying process involves hiring a notary (notaio) who handles the legal transfer, conducting property checks, signing a preliminary contract with a deposit, and then completing the final deed (rogito) where ownership officially transfers to you.
This process is essentially identical for Americans and Italians, so your nationality does not create extra legal hurdles beyond gathering the required documentation.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Italy.
Are there many Americans buying property and living in Italy in 2026?
As of early 2026, approximately 18,000 US citizens are officially registered as residents in Italy, though this number does not include the many Americans who own property without establishing formal residency.
American expats and property owners tend to concentrate in Rome, Milan, and Florence for work and education, while lifestyle buyers favor Tuscany's countryside, the Liguria coast, and the Lake Como and Lake Garda regions.
The top three reasons Americans choose to buy property in Italy are the lower cost of living compared to major US cities, the appeal of Italian culture and cuisine, and the opportunity to establish a European base for travel or retirement.
The American expat community in Italy has been growing steadily over the past few years, driven by remote work flexibility and increased interest in slower-paced lifestyles outside the United States.
Do foreigners have the same buying rights as locals in Italy?
Foreign buyers in Italy, including Americans, have essentially the same property rights as Italian citizens, meaning you can purchase apartments, houses, villas, and land without facing nationality-based restrictions or higher taxes.
There are no property types or locations in Italy that are specifically off-limits to American buyers, though some historic buildings or properties near military zones may require additional approvals that apply equally to Italians and foreigners.
We cover all these things in length in our pack about the property market in Italy.
Can I buy property in Italy without a residence permit?
You do not need a residence permit to buy property in Italy, and many Americans complete purchases while living full-time in the United States without ever obtaining Italian residency.
Non-resident buyers typically work with an Italian notary and often grant a power of attorney (procura) to a lawyer or trusted representative who can sign documents on their behalf when they cannot travel to Italy for every step.
Buying a home in Italy does not automatically grant you any visa or residency rights, so if you want to live in Italy long-term, you will need to apply for a visa separately through the Italian consulate.
The main practical challenge for non-resident buyers is coordinating across time zones and ensuring all documents are properly apostilled, translated, and delivered to the notary before closing.
Can US citizens own land in Italy?
US citizens can legally own land outright in Italy, including agricultural land, residential plots, and rural properties with attached acreage, under the same ownership terms available to Italian citizens.
Italy primarily uses freehold ownership (proprietà), which means you own both the building and the land beneath it permanently, rather than the leasehold arrangements common in some other European countries.
There are no specific geographic zones or land categories in Italy where American buyers are prohibited from purchasing, though agricultural land purchases may involve additional checks related to farming qualifications that apply to all buyers regardless of nationality.
Please note that we have a dedicated blog article about the land buying process in Italy here.
What documents will I need to buy in Italy?
The essential documents a US citizen needs to purchase property in Italy include a valid passport, an Italian tax identification number (codice fiscale), proof of funds showing where your money comes from, and bank statements covering recent months.
Yes, an Italian tax code (codice fiscale) is mandatory for any property purchase in Italy, and you can obtain one for free at an Italian consulate in the US or at the local Agenzia delle Entrate office once you arrive in Italy.
An Italian bank account is not legally required to buy property, but most buyers open one because it simplifies paying notary fees, utility bills, condominium charges, and mortgage installments if applicable.
Banks and notaries will ask for proof of funds documentation to comply with anti-money laundering rules, and while you do not need an Italian address to buy, many buyers use their lawyer's or notary's address for official correspondence.
We have a whole section dedicated to all the documents you need in our Italy property pack.
Can a foreign-owned company buy property in Italy?
Foreign-owned companies can legally purchase residential property in Italy, though the process involves more due diligence including verification of beneficial owners and compliance with corporate registration requirements.
Americans sometimes use corporate structures to hold Italian property, but rather than a US LLC, the more common approach is to establish an Italian company such as an S.r.l. (similar to a limited liability company) because Italian banks and notaries are more familiar with local entity types.
Owning property through a company does not automatically lower your taxes and can actually increase costs due to corporate accounting requirements, annual filings, and different tax treatment on rental income and capital gains.
The main drawback of company ownership for residential property in Italy is the added complexity and ongoing administrative costs, which often outweigh any potential benefits unless you have a specific asset protection or business strategy in mind.
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What taxes and fees will I pay in Italy in 2026?
What are buyer taxes in Italy in 2026?
As of early 2026, the total buyer tax on a property purchase in Italy typically ranges from 9% to 10% of the cadastral value when buying from a private seller, which on a property worth 200,000 euros (about 215,000 USD) would mean roughly 18,000 to 20,000 euros in taxes.
When buying from a private seller, you pay a 9% registration tax (imposta di registro) plus fixed fees of 50 euros each for cadastral and mortgage registry taxes, but when buying from a developer subject to VAT, you pay 10% VAT (or 22% for luxury properties) plus 200 euros each for the three fixed taxes.
Tax rates in Italy do not differ based on whether you are a foreigner or an Italian citizen, though buyers who qualify for "prima casa" (first home) benefits can access reduced rates, a benefit that most non-resident Americans will not immediately qualify for.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Italy.
What are other closing costs in Italy in 2026?
As of early 2026, buyers should budget an additional 3% to 5% of the purchase price for non-tax closing costs in Italy, which on a 200,000 euro property (about 215,000 USD) means roughly 6,000 to 10,000 euros for notary, legal, and agency fees combined.
The main closing cost categories include notary fees (typically 1,500 to 3,000 euros depending on complexity), legal fees if you hire a separate lawyer (500 to 2,000 euros), technical checks by a surveyor or geometra (500 to 1,000 euros), and real estate agent commissions (often 3% to 4% paid by the buyer).
The real estate agent commission is sometimes negotiable, especially on higher-value properties, and hiring a separate lawyer is optional if you trust the notary to handle everything, though many foreigners prefer independent legal advice.
The closing cost that tends to surprise foreign buyers most in Italy is the real estate agent commission, which is typically paid by both the buyer and the seller separately, unlike in the US where the seller usually covers the full commission.
Are there hidden fees foreigners miss in Italy right now?
Foreign buyers in Italy often overlook 2,000 to 5,000 euros (about 2,150 to 5,400 USD) in unexpected fees including condominium arrears, cadastral conformity corrections, and energy certification costs that arise before or at closing.
The top three hidden fees foreigners most often fail to budget for are unpaid condominium charges from the previous owner (which can be several thousand euros), costs to fix mismatches between the property's actual layout and official plans (500 to 2,000 euros), and energy performance certificate (APE) fees (150 to 300 euros).
After purchase, foreign property owners in Italy often underestimate ongoing annual costs including IMU property tax (which varies by municipality but can be 500 to 2,000 euros per year for a second home), condominium fees (1,000 to 3,000 euros per year), and utility connection or maintenance fees.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Italy.
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.
Can I get a mortgage as a US citizen in Italy in 2026?
Do banks lend to US citizens in Italy in 2026?
As of early 2026, several Italian banks do lend to US citizens, though mortgage availability depends more on your residency status, income documentation, and financial profile than on your American passport.
US citizens generally receive similar treatment to other foreign nationals when applying for mortgages in Italy, meaning you will face the same documentation requirements and lending criteria as buyers from other non-EU countries.
Some Italian banks are hesitant to lend to American borrowers specifically because US tax reporting requirements (FATCA) create additional compliance burdens for the bank, making some institutions prefer to avoid American clients altogether.
The typical approval rate for US citizens applying for property loans in Italy is moderate, with success largely depending on whether you can provide clear income documentation, make a substantial down payment, and work with a bank experienced in handling foreign buyer applications.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Italy.
What down payment do American people need in Italy in 2026?
As of early 2026, the minimum down payment for US citizens seeking a mortgage in Italy is typically 40% to 50% of the property value, which on a 200,000 euro home (about 215,000 USD) means preparing 80,000 to 100,000 euros (86,000 to 108,000 USD) in cash.
The typical down payment range for foreign buyers in Italy spans from 40% at the minimum to 50% or more recommended, because banks generally cap lending at 50% to 60% loan-to-value for non-residents with foreign income.
Yes, a larger down payment does improve your mortgage terms in Italy, as putting down 50% or more often qualifies you for better interest rates and increases your chances of approval, especially if your income is earned outside Italy.
You can also read our latest update about mortgage and interest rates in Italy.
What interest rates do US citizens get in Italy in 2026?
As of early 2026, the typical mortgage interest rate for US citizens in Italy falls in the mid-3% range, with most offers between 3.3% and 3.8% depending on your loan-to-value ratio, loan term, and whether you choose a fixed or variable rate.
Interest rates for foreign buyers in Italy are generally comparable to rates offered to Italian residents, as banks price mortgages based on risk factors like LTV and income stability rather than nationality alone.
Fixed-rate mortgages are more common for foreign buyers in Italy who want payment predictability, with typical terms ranging from 10 to 25 years, though variable-rate options tied to Euribor are also available at slightly lower initial rates.
The single factor that has the biggest impact on the interest rate a US citizen will be offered in Italy is the loan-to-value ratio, because a larger down payment signals lower risk to the bank and typically unlocks better pricing.
Can I use US income to qualify in Italy right now?
Italian banks do accept US-sourced income for mortgage qualification, though they tend to be stricter with verification because foreign income is harder to confirm and involves currency risk for the lender.
Banks in Italy typically require American applicants to provide US federal tax returns for the past two to three years, W-2 forms or 1099s, recent pay stubs or employment contracts, and several months of bank statements, often with certified Italian translations.
If standard US documentation is insufficient, some Italian banks accept alternative verification such as a letter from your US employer, CPA-prepared income summaries, or evidence of substantial liquid assets that can cover the loan if income verification falls short.
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How do US taxes interact with owning property in Italy?
Do I have to declare the property to the IRS from Italy?
Owning property in Italy does not by itself require a specific IRS form, but you must report any rental income you earn from the property and any capital gains when you sell it on your US tax return.
There is no dedicated IRS form just for owning foreign real estate, though if you earn rental income, you report it on Schedule E, and if you have foreign financial accounts related to the property (like an Italian bank account), separate FBAR or Form 8938 reporting may apply.
Simply owning a property in Italy without renting it out or selling it does not trigger any special IRS reporting, but the moment you generate income or proceeds from the property, you must include those amounts on your US tax return.
Will I pay tax twice in the US and Italy in 2026?
As of early 2026, the risk of paying full tax twice on the same property income is low because the United States and Italy have a tax treaty designed to prevent double taxation on most types of income including rental income and capital gains.
Yes, there is a tax treaty between the US and Italy that generally gives Italy the first right to tax income from Italian property, while providing mechanisms for US citizens to avoid being taxed twice on the same income.
The Foreign Tax Credit allows you to claim a credit on your US tax return for income taxes you paid to Italy, effectively reducing your US tax bill by the amount you already paid abroad, though the rules can be complex for property-related income.
Property taxes (IMU) paid in Italy are not directly deductible on US federal tax returns for most individual taxpayers, though they may be deductible as an expense against rental income if you rent out the property.
Do I need FATCA reporting when buying in Italy?
Buying property in Italy does not directly trigger FATCA reporting, but if you open an Italian bank account to pay for the property, notary fees, or ongoing expenses, that account may trigger FATCA reporting obligations depending on the balance.
FATCA reporting via Form 8938 is required if your foreign financial assets (including bank accounts but not real estate itself) exceed 50,000 USD for single filers at year-end or 75,000 USD at any point during the year, with higher thresholds for those living abroad.
FATCA (Form 8938) and FBAR (FinCEN Form 114) are separate requirements with different thresholds: FBAR kicks in when your foreign accounts exceed 10,000 USD at any point during the year, while Form 8938 has higher thresholds and covers a broader range of assets.
Consulting a US CPA before buying property in Italy is highly recommended, and you should ask specifically about FBAR and Form 8938 thresholds, how to report rental income, entity structure implications, and whether your residency plans affect your US tax situation.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Italy. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Italy, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Agenzia delle Entrate | Italy's official tax authority and the primary source for purchase tax rules. | We used it to confirm the exact buyer tax rates and structures. We also used it to verify the difference between VAT and registration tax scenarios. |
| Ministry of Foreign Affairs (MAECI) | The Italian government's official explanation of foreign ownership rights. | We used it to explain why Americans can legally buy property in Italy. We relied on it to clarify the reciprocity principle that governs foreign purchases. |
| Consiglio Nazionale del Notariato | Italy's national notary council provides authoritative legal and procedural guidance. | We used it to cross-check fixed tax amounts and closing procedures. We also referenced it for documentation requirements at the deed signing. |
| ISTAT | Italy's national statistics institute and the official source for population data. | We used it to determine the number of US citizens registered as residents in Italy. We relied on it to avoid anecdotal claims about American buyer numbers. |
| ABI (Italian Banking Association) | The banking industry association that publishes timely mortgage rate data. | We used it to anchor our mortgage interest rate estimates for early 2026. We referenced their January 2026 release for the most current figures. |
| Banca d'Italia | Italy's central bank and the official source for banking statistics. | We used it to verify mortgage rate trends and lending conditions. We cross-checked ABI data against central bank figures for accuracy. |
| UniCredit | A major Italian bank with official regulated consumer credit disclosures. | We used it to show real LTV caps and down payment expectations. We referenced their transparency documents for concrete mortgage product examples. |
| IRS (Italy Tax Treaty) | The US tax authority's official treaty documentation. | We used it to explain how double taxation is avoided for American property owners. We relied on it as the definitive source for treaty provisions. |
| IRS (FATCA/FBAR Guidance) | Official IRS guidance on foreign asset and account reporting. | We used it to explain the difference between Form 8938 and FBAR requirements. We referenced it to clarify reporting thresholds for Americans with Italian accounts. |
| MEF (Ministry of Economy) | The ministry portal where municipalities publish official IMU property tax rates. | We used it to explain how property tax varies by location in Italy. We directed readers to this portal to find their specific municipality's rates. |
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