Authored by the expert who managed and guided the team behind the Italy Property Pack
Yes, the analysis of Milan's property market is included in our pack
If you are a foreigner looking to buy property in Milan, you are probably wondering what you can actually own, what restrictions apply, and how the whole process works in Italy.
This guide covers everything from ownership rules and visa requirements to mortgages, taxes, and the step-by-step buying process in Milan as of the first half of 2026.
We update this article regularly to reflect the latest regulations and market conditions in Milan's real estate market.
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 Milan.
Insights
- Non-EU buyers in Milan face a "reciprocity check" that EU citizens skip entirely, and this single requirement blocks more foreign purchases than any visa issue.
- Milan's annual property tax (IMU) for second homes runs at about 1.14% of the cadastral value, not the market price, which typically makes the actual bill much lower than foreigners expect.
- Foreign buyers in Milan commonly secure mortgages with 50% to 70% loan-to-value ratios, compared to 80% or more for Italian residents with similar income profiles.
- Short-term rental compliance in Milan now requires three separate registrations: a national CIN code, a regional Lombardy CIR code, and a city-level administrative filing.
- Mortgage rates for foreigners in Milan in January 2026 typically range from about 3.5% to 5.0%, roughly 0.25% to 1.0% higher than deals offered to local residents.
- Closing costs for foreigners buying a second home in Milan usually fall between 12% and 18% of the purchase price, depending on whether the seller is private or a developer.
- The notary in Milan is not optional: Italian law requires a public notary to execute every property transfer, and they also verify title, liens, and compliance before closing.
- Buying property in Milan does not create any automatic path to Italian residency or citizenship, despite what some marketing materials suggest about "golden visa" programs.
What can I legally buy and truly own as a foreigner in Milan?
What property types can foreigners legally buy in Milan right now?
In Milan, foreigners can generally buy the same residential property types as Italian citizens, including apartments, penthouses, lofts, townhouses, and detached houses or villas.
The main legal condition for foreign buyers is not about the property type itself but about your citizenship: EU, EEA, and Swiss citizens can buy freely, while non-EU citizens may need to pass a "reciprocity check" that confirms Italians can buy property under similar conditions in their home country.
This reciprocity requirement is handled by the Italian Foreign Ministry and is verified before the transaction can proceed, so it is something you need to confirm early in the process rather than at the last minute.
If reciprocity exists between Italy and your country (or a treaty makes the check unnecessary), you will face no additional restrictions compared to local buyers for any standard residential property in Milan.
Finally, please note that our pack about the property market in Milan is specifically tailored to foreigners.
Can I own land in my own name in Milan right now?
Yes, if you can legally buy property in Milan as a foreigner, you can own the land component in your own name as well, because Italian property purchases include full ownership rights (called "proprietà") over the underlying land.
In practice, since most residential purchases in Milan are apartments rather than standalone plots, what you actually own is your unit plus a proportional share (pro-quota) of the building's common parts and land through the condominium structure.
The same reciprocity rules apply to land ownership as to buildings, so non-EU citizens still need to verify that their country has reciprocity with Italy before proceeding with any real estate purchase in Milan.
As of 2026, what other key foreign-ownership rules or limits should I know in Milan?
As of early 2026, the most important rule that affects foreign purchases in Milan beyond reciprocity is the multi-layered compliance system for short-term rentals, which requires national (CIN), regional (CIR), and municipal registrations if you plan to rent your property on platforms like Airbnb.
Italy does not use foreign ownership quotas for apartment buildings or condominiums like some Asian countries do, so there is no limit on how many units in a Milan building can be owned by foreigners.
One key registration requirement is that all foreign buyers must obtain an Italian tax code (codice fiscale) before signing any purchase documents, and this is handled through the Agenzia delle Entrate with a straightforward application process.
As for recent regulatory changes, the national CIN requirement for short-term rentals became mandatory in January 2025, and Milan now actively enforces this alongside the regional Lombardy CIR code, making rental compliance stricter than in previous years.
What's the biggest ownership mistake foreigners make in Milan right now?
The biggest ownership mistake foreigners make in Milan is assuming that being able to enter Italy as a tourist means they can freely buy and rent out property, when in reality non-EU buyers may face reciprocity blocks and short-rental compliance is far more complex than expected.
If you make this mistake, you could lose your deposit on a property offer, discover at the notary appointment that the transaction cannot proceed, or face fines and legal issues for operating an unregistered short-term rental in Milan.
Other classic pitfalls in Milan include failing to verify that the property's permitted use (destinazione d'uso) matches the paperwork, buying a unit with unauthorized renovations that create costly compliance problems, and not checking condominium rules that may restrict short-term rentals or major modifications.
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.
Which visa or residency status changes what I can do in Milan?
Do I need a specific visa to buy property in Milan right now?
You do not need a specific visa to buy residential property in Milan, and many foreigners successfully purchase homes while in Italy on a tourist visa or even from abroad using a power of attorney.
The single most common administrative requirement that blocks foreign buyers in Milan is not having an Italian tax code (codice fiscale), which is mandatory for signing contracts, paying taxes, and completing the purchase.
You must obtain your codice fiscale before buying property in Milan, and this can be done through the Italian Revenue Agency (Agenzia delle Entrate) at their offices, Italian consulates abroad, or sometimes through your notary.
A typical document set for a foreign buyer in Milan includes a valid passport, the codice fiscale, proof of funds or bank statements, and any translated documents that the notary requires for the final deed.
Does buying property help me get residency and citizenship in Milan in 2026?
As of early 2026, buying property in Milan does not automatically give you Italian residency or citizenship, because Italy does not operate a straightforward "buy-a-home-get-a-visa" program like some other countries.
While owning property in Milan can support your residency application by providing a registered address and demonstrating ties to Italy, it is not by itself a residence permit or a path to citizenship.
The main pathways to Italian residency for foreigners include work permits, family reunification, study visas, and the elective residence visa (which requires proof of sufficient passive income rather than a property purchase), while citizenship typically requires at least 10 years of legal residence or marriage to an Italian citizen.
We give you all the details you need about the different pathways to get residency and citizenship in Milan here.
Can I legally rent out property on my visa in Milan right now?
Your visa status in Italy generally does not prevent you from renting out a property you own in Milan, because property ownership rights (including the right to earn rental income) are separate from your immigration status.
You do not need to live in Italy to rent out your Milan property, and many foreign owners manage rentals remotely or through local property managers while residing in another country.
However, foreign landlords in Milan must comply with Italian tax obligations on rental income (often using the cedolare secca flat tax regime), register rental contracts properly, and for short-term rentals, complete the national CIN, regional CIR, and municipal registration requirements that became stricter in 2025.
We cover everything there is to know about buying and renting out in Milan here.
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How does the buying process actually work step-by-step in Milan?
What are the exact steps to buy property in Milan right now?
The standard sequence to buy property in Milan starts with making an offer (proposta d'acquisto) with a deposit, followed by due diligence checks, then signing a preliminary contract (compromesso) with a larger deposit, arranging financing if needed, and finally completing the transfer at the notary's office (rogito).
You do not have to be physically present for every step in Milan, because many foreigners use a properly prepared power of attorney to have someone sign on their behalf at the notary appointment, though this requires advance planning and proper legal formalization.
The step that typically makes the deal legally binding in Milan is signing the preliminary contract (compromesso), which commits both buyer and seller to the transaction and involves a substantial deposit (caparra) that creates financial consequences for withdrawal.
From accepted offer to final registration of the deed, the typical timeline in Milan ranges from about 2 to 4 months, though this can vary based on financing requirements, due diligence complexity, and notary scheduling.
We have a document entirely dedicated to the whole buying process our pack about properties in Milan.
Is it mandatory to get a lawyer or a notary to buy a property in Milan right now?
A notary (notaio) is effectively mandatory to buy property in Milan because Italian law requires a public notary to execute the final transfer deed, verify the legality of the transaction, and register it with the land registry.
The key difference is that the notary in Milan acts as a neutral public official who verifies documents and ensures legal compliance for both parties, while a lawyer (avvocato) represents your interests specifically and can negotiate terms, review contracts, and handle disputes on your behalf.
One key item to include in your lawyer's scope for a Milan property purchase is a thorough review of the preliminary contract before you sign it, because this is the document that locks you into the deal and determines your financial exposure if something goes wrong.
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 checks should I run so I don't buy a problem property in Milan?
How do I verify title and ownership history in Milan right now?
The official registry to verify title and ownership history in Milan is the Conservatoria dei Registri Immobiliari (land registry), which your notary will search as part of the standard due diligence process before closing.
The key document to request is the visura ipotecaria, which is a certificate showing the property's ownership chain, any registered mortgages, liens, or other encumbrances, and confirms that the seller actually has the right to sell.
A realistic look-back period for ownership history checks in Milan is typically 20 years, which covers the standard prescription period for most claims and ensures you are not inheriting problems from previous transfers.
One clear red flag that should stop or pause a purchase in Milan is finding gaps or inconsistencies in the ownership chain, unresolved inheritance claims, or registered judicial actions against the property that could affect your title.
You will find here the list of classic mistakes people make when buying a property in Milan.
How do I confirm there are no liens in Milan right now?
The standard way to confirm there are no liens or encumbrances on a property in Milan is through a formal search of the mortgage registry (ipotecaria), which your notary typically conducts as part of the closing process to identify any mortgages, judicial seizures, or other registered claims.
One common type of lien that buyers should specifically ask about in Milan is unpaid condominium fees (spese condominiali arretrate), because these debts can transfer to the new owner and the condominium administrator must provide a certificate showing the property's payment status.
The single best form of written proof showing lien status in Milan is the visura ipotecaria certificate from the land registry, combined with a declaration from the condominium administrator confirming no outstanding common charges.
How do I check zoning and permitted use in Milan right now?
The authority to check zoning and permitted use for a property in Milan is the city's planning department, and the official reference is Milan's PGT (Piano di Governo del Territorio), which you can access through the PGT online portal.
The single document that typically confirms zoning classification in Milan is the certificato di destinazione urbanistica, which states the property's permitted use category, and for buildings, you should also verify that the actual use matches what is registered in the catasto (land registry).
One common zoning pitfall that foreign buyers frequently miss in Milan is purchasing a unit that has been converted or renovated without proper permits, where the actual use (for example, a loft used as residential space) does not match the official destinazione d'uso, which can create serious compliance and resale problems.
Buying real estate in Milan can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Milan, and on what terms?
Do banks lend to foreigners for homes in Milan in 2026?
As of early 2026, yes, Italian banks do lend to foreigners for home purchases in Milan, including non-residents, though the terms are typically more conservative than those offered to Italian residents.
The realistic loan-to-value (LTV) range that foreign borrowers most commonly see in Milan is 50% to 70%, meaning you should plan to bring at least 30% to 50% of the purchase price as a down payment, plus funds for closing costs.
The single most common eligibility requirement that determines whether a foreigner qualifies for a mortgage in Milan is demonstrable, stable income that the bank can verify, whether from employment, self-employment, or other documented sources, along with a clean credit history.
You can also read our latest update about mortgage and interest rates in Italy.
Which banks are most foreigner-friendly in Milan in 2026?
As of early 2026, the three banks most commonly cited as foreigner-friendly for mortgages in Milan are UniCredit, Intesa Sanpaolo, and BNL (the Italian arm of BNP Paribas), all of which have experience processing non-resident applications and English-capable staff in major branches.
The single most important feature that makes these banks more foreigner-friendly in Milan is their established internal processes for handling international income documentation, foreign credit histories, and the additional verification steps that non-resident applications require.
These banks do lend to non-residents in Milan, but typically with lower LTV ratios, higher documentation requirements, and sometimes a rate premium compared to resident borrowers, so shopping around and getting pre-approval early is essential.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Milan.
What mortgage rates are foreigners offered in Milan in 2026?
As of early 2026, the typical mortgage interest rate range for foreigners in Milan is approximately 3.5% to 5.0% APR (TAEG), with the variation depending on your profile, the bank, and whether you choose a fixed or variable rate product.
Fixed-rate mortgages in Milan currently tend to be priced slightly higher than variable rates at origination, but they offer payment certainty over the loan term, while variable rates start lower but expose you to interest rate movements that could increase your payments over time.
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.
What will taxes, fees, and ongoing costs look like in Milan?
What are the total closing costs as a percent in Milan in 2026?
For most foreigners buying a residential property as a second home in Milan in 2026, total closing costs typically run between 12% and 18% of the purchase price.
The realistic low-to-high range reflects the difference between buying from a private seller (where registration tax can be calculated on a lower taxable value) versus buying from a developer (where VAT at 10% or 22% applies to the full price).
The specific fee categories that make up closing costs in Milan include purchase taxes (registration tax or VAT), fixed mortgage and cadastral taxes, notary fees (usually 1% to 2%), agency commission (commonly a few percent), and mortgage arrangement fees if you are financing.
The single biggest contributor to closing costs in Milan is usually the purchase tax, whether that is the 9% registration tax for second homes from private sellers or the 10% to 22% VAT when buying new construction from a developer.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Milan.
What annual property tax should I budget in Milan in 2026?
As of early 2026, if your Milan property is not your main residence (which applies to most foreign buyers), you should budget for IMU property tax of approximately 1.0% to 1.14% applied to the cadastral value, which typically works out to a few hundred to a few thousand euros per year depending on the property.
Annual property tax in Milan is assessed as a percentage rate applied to the property's cadastral value (rendita catastale), not the market price you paid, and the cadastral value is usually much lower than market value, which keeps the actual tax bill more manageable than the percentage might suggest.
How is rental income taxed for foreigners in Milan in 2026?
As of early 2026, foreign owners renting out residential property in Milan can often use the cedolare secca flat tax regime, which offers rates of 21% for standard rentals or 26% for short-term rentals (on income above a certain threshold), instead of paying progressive income tax that can reach much higher rates.
The basic filing requirement for foreign rental property owners in Milan is to register the rental contract with the Agenzia delle Entrate, declare the rental income on Italian tax returns, and pay the applicable tax, even if you live outside Italy, because Italian-source rental income is taxable in Italy regardless of your residence.
What insurance is common and how much in Milan in 2026?
As of early 2026, typical annual insurance premiums for a standard Milan apartment range from about 150 to 700 euros (approximately $160 to $750 or the same in EUR), depending on coverage level, property value, and whether you add optional protections beyond basic fire coverage.
The single most common type of property insurance coverage that owners carry in Milan is "incendio e scoppio" (fire and explosion), which is often required by banks if you have a mortgage and covers the rebuild value of the property against fire damage.
The biggest factor that makes insurance premiums higher or lower for similar properties in Milan is the scope of coverage you choose: a basic mortgage-required fire policy costs much less than a comprehensive home package that includes theft, water damage, civil liability, and natural disaster coverage.
Get the full checklist for your due diligence in Milan
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
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 Milan, 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 - Purchase Taxes | Italy's official tax authority explaining exactly which purchase taxes apply | We used it to pin down the core purchase taxes (registration tax vs VAT) and the "private seller vs developer" distinction. We also used it to calculate realistic closing cost ranges. |
| Ministry of Foreign Affairs - Reciprocity | Official explanation of the reciprocity rule that gates non-EU purchases | We used it to explain when non-EU citizens can buy in their own name. We also used it to highlight how treaties can affect whether reciprocity must be checked. |
| Consiglio Nazionale del Notariato | Notaries are legally central to Italian property transfers | We used it to explain why notaries are mandatory and what they verify. We also used it to structure the step-by-step buying process and key due diligence checks. |
| Agenzia delle Entrate - Tax Code Guide | Official step-by-step guidance for foreigners to get a codice fiscale | We used it to explain what you need before you can sign any documents. We also used it to clarify that you can buy without residency but need this ID first. |
| Banca d'Italia - Interest Rates | Italy's central bank providing official household borrowing rate statistics | We used it to anchor mortgage rate estimates to official national data. We avoided relying only on marketing rates from individual lenders. |
| Ministry of Economy - Milan IMU Rates | Official published rate schedule for Milan's IMU property tax | We used it to quote Milan's actual rates for second homes and rented properties. We used it as the base for our 2026 property tax budgeting estimates. |
| Dipartimento delle Finanze - IMU Rules | Finance ministry's official statement of main-home IMU treatment | We used it to explain when IMU is not due (true main residence). We used it to clarify why most foreigners end up paying IMU as second-home owners. |
| Agenzia delle Entrate - Cedolare Secca | Official reference for the flat-tax regime used for residential rentals | We used it to explain how rental income can be taxed under cedolare secca. We used it to keep the rental section focused on residential property rules. |
| Ministero del Turismo - CIN | Tourism ministry announcing the national ID code for short rentals | We used it to explain the CIN requirement for short rentals. We used it to keep rental guidance aligned with current national obligations. |
| Comune di Milano - PGT Portal | Milan's official planning portal governing permitted uses and zoning | We used it to explain where you check zoning and destinazione d'uso in Milan. We used it to show what "permitted use" means in a Milan context. |
| Comune di Milano - Short Rentals | Milan's practical guidance for operating short-term rentals | We used it to explain what Milan treats as a tourist rental. We used it to add Milan-specific compliance steps beyond national requirements. |
| IVASS - Insurance Guide | Insurance regulator's guidance on mortgage-linked policies | We used it to explain what banks typically require (fire/explosion coverage). We used it to structure the insurance budgeting section responsibly. |
| ISTAT - House Price Index | Italy's national statistics institute providing standard housing indicators | We used it to frame market context without hype. We used it as a cross-check against purely commercial market commentary. |
| Ministry of Foreign Affairs - Visa Portal | Official starting point for visa and entry requirements to Italy | We used it to separate entry and visa rules from property ownership rules. We used it to keep tourist vs resident questions grounded in official processes. |
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.
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