Buying property in Italy is an exciting and potentially profitable investment, whether you’re looking for a vacation home in Italy, a permanent residence, or an income-generating property. However, the process may differ from what you’re accustomed to in other countries. Follow this comprehensive step-by-step guide to buying property in Italy, and make your dream of owning Italian real estate a reality.

1. Research and Budgeting: Planning Your Italian Property Purchase

Before diving into the property market, proper research and budgeting are crucial.

Location:
Where you buy property in Italy will greatly influence the price. Major cities such as Rome, Milan, and Florence tend to be more expensive. Alternatively, rural areas, smaller towns, and coastal regions like Tuscany, the Amalfi Coast, and Sicily offer more affordable options for buyers.

Budgeting:
In addition to the property purchase price, buyers should budget for additional costs such as taxes, notary fees, and agency fees. These can add an extra 7–10% to the total purchase price.

Financing:
Foreign buyers can obtain a mortgage in Italy, typically covering 60–70% of the property value. However, expect a higher deposit and more stringent lending criteria compared to local buyers. Look at our partners here to assist you.

2. Get a Codice Fiscale (Italian Tax Code)

A Codice Fiscale is required for any financial transaction in Italy, including property purchases. It functions like a tax code and is essential for opening a bank account, paying taxes, and finalizing legal transactions. You can apply for it through the Agenzia delle Entrate (Italian Revenue Agency) or an Italian embassy.

3. Open an Italian Bank Account

Opening a bank account in Italy will make property transactions easier. It is needed for transferring funds, paying utility bills, and settling taxes associated with the property. Some banks offer specialized services for non-residents or foreign buyers, so explore the best options available.

4. Start Searching for Properties in Italy

When you’re ready to find your perfect home, consider using professional real estate agents (Agenti Immobiliari). These licensed professionals can help you identify properties that meet your criteria. Typically, their commission ranges from 3–5% of the sale price and is usually split between the buyer and seller.

Property Listings:
Europe Properties can be a great resource for browsing property listings across Italy.

Private Sales:
Some properties are sold directly by the owner, which can save you on commission fees. However, always involve a lawyer to ensure all legal aspects are handled properly.

5. View the Property and Assess Its Condition

Once you’ve identified a few properties, arrange viewings through your agent or directly with the owner. Pay close attention to the condition of the property, potential renovation needs, and the surrounding neighbourhood.

6. Make an Offer (Proposta d’Acquisto)

If you’re satisfied with a property, make a formal offer known as the Proposta d’Acquisto. This is a preliminary agreement that indicates the price you’re willing to pay and is usually accompanied by a small deposit (typically 1-3% of the offer price).

7. Sign the Preliminary Agreement (Compromesso)

Once the offer is accepted, both parties sign a Compromesso (preliminary contract). This is a legally binding document that outlines important details such as the purchase price, payment terms, and the estimated date for signing the final deed. At this stage, a larger deposit (typically 10-30% of the purchase price) is paid.

8. Legal Due Diligence

It’s highly advisable to hire an independent lawyer (avvocato) who specializes in Italian real estate law to conduct a thorough legal check on the property. 

9. Finalizing the Purchase: Signing the Rogito Notarile

The Rogito Notarile (final deed of sale) is the final step in the property purchase. The signing must take place in the presence of a notary (notaio), a public official who ensures the legality of the transaction. At this point, the remaining balance of the purchase price is paid.

10. Transfer of Ownership

Once the Rogito is signed, the notary registers the transfer of ownership with the Land Registry, officially making you the owner of the property.

11. Taxes and Fees When Buying Property in Italy

When buying property in Italy, you’ll need to factor in various taxes and fees, including:

• Registration Tax (Imposta di Registro):
  • Primary residence: 2% of the cadastral value
  • Secondary residence: 9% of the cadastral value
• VAT (IVA): Applicable if buying from a developer or purchasing a new build (typically 10%).
• Notary Fees: Typically 1-2% of the purchase price.
• Agency Fees: Typically 3-5% of the sale price, split between buyer and seller.

Additional Tips for Foreign Buyers in Italy

• Residency Requirements: Non-EU citizens can purchase property in Italy, but owning property does not automatically grant residency. However, Italy offers an Elective Residency Visa for those with sufficient income who wish to live in Italy without working.
• Legal Representation: While not mandatory, hiring a lawyer is highly recommended, especially if you’re unfamiliar with Italian laws or the language.
• Currency Exchange: If transferring large sums of money, consider using a currency exchange service for better rates.

You can find recommended partners here for Lawyers, Mortgages, Currency Exchange, Rentals and much more….

By following this step-by-step guide and involving the right professionals, you can successfully purchase property in Italy while avoiding common pitfalls. For more information on finding your dream property in Italy, browse listings on Europe Properties or contact us to assist you with your search or email here: [email protected]

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