Buying a home in Italy: a simple guide for foreign buyers
The Italian process is safe and well regulated, but it works differently from what you may know at home. Here are the essentials, in plain English.
This is a general guide, not legal or tax advice. Every purchase is checked with the notary and, when needed, with a tax advisor.
Can foreigners buy property in Italy?
Yes. Citizens of EU countries, including Germany and Poland, can buy exactly like Italians. Citizens of many other countries, such as the UK and the USA, can also buy freely, thanks to reciprocity agreements.
What you need
- An Italian tax code (codice fiscale). It's free and you can get it from an Italian consulate abroad or from the tax office in Italy. It's needed for the offer, the contracts and the utilities.
- A valid passport or ID card.
- An Italian bank account. Not always compulsory, but it makes payments and utilities much easier.
The three steps of a purchase
1. The offer (proposta d'acquisto)
A written offer with the price and conditions, usually with a small deposit. Once the seller accepts it, it becomes binding for both sides.
2. The preliminary contract (compromesso)
It fixes the price, the payment terms and the date for the final deed. The buyer pays a deposit, often 10–30% of the price. If the buyer walks away, the deposit is lost; if the seller walks away, they must pay back double.
3. The final deed (rogito)
Signed in front of a notary, who checks the property, the ownership and the absence of mortgages or debts. If you don't speak Italian, a certified translator must be present. If you can't come to Italy, you can sign through a power of attorney.
What does it cost, on top of the price?
As a rough guide:
| Cost | Indicatively |
|---|---|
| Purchase tax, second home (buying from a private seller) | 9% of the cadastral value (usually much lower than the price), minimum €1,000, plus €100 in fixed taxes |
| Purchase tax, main home (if you take residency in the town within 18 months) | 2% of the cadastral value, minimum €1,000, plus €100 in fixed taxes |
| Buying from a company | VAT (4%, 10% or 22%) plus fixed taxes |
| Notary | usually €1,500–4,000 + VAT, depending on the price |
| Seller's estate agency (if there is one) | usually 2–4% + VAT |
| Surveyor and translator | a few hundred to a few thousand euros |
Every home is different: before you make an offer, I give you a personalised estimate of all the buying costs.
And after buying?
- IMU: annual property tax on second homes, set by each town
- TARI: annual waste collection tax
- Utilities, insurance and, for country homes, maintenance of land, roads and water supply
The mistakes I see most often
- Falling in love with the photos and skipping the technical checks
- Not checking that the house matches the plans in the land registry
- Underestimating renovation costs and timing in the countryside
- Signing documents in Italian without understanding them