Guide to Buying Italy Real Estate

Italy is one of Europe’s most desirable countries for international property buyers. From the olive groves of Tuscany to the beaches of Puglia and the hills of Umbria, the country offers scenic beauty, deep-rooted culture, and attractive real estate options. 

Foreigners can legally purchase property in Italy, and many do so for lifestyle, retirement, or long-term investment. The country’s legal system protects ownership rights, and the process is well established.

While prices in major cities and tourist centers remain high, there is excellent value in less-explored regions. Buyers will find everything from move-in-ready village homes to renovation projects in rural areas. With strong infrastructure, accessible healthcare, and easy travel links to the rest of Europe, including from Spain, Portugal and France. Italy is especially popular among retirees and second-home buyers from the U.S., Canada, and Western Europe.

Why Invest in Real Estate In Italy

Italy combines lifestyle benefits with long-term real estate value. Property laws are transparent, and foreigners face no restrictions when buying. The buying process is regulated by notaries and supported by public registries, which helps ensure a secure transaction.

Prices in much of the country remain competitive and any towns and rural areas offer spacious homes for a fraction of the cost of similar properties in other Western European countries. In addition, Italy’s flat-tax programs have encouraged foreign residents to relocate, boosting demand in select areas.

Tourism and long-term rental markets are well developed, particularly in regions such as Tuscany, the Lakes, and coastal southern areas. For those interested in rental income, Italy offers seasonal demand with strong summer traffic and steady year-round interest in some locations.

Where to Buy Property in Italy

Italy offers a wide range of property markets, each with its own appeal. From countryside retreats to historic cities and seaside towns, buyers can choose based on lifestyle, investment goals, and budget.

Tuscany

Tuscany remains one of the most sought-after regions in Italy. Famous for its rolling hills, vineyards, and medieval villages, the region attracts international buyers looking for rustic farmhouses, stone villas, or apartments in towns like Florence, Pisa, Lucca, Siena, and the relatively unknown Lungiana region.  

Tuscany is one of the most expensive areas in Italy to buy property. But there are still real estate bargains to be found if you look outside of central Tuscany, in places like Lucca and Lungiana. And many smaller towns offer more affordable options with the same views and charm, compared to the equivalent in Florence or Pisa.

For example, a decent sized Tuscan-style country house with two bedrooms in Lucca can can be found for €180,000 ($234,000).

Umbria

Umbria, located just east of Tuscany, is often referred to as the country’s “green heart.” The region’s capital is Perugia, a cosmopolitan university town famous for its medieval center, vibrant atmosphere and Perugina chocolates. Other notable towns include Orvieto, Spoleto and the Assisi, a UNESCO site best associated with St. Francis of Assisi.

Umbria offers similar scenery and traditional architecture but with fewer tourists and lower property prices. Towns like Spoleto and Todi are popular with buyers seeking quiet countryside living. 

Abruzzo

Located in the south of Italy is the region of Abruzzo. Bordered by Adriatic beaches and boasting three national parks, Abruzzo is a stunning blend of medieval towns and villages, rugged mountains and green forests all stretched along 130km of Adriatic coastline. 

For property buyers and investors alike, Abruzzo presents a compelling proposition. Property prices here are lower than in the likes of Tuscany or the Amalfi coast and it’s possible to find properties, ranging from rustic farmhouses and townhouses in need of restoration for as little as €20,000 to €50,000, to move-in-ready apartments and villas.

For example, a house to restore located in a pretty little square on the old side of Vicoli (VicoliVecchia) can be found for as little as €23,000 ($33,592).

Puglia

Puglia, also known as Apulia, is located in the south of the country. It’s known for its warm climate, olive groves, and whitewashed villages. The region has gained popularity in recent years thanks to its lower cost of living and relaxed coastal lifestyle. Buyers and investors can find historic townhouses, trulli homes, and villas near the beach at much lower prices than in northern Italy. 

For example, a traditional mountain house in Puglia, a 10-minute drive from the blue flag beaches of the Adriatico, might set you back €160,000.  

Le Marche

Le Marche, on the Adriatic side, is another region worth noting. Often called “the new Tuscany”, it captures the same beautiful scenery as its famous neighbour but without the crowds and higher property prices. 

Le Merche gives you sandy beaches, medieval hilltop towns and the rolling peaks of the Sibillini Mountains; but has largely remained off the radar of foreign buyers. The real estate market here is stable and favours buyers, with a wide range of properties available at much lower prices compared to other regions. Here, an investor can snap up a beautiful restored townhouse from as little as €70,000. 

Sicily

The Italian island of Sicily is a land of historic cities, ancient temples, charming villages, towering mountains, and stunning beaches on every shore…

The Italian island of Sicily boasts breathtaking hill towns, stunning coastal cities, and rich history and culture, yet real estate prices there can be shockingly low.

Over the millennia, this island—the largest in the Mediterranean—has been ruled by the Greeks, Romans, Phoenicians, the Spanish, the Vandals…to name just a few. To this day, Sicily feels somehow distinct from mainland Italy. Its history has given it a different way of life…a different attitude…even a different cuisine…

This is also the land of astonishing real estate bargains…

In medieval towns on Sicily, particularly those set in the mountainous interior amid lost-in-time landscapes, you can find charming, historic homes in various states of repair from just €10,000…sometimes even less.

Homes are available at these astonishingly low prices because Sicily’s historic hill towns have long suffered from depopulation. For generations, the young have been leaving to seek opportunities in Italy’s cities or overseas. This has left too many homes for too few people.

But in recent years, the world has been catching on to the incredible bargains on offer in Sicily. And with the explosion of the remote working trend, people are increasingly free to take advantage of these bargains, since they can work from the island for part or all of the year.

In the central hill town of Mussomeli, for example, foreign buyers are snapping up homes in big numbers…there are new stores, cafés, and restaurants to serve the growing expat communities…town centers are being revitalized as new investment floods in…

And yet, because of the abundance of empty homes, real estate prices remain astonishingly low. You can get historic homes for insane prices like $20 to $40 per square foot…and that’s for quality homes that are structurally sound and in livable condition.

That makes Sicily one of the best-value destinations to buy real estate.

Other Areas to Consider in Italy

Northern regions such as Lombardy and Piedmont offer lakeside living, skiing, and access to Milan and Turin. Lake Como and Lake Garda remain high on the list for those seeking scenic views and strong rental demand.

Can Foreigners Buy Property In Italy

Yes, foreigners can buy property in Italy, and the process is quite welcoming and straightforward. However, even though Italy is seen to be a no-restriction zone, there are some rules you need to be aware of when buying property here. 

The regulations primarily depend on your citizenship. If you’re a citizen of an EU or European Economic Area (EEA) country, you have the exact same rights as an Italian citizen with no restrictions. 

For non-EU citizens, buying a property is based on a ‘principle of reciprocity,’ which essentially means Italy allows you to buy a home if your home country allows Italians to do the same. This agreement is in place with most major nations, including the UK, the United States, and Canada, so for most people, it isn’t an obstacle.

As a real estate investor, you can also invest in real estate through a Golden Visa, provided you meet the requirements. There are four different routes to entry, including:  

• €250,000 investment in an Italian innovative start-up
• €500,000 investment in an Italian limited company
• €2 million investment in Italian government bonds
• €1 million donations to a philanthropic initiative in Italy

Regardless of your nationality, the one essential requirement is obtaining an Italian tax code, known as a codice fiscale, which you’ll need for the purchase and any related financial activities. 

It’s also important to remember that while you don’t need to be a resident to own a property, the purchase itself doesn’t automatically grant you the right to live in Italy full-time; that would require a separate visa application. 

The Real Estate Buying Process in Italy

Buying property in Italy is not always straightforward and can be a challenging experience, especially for foreigners. The Italian property buying process can be seen in three distinct phases.

 While it involves more steps and legal formalities than Americans may be used to, this structure provides significant security for the buyer. Below we look at a detailed step-by-step guide for buying Italian real estate:

Code Fiscale

Before you do anything else, you must obtain a codice fiscale (an Italian tax code). Some guides overlook this, but it is an absolute, non-negotiable requirement. You will need it to open an Italian bank account, sign any contracts, and set up utilities. You can apply for one for free at an Italian consulate within the US before you even start your property search. 

Making an Offer

Once you find a property, you’ll make a formal offer known as the proposta d’acquisto. This will outline the price that you are willing to pay for the property along with any additional terms or “suspensive clauses” (clausole sospensive), which you would like included in the sale. 

These clauses make the offer conditional upon certain events, such as securing a mortgage or receiving a satisfactory technical survey. It’s highly recommended that you carry out a survey before moving forward with any real estate purchases.

When you submit the offer, you may need to provide a small deposit (prenotazione) to secure the property  until the seller formally signs their acceptance. At that stage, you’ll need to find a notary to act as a witness for both parties and draw up a preliminary contract. 

Due Diligence & Signing a Preliminary Contracts With Seller

Once your offer is accepted, a technical expert known as a geometra should carry out a technical survey on the property. Geometra are responsible for undertaking planning and land registry searches; and will confirm that the property’s plans, permits, and legal paperwork all conform to regulation. 

Following this, you’ll sign the compromesso, or preliminary contract to buy. This is a detailed agreement where you pay a substantial deposit, usually 10-30% of the purchase price. 

Contracts can be complex for non-Italians so it’s highly advisable to take on the services of a reputable agency or lawyer to oversee the contracts, deal with the notary, and check over all the final contract and paperwork.

Finalising the Sale

The final stage of the transaction is signing the rogito or final deed, which will be  overseen by the notary. At this point, the remaining balance and taxes are paid, and ownership is officially transferred to the buyer. The notary then registers the deed with the Land Registry (within 21 days) to complete the process

Fees & Taxes When
Buying Real Estate in Italy

The cost of buying real estate in Italy includes a series of taxes and fees on top of the property’s purchase price. In total, a buyer should budget for an additional 7% to 12% of the property’s value, though this figure can be lower for a primary residence. These costs primarily consist of transfer taxes, professional fees for the notary and agent, and other smaller duties.

Transfer Tax

The main one-off cost is the set of transfer taxes paid to the state. When buying a resale property from a private individual, three taxes apply: a registration tax (Imposta di Registro), a land registry tax (Imposta Ipotecaria), and a cadastral tax (Imposta Catastale). The total amount due depends entirely on whether the property will be your main home (prima casa) or a second home. To qualify for the reduced prima casa rates, you must register as a resident in the municipality within 18 months of the purchase.

For a primary residence, the registration tax is a favourable 2% of the property’s cadastral value. The land registry and cadastral taxes are reduced to a fixed fee of just €50 each. If the property is a second home, the registration tax rises significantly to 9%, while the other two taxes remain at the fixed €50 fee. It’s important to note that these taxes are calculated on the property’s official cadastral value, which is a figure recorded by the Land Registry. This value is almost always substantially lower than the actual market price, which helps keep the tax burden manageable.

The tax situation changes if you buy a property that is less than five years old directly from a developer. In this case, you do not pay the registration tax. Instead, a value-added tax known as IVA applies to the full purchase price. The IVA rate is 4% for a primary residence and 10% for a second home. This rate increases to 22% for properties officially classified as luxury. When IVA is applied, the three registration taxes are all charged at a fixed fee of €200 each.

Sales Tax
Unless already included in the purchase price, VAT may be payable on new properties at a rate of 9% for “non-luxury properties” and 19% for “luxury properties.”

Property Taxes

Properties in Italy are subject to an annual municipal tax called IMU (Imposta Municipale Unica). The national base rate is 0.76% of the declared value of the property, but each municipality has the authority to adjust this rate, typically up to a maximum of around 1.14%.

Rental Income Taxes

If you are purchasing an investment property or plan to rent your Italian property, any income you earn is subject to tax. As a non-resident owner, you have two main options for how this income is taxed, and it is crucial to choose the one that is most advantageous for your situation. You are also legally required to register any rental agreement that lasts longer than 30 days with the Italian tax authorities (Agenzia delle Entrate).

The default method is to declare the rental income under the standard Italian income tax system, known as IRPEF. Under this progressive system, the rental income is added to any other Italian-sourced income you may have, and the total is taxed according to income brackets, which start at 23%. While certain expenses can sometimes be deducted, this option is often more complex and can result in a higher tax liability.

Most property owners opt for a simpler and often more favourable alternative called the cedolare secca. This is a flat tax that replaces the standard IRPEF system for rental income. For most long-term and short-term rental contracts, this tax is a flat rate of 21% on the gross rental income. As of 2025, if you rent out more than one property on a short-term basis (less than 30 days), a higher rate of 26% applies to the second, third, and fourth properties. The key benefit of the cedolare secca is its simplicity; it replaces not only the income tax but also the registration and stamp duties that are normally due when registering a rental contract.

Other Fees

Every property transaction in Italy legally requires a notary, whose fee is paid by the buyer. Notary fees are not fixed and can range from 1% to 2.5% of the property’s declared value, covering the preparation of the final deed, performing the definitive legal checks, and officially registering the sale. If a real estate agent (agente immobiliare) was involved in the sale, a commission will be due. This fee typically ranges from 3% to 5% of the sale price, plus 22% IVA on the fee itself. In Italy, it is common for this commission to be split between the buyer and the seller.

While not mandatory, hiring an independent lawyer (avvocato) is highly recommended for foreign buyers. This provides an extra layer of protection and guidance through the legal process, with fees generally costing 1% to 2% of the purchase price. Finally, there are ongoing annual taxes to consider. 

Can Foreigners Get a Mortgage In Italy

Yes, foreigners in Italy can get a mortgage. However, Italian banks tend to be more cautious lending to foreigners or non-residents, and criteria can be stricter than for those living and working in Italy. 

The most significant factor for a non-resident is the required deposit, or down payment. Italian banks will typically only finance 50% to 60% of the property’s value for a foreign buyer who does not live in Italy. 

This means you should be prepared to provide a substantial deposit of at least 40% to 50% of the purchase price from your own funds. This is a much higher requirement compared to the 20% deposit that is often available to Italian residents.

The application process itself is slow, which can be frustrating for overseas buyers and expats. It is highly recommended to work with a specialist mortgage broker who has experience with Italian banks and non-resident clients. They can help you guide you through the system, identify the most suitable lenders, and help prepare your application – which will require you to provide documents like your passport, codice fiscale, recent tax returns, pay slips, and bank statements (all of which will need to be officially translated into Italian).

Italy Real Estate
Our Thoughts:

Italy continues to be a strong draw for international buyers, thanks to its lifestyle, culture, and wide range of real estate options. Foreigners can legally own property, and the buying process is clear and well regulated. While paperwork and procedures can be detailed, working with experienced local professionals makes the process manageable.

From the hill towns of Tuscany to the coastlines of Sicily and Puglia, Italy offers locations to suit a wide variety of budgets and preferences. Costs and taxes are reasonable compared to other parts of Western Europe, and financing is possible for those who meet the requirements.

For retirees, second-home buyers, or long-term investors, Italy delivers lasting appeal, legal certainty, and a high standard of living. Property here is more than a purchase… it’s a lifestyle choice with the potential for long-term value.