How to buy a house in Italy? The complete guide

Italy offers many advantages that make it, without a doubt, a dream destination for buying a primary residence or vacation home. A pleasant climate, breathtaking landscapes, 7,600 km of coastline, unparalleled historical heritage, idyllic beaches, world-renowned cuisine, and the Dolce Vita… The list of good reasons to choose Italy is endless, and best of all, property is still very affordable.

How can you become a homeowner? What do you need to know, and what are the pitfalls to avoid? Here, we answer all your questions about buying property in Italy.

1.  Can a foreigner buy a house in Italy?

Unlike some countries, Italy places no restrictions on foreign property ownership. Whether you are a resident or not, you can freely purchase a house or apartment in Italy as long as you are a citizen of the European Union.

Non-EU citizens can also buy property in Italy, provided that their country has signed a reciprocity agreement with Italy. This means that a foreigner may purchase real estate in Italy only if their home country also allows Italians to buy property there.

Non-EU buyers must also hold a valid residence visa. Buying property in Italy does not grant a visa, unless the investment qualifies under the Golden Visa program.
 

2. What are the key steps to buying property in Italy?

• Find the right property

Start by identifying the type of investment you’re aiming for: a primary residence, a vacation home, or a rental investment. This choice will influence the tax rules that apply, so it’s important to understand them early on.

Choose your location based on your project and consider transport infrastructure (airports, train stations), local shops, schools, leisure facilities and tourist attractions.

Then, find the property of your dreams: perhaps an estate in Tuscany, a trullo in Puglia, a stylish apartment in Rome, or a €1 home to renovate in Sicily or Sardinia.

To make the process smoother, consider working with a real estate professional who is a member of FIAIP or ANAMA (Italian professional associations). They will help you negotiate the sale and ensure the transaction complies with Italian law.
 

• Carry out the necessary checks

Before making an offer, verify the property's legal status in the land registry. Make sure there are no debts or disputes associated with the property. Also check that the property complies with local urban planning regulations (no illegal or undeclared construction). Finally, have the building assessed by a surveyor.
 

• Make an offer and become a homeowner

Once all checks are completed, you can make an offer in writing, accompanied by a deposit (caparra confirmatoria) of 10 to 20% of the sale price. This is held in escrow and will serve as a down payment if the offer is accepted.

This is also the time to finalize your financing. Opening an Italian bank account is recommended to facilitate the transaction.

Once the offer is accepted and financing secured, the preliminary contract (compromesso) is signed. This agreement sets the terms of the sale (price, timeline, obligations) and binds both parties. The deposit becomes the official down payment. If the buyer withdraws, the seller keeps the deposit. If the seller cancels, the buyer receives double the deposit in compensation.

At the agreed time, the final deed (rogito) is signed before a notary, formalizing the transfer of ownership. The property must then be registered with the Catasto at the Agenzia delle Entrate (Italian tax agency).
 

3. What documents are required at the notary’s office?

• For the buyer

To purchase property and sign the deed, buyers must provide a valid ID (with a visa or residence permit if not an EU citizen) and a Codice Fiscale (Italian tax code). This code is required for any administrative procedure in Italy and can be obtained from the Agenzia delle Entrate or, for non-EU citizens, at the Immigration One-Stop Office.

Additional documents include proof of residence, a civil status certificate (if applicable), bank statements proving solvency, tax returns (if applying for a loan), the signed preliminary contract, and proof of payment of the deposit.
 

• For the seller

On the day of signing, the seller must provide: valid ID, the property title deed, the cadastral plan, the APE (energy certificate), compliance certificates for electricity, gas, and plumbing installations, a certificate of habitability, a mortgage certificate or proof of mortgage clearance, any condominium documents (if applicable), the building permit with authorization for any extensions or renovations, and all tax documentation, including proof of local property tax payments.

Both parties must also present bank statements showing all transactions related to the purchase and submit an anti-money laundering declaration.
 

4. What are the costs associated with owning property in Italy?

Costs vary depending on whether the property is a main residence, second home, or rental investment:

• Registration tax: 2% for a primary residence, up to 9% for second homes or rental investments.
• VAT: 4% on new primary residences; 10–22% on others.
• Mortgage tax: €50 for a primary residence; €200 when buying from a developer.
• Cadastral tax: flat fee of €50.
• Notary fees: 1–3% of the purchase price.
• Agency fees: 3–4%, shared between buyer and seller.
• Sworn translations: approx. €300.
• IMU/TASI (property tax): primary residences are exempt; second homes/investments are taxed at 0.76–1.06% of cadastral value.
• TARI (waste tax): €100–500/year.
• Income tax on rental earnings: 23–43%.
• Condo fees and home insurance: vary by property.

5. What are the common pitfalls to avoid?

Never rush into a deal that seems too good to be true. Be cautious of unclear legal statuses, local regulations, hidden fees, or under-the-table transactions.

Always take time to verify the title deed (atto di provenienza), ensure compliance with building codes, and budget for additional costs like maintenance or insurance.

If the property requires renovation, consult a professional, check building permits and zoning, and request a cost estimate.

Avoid under-declared prices. While it may seem like a way to reduce taxes, it's illegal and exposes you to heavy fines.

We strongly recommend working with a licensed real estate agent and/or an independent notary not associated with the seller.

While remaining cautious, buying property in Italy is an excellent opportunity. Prices remain very attractive in many regions, and rental yields can be quite strong.
 

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