How to Buy Property in Italy as a Foreign Buyer

1. Who can buy property in Italy?

Italy places virtually no restrictions on property purchases by foreign nationals. Citizens of EU/EEA countries have the same rights as Italian citizens. Non-EU citizens can purchase freely, provided their home country has a reciprocal agreement with Italy — this includes the United States, United Kingdom, Canada, Australia, Switzerland, and most other countries.

The only requirement is obtaining an Italian tax code (codice fiscale), which can be done at the Italian consulate in your home country or at the local tax office (Agenzia delle Entrate) in Italy. This is a simple, free process that takes a few minutes.

2. The buying process step by step

Step 1: Property search and viewings

Properties in Italy are typically listed on portals like Idealista, Immobiliare.it, and Casa.it. However, many of the best opportunities — particularly in the luxury segment — are sold off-market or through private networks. This is where working with an advisory service adds significant value.

Step 2: Making an offer (Proposta d'Acquisto)

Once you find a property, you submit a written offer through the estate agent. This is typically accompanied by a small deposit (€5,000–€10,000) held in escrow. The seller has a set period (usually 15–30 days) to accept or reject.

Step 3: Preliminary contract (Compromesso)

If accepted, both parties sign a preliminary contract at the notary. The buyer pays a deposit — typically 10–30% of the purchase price. This contract is legally binding. If the buyer withdraws, they lose the deposit. If the seller withdraws, they must pay double the deposit back.

Step 4: Due diligence

This is the critical phase where your advisor earns their fee. Key checks include:

• Cadastral verification — confirming the property boundaries and classification match official records
• Urban planning compliance — checking all building work has proper permits
• Energy performance certificate (APE) — mandatory for all sales
• Lien and mortgage check — ensuring the property is free of debts
• Structural survey — particularly important for older properties

Step 5: Final deed (Rogito)

The sale is completed at the notary (notaio), who is a public official appointed by the state. The notary reads the deed aloud (in Italian), both parties sign, and the balance of the purchase price is transferred. The deed is then registered at the land registry. You get the keys.

3. Costs and taxes breakdown

Budget 10–15% on top of the purchase price for acquisition costs:

Note: When buying from a developer (new build), VAT replaces registration tax — 4% for primary residence, 10% for second home, 22% for luxury properties (A/1 category). The cadastral value is typically 30–50% lower than the market price.

4. Documents you need

• Valid passport
• Italian tax code (codice fiscale)
• Italian bank account (for the transfer)
• Proof of funds / mortgage pre-approval
• Power of attorney (if you cannot attend the rogito in person)

All funds used for the purchase must be traceable. Cash payments are not permitted for amounts over €5,000. Most transfers are done via bank draft (assegno circolare) or wire transfer.

5. Common pitfalls to avoid

• Skipping due diligence — Urban planning irregularities (abusi edilizi) are common in older properties. These must be resolved before or at the time of sale.
• Ignoring cadastral discrepancies — If the property footprint doesn't match official records, the sale can be blocked.
• Not understanding condominium rules — If buying an apartment, check for outstanding condominium fees and planned maintenance levies.
• Underestimating renovation costs — Italian renovation costs run €800–€2,000+ per sqm depending on region and scope. Always get multiple quotes.
• Using the wrong exchange rate — Lock in your rate before the rogito. A 2% currency swing on a €500K purchase costs €10,000.

6. Realistic timeline