Here is a guide to frequently asked questions about buying a house in Italy as a foreigner:
1. Why Should I Consider Buying a House in Italy?
Italy offers a rich cultural history, stunning landscapes, and a high quality of life. Plus, the country has a diverse real estate market with opportunities ranging from countryside villas to city apartments. It's a great opportunity for those looking for a second home, retirement destination, or investment. Buying a property in Italy can be a good investment only with the necessary local advice. The Italian property market has been stable for a long time, and prime locations like Rome, Milan, or Tuscany have seen consistent demand during 2023. However, market conditions can vary, and it's important to do thorough research or consult with a real estate expert.
2. Can a foreign citizen buy a house in Italy?
Yes, foreign citizens can purchase houses in Italy, but there are some conditions to meet:
3. What are the main documents a Non-Resident needs to Buy a House in Italy?
4. Do foreigners need a residency visa to buy property in Italy?
No, foreigners do not need an Italian residency visa or permit to buy real estate in Italy. The property purchase itself does not grant residency rights. At this time (2023) there’s no specific Visa for real estate investments. The only possibility to get Italian citizenship through investment is related to the so-called Golden Visa.
5. How can foreigners get a mortgage to buy a house in Italy?
Foreigners need to have an Italian tax ID number and open an Italian bank account first. Italian banks offer mortgages to foreigners with the same conditions as locals, but you need to have a valid help. Proof of sufficient income is required. The process may be more complex than in your home country, and you'll likely need to provide a hefty amount of paperwork. It's advisable to work with a mortgage broker who specializes in helping foreigners secure Italian mortgages.
6. Do foreigners need an Italian lawyer for buying property?
Yes, it is highly advisable to engage an Italian real estate attorney. It's recommended to hire a legal advisor to ensure a smooth process and to help navigate Italian real estate laws and regulations. They help with contracts, required documentation, and legal eligibility of the whole process.
7. Do I Need to Hire a Real Estate Agent?
While it's not mandatory, it's highly recommended. An agent can help you find the right property, negotiate prices, and navigate through the purchase process. They'll also have knowledge about the local market and can help you communicate if there's a language barrier. In case you’re not physically in Italy, an agent can let you visit a property through a video call or a virtual visit made with a 360° camera.
8. What is the Buying Process?
The steps involved in buying a house in Italy are:
The process generally includes those main steps:
9. What are the costs to buy a house in Italy?
Apart from the property price, what additional costs should I expect? Expect to pay for property transfer taxes, notary fees, legal costs, and agent fees. Typical purchase costs include the purchase price, mandatory notary fees, taxes on the purchase price, translation/legal fees, inspections, 3%-4% agent commissions, banking fees and land registry fee. These can add up to 10-20% of the purchase price. Annual property taxes also apply. There are ongoing costs like property taxes (IMU), utility bills, garbage fee (TARI), and maintenance. Capital gains tax applies to investment property sales.
Registration tax
2% (main residency) - 7% (vacation home) of the purchase price
Mortgage tax
2-4% of the loan amount
Cadastral tax
1% of the cadastral value of the property
Notary fees
1-2% of the purchase price
Legal fees
1-2% of the purchase price
Land registry fees
€200
The actual costs may vary based on the location, size, and type of property being purchased, as well as other factors such as the complexity of the legal work involved.
10. What About Renting Out My Property?
You can rent out your property, and this can be a good way to generate income. However, you'll need to declare this income to the Italian tax authorities. Consider hiring a property management company to handle renting and maintenance if you're not residing in Italy.
11. What Happens if I Decide to Sell?
You can sell your property at any time. Capital gains on the sale of Italian property are subject to tax, but the rate decreases the longer you hold the property. If you resell your property after 5 years from the purchase, even if it generates an important income, the difference in price does not represent a capital gain. So you don't have to pay any tax on the "earnings". Capital gains after 5 years are not subject to IRPEF or substitute tax.
12. What If I Don't Speak Italian?
While English is widely spoken in the major cities, the tourist areas and by professionals, there may be language barriers in more rural areas or with legal documents. It's suggested to hire a translator or an agent who can speak both Italian and your language.
13. What are the risks for foreigners buying property in Italy?
Risks include hidden defects not found in inspections, tax issues if not well advised, restoration problems for older properties, difficulties obtaining mortgages, and legal/regulatory problems without local expertise. Let's summarize the risks:
14. What kind of property can foreigners buy in Italy?
Foreigners can buy residential property like houses, villas, apartments, and castles as well as commercial property like offices, shops, warehouses, agriturismos, farms and land for development.
15. What are the best places to buy a house in Italy?
Some popular areas in terms of perceived value/investment include:
16. What is the best time of year to buy a house in Italy?
The best time of year to buy a house in Italy is during the off-season, which is typically from November to March. During this time, you are more likely to find good deals and there will be less competition from other buyers.
