Before youbuy a house in Italyit is best toverify the property, with the legal support ofour Italian lawyerswho can offerreal estate due diligenceprocedures which will secure thesuccess of the purchase.The procedure itself is rather complex, and it is highly recommended to receive professional assistance on the legislation in the field and the steps one must follow whenbuying a property in Italy.
Quick Facts
Can foreigners buy properties in Italy? (YES/NO)
Yes
Types of properties you can purchase in Italy
– houses,
– commercial and residential properties,
– land plots
Institution in charge of property registration
Italian Land Registry
Real estate due diligence offered by our property lawyers in Italy
We can verify the property you want to purchase to see if there are any legal problems.
Documents for buying a property in Italy
– sale-purchase agreement,
– title deed,
– cadastral documents,
– building permits,
– energy certificate
How can our Italian property lawyers help you with property purchase ?
– verification of documents,
– drafting contracts,
– representation in front of notary
Expert advice for price property in Italy (YES/NO)
Yes
Verification of properties with local institutions or municipalities (YES/NO)
Yes
Inspection trip before property purchase (YES/NO)
Yes
Pre-sale agreement for real estate in Italy (YES/NO)
Yes
Representation in case of litigation before the acquisition of a property (YES/NO)
Yes
Legal advice for commercial property purchase (YES/NO)
Yes
Support for payment transfer of property in Italy (YES/NO)
Yes
Property purchase for citizenship in Italy
Golden Visa for Italy
We offer free case evaluation
Yes, provided by our property lawyers in Italy.
Table of Contents
Buying real estate in Italy
In bothresidential and commercial real estate purchasesthere are several steps to be followed. The first one isfinding the suitable propertyand having it inspected. It is also advisable to have theItalian property evaluatedin order to see if the price is correct. Among the aspects that need to be taken into consideration whenbuying a property in Italyare:
the property is not subject to any encumbrances or third party rights;
the property is registered with the Land Register;
all planning permits are in placeas well as and other necessary documents;
the property is suitable for certain activities, in the case ofcommercial real estate purchases.
Once the buyer has decided on a certainproperty, a contract will be drafted and a deposit must also be paid before thepurchase is completed. If you need assistance with the sale-purchase agreement you can request theservices of ourItalian real estate lawyers. You can also discover the video presentation we have prepared for this topic:
It should be noted that the preferences of the persons who want tobuy a home in Italyrelate to thedetached properties that also provide an outdoor space, as presented by theBank of Italy.
Below,our Italian real estate lawyershave gathered some of thehighlights of the property marketin this country, referring to the current prices at whichproperties are soldin various Italian cities and regions, the top foreign nationals interested inpurchasing propertieshere and other relevant matters:
in theItalian Housing Market Survey, carried out by the National Bank between 31 August – 20 September 2020,1,403 real estate agentsreported a decline in the prices ofItalian properties;
in September 2020, inRome, the highest price per square meter was in the city’s center (Centro Storico), where a square meter was valued at EUR 7,474;
the lowest price available whenbuying a property in Italyin the city ofRomewas inAppio Latino, where apropertywas valued at EUR 3,927 per square meter;
the top foreign nationals interested inpurchasing a propertywere represented by Germans, British and Dutch citizens, who made numerous enquiries starting with 18th of May 2020, whenproperty viewingswere allowed inItaly, amid the Covid-19 restrictions.
What are the basic documents for buying a property in Italy?
Those who want topurchase an Italian propertyhave to take into consideration numerous aspects. Besides the entities involved in the transaction (the buyer, the seller, the notary and theItalian real estate lawyers), one has to verify if theprice of the propertyis established in accordance with the realvalue of the property, but also the taxes one must pay during the transaction, as well as those that must be paid on a yearly basis by theowner of an Italian property.
Ourproperty lawyer in Italycan help you with legal advice on all these aspects and can present the restrictions that can appear whenbuying a propertyhere, based on the nationality of the foreigner (EU nationals benefit from an easy access topurchasing a propertyhere).
The procedure itself requires the participation of a notary public, where the seller has to present the following documents: theownership title of the house, thefloor plan of the house, the cadastral document, the energy certificate, the building permits (necessary for properties that were built after 1967) and the identification documents of both the seller and the buyer. Information on this topic you can also discover in the following infographic:
Who can buy land in Italy?
The right ofbuying landorbuying a property in Italyis available for most of the categories of foreigners, which are divided based on the nationality.Italydoes not impose restrictions onowning a propertyas a foreigner, but the manner in which one canpurchase propertieshere can vary based on the nationality of the foreigner.
For example, persons who are citizens of the European Union (EU) or of the European Economic Area (EEA) canbuy a home in Italyfollowing the same procedures addressed toItalian citizens. The same right is granted to persons who are stateless or to those who are refugees, but the possibility ofpurchasing a propertycan take place only if these categories of persons havelived in Italyfor at least three years.Ourproperty lawyer in Italycan offer more information on the process addressed to this category of possible buyers.
For other categories of citizens,Italyallows theright to buy a homeif there is an international treaty which agreed on a reciprocity condition between theItalian institutionsand the institutions of the other country. This means that if a foreigner who is not a EU or a EEA citizen wants tobuy a home in Italy, he or she will be able to do so as long as an international treaty stipulates that anItalian citizenis allowed topurchase a propertyin the country where the foreigner is a national.
In the case in which there isn’t a reciprocity condition, then the foreigner will not be able tobuya house in Italy, as theItalian notariesare not entitled todraft and sign property contractswith persons who are from non-reciprocity countries. There are certain exemptions from this rule and you can address to ourItalian real estate lawyersfor in-depth information regarding this matter.
Steps to complete the purchase of an Italian property
The last steps to complete thepurchase of a property in Italyare:signing the title deed,registering the propertywith theItalian Land Registrywith the buyer as a new owner and applying for a tax code. The title deed must be signed by both seller and buyer before apublic notary in Italy.
Once the document is signed, the new owner will register the propertywith theLand Registerand pay all the required fees related to the procedure. The buyer must also obtain anItalian tax codein order to be able to pay the taxes related toowning a propertyin this country.
Purchasing a house might seem a simple transaction for some, however, there are a few tips to consider before any acquisition. It is recommended to see the property before purchase and solicit information about the documents of the house. It is best to meet the seller in person and see if he/she is the real owner of the property. Then, with the help of ourItalian real estate lawyers, you can decide on the purchase. Here are other interesting aspects that you should consider if you want tobuy a property in Italy:
If you want to use the services of a real estate agency, make sure they have an official website and correct information about the properties displayed.
If you decided on a specific property, hire the services of aproperty lawyer in Italywho can help you with the required verifications, such as real estate due diligence.
You can also ask for price verifications to see if the property selected has the right value.
Besides the property price, you need to pay attention to the taxes that must be paid at the time of transaction. This is another aspect for which you can receive legal advice from our experts.
A pre-sale agreement is required for property acquisition in Italy, alongside a small amount to be paid. These aspects are part of aproperty transaction in Italy.
How to buy a house in Italy as a foreigner
Foreigners who want tobuy a property in Italymust consider the formalities required in this process. With the help of ourproperty lawyer in Italy, one can easily purchase a home, as our expert can manage all the aspects from a legal point of view. Below are some steps to keep in mind if you want tobuy a house in Italy:
Choosing a house– The first natural step is to look for ahouse in Italy, and here you can benefit from specialist help. There are various platforms with which you can view the properties available for sale, and a real estate agent can be of use to you.
Property inspection– Real estate due diligence is the process by which you can find out a lot of information about the house you have chosen. Legal problems can also be discovered, if they exist. You can thus get an idea about the respective property before purchasing it, by contacting our property lawyer in Italy.
Drafting the contract– An important step is the preparation of the sale-purchase contract. It must include the entire history of the respective property, the name of the owner, as well as the amount proposed for sale. In this stage, you have the chance to negotiate the price of the house in question.
Making a deposit– Once the amount has been determined, you proceed to pay a sum of money from the total price of the house. This guarantees that the property will pass in your name and that it will be removed from the sale on this occasion. Our lawyers can help youbuy a house in Italyby managing the formalities from a legal point of view.
Signing the title deed– The sale-purchase contract is signed by the seller and the comparator in front of the public notary. Before signing, this document will be checked once more.
Registering the property– After signing the sale-purchase contract of the house in Italy, registration with the Italian Land Registry follows. This step is important, and the new owner receives a tax code to pay the relevant fees imposed.
Owning the house in Italy– Paying thetaxesfor the newly owned property is the last step in this process. Foreigners can delegate aproperty lawyer in Italy, with a power of attorney for such a purchase, without being obliged to travel to this country.
Therefore, if you want tobuy a house in Italy as a foreigner, it is recommended to take into account the legal aspects as well as the formalities related to this type of purchase. Moreover, ourItalian real estate lawyersare at your disposal with specialized legal services.
What you need to take into account when buying a property in Italy
Although the process ofpurchasing a property in Italymay seem quite simple, there are cases in which, without specialized assistance it cannot be completed. It is better to be informed about what you have to do so that all the formalities are free of complexities. Here are some tips in this regard:
It is recommended to choose a licensed real estate agent, to ensure that you benefit from the desired services.
In terms of documents, aproperty lawyer in Italycan be of use to you. He/she can do the necessary checks, including real estate due diligence. This procedure is essential beforepurchasing a property in Italy.
You must consider checking the price of a property, to reflect the existing value on the market. Otherwise, you can change your mind and choose something else.
The registration of the purchased property with the Land Registry is mandatory, and the new owners have the obligation to pay the related taxes.
FAQ about property purchase in Italy
1. Who can buy a house in Italy?
There are no restrictions for foreigners who want to buy properties in Italy. However, the Italian authorities have the power of making some verifications of criminal records and other aspects.
2. What types of documents are necessary for property purchase in Italy?
Besides the ownership title of the property, the cadastral document, the energy certificate, the plan of the property, building permits and the identification documents are necessary for a sale and purchase transaction of a house. One of ourItalian lawyerscan offer the required support.
3. Is it necessary to have a pre-sale agreement before the final transaction of a property?
Yes, once the buyer agrees on the price of the property and wants to make the acquisition, a pre-sale agreement must be drafted. Also, a specific amount from the property price must be deposited in a bank account.
4. Is a real estate due diligence necessary before a property purchase in Italy?
Yes, most commercial real estate properties require due diligence and specific verifications that can be managed by one of our lawyers in Italy. This kind of procedure is also recommended for natural persons who want tobuy a property in Italyand need to know if there are any problems.
5. Is the property price verified before the transaction?
Yes, it is quite recommended to verify the price of a property before purchasing it. This way the future buyer can be sure that the value of the house aligns with the prices on the market. This is another aspect that can be handled from a legal point of view by our attorneys in Italy.
6. Where does the property transaction takes place?
All the property documents will be presented in front of the public notary. He or she will verify the papers and accept them before the final transaction. We remind you that you can be represented from a legal point of view by ourItalian lawyers.
7. What are the main steps for buying a property in Italy as a foreigner?
If you have a specific budget and already arranged for a property purchase, hire a lawyer for real estate due diligence, contract verifications, and representation. Once the documents are ready and the taxes paid, the property can be yours.
8. Can an Italian lawyer help me find the right property to buy in Italy?
You can request the legal advice of our Italian lawyers if you want tobuy a property in Italy. This way you have the guarantee that the property you choose does not have legal problems or is subject to hidden issues. A complete evaluation will be offered.
9. What are the best cities for buying a property in Italy?
Rome, Milan, Naples, Tuscany, Cagliari, and Sicily are only a few of the cities and regions of Italy where foreigners can buy excellent properties at affordable prices. If you need legal advice forbuying a property in Italy, feel free to get in touch with our experts.
10. How is the property registration made in Italy?
All properties must be registered with theItalian Land Registry. This means that if youpurchased a house in Italyyou need to register with this institution.
If you need information about how tobuy a propertyin Italy, do not hesitate tocontactourItalian real estate lawyers. We can also offer you legal advice if you want todivorce in Italy.
In terms of documents, a property lawyer in Italy can be of use to you. He/she can do the necessary checks, including real estate due diligence. This procedure is essential before purchasing a property in Italy.
LONG TERM SCHENGEN TOURIST VISA (V.S.U.) (5 YEARS)
Anyone wishing to make a real estate investment in Italy who does not intend to transfer residence can obtain a long term Schengen visa (5 years), if the requirements of their stay in the country do not exceed 90 days every 6 months.
Is it the time to open a bank account? A Answer: In order to complete an Italian property purchase it is not necessary to have an Italian bank account, even if you are not an Italian citizen nor an Italian resident.
Successful applicants of Italy's residence by investment program can apply for a permanent residence permit after five years of legal residence in Italy. After ten years from the initial granting of the visa, investors may apply for citizenship by naturalization.
Can I get residency in Italy if I buy a house? Purchasing real estate in Italy does not entitle foreign citizens to a residence permit in the country. But you can choose other investment options via the Italy Investor Visa program.
The buyer will also pay the Notary's fee, which amount is approximately 2,5% of the total declared value of the property, with a minimum charge of approximately €1.700.
Those who want to retire to Italy can obtain long-term residence visas which enable them to live there for more than 90 days, however, just like an ordinary residence permit, this visa has a validity of 5 years. If the visa holders decide to remain here, the permit can be renewed.
There are two avenues to permanent residency for those of us not of Italian descent. The first is a visa, obtained through the Italian consulate assigned to your area. The second is the Italian Investment Program.
Americans must have an entrance visa which should be obtained at an Italian consulate before coming to Italy, in order to remain in Italy more than three months and gain resident status. This procedure will take several weeks to complete so it is advisable to apply well in advance of the departure date.
There are no restrictions on foreigners buying property in Italy, but all property owners need to pay taxes. Italian property taxes for foreigners tend to be higher in some categories, and also vary depending on other factors such as: Whether you live in the municipality your property is located in.
The taxes for the purchase of a property include the payment of a registration tax of 9% of the cadastral value of the property, i.e. the monetary value the authorities give each property (plus a cadastral tax and a mortgage tax, both of 50 euros each).
How much money must I invest to gain permanent residency in Italy? The Italian Golden Visa – officially the Italian Investor Visa program – requires a minimum investment of €250,000 (about $273,000).
You have to apply for a residence permit for Italy regardless of the reason you want to live there, like work or study. Permesso di Soggiorno translates to “permission to stay”, because it is the document that you need to obtain in order to be allowed to stay in Italy long-term.
Is dual citizenship allowed in Italy? Yes.Dual nationality is allowed in Italy and you do not need to renounce any other citizenship during this process. If you can prove your Italian ancestry and blood ties to the country, you can apply to become an Italian citizen.
You are required to file a residency application with the Comune (local municipality) where you live. You can file the application in person or via email. Some Comune have their own specific online form to apply for Italian residency, so make sure you get the form from your Comune's website.
You can travel to Italy visa-free for a total of 90 days within a 180 day period. You'll need a visa and a residence permit if you're going to Italy for work, study, family reunification, or a simple visit of more than 90 days.
What happens if I overstay in Europe beyond the 90-day limit? Any non-EU national who stays in the Schengen area for more than 90 days (without the appropriate visa such as a long stay or residence one) will usually result in a fine, deportation, and/or re-entry ban to the Schengen area.
The cost of the Notary is borne by the buyer and is a state controlled fee for their services to oversee registering the public contract of your house purchase. The Notary costs between Euros 1500 – 3000 depending on the cost of your house.
In conclusion, Italy does tax retirement income, including US social security benefits, but there are tax treaties and agreements in place to avoid double taxation. As a retiree in Italy, you may also be subject to Italian social security contributions if you work or have income in Italy.
Con: The cost of living can get quite high in the main cities. The high cost of living is a common problem associated with living in major cities throughout Italy. Many people who are moving to the country have no idea how much it'll cost them, and they can be caught off guard by some unexpected expenses.
Italy is far less expensive than the U.S. when it comes to housing. According to April 2023 data from Numbeo.com, average rents in Italy are almost 55.3% lower than they are in the U.S. For a one-bedroom city center apartment, you can expect to pay about $718 per month in rent.
Because of Italian law at the time, you aren't seen as a citizen if you naturalized before the given date. In order to reacquire your citizenship, you will have to establish residency in Italy, and going about it is a bit of a process.
The easiest and simplest way to “move to Italy” as an American is by utilizing the Uniform Schengen Visa, which allows US citizens to stay in the Schengen Area of Europe for 90 days in a 180 day period. And United States citizens don't have to do anything extra to get this type C visa.
In general, Italians respect Americans and always welcome them as friends. They adore the curiosity of American tourists in regard to experiencing Italian culture, and they love the way that Americans enjoy their food.
Irsina in 2023 is an expat heaven of mostly retirees and American migrants living the rural Italian dream. More than 15 families from the US and Canada have bought old properties in this remote village, known for its premium wheat fields and olive groves.
US citizens do not need a visa to enter Italy for tourism or short-term visits. This is because Italy is part of the Schengen Area and the United States has an agreement with the European Union that ensures visa-free travel for Americans across all of the EU countries.
The national health service in Italy, Servizio Sanitario Nazionale (SSN), provides residents with free or low-cost healthcare that includes access to general practitioners (GPs), treatment at public hospitals, subsidised medicines, lab services, ambulance services and certain specialist care.
Foreigners who are resident in Italy are subject to the same income tax laws as Italian citizens. This means that they must pay taxes on all income earned in Italy, including employment income, self-employment income, real estate investments, capital gains, wealth tax, and inheritance and gift tax.
J.P. Morgan has operated in Europe for nearly 200 years and has a sophisticated local market presence across Europe, the Middle East and Africa (EMEA).
Yes, foreigners can open Italian bank accounts. However, you'll often be asked for a proof of address from Italy, from another EU or EEA country, or have your choices limited to specialist non-resident accounts.
Many U.S. banks provide their commercial customers with services such as bank reports on overseas buyers, assistance for letters of credit, and foreign exchange. Citi (Citigroup), JP Morgan Chase, and Bank of America, as well as numerous smaller, regional banks maintain offices in Italy.
You should not have been a resident of Italy in the last 5 tax years prior to moving to Italy. This means that you may have been a tax resident of Italy 5 years ago or more and still qualify. Finally, you must settle in a qualifying municipality.
Under this regime you pay tax at 21% on the gross rent. There is a reduced rate for “protected tenancies” i.e. contracts where the tenant has special legal rights under a protected tenancy, and so not usually applicable to short term lettings.
In instances where there is a lack of cadastral value, the wealth tax is based on the purchase cost of the property resulting or the market value in force where the real estate is located. The applicable tax rate is equal to 0.76%.
U.S. citizens may enter Italy for up to 90 days for tourist or business purposes without a visa. All non-residents are required to complete a declaration of presence (dichiarazione di presenza).
Regardless of your country of origin, you are eligible to apply for a permanent residence in the country after 5 uninterrupted years of residence in Italy. The permanent residence permit is also referred to as an EU Long Term Residence Permit.
If you have savings of at least €175,000 ($200,000) and a steady source of income from social security, a pension or investments of around €1,750 ($2,000) to €2,300 ($2,650), you can afford to retire here comfortably.
Americans who intend to stay in Italy for less than 90 days don't need to worry about visas. However, if you plan to go for an extended period, you'll have to apply for a long-stay visa. This is a crucial step because you can't apply for an Italian residence permit without this long-stay visa.
The Investor Visa allows you to reside, work, and study in Italy. You and your family can visit Schengen Area countries without a visa and stay there for up to 90 days out of 180 days. There is a special tax regime for new residents in Italy.
Do Dual Citizens Have to Pay Taxes in Italy? The short answer is that you have to pay taxes in Italy only if you are actually living there over 183 days of the year. There is a distinction between being an Italian citizen and an Italian resident, and it makes all the difference when it comes to tax liability.
In Italy, the transfer of real estate cannot be completed simply by the parties signing an agreement. They must execute a deed of transfer (the so-called 'rogito') before an Italian Notary. After they sign the deed, the legal ownership of the property is transferred to the other party.
There is no limit on US citizens buying or selling properties in Italy thanks to something called mutual agreements. These apply between Italy and foreign citizens meaning that you don't need any special documents or pay higher taxation on property when compared to citizens from within the EU.
Taxations. One of the advantages of buying a home in Italy is extremely low taxation compared to the US's tax, for example. If the home you buy is your primary residence (you live there for more than six months a year), you will pay NO PROPERTY TAXES!
If you are a non-resident private individual buying property in Italy from a private seller, you will pay up to 9% of the fiscal value as a property tax. Then there is an annual property tax that ranges from 0.4% to 0.7% of fiscal value, depending on location and property type.
A property deed is a legal document that transfers the ownership of real estate from a seller to a buyer. For a deed to be legal it must state the name of the buyer and the seller, describe the property that is being transferred, and include the signature of the party that is transferring the property.
Homeownership rates in Italy have also remained fairly consistent over the last 15 years, ranging from 72% to 75%. Older residents are most likely to own their own homes. In fact, 84% of residents aged 55 to 64 own a property, compared to just 48% of those aged 25 to 34. Property investment is also popular in Italy.
Living in Italy as a US citizen is possible if you have the right permit. There are 2 types of residence permits in Italy: 1. Permesso di Soggiorno: a temporary, renewable residence permit with varying durations of validity.
Can I obtain a home loan in Italy as an American? The short answer is yes, you can. But brace yourself for an uphill battle. Italian banks are starting to make it increasingly difficult for foreigners to obtain a mortgage, so getting all your documents in order ahead of time is a smart idea.
Living in Italy is significantly less expensive than living in the U.S. The simplest reason is that housing and health insurance costs are much lower. But it doesn't stop there.
Until the end of 2019, Italy had been one of the only countries in the European Union recording stagnation and decline in property prices. Despite the jump recorded in 2022, many years of falling or flatlining house prices have meant that overall since 2010 average prices have decreased by 9.5 percent overall.
As far as real estate prices are concerned, according to Nomisma, values are still positive but tend towards stability. If in nominal terms housing prices in 2023 will see a +1 per cent (compared to +3.1 per cent in 2022), in reality this will translate into a decline of 4.8 per cent when adjusted for inflation.
Under the new preferential tax regime, an individual would be exempt from income taxes at the normal scale on all foreign income and only pay 7%. This includes pension income, capital gains and dividends, overseas business income, rental income and Social Security.
Introduction: My name is Eusebia Nader, I am a encouraging, brainy, lively, nice, famous, healthy, clever person who loves writing and wants to share my knowledge and understanding with you.
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