Is Italy really selling homes for 1 euro? What is the catch for 1 euro homes in Italy?Buying a house for 1 euro sounds like a very inviting proposition, but it is important to know that buying a house for 1 euro in Italy also entails some hidden costs. So what is the real cost of 1 euro homes? First of all, one has to consider that properties sold in Italy for just 1 euro are in most cases unsafe and dilapidated, and consequently one has to incur expenses to renovate the building. Houses sold at 1 euro are usually donated by their owners to municipalities, which, thanks to a public procedure, are sold for the symbolic sum of 1 euro. So, if you're thinking of buying a 1 euro house in Italy, these are all the hidden costs you should be aware of, as well as some tips on how to avoid even more additional costs.
- The hidden costs of 1 euro houses in Italy
- How to avoid additional costs when buying a 1 euro house
- 1 euro houses: commitments the buyer must guarantee
- 1 euro houses in Italy FAQs
The hidden costs of 1 euro houses in Italy
What is the real cost of 1 euro homes in Italy? Does a house bought for 1 euro in Italy really only cost 1 euro? After buying one of these houses at a very low price in Italy, it is essential to carry out a renovation on the property, and the buyer is required to pay certain fixed costs, which do not depend on the size or condition of the house bought. In addition, there are fees to be paid that vary from one town to another. The main costs relate to:
- Property taxes: once you become the owner, you have to pay the statutory property taxes, regardless of the condition of the house. In addition, for those who already own a house in Italy, the new building is considered a second home, so additional taxes are paid;
- The renovation plan;
- Notary costs: the services of notaries, accountants and lawyers have to be paid, as they deal with the necessary documentation to be submitted, such as the registration of residence and similar procedures. These costs could reach 1,000 euros, even before you have actually bought your house;
Finally, variable costs have to be considered, such as: the actual cost of renovation, the cost of craftsmanship and finally the cost of appliances and furnishings. Therefore, it's very important to be aware that these are dilapidated or unsafe properties, and that they require major renovations.
It must be remembered that in Italy taxes are levied on housing, so the owner is obliged to pay contributions on the property purchased, regardless of whether it is a derelict or luxury home. In addition, for those who already own a first home, the new one is considered a 'second' home and once again, further taxes have to be settled, as mentioned.
A further cost that is often overlooked is the work done by accountants and lawyers, who take care of the relevant documentation, registration of residence and similar processes. On top of this, if you're a foreigner and want to buy a 1 euro house in Italy, you will usually have to bear a significant cost for commercial or legal services, which can be even more than 1,000 euros.
How to avoid additional costs when buying a 1 euro house
Before buying a 1 euro house in Italy, it is necessary to be aware that you will have to pay the aforementioned property taxes and incur notary fees, accounting costs and renovation costs. It is also advisable to invest funds in professional advice before buying to avoid unnecessary expenses: business, legal or building advice can be useful depending on the type of house being considered.
Visiting the location where you are interested in buying a house may help, as you becomes aware of the area and the people who live there, and this also avoids investing in projects that may later come as a financial surprise.
1 euro houses: commitments the buyer must guarantee
The buyer who buys a property as part of the 1 euro home initiative must guarantee certain commitments, which include the following:
- In some cases, a 5,000 euro security deposit has to be paid. With this money, the Municipality where the property istakes out an insurance policywith a duration of three years, which is subsequently reimbursed on expiry, this procedure serves to guarantee the security of the purchase by the buyer.
- The buyer must carry out a renovation and revaluation project for the building within 356 days of purchase;
- The buyer has to pay the notary fees for registration and the title deeds;
- Finally, there is a period oftwo months to begin the renovation work once the new owner has obtained the permits.
In Italy, there are many villages that require buyers to set aside a deposit of up to 5,000 euros, as explained above, but there are also several exceptions such as the village of Cinquefrondi in Calabria, which requires an insurance policy of only 250 euros per year until the renovation work is completed. Conversely if the new owner does not fulfil their obligations, they have to pay a fine of around 20,000 euros. Or Laurenzana, a village located in Basilicata, requires no security deposit and if the renovation is not carried out on time, the property is returned to the original owner.
1 euro houses in Italy FAQs
People frequently ask: "How much does it cost to renovate a 1 euro house?" To renovate a house bought for 1 euro requires at least 20,000 euro per house, taking into account the guarantee, the costs of professionals and renovation work. For an example of a 1 euro house that has been renovated, check out this property, bought for 1 euro and transformed into a charming Italian residence or holiday home.
