Buying Property in Italy: A Guide for Foreigners

Italy, a country known for its wonderful food, wine, culture, and scenic beauty, is an enticing destination for those considering a move. Whether you have your sights set on Rome, Milan, Naples, or any other city in Italy, buying property as a foreigner comes with its own set of considerations. This guide will walk you through the most important tips and steps to make your property purchase in Italy a success.

What's the Property Market Like in Italy?

Italy's property market is relatively stable, making it an attractive option for investment. Despite the economic shocks of the coronavirus pandemic, people in Italy still view property as a safe investment. According to real estate portal Idealista, house prices in Italy increased by 1.1% in the year to February 2021, after adjusting for inflation.

Can Foreigners Buy Property in Italy?

Italy is generally seen as a country with no restrictions on foreigners buying property. UK nationals, as well as citizens of other countries with reciprocal agreements with Italy, can buy property in Italy, regardless of whether they live in the country or not.

Buying Property in Italy after Brexit

If you were living in Italy before January 1st, 2021 (the end of the Brexit transition period), you shouldn't need a non-EU national residence permit to buy property. However, you may need to provide documentation to prove your rights under the UK's Withdrawal Agreement, such as an EU residency certificate.

Can I Buy Property in Italy and Get Citizenship?

While non-residents are free to buy property in Italy, owning a home doesn't automatically entitle you to a visa or the right to reside in the country permanently. If you're interested in obtaining Italian citizenship, you'll need to explore the different visa options and apply for permanent residency through the usual routes.

What's the Approximate Cost of Different Properties in Italy?

The price of property in Italy varies greatly depending on the location and type of property. For example, you could find an apartment for as low as €16,000 in Sambuca, but prices in cities like Venice or Milan tend to be much higher. In some rare cases, there are even properties available for purchase for just 1 euro, helping to revive abandoned villages in Italy.

Here's a snapshot of average property prices in popular Italian cities:

Best Places to Buy Property in Italy

Finding the perfect place to buy property in Italy depends on your budget, lifestyle, and preferences. Some popular options for foreigners include:

• Costa Smeralda in Sardinia: Known for its beautiful coastline and luxurious reputation.
• Italian Lakes, Lombardy: A breathtaking region with stunning lakes, offering plenty of outdoor activities.
• Tuscany, Umbria, and Abruzzo: Charming villages and countryside living.
• Catania, Sicily: An affordable option for those seeking farmhouses or coastal homes.

How Can I Find a Property in Italy?

When it comes to finding a property in Italy, it's advisable to use a real estate agent. Most buyers work with an agent or lawyer in their home country who collaborates with an Italian real estate agent. Additionally, there are reputable property websites in Italy where you can browse available options:

• Italian Houses For Sale
• Toscana Houses
• Lionard
• Viviun
• Romolini

Pitfalls to Avoid When Buying Property in Italy

One of the main risks of buying property in any foreign country is falling victim to scams. To protect yourself, remember these tips:

1. Never buy a property unseen: Some properties may look appealing online but could have hidden issues. Always visit in person and conduct a thorough evaluation.
2. Verify the seller's rights: Confirm that the person selling the property has the legal right to do so. Check titles and registrations before transferring any money.
3. Meet the seller in person: Avoid working with sellers who refuse to meet face-to-face and insist on handling transactions through mail. Meeting in person ensures transparency and reduces the risk of scams.

While it might be impossible to learn about every scam out there, trusting your instincts and staying cautious can prevent potential problems.

Choosing the Right Property in Italy

Consider the following factors when choosing a property in Italy:

Property Types

Italy offers a range of property types based on the region. Detached houses and villas are common choices for those relocating to the country, while cities like Rome and Milan often feature smaller apartments.

Condition of the Property

Restoration projects are common in Italy, and there are no specific requirements for property sales. However, it's advisable to hire a surveyor to evaluate the property's condition, especially if you're looking for a move-in ready home.

Other Considerations

Older Italian homes may have plumbing and electrical issues, as well as the presence of asbestos and lead. Pay attention to these factors during property inspections as they can be costly to address later on.

Steps to Buying Property in Italy as a Foreigner

While the steps involved in buying property are similar everywhere, here is a guide to help you navigate the Italian property market:

1. Look into mortgage options to understand your borrowing capacity.
2. Engage a realtor or agent who can assist you throughout the process.
3. Choose a property and make an offer.
4. Draft a sale contract with the help of an Italian notary.
5. Sign the contract.
6. Fulfill your tax obligations.
7. Complete the purchase, which typically takes around six months.

Legal Requirements for Buying Property in Italy

The legal requirements for purchasing property in Italy are relatively straightforward. While a translator is not mandatory, it's advisable to have one if you are not fluent in Italian. Engaging a notary is essential for handling contracts.

Up-front fees on the purchase include a 1% deposit of the purchase price to demonstrate good faith. The deposit increases to 10-20% of the sale price once the preliminary contract (compromesso) is signed. If the buyer decides not to proceed with the purchase, the deposit is typically forfeited. However, if the seller backs out, they may be liable to pay double the deposit amount as compensation.

Getting a Bank Loan or Mortgage

Most Italian banks are willing to provide mortgages to non-residents, subject to specific requirements. However, banks in Italy may request extensive documentation to assess your creditworthiness. Be prepared to provide your passport, proof of address, bank statements, and employment contracts. It's recommended to have your documents translated into Italian and certified.

The mortgage process in Italy typically involves the following steps:

1. Review of personal finances and property information by the bank.
2. Submission of an informal mortgage application.
3. Appointment of a surveyor to inspect the property.
4. Issuance of a title check report by the notary, confirming property rights and ownership transfer.
5. Formal mortgage approval from the bank.
6. Agreement on a signing date and release of funds.

Taxes and Fees for Property Purchase in Italy

When budgeting for your property purchase in Italy, it's essential to consider various taxes and fees, including:

• Registration Tax: 3-7% of the property value.
• VAT: 4-22% (applies to new properties).
• Land Registry Tax: 1% of the property value.
• Notary fees: 1% to 2.5% of the property value.
• Translator fees: Approximately €250 to €350.
• Estate agent fees: 1.50% to 4%, plus 22% VAT.
• Legal fees: 1% to 2%, plus 22% VAT.

Secure Money Transfers with Wise

When making payments for your property purchase from abroad, using a secure and cost-effective method is crucial. Wise offers a multi-currency account that allows you to send money from the UK to Italy with low fees and the fair mid-market exchange rate. It's a reliable alternative to traditional banks, ensuring transparency and cost savings.

With a Wise multi-currency account, you can make payments for deposits, estate agent fees, and other transactional needs quickly and easily. The recipient doesn't need a Wise account; an ordinary bank account is sufficient. Wise employs advanced security measures to safeguard your money during transfers, and you can conveniently track your payments online or via the mobile app.

Join Wise today to simplify your international property transactions.

In conclusion, buying property in Italy as a foreigner can be an exciting and rewarding experience. By following the necessary steps, understanding legal requirements, and considering the costs involved, you can make an informed decision and achieve your dream of owning property in beautiful Italy.

Sources:

1. Statista - share of homeowners in Italy
2. Global Property Guide - Italy's housing market
3. Gov.uk - living in Italy
4. Italian Real Estate Lawyers - do you get residency if you buy property in Italy
5. Idealista.it - property for sale in Sambuca
6. Idealista.it - 1 euro homes in Italy
7. Numbeo - property prices in Italian cities
8. Numbeo - property prices in Italian cities
9. Property Guides - buying property in Italy
10. Studio Legale Metta - Italian mortgage for non-Italians
11. Property Guides - buying property in Italy; transaction costs
12. Eligibility is subject to verification of customers' identity
13. Wise - terms and conditions & pricing

Sources checked on 2-July-2021.