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Main Real estate A guide to purchasing real estate in Italy for non-nationals

A guide to purchasing real estate in Italy for non-nationals

7 July 2025 22:15
Houses in Italy. Photo: Freepik
Kateryna Balaeva
editor

Despite the economic uncertainty in Europe, Italy continues to attract foreign buyers. The country's beauty, architecture, cuisine, climate, and relatively affordable real estate in many regions are key reasons for this.

According to Delo.ua, the Italian real estate market is expected to show stable growth in 2025. According to ISTAT, the Italian National Institute of Statistics, prices for secondary housing increased by 2.8% in 2024, while prices for new buildings increased by 8.8%.

Milan (€4,300 per square meter, +6.9%) and Rome (€3,800 per square meter, +6%) remain the most expensive cities. More affordable options can be found in less popular regions, such as Sicily, where prices are €1,600 per square meter. In Calabria, for instance, two-bedroom apartments spanning 60 square meters start at 60,000 euros.

Demand is also shifting toward energy-efficient housing and logistics facilities, reflecting global trends toward sustainable development. New buildings with green technologies are appreciating faster due to government subsidies and increased buyer interest.

How can a foreigner buy real estate in Italy?

The process is clearly structured and does not require special permits, but it does require careful preparation. Here is a step-by-step guide:

  1. Obtaining a codice fiscale: this Italian tax code is required for all financial transactions. You can obtain it at the Italian consulate or the local tax office.
  2. Opening a bank account: foreigners need an Italian bank account to pay for transactions and taxes.
  3. Legal verification of the property: the notary checks the property's history for debts or encumbrances.
  4. A preliminary agreement (compromesso): the buyer pays a deposit (5-10% of the purchase price) and signs a preliminary agreement that sets out the terms and conditions.
  5. The main contract (rogito) is the final step: a notary finalizes the transaction by registering the ownership. The entire process can take up to four months.

Buying real estate does not entitle you to a residence permit or citizenship. However, it can be used as grounds for obtaining a visa under certain conditions, such as when starting a business.

Mortgages for foreigners

Foreigners can get a mortgage, but the conditions are stricter, including maximum rates of 3-4% and shorter terms of up to 15–20 years. The bank will require a preliminary purchase agreement, a certificate of income and credit history, and a real estate appraisal. The appraisal costs 270–550 euros.

Real estate insurance costs EUR 150-500 annually, and notary fees cost EUR 4,000-8,000.

Taxes and expenses: what to expect

When buying real estate in Italy, it is important to take into account the various taxes and fees that will need to be paid:

  1. Registration Tax (Imposta di Registro): 2% of the cadastral value for the primary residence (prima casa), and 9% for a second or investment property.
  2. VAT (IVA) for new buildings: 4% for the primary residence, 10% for a second home, and 22% for luxury properties.
  3. Cadastral and mortgage fees: €50 for private transactions or €200 for new buildings.
  4. Notary services: 1-2.5% of the transaction value.
  5. Real estate commission is 3% plus VAT and is usually paid by both parties.
  6. Other costs include technical and registration fees, which range from 200 to 400 euros.

Generally, additional costs amount to 7-12% of a property's value. Owning real estate also requires paying annual taxes: these include IMU (0.4-0.7% of the cadastral value), TASI (a municipal tax), and TARI (a garbage collection fee). There are benefits that reduce the tax burden for the first home.

Is investing in housing a trend or a need?

Nomisma predicts that approximately 776,000 housing transactions will be completed in Italy in 2025. This figure will increase to 782,000 in 2026-2027. This indicates steady interest in housing, especially from foreigners.

In addition to the traditional secondary housing market, demand is increasing for:

  1. New buildings with energy-efficient certificates.
  2. Short-term rental properties.
  3. Housing in logistics and port areas.

The country's average price growth is forecast at 1.4% in 2025 and 1.5% over the next two years.

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