How To Buy a House in Italy : FAQ, Documents And Tips

With a rich history, vibrant culture, delectable food and wine, and a charming Mediterranean climate, Italy offers something for everyone. Many people around the world dream of moving to Italy, whether it’s for a vacation home in Venice or a family residence in Florence.

Before relocating to Trieste, Rome, Naples, or anywhere in between, consult this guide: we will discuss the process of purchasing a home in Italy as a foreigner and how to find properties for sale in the country.

Is it Possible for a Foreigner to Buy a House in Italy?

Yes, the majority of foreign citizens can purchase a home in Italy, although non-residents from specific countries may face certain restrictions.

EU citizens have the freedom to buy property in Italy. The same applies to citizens from countries that have bilateral agreements with Italy concerning property purchases.

In cases where no agreement exists, Italy applies the reciprocity rule to permit foreign acquisitions.

According to the reciprocity rule, if an Italian is allowed to purchase property in your country based on its regulations regarding foreign property ownership, then you can buy property in Italy.

Citizens from the US, UK, and China, among others, face no restrictions when purchasing a home in Italy.

For Swiss nationals not residing in Italy, certain restrictions apply, similar to the limitations placed on Italian citizens buying property in Switzerland. Non-resident Brazilian citizens face restrictions on acquiring rural properties.

However, if you become a legal resident in Italy before buying a property, no restrictions apply.

What factors should you consider before purchasing property in Italy?

When considering a property purchase in Italy, it’s important to address both minor details and big picture topics, such as your preferred location and property type.

Begin your property search by asking yourself five key questions to help guide your decision-making process.

1. What is your purpose for buying? Clarify your reasons for buying property in Italy. Are you seeking better weather, a holiday home for family gatherings, a rental investment, or a guest house business? Or perhaps you simply want to experience living abroad without regrets later in life?
2. How will you use the property? Consider your wants and needs for your Italian home, as they will influence your choice of location and property type. Whether you desire a nearby airport for weekend visits, a low-maintenance property for investment purposes, or a property in a tourist-friendly region, your preferences will guide your search.
3. What are your property requirements? Determine your non-negotiable property features to help focus your search and assist your real estate agent. Consider factors such as the number of bedrooms and bathrooms, proximity to a beach or pool, architectural style, and outdoor spaces like terraces or gardens.
4. What are your property deal-breakers? Identify the aspects you wish to avoid in a potential property to save time and streamline your search. Consider factors such as garden maintenance, proximity to tourist resorts, the presence of an expat community, and accessibility to public transport.
5. What is your budget? Establish a realistic budget to avoid disappointment during your property search in Italy. Keep in mind that the exchange rate you receive may differ from the interbank rate, so allow for fluctuations in your budget. Familiarize yourself with the market by reading finance guides and property buyer’s guides to make informed decisions.

How to get your Codice Fiscale and Opening an Italian Bank Account

To buy property in Italy or open an Italian bank account, you’ll need a Codice Fiscale. This number is issued by the Agenzia della Entrate (Italian Revenue Agency) under the Ministry of Economy and Finance of Italy. To apply for a codice fiscale, complete a form and present your passport.

An Italian bank account may be necessary for your property purchase, as notaries might require a banker’s draft from an Italian bank for the transaction. But don’t worry, we got you covered on both the Codice Fiscale and bank account with our Property Finding in Trieste service!

Choosing the Right Italian Property Finder

Moving can be a complex and stressful experience (especially for “different” markets such as the real estate in Venice), especially when dealing with language barriers and differing legal systems in Italy. To make the process smoother, consider hiring a team of specialists.

An English-speaking solicitor can help you navigate the legal aspects of buying property in Italy and address issues like inheritance. If you anticipate any pre-purchase issues, such as boundary disputes, outstanding debts, lack of planning permission, or shared ownership, engage a solicitor for early checks to resolve potential problems before spending any money. If you can’t attend the final completion at the notary’s office, consider drafting a special power of attorney allowing the solicitor to represent you.

Evaluate estate agents based on the following criteria:

1. Accreditation: Ensure the Italian estate agent is professionally accredited to avoid legal issues later. Confirm their licensing to sell property.
2. Proactivity: Research and contact potential agents before visiting Italy to view properties. Test their responsiveness and eagerness to help by sending them a brief of your property requirements and assessing their response time and relevance.
3. References and availability: Don’t hesitate to ask for references or test their accessibility by calling or emailing them. Inquire about their local area knowledge, including medical services and schools.
4. Understanding of your needs: A good agent will suggest suitable properties that meet your criteria and budget. They should be knowledgeable about the Italian property buying process and provide information about your desired area and any nearby alternatives.
5. Communication: Fluent communication with your Italian estate agent is essential to navigate the complexities of property buying. Even if you’re proficient in Italian, a bilingual agent can help you understand unfamiliar terminology and ensure you’re informed every step of the way.

The Importance of the Notary

The property buying process in Italy differs from the UK and some European countries. While it’s essential to hire a solicitor in other nations to manage your interests during a property purchase, in Italy, a notary often assumes this responsibility.

By law, property transfer contracts must be signed in the presence of a notary. As public officers appointed by the Italian Ministry of Justice, notaries act as independent third parties for both the seller and buyer. They ensure the property conveyance complies with legal requirements in the best interests of both parties, particularly the purchaser.

The Notary’s Role

Before signing the deed and transferring the property, the notary conducts several investigations. A diligent estate agent may have already performed extensive checks, but the notary still carries out their own. If everything is in order, a straightforward purchase can be completed in about six weeks.

The notary verifies that:

• The seller genuinely owns the property.
• No mortgages or foreclosures are recorded at the territorial offices of the taxation authorities.
• No constraints exist, such as the right of first refusal or covenants for assets classified as historic, artistic, or archaeological.
• The previous owner has paid all service charges.
• The cadastral plan matches the property’s actual state.
• The property complies with building and planning permissions.
• The correct taxes are applied to the purchase. The notary, trained in tax matters, may suggest tax-saving solutions, such as purchasing a primary residence. They also collect funds for taxes and duties, which are paid to the taxation authorities upon deed registration.
• Rules protecting buyers of under-construction properties have been followed.
• The property’s energy performance complies with national and regional regulations. The seller must provide the buyer with a copy of the Italian energy performance certificate (Attestato di Prestazione Energetica or APE).
• Regulations regarding money laundering, payment traceability, and real estate agency commissions have been observed.

The notary also assists with signing the preliminary contract and final deed, handling fund transfers for payment, and registering the sale with the authorities.

Thanks to our experience in the field, we already work with several notaries who are experts in buying and selling for foreigners and can assist you throughout the process.