​How To Buy Real Estate In Italy As A Foreigner

 

The Italian dream is never just about the house, since there is an abundance of choice.

It's about the process itself. A chaotic, negatively impacted purchasing process can have lasting effects for years and turn even the most dreamlike property into a nightmare.

 

So, what should I pay attention to? What do I need to know, and how does such a process generally work?​ 

In the following paragraphs, we outline a typical purchasing process and answer some general questions for you. Let's start.

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Who Can Actually Buy Property In Italy?

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There are no restrictions on foreign ownership in Italy for EU and EEA citizens. For people from 3rd countries, an international reciprocity agreement between the origin country and Italy needs to be in place to be able to purchase property. This means that Italian citizens must also be allowed to purchase property in that 3rd country. 

 

​With So Many Properties, How Do I Choose Where To Buy?

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Italy has countless villages, towns and cities that are remarkable in their beauty. Location becomes more and more important as you get closer to feeling that you are ready to make an offer. But how do you find the right region? Our location tool can help with that. Alternatively, you can try our lifestyle guide and check out several regions.

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Do The Research And Get An Overview

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Assuming you have found the region where your dream property should be located, we recommend that you get an overview of the local market in two ways. Check listings online on the major real estate platforms. Develop a sense of quality, prices, risks, and local conditions. At the same time, you should also contact local real estate agents. In this step, you will quickly have both positive and negative experiences. You should aim to identify two to three trusted agents and discuss your requirements and search with them. 

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We have created a professional requirements profile for you, which you can customize with your preferences and share with the real estate agents of your choice.

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Let's assume that you have found your dream property—either online yourself or through a real estate agent.

The next step is viewing the property. Check out our guide that provides you with professional tips for planning and the actual visit. It may help you to structure these exciting days for you.

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Before You Commit: The Crucial Step Most Buyers Overlook In Italy

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After the viewing, you can hardly wait to make an offer! And this is where it gets interesting. Because at this point, you are about to legally commit to the property without having conducted a detailed inspection.

Many foreign buyers initiate this step too early. This is because Italian law differs significantly from many legal systems, such as those in the USA, UK, Germany, etc.

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Binding Purchase Agreement - Promessa unilaterale d’acquisto

So, I can't just make an offer and see if it works out?

 

Better not, because often a real estate agent will present a purchase offer to a buyer. The offer is pre-written,

and once signed, it automatically creates a binding contract. The binding purchase agreement is known in Italian as "Promessa unilaterale d’acquisto" and is quite common in Italy.

The purchase offer already describes the property, and no changes can be made afterward. Essentially, it’s "sold as described," the contract is legally valid, and suddenly you as the interested party becomes the owner.

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So, What Should I Do? Secure The Property With A Preliminary Contract

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​So, you're not making an offer, but you're willing to enter into a preliminary contract because you're very interested and generally want to purchase the property.

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The preliminary contract (preliminare or compromesso) is more than just a simple reservation of the property;

it comes with rights and obligations.

 

The preliminary contract (compromesso) is signed before the actual final purchase contract and is a legally binding document. It outlines the basic terms of the property purchase between the buyer and the seller. This typically includes the purchase price, payment terms, and the timeline for completing the purchase.

Additionally, it includes warranties and obligations that the seller must fulfill before the final purchase.

 

Upon signing the preliminary contract, a deposit of around 10%-30% of the purchase price is usually due.​​

Both parties are obligated to complete the purchase according to the established conditions, unless serious issues arise during the inspection phase. Important!! It is crucial to include so-called "buyer protection clauses" (e.g., regarding the often lacking cadastral conformity of the property) in the preliminary contract; if this is not addressed now, you will not have any claim to it at the time of notarization.

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In the event that you decide not to pursue the purchase, the compromesso will be forfeited and the seller will keep the deposit. On the other hand, if the seller backs out, he will be liable to pay double the amount you have given as a deposit.

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Note: A notarial certification is not strictly required for the preliminary contract. However, we recommend visiting a notary if you have doubts, or you feel insecure, just to ensure you're properly protected. Additionally, the preliminary contract should be registered with the Italian tax office (Agenzia delle Entrate). To avoid any unpleasant surprises, it is important that the preliminary contract is drafted or reviewed by a lawyer.

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​Do Your Homework And Get Help – Due Diligence

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​In this step of the buying process, the property and all its legal connections should be examined in detail.

We have created a document that provides an overview of the points that technicians and lawyers should definitely check before you agree to sign the final purchase contract.

 

Some of the points to be checked are listed below:

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• Is it known if the property has structural defects?

• Are there any hidden liabilities?

• Are there easements in favor of third parties registered?

• Is the property correctly registered with the land registry and listed under the seller's name?

• What are the administrative and tax-related circumstances?

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We know that the process seems very complex, and you have to consider many things to avoid lasting mistakes.

 

Therefore, we recommend that you seek help at the beginning of the process. Early support combined with your acquired knowledge will ensure a safer process. In our step-by-step guide, we have created instructions that show you all the necessary steps in a timeline, provide tips on working with agents, lawyers, and technicians, and include various pieces of advice from professionals.

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Actual Purchase Of The Property In Italy

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Was all of this too much for you, or do you have the strength for the final and decisive step?

 

After a successful due diligence and a positive assessment of the contract and the property by a lawyer and a geometra (technician/engineer), a date for the actual purchase can finally be scheduled.

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The contract can only be finalized at the notary's office! Those who rely on a lawyer can sit back

and relax, as the majority of the work involved in a property transfer is handled by the lawyer and notary.

These two professionals also take care of the legal checks and the form of the contract.

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The notary ensures that the transfer of ownership is legally valid and that all resulting obligations are fulfilled. These include registering the property in the land registry and ensuring that taxes are declared and paid on time.

 

To proceed with the notary process and sign the necessary documents, both the buyer and seller must be present at the notary's office. However, the so-called "notarial certification transaction" – known in Italian as the Rogito – can be handled by an authorized representative of the seller.

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The notary drafts the purchase contract and reads it aloud in the presence of both parties.

Every single clause must be read out! Those who do not have sufficient knowledge of Italian should bring a translator or rely on a lawyer who speaks Italian. This is crucial because the official language used for legal documents is Italian.

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In Italy, there is free choice in selecting a lawyer and notary, meaning that real estate transactions can be handled in Tuscany even if the property itself is located in Calabria or Sicily.

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Signature And Transfer Of Ownership

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Once the final and read purchase contract is acceptable to both parties the moment has finally arrived.

You sign, and with the payment of the remaining purchase amount, you become the owner of your dream property in Italy. Congratulations! 

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​​What Does It All Cost? Buying Real Estate In Italy And Its Costs

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The cost question should be clarified early on, as the answer determines the entire course of action.

To avoid unexpected costs, it is advisable to request a cost estimate. In Italy, this is called a "Preventivo" and should be provided by all involved parties.

 

The real estate agent, technician (geometra), notary, and lawyer should give a clear statement about their fees in advance so that the potential buyer can plan accordingly. Having a transparent overview of all costs and fees is essential!

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The calculations are generally based on the selling price or the value registered with the land registry (Catasto). The latter is usually lower than the actual purchase price. Important: If the cadastral value is to be used as the basis for tax calculations, this must be explicitly stated in the notarial deed.

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Golden Rule

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The higher the purchase price of the property, the higher the additional costs. This also applies to the fees charged by the real estate agent, which typically range between 2% and 4% of the purchase price, plus VAT.

As a result, the total costs increase as the property price rises.

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Additionally, buyers must consider taxes, including cadastral, mortgage, and registration fees.

The Italian government collects these as acquisition taxes, which must be paid immediately after the purchase.

 

Typically, the notary handles the payment of these fees along with their own compensation.

It is difficult to specify exact costs, as they depend on the individual purchase price. However, in general:

• Cadastral tax is usually 9% of the cadastral value for properties intended for residential use. This tax is required for registering the ownership transfer.

• Mortgage tax can be a fixed fee of €50 or calculated as 3% of the property value. If the percentage-based option is chosen, other tax components may be reduced.

 

Before deciding, all possible options should be explored to minimize the tax burden. In some cases, tax reductions may be available, but these must be assessed individually.

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​​​​​​​​​​The Biggest Challenge - The Elephant In The Room

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For many, a property purchase in their home country is a complex undertaking, often representing the most significant investment of their lives. So many documents have to be checked, the notarial certification must be available and the entry in the land register regarding the change of ownership must be commissioned.

 

It becomes even more difficult if buyers do not know the exact legal situation and also do not have sufficient language skills. 

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