Property for sale in Italy

Property Prices in Italy

Real estate prices in Italy vary depending on the region: property in the south of the country is more affordable than in its north. For example, a one-bedroom apartment in Liguria costs about 350-400 thousand euros, while in Calabria its cost can be 65-100 thousand euros. The most expensive apartments are located in Rome and Milan, their average cost is 5.5 thousand euros per square meter. Resort towns by the sea offer more affordable housing. For example, real estate in the city of Rimini in the Emilia-Romagna region costs 2.6 thousand euros per square meter.

Learn more about the prospects of the Italian real estate market in our article

How to Buy Property in Italy

• Select a property.

• Obtain a tax identification number (codice fiscale). It is an analogue of a TIN that will allow you to open a bank account and purchase real estate.

• Open a bank account. The buyer must open an account in an Italian bank by providing their TIN and passport.

• Make an offer (compromesso, proposta d’acquisto, or riserva-offerta). In order to do this, the buyer must pay a fee totaling 1% of the purchase price or a fixed amount such as 1 thousand euros.

• Sign a reservation offer (proposta irrevocabile d’acquisto). The reservation offer protects the buyer from the seller’s dishonest behavior and makes it impossible to close the deal once the price has been set. After that, the buyer needs to make a payment (caparra) amounting to 10% of the purchase price.

• Sign a preliminary sales contract. The document contains detailed information about the property, the payment terms, and the guarantee for the mortgage approval.

• Sign a final sales contract (contratto notarile di compravendita or atto notarile). This is the stage at which the buyer has to pay the remaining amount. The buyer and the seller sign the final sales contract in front of a notary 1-3 months after the preliminary contract has been signed.

• Register the contract (conservatoria dei registri immobiliari). After both parties sign the contract, it needs to be recorded in the state department of real estate registry.

• Get a transfer certificate. The buyer must go to the city council and declare their ownership within 24 hours of signing the contract.

Learn more about the process of buying and registering property in Italy in our article

Mortgage in Italy for Foreign Citizens

Italian banks impose more stringent requirements on non-residents of the country regarding the assessment of the mortgaged property:

• the maximum loan-to-value ratio is 60%;
• the minimum loan amount is 40-50 thousand euros;
• the average fixed mortgage rate is 3.5% per annum;
• the average floating mortgage rate is 2.9% per annum + the ECB rate;
• the loan term ranges from 5 to 20 years.

Learn more about mortgage conditions and requirements for borrowers in our article

Obtaining Italian Residency by Investment

A residence permit in Italy is issued for 2 years and can be extended for another 3 years if the investment is maintained. Investors do not have to reside in the country permanently, but they cannot leave Italy for more than a year.

Investment types:

• 250 thousand euros investment in innovative Italian start-ups;
• 500 thousand euros investment into the assets of Italian companies;
• 2 million euros investment in Italian government bonds;
• 1 million euros investment for charity to Italian social projects.

All investments should be made for at least 24 months.

Learn more about obtaining a residence permit, permanent residence, and Italian citizenship in our article

Real Estate Taxes in Italy

Buyers pay a value-added tax of 4% when buying a primary property for permanent residence and 10% when buying holiday homes. For premium-class secondary housing, VAT is 22%.

If the property is pre-owned, then the tax is 2% for primary residences and 9% for second homes.

In Italy, there is a unified communal real estate tax whose total rate does not exceed 10.6%. There is also a capital gains tax of 20%, but the buyer only pays it if the property has been in their possession for more than 5 years.

Find out more information about taxation in Italy in our article

Maintenance of Italian Property

Utilities, insurance, and VAT in Italy cost 1-3% per year of the value of the property. It costs 200-5000 euros a year to pay utility bills and living in an apartment, while living in a house or villa with a pool will cost you 1200-6000 euros, depending on the size of the property and time of use. Payments to the insurance company amount to 1-2% of the property value per year.

Learn more about utility bills and other expenses in our article

Features of Education in Italy

Children from the age of 3 attend state kindergartens, which are free for both citizens of the country and foreign nationals. Upon reaching the age of 6, they begin their compulsory education in primary school. These schools can be either public or private. After completing primary education, children at the age of 11 automatically proceed to secondary education without passing exams. The next step after completing 12 years of schooling is getting a higher education. In order to enter a university in Italy after receiving an education abroad, students must complete a year of study at a local university or a free school.

Learn more about university application requirements for foreign nationals in our article