Buying property in Italy as a foreigner: 2025 guide

Italy is a member of the European Union and part of the Eurozone, using the Euro (€) as its official currency.

It ranks as the sixth largest country in Europe and is renowned for its diverse geography, from the rolling hills of Tuscany to the stunning coastlines of the Amalfi Coast and the historic cities like Rome and Florence.

The country’s regions include:

• the Italian mainland;
• the islands of Sicily and Sardinia in the Mediterranean Sea;
• several smaller islands like Capri, Elba, and the Aeolian Islands.

Italy is divided into 20 regions and 107 provinces. Each region has its own local governance.

With a population of over 58 million people as of 2025, Italy’s blend of historical significance and modern lifestyle makes it a highly sought after location for property investment.

Population distribution across Italy's regions

Why invest in Italy?

Italy’s property market has long been attractive due to its cultural wealth, strategic location, and varied landscapes. The country is celebrated for its artistic heritage, fine cuisine, and Mediterranean lifestyle, offering a high quality of life for both residents and investors.

Italy enjoys over 7,600 kilometers of coastline (4,722 miles), much of it famous for its dramatic cliffs, picturesque villages, and beautiful beaches. The country experiences a diverse climate, with hot Mediterranean summers in the southern regions and cooler winters in the northern regions, especially near the Alps.

As one of the most visited countries in the world, Italy saw a resurgence in tourism in 2023 and 2024, welcoming approximately 65 million international tourists in 2023 (source: Bank of Italy). Tourism contributes significantly to Italy's economy, accounting for about 13% of its GDP. The rise in tourism has also spurred growth in property demand, especially in coastal areas and historical cities.

With property prices steadily recovering post-pandemic, Italy remains an appealing destination for real estate investors seeking to capitalize on tourism, lifestyle, or long-term investment opportunities.

As of 2025, the Italian real estate market is expected to stabilize following the disruptions of recent years, particularly the pandemic-fueled boom of 2021-2022.

Sales activity is normalizing, with demand still outpacing supply in certain segments, especially in major cities like Milan and Rome, though mortgage lending has declined significantly due to higher interest rates.

However, the forecast for 2025 suggests a potential easing of interest rates and a continuation of modest price increases, particularly in prime cities like Milan, where prices are expected to rise by around 6.9%, and Rome, with a 6% increase.

Energy efficiency is becoming a key focus for the market, with a significant number of older residential buildings needing renovation to meet modern energy standards. This is creating investment opportunities, especially with government incentives like the Superbonus for energy-efficient upgrades. Additionally, lifestyle changes, such as a greater demand for home offices and communal spaces, are reshaping buyer preferences.

The rental market, especially in urban areas, is also seeing rising demand, with rents increasing due to a shortage of rental properties. This trend is likely to persist, further tightening the market for renters.

Overall, while interest rates and inflation may impact affordability, particularly for first-time buyers, Italy's real estate market remains attractive to investors due to stable returns and growing demand in key cities.

Average cost of buying property in Italy in 2025

These averages provide insight into current trends in the Italian real estate market. However, prices can vary widely depending on factors like proximity to city centers, coastline, and historical landmarks. Investors should stay updated on regional trends to identify the best opportunities.

You can monitor the latest trends and property price updates for Italy on our dedicated page:

Italy offers a wide range of regions, each with its own appeal in terms of lifestyle, culture, and real estate opportunities. Here are some of the most popular areas to consider:

Popular regions for investment and living

• Tuscany: Known for its rolling hills, vineyards, and Renaissance cities like Florence and Siena. Popular among those seeking countryside villas, historic estates, or a home in one of the region's charming medieval towns.

• Lombardy: Lombardy, home to Milan, Italy’s financial hub, attracts urban professionals and investors. The area around Lake Como and Lake Garda also offers luxury waterfront villas and serene mountain retreats.

• Rome (Lazio): The capital offers a vibrant mix of ancient history and modern city living. Property options range from historic apartments in the city center to more affordable homes in the suburban areas.

• Veneto: This region, including Venice and Verona, offers a unique blend of culture and history. Buyers can choose from Venetian apartments or countryside estates near the Dolomites and Lake Garda.

• Sicily: With its affordable real estate, stunning coastlines, and rich cultural history, Sicily is a hotspot for those looking for more budget-friendly homes. Options range from beachfront properties to historic townhouses in cities like Palermo and Syracuse.

• Liguria (Italian Riviera): The Ligurian coastline, including towns like Portofino and Cinque Terre, is famous for its scenic views and luxury coastal villas, making it a favorite among international buyers and holiday home seekers.

• Piedmont: Known for its vineyards and proximity to the Alps, Piedmont is perfect for those looking for rural estates or properties in charming towns like Turin. The region also offers opportunities for wine and agritourism investments.

• Apulia (Puglia): Located in southern Italy, Apulia is known for its Trulli houses, traditional architecture, and beautiful beaches. The region has become increasingly popular with international buyers due to its affordability and picturesque landscape.

• Sardinia: Sardinia, particularly Costa Smeralda, attracts those looking for luxury living, with high-end villas and waterfront properties. The island’s pristine beaches and exclusive resorts make it a prime spot for affluent buyers.

• Umbria: Often called the "green heart of Italy," Umbria offers more affordable alternatives to neighboring Tuscany. It’s ideal for those seeking tranquility and rural properties with easy access to cultural sites like Assisi and Perugia.

Yes, non-EU citizens can purchase property in Italy, but the process varies depending on a few factors. Italy does not have strict restrictions on property ownership for foreigners, but the ease of purchase largely depends on whether there is a reciprocity agreement between Italy and the buyer's home country.

Reciprocity principle

Italy applies the reciprocity rule, which means non-EU citizens can buy property in Italy if their home country allows Italian citizens to purchase property there under similar conditions. The Italian Ministry of Foreign Affairs maintains a list of countries with reciprocal agreements.

Visa requirements

While purchasing property does not automatically grant residency or citizenship, buyers from non-EU countries may need a visa if they plan to stay in Italy for more than 90 days. However, simply owning property does not grant the right to stay indefinitely in the country.

Golden Visa program

Italy offers an Investor Visa for those investing large sums in the country, which could include real estate. This visa grants residency under certain financial thresholds but is more suitable for large-scale investors. Find more information here.

1. Obtain a Codice Fiscale (Tax Code)

The Codice Fiscale is a tax identification number required for conducting significant financial transactions in Italy, including buying property, opening a bank account, and paying taxes.

For foreign nationals, obtaining the Codice Fiscale can vary depending on residency status:

• Non-EU citizens can obtain the Codice Fiscale at the Sportello Unico per l’immigrazione (Single Desk for Immigration) when applying for entry into Italy for employment or family reunification purposes. It can also be issued by the Questura (Police Headquarters) when applying for or renewing a residence permit.
• In other cases, you can apply for the Codice Fiscale at any office of the Agenzia delle Entrate (Italian Revenue Agency) by submitting a request that includes your personal data and residence address. The card will be sent to your designated address.

The application typically requires:

• a valid passport;
• a completed application form;
• proof of reason for the request (such as property purchase).

The process is generally straightforward, and the Codice Fiscale can be issued instantly in person at the Agenzia delle Entrate.

2. Open an Italian bank account

A local bank account is essential for managing the payments related to your property purchase, including the deposit, final purchase price, taxes, and utility bills.

To open an Italian bank account, you will generally need to provide:

• your Codice Fiscale;
• passport or valid ID;
• proof of income or employment;
• potentially a local address in Italy, although some banks are more flexible with foreigners.

Many Italian banks now offer online banking services in English, making it easier to manage your finances remotely.

3. Start searching for properties

You can begin searching for properties by exploring online listings on Properstar to find options in your preferred location.

It’s recommended to hire a real estate agent (agente immobiliare) who understands the local market and can guide you through the process, especially since property laws and regulations may differ across Italy. Agents can also help negotiate prices and facilitate communication in Italian, if necessary.

4. Find the right real estate agent

The right real estate agent in Italy can offer valuable insights into the local market, assist in identifying properties that match your requirements, and guide you through the negotiation process.

Here’s how to ensure you select the best professional for your needs:

• Local expertise: Choose agents who have extensive knowledge of the area where you wish to buy. They should be familiar with local property values, market trends, and any regional regulations that could impact your purchase.
• Language skills: If you are not fluent in Italian, it's essential to find an agent who can communicate effectively in your language. They will act as a key liaison between you and other parties, such as sellers, notaries, and lawyers.
• Experience and credentials: Look for agents with a proven track record of working with foreign buyers and make sure they are registered with an official Italian real estate association, such as the Federazione Italiana Agenti Immobiliari Professionali (FIAIP) or Associazione Nazionale Agenti e Mediatori d’Affari (ANAMA).

You can search for real estate agents through reputable platforms like Properstar, which offers access to a network of vetted professionals. This ensures you can find someone with the right expertise to meet your needs and support you throughout the buying process in Italy.

5. Conduct property viewings

Visit potential properties in Italy to evaluate their condition, location, and suitability for your needs. It's important to physically inspect the property and its surroundings, as well as take note of any potential repairs or renovations that may be required.

6. Legal checks and due diligence

The Land Registry (Catasto) in Italy is essential for verifying the legal status of the property. It’s important to ensure that the property is free from any debts, encumbrances, or legal disputes, and that the seller has the right to sell the property. This can be confirmed by requesting an ispezione ipotecaria (a search of the land registry records).

Additionally, verify that the property complies with local zoning and urban planning laws (Piano Regolatore), especially for rural or new developments, where restrictions may apply.

It is highly recommended to conduct a property survey (perizia tecnica) by hiring a surveyor (geometra) or an engineer to assess the physical condition of the building. This can uncover any structural issues, problems with utilities, or land use that may affect the value or safety of the property.

7. Make an offer

With the help of your real estate agent, make an offer on the property. Once the offer is accepted, you can move on to the preliminary contract stage.

8. Sign the preliminary contract (Compromesso)

This preliminary agreement between the buyer and seller (compromesso or contratto preliminare) outlines the terms and conditions of the sale and typically requires a deposit from the buyer (usually 10% to 30% of the purchase price). This contract secures the transaction and commits both parties to proceed with the sale.

If the buyer withdraws from the deal, they lose the deposit. If the seller withdraws, they must pay the buyer double the deposit amount.

9. Finalize mortgage arrangements (if applicable)

If you are financing your property purchase with a mortgage, finalize the terms with your bank at this stage. Italian banks typically require a valuation of the property before finalizing the loan.

10. Sign the deed of sale (Rogito Notarile)

The final step in the process is signing the deed of sale (rogito notarile) before a notary (notaio), which officially transfers ownership of the property. The buyer must pay the remaining purchase price and any associated taxes and fees at this time.

Both parties must present their identification, proof of deposit payment, and any mortgage details (if applicable). The notary also ensures that all legal requirements have been met and that the property is free from liens or other legal issues.

11. Register the property

After signing the deed, the new owner must register the property with the Agenzia delle Entrate and update the records at the local Land Registry (Catasto) to ensure legal protection.

12. Pay associated taxes and fees

Buyers in Italy are responsible for several taxes and fees, depending on whether the property is new or resale:

Taxes for new properties

Taxes for resale properties

Additional costs

It's advisable to hire a lawyer (avvocato) specializing in Italian property law to ensure that all legal checks, contracts, and paperwork are handled correctly. They can also negotiate on your behalf and ensure your rights are protected.

Some valuable resources for official information include:

• Agenzia delle Entrate: For details on taxes and property registration.
• Catasto (Land Registry): For verifying the legal status of the property.
• Consiglio Nazionale del Notariato: Information on notarial services in Italy.

13. Transfer utilities

Once the property has been registered, you’ll need to transfer utilities (electricity, water, gas) into your name and set up local services, such as waste collection or internet.

Many Italian banks such as Unicredit, Intesa Sanpaolo, and Banca Nazionale del Lavoro (BNL) offer mortgages to foreigners, but the terms and conditions may differ from those for residents. Non-residents typically face stricter criteria and may have to provide more documentation.

Interest rates for mortgages in Italy fluctuate depending on the bank and your financial profile. For example, as of 2025, Intesa Sanpaolo offers rates starting at around 3.80% for non-residents, while Unicredit may offer slightly lower rates at 3.50%, depending on the loan terms and financial circumstances of the buyer. Rates tend to vary according to whether the loan is fixed or variable, and the overall economic climate.

How to obtain a mortgage

To apply for a mortgage in Italy as a non-resident, you will typically need the following documents:

• A valid passport or Codice Fiscale;
• Proof of income (recent payslips or tax returns);
• Recent bank statements;
• A credit report from your home country;
• Proof of your main residence;
• Proof of the property deposit.

It’s advisable to approach multiple banks for mortgage pre-approval to compare rates and loan conditions before making a commitment. Italian banks are increasingly open to receiving documents in English, but some might still request translations, especially for official documents like tax returns or credit reports.

Once the mortgage is approved, the bank will manage much of the legal and administrative work, including the registration of the mortgage with the notary.

Special considerations for non-residents

Non-residents in Italy are typically required to provide a higher down payment, usually around 30% of the property's purchase price or appraised value. Italian banks often offer mortgages covering up to 70% of the property's value for non-residents.

In addition, non-resident mortgages may have slightly higher interest rates than those for residents, reflecting the increased risk of lending to international buyers.

It’s essential to factor in the additional costs associated with purchasing property in Italy, such as taxes, notary fees, and legal fees, which typically amount to around 7%-10% of the property’s price.

Buying property in Italy can be an exciting opportunity, but there are several potential pitfalls that foreign buyers should be mindful of before making an investment:

1. Bureaucratic delays

Italy is known for its extensive bureaucracy, which can lead to delays in completing property transactions. The process often involves multiple government bodies, and it can take weeks or even months to finalize the legal paperwork. This may include acquiring documents such as the Certificato di Destinazione Urbanistica (Zoning Certificate) and ensuring the property is correctly registered in the Catasto (Land Registry).

2. Hidden property liabilities

When buying a property, it's essential to conduct a thorough legal check on the property’s history and current status. Properties in Italy can have hidden liabilities, such as outstanding taxes, mortgages, or other debts tied to the property. Failure to verify these could leave the new owner liable for payments. Hiring a lawyer (avvocato) to conduct due diligence, including a check at the Agenzia delle Entrate, is strongly recommended.

3. Zoning and building regulations

Zoning and building regulations in Italy can vary significantly by region, especially in rural areas or historical zones. If the property does not comply with local zoning laws or has been built without proper permits, it can be subject to fines or demolition orders. It's important to verify that the property is fully compliant with these regulations before signing any contracts.

4. Renovation costs

Many buyers are attracted to Italy for its historic properties, but these often require extensive renovation. Renovation costs in Italy can be higher than expected due to strict heritage protection laws that apply to certain buildings, particularly in rural or historical areas. Additionally, obtaining permits for renovations can be a slow and costly process.

5. Language barriers

Legal and administrative documents related to property transactions are typically in Italian, and while some professionals may speak English, it is not guaranteed. Miscommunications can occur if buyers do not fully understand the terms of the contracts or legal obligations. Hiring a bilingual lawyer or real estate agent is advisable to avoid misunderstandings.

6. Tax and legal considerations

Foreign buyers need to be aware of the complex tax implications associated with owning property in Italy. These include annual property taxes, such as the Imposta Municipale Unica (IMU) and other local levies. Additionally, inheritance and capital gains taxes can apply when selling the property, and the tax rules for non-residents can be particularly complicated.

7. Rural properties and land rights

Rural properties, especially those with agricultural land, can present unique challenges. Italy has strict laws concerning land use and ownership. For example, pre-emptive rights may apply, where neighboring landowners or tenants have the right to purchase the property before it is sold to someone else. These complications can make rural property purchases more difficult.

8. Energy efficiency and compliance

In recent years, Italy has implemented more stringent energy efficiency requirements. When buying older properties, especially rural homes, it may be necessary to invest in upgrades to meet these standards. Failure to comply can result in fines and prevent you from legally renting out the property.