Foreigners can generally buy property in Italy on the same terms as Italian citizens, as long as a reciprocity agreement exists between Italy and their home country. Buying property in Italy runs through three formal stages: a written offer, a binding preliminary contract with a substantial deposit, and a final deed signed before a public notary who verifies title and registers the transfer. From accepted offer to keys in hand, expect two to four months. At closing, taxes run from roughly 2% to 10% of the property’s assessed value depending on whether it’s your primary home, a second home, or a new build from a developer, and you’ll also owe notary fees and, usually, an agent’s commission.
Can Foreigners Buy Italian Property
Italian law lets foreign nationals buy real estate as long as their home country grants the same right to Italian citizens. Reciprocity is automatic for citizens of all EU and EEA countries, and most major non-European nations satisfy it through bilateral treaties. Americans, Canadians, British, Australian, and most Latin American citizens can buy without restriction. If your passport is from a country without a reciprocity agreement, the notary will flag it before the transaction can proceed, so confirm reciprocity status early through a notary or Italian attorney before spending money on due diligence.
One thing to be clear about from the start: owning property in Italy does not grant you the right to live there. That’s a separate question addressed further down.
What to Set Up Before You Make an Offer
Codice Fiscale
Every buyer needs a Codice Fiscale, the alphanumeric tax code issued by the Agenzia delle Entrate. It identifies you in every dealing with Italian government agencies, banks, and private entities.1Consulate General of Italy in New York. Codice Fiscale (Italian Tax Code) You’ll need it to sign contracts, pay taxes, register utilities, and open a bank account. Non-residents can apply through the Italian consulate serving their region or, once in Italy, at a local Agenzia delle Entrate office.2Agenzia delle Entrate. Tax Identification Number for Foreign Citizens Getting it done before you travel saves time when you’re ready to move.
Italian Bank Account
Most sellers and notaries expect deposits and the final payment to originate from an Italian bank, both because of anti-money laundering traceability rules and because international wires can take days to clear. A local account also handles ongoing costs after closing: property taxes, utilities, condominium fees. Italian banks tend to be methodical with foreign clients and will ask for your Codice Fiscale, passport, and proof of address. Build in time for this step.
The Three-Stage Transaction
The Written Offer (Proposta d’Acquisto)
You submit a written offer, usually through the real estate agent, that includes your personal details, the property’s land registry identification, the price you propose, a payment schedule, and how long the offer stays open. Once the seller signs, the offer is legally binding on both sides.3Consiglio Nazionale del Notariato. Preliminary Contract A small deposit check accompanies the offer and is held by the agent; it gets rolled into the larger deposit at the preliminary contract stage. If the seller rejects the offer or it lapses, you get the deposit back.
Don’t treat this step as casual. The proposta often carries the same binding language as a full preliminary contract, and signing without understanding the terms can lock you into obligations before you’ve completed due diligence. Have an Italian attorney or the notary review it first. The few hundred euros is trivial compared to losing a deposit over a misunderstood clause.
The Preliminary Contract (Compromesso)
The Contratto Preliminare, commonly called the Compromesso, locks in every material term: final price, closing date, the property’s legal description with cadastral coordinates, and any conditions such as required repairs or cleared debts. It also addresses physical condition and whether the seller warrants that no hidden liens or debts exist.
The central provision is the caparra confirmatoria, a confirmatory deposit typically running 10% to 20% of the purchase price. Under Article 1385 of the Italian Civil Code, this deposit cuts both ways: if you walk without cause, the seller keeps it; if the seller walks, you can demand double the deposit back. That symmetry is what gives the preliminary contract almost the same gravity as the final deed.
Italian law requires you to register the preliminary contract with the Agenzia delle Entrate within 30 days of signing. Registration creates a public record that the property is under contract, blocking the seller from selling to someone else or placing a mortgage on it while you wait for closing.3Consiglio Nazionale del Notariato. Preliminary Contract Registration costs a €200 fixed fee plus a proportional tax of 0.50% on the confirmatory deposit and 3% on any additional advance payments. Those taxes are credited against what you’ll owe at closing, so they’re early costs, not extra ones.
The Final Deed (Rogito)
Closing, called the rogito, happens at the notary’s office with all parties or their authorized representatives present. The notary reads the entire deed aloud in Italian, which for a straightforward transaction takes 30 to 60 minutes. If you don’t speak Italian, the law requires a sworn interpreter, and the deed must be translated so you can confirm the terms. The interpreter is named in the deed, and a bilingual witness may also be required.
Once everyone confirms understanding, all parties sign. The notary applies the official seal and takes responsibility for transcribing the deed with the land registry (Conservatoria dei Registri Immobiliari) and updating the Cadastral office to reflect the new ownership.4Agenzia delle Entrate. The Italian Land Registration System The notary must complete this transcription within 30 days or face personal penalties.
Payment usually goes through assegni circolari, banker’s drafts issued by your Italian bank, though bank transfers and non-transferable checks are also accepted. Banker’s drafts are the most common choice because the bank guarantees the funds, giving the seller immediate certainty. Separate payments cover the notary’s fees and all applicable taxes. When everything is signed and paid, the seller hands over the keys.
The Notary’s Role
The notaio is the central figure in an Italian real estate transaction. This public official does not represent either party. The notary is a neutral guarantor that the sale complies with the law, that the seller actually owns what they’re selling, and that the property is free of undisclosed encumbrances. The buyer typically selects and pays the notary.
Most of the notary’s work happens before closing day. They search the national property registry for mortgages, liens, and other claims; verify that building permits and cadastral records are in order; and, if something is wrong (an unregistered addition, a lingering judicial mortgage, a boundary dispute), either resolve it or advise both parties before the sale moves forward. Italian law imposes personal liability on the notary for errors in this process, which is why the process can feel exhaustive.
If You Can’t Attend Closing
You can grant a Procura Speciale (special power of attorney) authorizing someone else to sign on your behalf. Because the deed is a notarial act, the power of attorney must also be executed before a notary. If you sign it abroad, your local notary can authenticate the document, but you’ll need an Apostille under the Hague Convention to make it valid in Italy, and a certified translator must translate it into Italian. The document should clearly identify the specific property, the person you’re appointing, and any limits on their authority. There are no nationality or residency restrictions on your choice of representative.
Escrow Through the Notary
Under Law 124/2017, either party can request that the notary hold the purchase price in a dedicated escrow account until the deed is officially transcribed in the land registry. This deposito del prezzo protects the buyer from the risk that a lien, seizure, or mortgage gets registered against the seller between signing day and the day the transfer becomes public record.5Notai Associati Pisa. The Deposit of the Price by the Notary The escrowed funds are legally segregated from the notary’s personal assets and can’t be reached by either party’s creditors. It’s optional, but on an expensive property or with any concerns about the seller’s finances, requesting it costs nothing and eliminates a real if uncommon risk.
Due Diligence Before You Sign
Before committing to the preliminary contract, hire a qualified technician (a geometra, architect, or engineer) to run a compliance inspection. The technician’s job splits in two. First, urban compliance: gathering every building permit ever filed with the municipality and comparing the approved plans against the property’s actual condition, verifying that load-bearing walls, room layouts, windows, and the property’s intended use all match what’s on file. Unauthorized renovations are common in older Italian buildings and can block a sale until the seller regularizes them. Second, cadastral compliance: confirming that the floor plans on file at the Land Registry match the real layout. The technician produces a formal compliance report documenting both.
Also request the energy performance certificate, the APE. Italian law requires sellers to provide it at the start of negotiations, and it must be attached to the final deed. The APE rates energy efficiency from A4 (best) to G (worst) and is valid for ten years unless major renovations change the building’s profile. Real estate listings must show the energy class, so you’ll usually see it before the first viewing. A low rating isn’t automatically a dealbreaker, but it tells you to budget for heating costs or future upgrades.
Taxes and Costs at Closing
What you owe at closing turns on two variables: whether the seller is a private individual or a company (typically a developer), and whether the property will be your primary residence.
Buying From a Private Seller
Buying from another individual and claiming the property as your primary residence (prima casa), you pay a registration tax of 2% of the cadastral value, plus €50 each for the mortgage tax and cadastral tax.6Agenzia delle Entrate. Agevolazioni Acquisto Prima Casa The cadastral value is significantly lower than the market price. It’s calculated by multiplying the property’s cadastral income by a legal coefficient (115.5 for primary residences), so a property selling for €300,000 might have a cadastral value under €100,000. A minimum registration tax of €1,000 applies regardless.
For a second home or investment property (seconda casa), the registration tax rises to 9% of the cadastral value, with the same €50 fixed taxes. The cadastral multiplier for non-primary residences is 126. The same €1,000 minimum applies.
Buying From a Developer
When the seller is a construction company or developer selling within a few years of completion, the transaction is subject to VAT (IVA) instead of proportional registration tax. VAT applies to the full purchase price, not the lower cadastral value. The rate is 4% for a primary residence, 10% for a secondary residence, and 22% for luxury properties. Registration, mortgage, and cadastral taxes are each a flat €200 in VAT transactions.
What Prima Casa Requires
To claim primary residence benefits, you must declare in the deed that you’ll establish residency in the municipality within 18 months of closing.6Agenzia delle Entrate. Agevolazioni Acquisto Prima Casa You also can’t own another property in the same municipality, or hold any other property in Italy that you previously bought with prima casa benefits (unless you sell it within 12 months). Properties in luxury cadastral categories A/1, A/8, or A/9 (stately homes, villas, historic castles) are excluded from prima casa benefits entirely. Claim the benefit but fail to establish residency within 18 months, and the tax authority can claw back the difference plus a 30% penalty and interest.
Notary Fees and Agent Commissions
Notary fees vary with the property’s price and the transaction’s complexity, generally from around €1,000 for a modest property to €3,000 or more for high-value purchases. The notary collects all government taxes on behalf of the state, so you’ll write one large payment covering both the professional fee and the tax bill.
If you used a real estate agent, expect a commission of 3% to 4% of the sale price for a residential property, plus 22% VAT on the commission. Buyer and seller each pay the agent separately, and the commission is negotiable. Settle it when you sign the agency agreement, not at closing. Non-Italian speakers should also budget for an interpreter and document translation.
Ongoing Costs After Closing
The IMU (Imposta Municipale Propria) is Italy’s main property tax, set by each municipality within a range fixed by national law. The base rate for non-primary residences is 0.86%, which municipalities can raise to 1.06%. The taxable base is the cadastral value after a 5% revaluation multiplied by a coefficient (generally 160). Primary residences have been exempt from IMU since 2013 unless the property is in the luxury A/1, A/8, or A/9 categories. Buy a standard apartment and register it as your main home and you owe zero IMU. Second homes and investment properties always pay.
The TARI (Tassa sui Rifiuti) is a municipal waste tax based on property size and local waste rates, and applies whether or not you live there full-time. If you’re in a managed building, you’ll also pay spese condominiali (condominium fees) for shared costs like stairwell cleaning, elevator maintenance, building insurance, and the administrator. For a standard apartment, budget €50 to €150 per month; buildings with pools or concierge service can run €300 to €500 monthly. Before buying, request the last two years of condominium meeting minutes to see whether any major works (like a façade renovation) have been approved, because those costs transfer to the new owner.
Residency Is a Separate Question
Buying property doesn’t extend your right to be in Italy. Citizens of visa-exempt countries (including the United States, Canada, and the UK) can stay in Italy and the wider Schengen area for up to 90 days within any rolling 180-day period, and property ownership creates no exemption.7European External Action Service. Frequently Asked Questions on the Schengen Visa-Free Regime Overstaying can bring fines and a re-entry ban covering all 30 Schengen countries. Starting in the last quarter of 2026, visa-exempt travelers will also need an ETIAS travel authorization (€20, online) before entering the Schengen area.8European Commission. What Is ETIAS
If you want more than 90 days per half-year, you’ll need a visa and eventually a residence permit. The Elective Residency Visa is the most common route for property owners who aren’t working. It requires proof of substantial and steady income from passive sources (pensions, investments, rental income), since the visa does not permit any work activity in Italy.9Consulate General of Italy in Chicago. Elective Residence National Long-Term Visa You’ll need to show a purchase contract or registered lease for a single property (not stitched-together short-term bookings), and the consulate evaluates the income threshold case by case.
Succession: One Decision to Make at Purchase
Italian law imposes forced heirship rules that reserve a fixed share of your estate for close relatives (spouse, children, and in some cases parents) regardless of what your will says. If you own Italian real estate and die without addressing this, Italian succession rules apply to those assets by default under EU Regulation 650/2012, even if you’re a foreign citizen who never lived in Italy.
The workaround is simple but has to be done proactively. Article 22 of the regulation lets you choose the law of your nationality to govern your entire succession, including Italian assets.10EUR-Lex. Regulation (EU) No 650/2012 – Jurisdiction, Applicable Law, Recognition and Enforcement in Matters of Succession An American citizen can elect U.S. law to govern the succession, preserving full testamentary freedom. The choice must be made expressly in a will or other testamentary document, and if you hold multiple nationalities, you can pick any of them. Skipping this election is one of the more common and costly oversights among foreign owners in Italy, because contested successions across two legal systems are expensive and slow. Have the conversation with your notary or an estate planning attorney at the time of purchase, not years later.