Italy boasts an incredible number of people who own the homes they live in. According to Fisco Oggi, this amounts to three out of four Italian families, or around 75% of the population. Homes are often kept with the idea of passing them down to children, and many Italian families own another property as well. If you’re interested in joining these numbers—whether as a foreigner or Italian citizen in your own right—read on to learn more about home ownership in Italy.
Can Americans or Foreigners Purchase Real Estate in Italy?
In many cases, those holding citizenship of a non-EU country are able to purchase property in Italy without restriction. EU citizens can purchase Italian property in all cases.
The most important aspect to check is if your country has a reciprocity agreement with Italy. If Italians are able to purchase property in your country, then most likely you are able to purchase property in Italy. If, however, foreigners face restrictions on property purchase in your home country, you will need to see if there is some other agreement in place, otherwise you might not be allowed to purchase Italian property.
Note that while some countries offer a Golden Visa for property purchase, Italy is not one of them. Italy does have a Golden Visa, but it is primarily for investing in businesses.
Finally, if you’re planning to purchase a property to live in for the majority of your time, you will need to ensure you have a visa and residency permit that allow you to remain in Italy beyond the usual 90 days for non-EU citizens. (If you are an EU citizen, then this doesn’t apply). Learn more about how Americans can purchase property in Italy.
Is it Better to Buy or Rent Property in Italy?
The answer to this question will primarily depend on your particular circumstances and what you plan to use the property for. If you have never been to Italy before and would like to explore different areas you might be interested in first, then it might be best to initially rent a property before committing to owning one.
Rental prices do vary a lot across the country. Keep in mind that some of the most expensive places in Italy include the major cities of Milan, Rome, Florence, and Venice. Certain seaside destinations have also consistently boasted the highest prices in the country, namely, Forte dei Marmi and Pietrasanta. This is important to consider if you would prefer not to spend too much money on rent when you know you are looking to buy a home.
While renting a property can grant you precious time to explore your interested area(s) of Italy without committing too soon, buying property comes with many advantages. It can be a fantastic investment, for one. If you plan to use the property as a vacation home, you can also rent it out throughout the year. Not to mention, there’s always the benefit of being able to decorate and treat a space as your own, a place that can potentially be passed down as an inheritance for future generations.
Costs to Maintain a Home in Italy
When it comes to the ongoing costs involved in owning a home in Italy, there are three primary ones to consider (beyond the mortgage, if applicable): taxes, home insurance, and utilities.
Property taxes in Italy are divided into three different kinds. There’s the IMU (Imposta municipale propria) tax, which only applies if the property is a second home—in other words, if it is not your primary residence. It is paid twice a year (in June and December), and is calculated based on the cadastral value of the residence. There are certain cases in which you can get discounts on the tax owed. There is also the TASI (Tassa sui servizi indivisibili) tax that covers services provided by the municipality (such as street lighting). It is also calculated based on the cadastral value. Finally, there’s the TARI (Tassa sui rifiuti) tax that covers the disposal of public garbage. It’s calculated based on the surface area of the property, along with the number of residents, and can vary widely from municipality to municipality.
Home insurance is also an important consideration. While not technically required, it is highly recommended, and your mortgage provider might have you buy insurance too when you apply for a mortgage. Depending on what you have covered and the size of your property, insurance could cost around €100-€400 a year.
Utilities too will also count toward regular expenses. These will also depend greatly on consumption.
A final consideration is condominium expenses, which will most likely apply if you purchased an apartment. These expenses cover the maintenance of services and spaces shared by the other residents of the building.
The Italy Home Purchase Process and Associated Costs
It’s important to first familiarize yourself with the purchase process before diving too deeply into it. First, it is advisable to work with a real estate agency, particularly if you cannot be physically present to look at properties and finalize paperwork. Agency fees amount to between 2% and 4% of the final purchase price.
Then, once you find a property you love, you will put in a purchase offer, or proposta d’acquisto. At this stage, you and the seller agree to the price to be paid for the property. The next stage is the preliminary contract, compromesso, in which a deposit of around 10%-30% of the purchase price is paid. The document is also more comprehensive, outlining further details regarding the property itself and the conditions under which it will be bought.
Between this stage and closing, you will want to ensure that due diligence and all other necessary checks on the property are made, such as ensuring that any heirs or spouses agree to the sale. You will also need a good notary, an unbiased party to prepare all the final paperwork and register it correctly.
At the final deed of sale (rogito notarile), the notary will witness the signing of all the necessary documents by both parties, making sure they are properly transcribed and registered with the municipality. Any outstanding fees will be paid at this time too. Notary fees generally amount to about 1%-3% of the property price. If you are not able to be physically present during this process, it is possible to grant power of attorney to someone to represent you.
What it’s like Owning a Home in Italy as an American
While the thought of owning a home outside of your country—and especially the process to get it—can be daunting and overwhelming, there are many incredible benefits. Owning a foreign property is a good investment tool, for one, giving you the opportunity to expand your portfolio. There can also be something comforting about having a vacation home and knowing there is a permanent spot to escape to when you’re ready for a holiday. If you reside in Italy long-term, then owning a house can be a great way to feel more settled there, as well as helping you establish residency status in the country.
There are a few things to watch out for too. For instance, if you don’t speak the Italian language proficiently, you will want to have someone who does act as an interpreter for you, both during the purchasing process, and also later in care and maintenance. Also, if you’re gone for long periods at a time, you will want to hire someone trustworthy to take care of upkeep while you’re away. These are both services that Italian Real Estate Lawyers can offer for you.
Conclusion
Owning a home in Italy as a foreigner doesn’t have to be as complicated as it may seem. Contact us today to learn more about how we can help you throughout the process at info@italianrealestatelawyers.com.
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