How to Buy Property in Italy as a Foreigner (2026 Guide)
Yes, foreigners can buy property in Italy. EU and EEA citizens face no restrictions, and most non-EU nationals (including US, UK, Canadian, and Australian citizens) can buy too, subject to a reciprocity condition for non-residents. The process runs through a notary (rogito), requires an Italian fiscal code, and adds roughly 10–20% in taxes and fees on top of the purchase price.
Quick Summary
- You can buy: EU/EEA citizens have no restrictions; most non-EU citizens can buy, with a reciprocity check for non-residents.
- Two tax systems: registration tax on the cadastral value (private seller) or VAT (developer), not both.
- Budget 10–20% extra: notary fees, taxes, agent commission, and translation costs add up.
- Notary is mandatory: the deed of sale (rogito) must be signed before an Italian notary.
- Codice Fiscale first: you need an Italian tax code before signing any binding contract.
- Golden Visa ≠ real estate: Italy's Investor Visa has no property investment route.
Table of Contents
Can foreigners buy property in Italy?
Italian law does not prohibit foreigners from buying real estate. The rules depend on your nationality and residence status, and they are set out in the Italian Civil Code (Codice Civile) and related immigration provisions.
EU and EEA citizens are treated like Italian citizens for property purchases. There are no restrictions, no permits, and no special authorisations required. You can buy a home, a holiday property, or an investment property freely.
Non-EU citizens legally residing in Italy (for example, holding a residence permit or residence card) can buy property, provided they can show documentation proving their legal stay.
Non-EU citizens who do not reside in Italy face the so-called reciprocity condition, set out in Article 16 of the Preliminary Provisions to the Italian Civil Code (Preleggi). Under this principle, a foreigner can buy property in Italy only if Italian citizens enjoy the same right in the buyer's home country. In practice:
- US, UK, and Australian citizens can buy property in Italy without restrictions, because reciprocity is recognised.
- Canadian citizens can generally buy, but certain aspects of reciprocity may require a careful legal review.
- Swiss citizens may face limitations on second homes, because Switzerland restricts foreign purchases of residential property.
The reciprocity check is a legal analysis, not a simple form. If you are a non-EU non-resident, have an Italian lawyer confirm your position before you commit to a purchase.
Note on the Investor Visa: Italy's Investor Visa (art. 26-bis of the Immigration Act, Legislative Decree 286/1998) does not include a real estate investment option. Buying a house does not, by itself, grant you a residence permit. We cover this in more detail below.
The two tax systems: registration tax vs VAT
Italy runs two separate tax systems for property purchases, and you pay one or the other depending on who you buy from. This is the single most important cost factor to understand.
Buying from a private seller: registration tax
When you buy an existing property from a private individual, you pay registration tax (imposta di registro) calculated on the cadastral value of the property, not the market price. The cadastral value is typically 30–60% lower than the market value.
The registration tax rate depends on whether the property is your primary residence (prima casa):
| Property type | Registration tax rate |
|---|
| Primary residence (prima casa) | 2% of cadastral value |
| Second home / holiday home | 9% of cadastral value |
| Luxury property (categoria catastale A/1, A/8, A/9) | 9% of cadastral value |
The cadastral value is derived from the property's cadastral income (rendita catastale) using a multiplier set by law. Because it is based on the cadastral value rather than the sale price, the registration tax is often far lower than buyers expect.
Buying from a developer: VAT
When you buy a new-build property directly from a construction company or developer, VAT (IVA) applies instead of registration tax. The VAT rate depends on the property type:
| Property type | VAT rate |
|---|
| Primary residence (prima casa) | 4% |
| Second home / holiday home | 10% |
| Luxury property | 22% |
VAT is calculated on the full sale price, which is why buying new construction can cost more in tax than buying an existing property from a private seller.
Mortgage and cadastral taxes
Beyond the registration tax or VAT, you pay two further taxes: the mortgage tax (imposta ipotecaria) and the cadastral tax (imposta catastale). When you buy from a private seller, these are each a fixed €50, whether the property is a primary residence or a second home. When the purchase is subject to VAT (new build), the registration, mortgage, and cadastral taxes are each a fixed €200. You also pay a small cost for transcription in the land registry (catasto).
Step-by-step process to buy property in Italy
The Italian purchase process has three main stages. Understanding them protects you from losing money on a deposit you cannot recover.
Step 1: Obtain your Codice Fiscale
The Codice Fiscale is your Italian tax code, and you need it before signing any binding contract. You can request it at the Italian Revenue Agency (Agenzia delle Entrate) or at an Italian consulate abroad. It is free and usually issued the same day in Italy.
Step 2: Make an offer and sign the preliminary agreement
Once you find a property, you make a written offer (proposta d'acquisto). If the seller accepts, you sign a preliminary sales agreement (compromesso or contratto preliminare). This is a binding contract.
At this stage you typically pay a deposit (caparra), usually 10–30% of the price. The preliminary agreement is registered, and the registration taxes you pay here are an advance on the final taxes due at completion. If you withdraw without a valid reason, you can lose your deposit.
Step 3: Sign the deed before a notary
The final transfer of ownership happens when you sign the deed of sale (rogito) before an Italian notary. The notary is a neutral public officer, not your representative. Their duties include:
- Verifying the legal validity of the transaction
- Checking the property's title and land registry records
- Reading the deed aloud
- Collecting and paying the taxes on your behalf
- Registering the transfer in the land registry
If you do not speak Italian, the deed must be translated, which adds a cost. The final balance is usually paid at this stage, often by certified bank cheque (assegno circolare) or bank transfer.
Timeline
If all documents are in order, the process from offer to deed typically takes 4–8 weeks. Delays usually come from missing paperwork, mortgage approval, or translation requirements.
Complete cost breakdown (2026)
Beyond the purchase price, budget for the following costs. As a rule of thumb, add 10–20% to the property price for a second home or investment property.
| Cost item | Typical amount | Notes |
|---|
| Registration tax (second home) | 9% of cadastral value | Private seller |
| Registration tax (prima casa) | 2% of cadastral value | Private seller |
| Mortgage tax (imposta ipotecaria) | €50 fixed | Private seller |
| Cadastral tax (imposta catastale) | €50 fixed | Private seller |
| VAT (new build, second home) | 10% of sale price | Developer |
| Notary fees | 1–2.5% of declared value + 22% VAT | Buyer pays |
| Estate agent commission | 2–5% each side + 22% VAT | Buyer and seller |
| Land registry transcription | ~€90–200 | Always |
| Deed translation | €200–500 | If you don't speak Italian |
| Legal due diligence | €1,500–4,000 | Recommended |
| Surveyor (geometra) report | €500–1,500 | Often requested by notary |
Notary fees are not standardised. They are set by professional tariff scales and vary with the property value and complexity. Shopping around can save you hundreds of euros.
Estate agent commission is split between buyer and seller in Italy, typically 2–5% each, plus 22% VAT. Some negotiation is possible, especially for cash buyers.
Recurring property taxes: IMU and TARI
Once you own the property, you have ongoing annual costs.
IMU (Imposta Municipale Unica) is the municipal property tax, governed by Law 160/2019. It applies to second homes and non-primary residences. It is calculated on the cadastral value multiplied by a municipal rate that varies by location, and it is paid in two installments, usually in June and December. Primary residences are generally exempt from IMU.
TARI is the waste collection and disposal tax. It applies to all properties, including primary residences, and is calculated on the property's size in square metres and the number of occupants. It is due even if the property is unoccupied for part of the year, unless you formally declare otherwise to the municipality.
Condominium fees apply to apartments in shared buildings. These range from roughly €200 to €1,000 per year, depending on the building's services and maintenance needs.
Real example: an American buys a €300,000 apartment
Let's walk through a realistic case. John, a US citizen, buys a second-home apartment in Tuscany for €300,000 from a private seller. The cadastral value is €150,000 (50% of the market price, a typical ratio).
| Cost item | Amount |
|---|
| Purchase price | €300,000 |
| Registration tax (9% of €150,000) | €13,500 |
| Mortgage tax | €50 |
| Cadastral tax | €50 |
| Land registry transcription | ~€150 |
| Notary fees (~1.5% + 22% VAT) | ~€5,500 |
| Estate agent commission (3% + 22% VAT) | ~€11,000 |
| Legal due diligence | ~€2,500 |
| Deed translation | ~€300 |
| Total additional costs | ~€33,050 |
| Total outlay | ~€333,050 |
In this example, the additional costs add roughly 11% to the purchase price. If John had bought the same apartment as his primary residence, the registration tax would have been 2% instead of 9%, saving about €10,500.
Common mistakes foreign buyers make
1. Skipping the reciprocity check. Non-EU non-residents who assume they can buy without a legal review risk losing their deposit if reciprocity is not satisfied.
2. Confusing the preliminary agreement with a non-binding offer. The compromesso is binding. Withdrawing without a valid reason can cost you your deposit.
3. Underestimating the cadastral value vs market value. The registration tax is based on cadastral value, but the notary and agent fees are based on the declared price. Budget for both.
4. Forgetting the deed translation. If you do not speak Italian, the notary must translate the deed, adding time and cost.
5. Assuming a property purchase grants residency. Buying a house does not give you a residence permit. If you want to live in Italy, you need a separate visa or residence route.
6. Ignoring IMU and TARI. Second-home owners face annual municipal taxes that many foreign buyers do not expect.
When to hire a professional
You are not legally required to hire a lawyer to buy property in Italy. However, for a non-resident foreign buyer, professional help is strongly recommended for three reasons:
- Reciprocity and legal due diligence: a lawyer confirms you can buy and checks the property's title, planning status, and any encumbrances.
- Contract review: the preliminary agreement is binding, and a professional ensures the terms protect you.
- Tax planning: a consultant can help you structure the purchase to minimise registration tax and plan for IMU, TARI, and any future sale.
Need help buying property in Italy? YourBusinessInItaly has guided 100+ foreign clients through property purchases, company formation, and tax planning. Book a free 30-minute consultation to review your situation.
FAQ
Can a US citizen buy property in Italy?
Yes. US citizens can buy property in Italy without restrictions, because reciprocity between Italy and the US is recognised. You need an Italian fiscal code and must sign the deed before a notary.
Can I buy property in Italy if I am not an Italian citizen?
Yes. EU and EEA citizens face no restrictions. Most non-EU citizens can buy too, but non-residents must satisfy the reciprocity condition, which a lawyer should confirm.
Do I need an Italian bank account to buy property in Italy?
Not necessarily. You can transfer funds directly from an international bank to the notary's account. An Italian account can make payments smoother, but it is not a legal requirement.
Do I need an Italian fiscal code to buy a house in Italy?
Yes. You must obtain an Italian fiscal code before signing the final contract. It is free and issued by the Italian Revenue Agency or an Italian consulate.
Is a deposit required to secure a property in Italy?
Typically yes. You pay a deposit (caparra) when making an offer and again when signing the preliminary agreement. It is usually 10–30% of the price and can be lost if you withdraw without a valid reason.
How long does it take to become the owner of a property in Italy?
If all documents are in order, the process from offer to deed typically takes 4–8 weeks. Delays usually come from missing paperwork, mortgage approval, or translation requirements.
What taxes do I pay when buying a second home in Italy?
For a second home bought from a private seller, you pay 9% registration tax on the cadastral value, plus fixed mortgage and cadastral taxes of €50 each. For a new build from a developer, you pay 10% VAT on the sale price. You also pay notary fees and land registry costs.
What is the difference between registration tax and VAT in Italy?
Registration tax applies when you buy from a private seller and is based on the cadastral value. VAT applies when you buy new construction from a developer and is based on the full sale price. You pay one or the other, not both.
Does buying property in Italy give me a residence permit?
No. Buying a house does not grant a residence permit. Italy's Investor Visa (art. 26-bis of Legislative Decree 286/1998) has no real estate investment option. You need a separate visa or residence route to live in Italy.
What is the Italy Golden Visa and can I use it to buy property?
The Italy Investor Visa offers four investment routes: €250,000 in an innovative startup, €500,000 in an Italian limited company, €2 million in government bonds, or €1 million in a philanthropic donation. There is no real estate investment option.
Official sources
- Italian Civil Code (Codice Civile) — property ownership and transfer rules
- Preliminary Provisions to the Civil Code (Preleggi), art. 16 — reciprocity condition
- Legislative Decree 286/1998 (Immigration Act), art. 26-bis — Investor Visa
- Law 160/2019 — IMU municipal property tax
- Italian Revenue Agency (Agenzia delle Entrate) — registration tax, VAT, Codice Fiscale
- Chamber of Commerce (CCIAA) — business and property registration
- Land Registry (Catasto) — cadastral values and transcription
Related Articles
This article is for general information only and does not constitute legal or tax advice. Italian property and tax rules can change, and your situation is unique. Always consult a qualified Italian lawyer or tax advisor before making a purchase. Last updated: February 2026.
Giovanni Emmi|February 10, 2026
