The essential guide for foreigners.
Italy permits foreigners to buy property without restriction (EU and non-EU). The key decisions are tax structure: registration tax varies 2-9% depending on whether you buy as a private individual (luxury homes get 9%; standard 4% first-home / 10% second-home), or as an SRL (always 9% registration tax + 3% mortgage/first-aid tax). Mortgage eligibility for non-residents is possible but requires stricter documentation: full income verification, foreign credit report, and 30-40% minimum equity. Buying through a SRL can be tax-efficient for high-value or rental properties.
First home (primary residence): 4% registration tax + €168 stamp duty + mortgage tax €168. Second home: 10% registration tax. Luxury properties (cadastral category A/1, A/8, A/9): flat 9% (or 4% if first home and you commit to register residence within 18 months). Buying through an SRL: 9% flat registration tax + €168 stamp + €168 mortgage tax + 3% cadastral tax.
IMU (Imposta Municipale Unica) applies to second homes and luxury primary homes. Standard rate 0.86%, can be raised or lowered by municipalities. First-home IMU exemption only applies to standard A/2, A/3, A/4, A/5, A/6, A/11 categories (not luxury). Plus TARI (waste tax ~€100-300/year) and IMIS (municipality service tax in some cities).
Italian banks offer mortgages to non-resident foreigners with stricter terms: 60-70% LTV, full income documentation (last 3 pay stubs, 2 tax returns), proof of assets outside Italy, and Italian codice fiscale. Floating rate (variable) at Euribor + 100-180 bps spread; fixed rate 2.5-4.0% in 2026. Foreign banks (HSBC, ING) sometimes offer Italy-related products at competitive rates.
Since 2024, all short-term rentals in Italy must register for a CIN (Codice Identificativo Nazionale). The CIN must be displayed in all listings (Airbnb, Booking). Compliance: SCIA (segnalazione certificata di inizio attività) at the Comune, local tourist tax collection (~€1-5/night), quarterly tax filing. Each region has additional limits (e.g., Venice banned new short-term rentals in 2024).
Personal purchase: simpler, lower initial cost, primary residence benefits. SRL purchase: useful for rental properties (cleaner accounting, isolates liability), or for total amount above €350K (rent is taxed more efficiently). IVIE (1.06% annual wealth tax on foreign residents' Italian property) applies regardless of structure.
Italian national code for short-term rentals.
Opening accounts for property income.
Required for any property transaction.
Italian succession tax on real estate.
Annual tax on Italian real estate for non-residents.
Step-by-step foreign purchase process.
New mandatory code for short-term rentals.
Tax strategy for high-value properties.
Annual 1.06% on foreign-owned Italian property.
Succession planning for Italian property.
Required first step for any purchase.
The full buyer process, step by step.
Yes, no restrictions on real estate ownership for non-EU citizens, except specific historical buildings.
IMU on second homes, plus registration tax (9-10%) and notary fees.
Yes, Italian banks offer mortgages to non-residents at LTV up to 60-70%, with stricter income documentation.
