Can Americans Buy a House in Italy? A Guide to Owning Property Abroad

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May 9, 2023 in Italy

Buying a house in Italy is a dream for many Americans. The country is known for its beautiful landscapes, rich history, and vibrant culture, making it an attractive destination for vacation or a second home. However, the question remains: can Americans buy property in Italy?

The good news is that Americans can buy property in Italy as a result of bilateral agreements between Italy and the US. This means that US citizens can purchase real estate in Italy, whether it's for a vacation home or a permanent residence. 

However, there are certain restrictions for citizens of certain countries who are non-residents in Italy. It's important to do due diligence and understand the process and requirements for buying property in Italy to avoid any pitfalls.

Can Americans Buy a House in Italy?

If you are an American looking to buy a house in Italy, you'll be pleased to know that it is possible. However, the process can be quite complex and involves navigating Italian real estate laws and regulations. This section will provide an overview of the Italian property market, the buying process, costs and fees, taxes and legal requirements, financing options, renovating your property, and living in Italy as a property owner.

Overview of the Italian Property Market

The Italian property market is diverse and offers a range of options for buyers, from historic villas and apartments in bustling cities to rural farmhouses and seaside villas. The market is also split between the north and south of Italy, with the north being generally more expensive and the south offering more affordable options.

Buying Property in Italy as an American

As an American, you are entitled to buy property in Italy thanks to a bilateral agreement between Italy and the US. However, non-EU citizens who are not resident in Italy may face some restrictions. It is recommended to seek legal advice and do due diligence before purchasing a property in Italy.

The Buying Process in Italy

The buying process in Italy involves several steps, including making a purchase proposal, signing a preliminary contract, paying a deposit, completing the paperwork, and signing the deed of sale. It is important to work with a reputable real estate agent and a notary to ensure a smooth transaction.

Costs and Fees Involved in Buying Property in Italy

The costs and fees involved in buying property in Italy include registration tax, land registry tax, notary fees, legal fees, and real estate agent fees. Buyers should also factor in transaction costs, such as energy efficiency certifications and potential renovations.

Taxes and Legal Requirements for Buying Property in Italy

Buyers in Italy are subject to a range of taxes, including the IMU and TASI property taxes and capital gains tax. Non-resident buyers may also need to obtain a residency permit and a tax code. It is recommended to seek legal and tax advice before purchasing a property in Italy.

Financing Your Italian Property Purchase

Financing options for non-resident buyers in Italy may be limited, and it is recommended to have sufficient savings to cover the purchase price and associated costs. Italian banks may offer mortgages to non-residents, but the process can be complex and require significant due diligence.

Sunset over the Cinque Terre village of Vernazza

Sunset over the Cinque Terre village of Vernazza

Renovating Your Italian Property

Renovating a property in Italy can be a complex process and may involve navigating local bureaucracy and red tape. It is recommended to work with an architect and reputable contractors to ensure compliance with local regulations and building codes.

Living in Italy as a Property Owner

Owning a property in Italy can offer a desirable lifestyle, with access to sunshine, wine, and a rich cultural heritage. However, buyers should be prepared to navigate Italian bureaucracy and language barriers. It is recommended to learn some Italian and seek advice from other expats and locals.

In summary, buying property in Italy as an American can be a complex process, but with due diligence and the right advice, it can be a rewarding investment in a beautiful country.

Overview of the Italian Property Market

Italy is a popular destination for vacationers, retirees, and expats looking to purchase a second home or invest in real estate. The country's rich history, stunning architecture, and beautiful landscapes make it an attractive location for property buyers.

The Italian property market is diverse, with a wide range of properties available, from modern apartments to historic villas. The market is also highly regionalized, with different regions and cities offering different types of properties and varying prices.

Milan, Venice, Florence, Naples, and Palermo are some of the most popular cities for property buyers. Each city has its unique charm and appeal, from the fashion and design hub of Milan to the romantic canals of Venice.

Sardinia, a popular island in the south of Italy, is also a sought-after destination for property buyers. The island offers stunning beaches, crystal clear waters, and a relaxed Mediterranean lifestyle.

blue water with boats on the coast of Sardinia

The blue water off the coast of Sardinia

The Italian property market has experienced some fluctuations in recent years, with prices in some areas decreasing due to economic uncertainty. However, the market remains stable overall, and experts predict that property prices will continue to rise in the long term.

Foreign buyers, including Americans, can purchase property in Italy with no restrictions, thanks to reciprocal agreements between Italy and other countries. However, it's important to note that buying a property in Italy doesn't automatically give the buyer the right to live in Italy. Buyers may still need a visa or permit depending on how they intend to use their new home.

In summary, the Italian property market is diverse, regionalized, and stable, with a wide range of properties available in different cities and regions. Foreign buyers, including Americans, can purchase property in Italy with no restrictions, but it's important to understand the visa and permit requirements.

Buying Property in Italy as an American

If you are an American looking to buy a property in Italy, you will be pleased to know that it is possible. However, there are some things you need to know before you start your search. In this section, we will discuss the visa requirements for buying property in Italy, finding a property, working with a real estate agent, making an offer, due diligence, and the purchase proposal.

Visa Requirements for Buying Property in Italy

As an American, you don't need a visa to buy a property in Italy. However, you will need a passport. If you plan to stay in Italy for more than 90 days, you will need a visa. It is important to note that owning a property in Italy does not automatically grant you a visa or residency.

Finding a Property in Italy

Italy has a lot to offer in terms of properties, from charming apartments in the heart of Florence to villas in the rolling hills of Tuscany. You can start your search online, but it's always best to visit the properties in person. Keep in mind that the real estate market in Italy is not as fast-paced as it is in the US, so you may need to be patient.

The Dolomite mountains of northeast Italy.

The Dolomite mountains of northeast Italy.

Working with a Real Estate Agent in Italy

Working with a real estate agent in Italy can be helpful, especially if you are not familiar with the local market. A good agent can help you find the right property, negotiate the price, and guide you through the paperwork. Make sure you choose an agent who is familiar with the area where you want to buy.

Making an Offer on a Property in Italy

Once you have found the property you want to buy, you will need to make an offer. In Italy, it is common for the seller to set the asking price higher than what they expect to receive. This means that there is room for negotiation. Your real estate agent can help you make an offer and negotiate the price.

Due Diligence and the Purchase Proposal

Before you sign the purchase proposal, it is important to do your due diligence. This includes checking the property's title, verifying that there are no liens or encumbrances, and ensuring that the property is in good condition. Your real estate agent can help you with this process.

The Buying Process in Italy

Buying property in Italy as an American can seem daunting, but with the right knowledge and preparation, it can be a smooth process. Here are some key steps to keep in mind when buying property in Italy:

The Role of the Notary in the Italian Property Buying Process

In Italy, a notary plays a crucial role in the property buying process. The notary is a legal professional who is responsible for overseeing the transaction and ensuring that all legal requirements are met. They will also prepare the necessary documents for the sale and register the property with the land registry.

The Rogito and Deed of Sale

The Rogito is the final contract that is signed between the buyer and seller. This document is drawn up by the notary and includes all the terms and conditions of the sale. Once both parties have signed the Rogito, it becomes legally binding.

The Deed of Sale is a document that confirms the transfer of ownership from the seller to the buyer. This document is signed at the same time as the Rogito and is also prepared by the notary.

Registration and Land Registry Tax

Once the Rogito and Deed of Sale have been signed, the notary will register the property with the land registry. This process can take a few weeks, and the buyer will be responsible for paying the registration tax.

The land registry tax is a fee that is paid to the government to register the property. The amount of tax varies depending on the value of the property.

Other Legal Requirements for Buying Property in Italy

In addition to the above, there are other legal requirements that must be met when buying property in Italy. These include:

  • Obtaining a Codice Fiscale (Italian tax code)
  • Opening an Italian bank account
  • Obtaining a Permesso di Soggiorno (residence permit) if planning to live in Italy
  • Paying legal fees and other associated costs

It is important to work with a reputable real estate agent and notary to ensure that all legal requirements are met when buying property in Italy.

Hill town in the Monferrato region of northern Italy.

Hill town in the Monferrato region of northern Italy.

Costs and Fees Involved in Buying Property in Italy

Buying a property in Italy can be a great investment for Americans looking to own a slice of Italian culture. However, it's important to be aware of the costs and fees involved in the process. This section will outline the various expenses associated with buying a property in Italy.

Transaction Costs for Buying Property in Italy

When buying a property in Italy, there are several transaction costs that buyers should be aware of. These include:

  • Notary fees: These fees are paid to a notary who oversees the transaction and ensures that all legal requirements are met. Notary fees can range from 1% to 2.5% of the purchase price.
  • Registration tax: This tax is paid to the Italian government and varies depending on the type of property being purchased. For example, the tax on a primary residence is 2% of the purchase price, while the tax on a second home is 9%.
  • Real estate agent fees: These fees are paid to the real estate agent who helped facilitate the transaction. They typically range from 3% to 8% of the purchase price.
  • Legal fees: Buyers may choose to hire a lawyer to help with the legal aspects of the transaction. Legal fees can vary depending on the complexity of the transaction and the lawyer's hourly rate.

Mortgage Options for Buying Property in Italy

Americans looking to buy a property in Italy may also consider mortgage options. However, it's important to note that obtaining a mortgage in Italy as a foreigner can be challenging. Some options to consider include:

  • Italian banks: Some Italian banks offer mortgages to foreigners, but the requirements can be strict and the interest rates may be higher than those offered to Italian citizens.
  • International banks: Some international banks may offer mortgages for properties in Italy, but these can be more expensive than Italian bank mortgages.
  • Private lenders: Private lenders may offer more flexible terms than banks, but the interest rates can be higher.

Budgeting for Your Italian Property Purchase

When budgeting for a property purchase in Italy, buyers should consider the following expenses:

  • Purchase price: The cost of the property itself can vary greatly depending on the location and type of property.
  • Transaction costs: As outlined above, buyers should budget for notary fees, registration tax, real estate agent fees, and legal fees.
  • Renovations: Many properties in Italy require renovations, so buyers should budget for these expenses as well.
  • Maintenance costs: Once the property is purchased, buyers should budget for ongoing maintenance costs such as property taxes, utilities, and repairs.

In conclusion, buying a property in Italy can be a great investment for Americans, but it's important to be aware of the costs and fees involved in the process.

By budgeting carefully and considering all options, buyers can make an informed decision and enjoy their Italian property for years to come.

About the author 

Tommy Sikes, CFP®

I am a travel addict and CERTIFIED FINANCIAL PLANNER™ professional.

I share what I learn about investing, online business, and affordable travel.

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