Buying property in Italy as a foreigner is entirely possible — and thousands of Americans, British, Australians, and Northern Europeans do it every year. But the process is unlike anything you've experienced in your home country.
This guide walks you through exactly how it works, what it costs, and where most foreign buyers go wrong.
Can foreigners buy property in Italy?
Yes. Italy places no restrictions on foreign nationals purchasing property. Citizens of EU countries, the US, UK, Australia, Canada, and most other nations can buy freely — residential, commercial, or agricultural land.
The one exception: if your country does not have a reciprocity agreement with Italy, there may be restrictions. In practice, this affects very few buyers.
The buying process, step by step
1. Get your codice fiscale
Before you can do anything in Italy — open a bank account, sign a contract, pay taxes — you need a codice fiscale. This is Italy's tax identification number. You can get one at any Italian consulate in your home country, or at the Agenzia delle Entrate once you're in Italy. It takes minutes and costs nothing.
2. Find your property
The Italian property market works differently to what most foreigners expect. A significant portion of listings never appear on public portals like Idealista or Immobiliare.it. Off-market properties, judicial auctions, and direct vendor relationships are where the real opportunities sit.
Italian estate agents (agenzie immobiliari) are legally required to represent both buyer and seller — and collect commission from both. This is a fundamental conflict of interest that most buyers don't realise until it's too late.
3. Make an offer — the proposta d'acquisto
Once you've found a property, the first formal step is a proposta d'acquisto (purchase proposal). This is a written offer, usually accompanied by a small deposit (€2,000–€5,000). If the seller accepts, this document becomes binding. Read it carefully — or have someone read it for you.
4. Sign the preliminary contract — the compromesso
The compromesso (or contratto preliminare) is the main pre-sale agreement. At this stage, you typically pay 10–20% of the purchase price as a deposit. This contract locks in the price, the timeline, and the conditions of sale. If you pull out without cause, you lose your deposit. If the seller pulls out, they must return double your deposit.
5. Due diligence
Between the compromesso and the final deed, your notary (and ideally an independent advisor) will conduct due diligence:
- Cadastral checks — verifying the property's official registration matches reality
- Mortgage and lien searches — confirming no debts are attached to the property
- Planning permission checks — ensuring all works were carried out legally
- Building compliance — particularly important for older properties
Skipping or rushing this step is the single biggest mistake foreign buyers make.
6. Sign the final deed — the rogito
The rogito notarile is the final sale deed, signed in front of a notary. At this point, the remaining purchase price is paid and ownership transfers to you. The notary in Italy is a neutral public official — they don't represent you or the seller. Their job is to ensure the transaction is legally valid.
What does it actually cost?
Beyond the purchase price, budget for these additional costs:
| Cost | Amount |
|---|---|
| Notary fees | 1–2.5% of purchase price |
| Registration tax (resale property) | 9% of cadastral value |
| Registration tax (primary residence) | 2% of cadastral value |
| Estate agent commission | 2–4% (if using an agent) |
| Independent advisor/legal fees | 1–2% |
| Mortgage arrangement (if applicable) | 0.5–1% |
As a rule of thumb, add 10–15% on top of the purchase price to cover all buying costs.
The cadastral value trap
Italy's property taxes are calculated on the valore catastale — the official cadastral value — not the actual market price. For many older properties, this is significantly lower than the market value. This is legal and widely used. Your notary can advise on the specific figures for your property.
Do you need an Italian mortgage?
Foreign buyers can access Italian mortgages, but it's more complex than in your home country. Italian banks typically lend up to 60–70% of the property value to non-residents, require Italian income documentation or proof of assets, and the process can take 2–3 months. Many foreign buyers purchase cash or arrange financing in their home country.
What most buyers wish they'd known
The Italian property system was designed for Italians. The legal language is complex, the bureaucracy is layered, and the conflicts of interest are structural. Estate agents, notaries, and vendors all have their own interests — which don't always align with yours.
Independent advice — from someone who isn't earning a commission on your purchase — is the one thing that consistently separates buyers who get it right from those who don't.