EU and EEA citizens can buy property in Italy freely, and non-EU citizens can buy if their country has a reciprocity agreement with Italy or if they hold an Italian residence permit. The process has three main steps after you get a tax number (the codice fiscale): a written offer (proposta d’acquisto), a binding preliminary contract (compromesso) with a deposit of 10% to 30%, and the final deed (rogito) before a notary. Total costs are about 10% to 15% of the price in one guide and 10% to 20% in a law-firm guide, so budget for the high end if you use an agent and a lawyer. Owning property does not give you residency. This guide explains who can buy, the steps, the taxes and fees with a worked example, the annual taxes, the mortgage position and the risks to check, using sources from 2026. It is general information, not legal or tax advice, and Italian rules vary by region and by transaction.
Can a foreigner buy property in Italy?
EU and EEA citizens can buy with no restrictions or special permits. Non-EU citizens can buy if their country has a reciprocity agreement with Italy; one guide names the US, UK, Canada, Australia, Brazil and Switzerland as examples, and says non-EU citizens without reciprocity can buy if they hold an Italian residence permit. Another law-firm guide says most foreign buyers qualify under reciprocity, and a third describes the case of countries without reciprocity as case by case. Check your own country with a lawyer before you make an offer. Ownership does not confer residency or a visa, although it can support some visa applications. For how the residency routes compare in Southern Europe, see the best countries for a holiday home.
What are the steps?
- Codice fiscale. The Italian tax code is needed for nearly any transaction. Apply at an Italian consulate abroad or at an Agenzia delle Entrate office in Italy with your passport. It is not tax residency.
- Bank account. Open a local account, which may need translated documents.
- Offer (proposta d’acquisto). A written offer with a small deposit. Once the seller accepts it, it becomes binding, and the agent’s commission may become due. Do not sign it without understanding it.
- Due diligence. Your lawyer and a surveyor (geometra) check ownership, hidden debts or mortgages, planning violations and cadastral inconsistencies.
- Preliminary contract (compromesso). It fixes the price and terms. The buyer pays a deposit of 10% to 30%. If the buyer backs out, the deposit is forfeited; if the seller backs out, they owe double the deposit.
- Deed (rogito). Signed before a notary with both parties present or represented by a power of attorney. A sworn translator is needed if you do not speak Italian. The notary then registers you as the owner.
Who is involved?
| Professional | Role |
|---|---|
| Notary (notaio) | A neutral public official who verifies title, collects taxes and updates the registry; not your advocate |
| Independent lawyer (avvocato) | Specialises in Italian property law and works for you; should not be recommended only by the seller or agent |
| Surveyor (geometra) | Checks the condition of the building, the registry details and whether renovations were permitted |
| Agent | Finds the property and negotiates; often paid by the buyer in Italy |
What taxes and fees do you pay?
| Item | Rate or amount, per the sources |
|---|---|
| Registration tax, private seller | 2% of the cadastral value for a main home, 9% for a second home; the cadastral value is often 30% to 60% below the market price |
| VAT, new build from a developer | 4% for a main home, 10% for a standard second home, 22% for luxury, instead of the registration tax |
| Cadastral and mortgage taxes | €50 each for a private-seller purchase according to one guide; another guide says 1% and 2% for second homes, so ask your notary |
| Notary fees | About 1% to 2.5% of the price (another guide: 1.5% to 3%); get several quotes |
| Agent commission | Typically 3% to 5% plus 22% VAT, paid by the buyer; sometimes negotiable |
| Legal fees / sworn translator | €1,000–€3,000 / about €250–€350 |
| Currency transfer | 2% to 4% if you use a poor channel; see how to transfer money |
A worked example
As an illustration, take a second home bought from a private seller for €200,000, with a cadastral value assumed at €100,000. The registration tax at 9% is €9,000; add €100 of fixed taxes. Add notary fees at 1.5% (€3,000), an agent at 3% plus VAT (€7,320), legal fees of €2,000 and a translator at €300.
| Item | Amount |
|---|---|
| Registration tax and fixed taxes | €9,100 |
| Notary | €3,000 |
| Agent plus VAT | €7,320 |
| Legal fees and translator | €2,300 |
| Total costs | €21,720 (10.9% of the price; ≈ £18,300 / $24,300) |
Conversions are approximate and use the European Central Bank reference rates of 14 October 2026 (€1 = £0.844 = $1.120). Rates move every day.
The cadastral value is an assumption, so your own figure could be higher or lower; ask the notary for the actual tax base. The example fits inside the 10% to 15% range of the guide.
What are the annual taxes?
- IMU (municipal property tax). Non-residents generally cannot claim the main-home exemption. One 2026 guide gives a base rate of 0.86% of the taxable base, which each municipality can raise to 1.06% or cut to zero; another gives 0.76% to 1.06% of the cadastral value. It is paid in two instalments, on 16 June and 16 December.
- TARI (waste tax). Set locally by floor area; the guides give about €200 to €1,000 a year. Non-residents owe it even if they use the property only occasionally.
- Rental income. Progressive income tax rates (23%, 35% and 43% for 2025, with the middle rate reduced to 33% for 2026) or the flat cedolare secca of 21% (10% for certain regulated contracts). Short-term lets generally face 26%, though one qualifying property may get 21%. Most foreign landlords choose the flat tax, according to one guide.
- Capital gains. Sales within five years may face a 26% substitute tax; sales after five years, or of a qualifying main home, are generally exempt.
Compare this with Spain’s yearly taxes in community fees, IBI and running costs and with the rental rules in renting out property in Spain.
Can non-residents get a mortgage?
One guide says non-residents typically get 50% to 60% of the value, against up to 80% for residents, with minimum loans of about €50,000 to €100,000 and rates from roughly 3.5% to 4%. Lenders ask for proof of income, home-country tax returns and bank statements, and may discount non-euro income. Treat these as indications and ask lenders for current terms. For how the issue works in Spain and Portugal, see the Spain and Portugal mortgage guides.
Are there residence or tax incentives?
One guide gives an elective residency visa for people with passive income, with a legal minimum of €31,000 a year, although local authorities may expect more, and a 7% flat tax on qualifying foreign income for 10 years for new residents in eligible municipalities in the south. An investor visa starts at €250,000 (company) or €500,000 (government bonds). These routes change often and have conditions, so use the official pages. For the wider comparison, see the best countries for a holiday home.
What are the main risks?
- Unauthorised past renovations that become your problem. A surveyor’s check helps; the same logic as in illegal builds in Spain applies.
- Boundary or shared-access disputes, especially in rural houses.
- Hidden debts, mortgages or cadastral inconsistencies, which the lawyer must check.
- Unfavourable contract clauses in the proposta or the compromesso.
- Scams aimed at remote buyers; see how to avoid property scams.
- Buying without visiting. Walk the property and the village in winter and summer.
What is the step-by-step plan?
- Confirm that you can buy: EU/EEA, reciprocity or a residence permit.
- Get a codice fiscale and open a bank account.
- Appoint an independent lawyer and a surveyor before you make an offer.
- Check the property’s documents, cadastre, planning status and debts.
- Negotiate, sign the proposta only after reading it, then the compromesso with the deposit.
- Arrange the funds and the translator, then sign the rogito before the notary.
- Pay the taxes, register the utilities and set up the annual tax payments.
What are the common mistakes?
- Signing the offer without legal advice.
- Assuming that the notary protects your interests like a lawyer.
- Using only the cadastral value to estimate the cost, forgetting the agent and the fees.
- Ignoring the annual taxes on a second home.
- Buying a cheap house without checking the planning papers.
- Assuming that property gives you the right to live in Italy.
To compare Italy with Spain and Greece side by side, read Spain vs Italy vs Greece.
Frequently asked questions
Can a non-EU citizen buy property in Italy?
Yes if their country has a reciprocity agreement with Italy or they hold an Italian residence permit. One guide names the US, UK, Canada, Australia, Brazil and Switzerland as examples.
What is a compromesso?
A binding preliminary contract that fixes the price and terms, with a deposit of 10% to 30%. If the buyer withdraws, the deposit is lost; if the seller withdraws, they owe double.
How much does buying in Italy cost on top of the price?
About 10% to 15% according to one guide and 10% to 20% according to a law-firm guide, depending on taxes, agent, notary and legal fees.
Do I pay tax every year as a non-resident owner?
Yes: IMU on second homes and TARI waste tax, plus income tax on any rent.
Does buying give me residency?
No. Property ownership does not confer residency or a visa.
This is general information, not legal or tax advice. Rules and rates change, and your situation may differ. Confirm the figures with the tax authority and a qualified lawyer or tax adviser before you commit. Facts last checked on 16 October 2026.
Sources
Official sources (check these for the current rule):
- Agenzia delle Entrate (Italian Revenue Agency)
- Italian notaries (Consiglio Nazionale del Notariato)
- Ministry of Foreign Affairs (Italy)
Also cross-checked against published guides, because practice varies between notaries, registries and banks:
