Italy (IT)
Italy is a parliamentary republic of 20 regions stretching from the Alpine peaks of the Dolomites to the sun-baked coasts of Sicily and Sardinia, celebrated worldwide for its unparalleled Renaissance art and architecture, UNESCO-laden historic cities from Rome to Florence and Venice, world-defining cuisine and wines, passionate football culture, and a relaxed Mediterranean lifestyle that has drawn expats, artists, and retirees for centuries.
Buying Property in Italy
The full buying process, transaction costs, mortgage, and legal requirements.
Italian property purchases are tightly regulated by the Codice Civile and require mandatory notarial intervention (rogito notarile). The notaio (civil law notary) is a public officer who performs due diligence, checks for encumbrances, drafts the final deed, and registers the transfer with the Agenzia delle Entrate (for taxes) and the Conservatoria dei Registri Immobiliari (land registry). The property market in major cities (Milan, Rome, Florence, Bologna, Venice) is extremely competitive in 2026 — prices have recovered strongly post-COVID, driven by domestic demand, favourable mortgage rates compared to 2022–2023, and foreign buyers (particularly in Tuscany, Liguria, Lake Como, Puglia, and Sicily). Non-EU buyers face no restrictions — Italy is one of the most open EU markets for foreign property ownership. Key taxes: IVA (if buying new from developer) or Imposta di Registro (if buying used/second-hand), IMU (annual property tax for non-primary residences), and IVIE (annual tax on foreign owners of Italian property, declared on Italian tax return).
Rent vs. Buy
Italy's rent-to-price ratio in 2026 makes buying more attractive in Rome and southern cities (gross rental yields 4–5%), and roughly equivalent in Milan (3–4%), where prices have risen sharply. Transaction costs (9–15% total including taxes and notarial fees) require a minimum 5–7 year ownership horizon to break even vs. renting. Key considerations: first-time buyers (acquisto prima casa) get significantly reduced taxes; mortgage rates in 2026 have eased significantly with ECB cuts — variable (Euribor-indexed) approximately 3.0–3.5%; fixed 20-year rates approximately 2.5–4.0%; the Superbonus (110% tax credit for energy renovations) phased down significantly in 2024–2026 but some incentives remain. The rental market in Milan, Rome, Florence, and Bologna is extremely tight — buying may be strategically preferable for long-term residents.
Buying Process — Step by Step
Search and market analysis
1–6 months searchingUse Immobiliare.it, Idealista.it, Casa.it, and local estate agents (agenzie immobiliari). Understand local market values — request visure ipotecarie (mortgage registry searches) to see recent comparable sales via the Agenzia delle Entrate. Identify the cadastral value (valore catastale) at the Catasto (land registry) — often 30–50% of market value but used for tax calculations.
Preliminary due diligence
1–2 weeksBefore making any offer: request a Visura Ipotecaria and Catastale from the Conservatoria dei Registri Immobiliari (via Agenzia delle Entrate or notaio). This reveals: ownership, mortgages, legal charges (ipoteche), litigation (pignoramenti), irregular building permits (abusi edilizi). Check planimetria catastale (floor plan registered with Catasto) matches actual property — discrepancies must be regularised (sanatoria) before purchase.
Proposta irrevocabile d'acquisto (Preliminary Offer)
1–3 daysWritten offer to purchase at a specific price, typically with a caparra confirmatoria (earnest money deposit of 5–10% of price). If the buyer withdraws: loses the caparra. If the seller withdraws: must return double the caparra (Art. 1385 Codice Civile). The proposta is legally binding once accepted. Increasingly common: submit the proposta through the estate agent's standard form.
Compromesso (Preliminary Contract — Contratto Preliminare)
1–2 weeks after offer acceptanceA more detailed preliminary contract (Art. 1351 Codice Civile) signed between buyer and seller, typically with a further deposit (caparra or acconto) of 10–20%. Should be registered with the Agenzia delle Entrate within 20 days (mandatory if over €77,469 or agreed to register — protects the buyer in case of seller insolvency). The compromesso specifies: price, payment method, completion date, included furnishings, and conditions (subject to mortgage approval, building permit regularity, etc.).
Mortgage application (mutuo ipotecario)
2–6 weeksIf financing: apply to one or more banks with: passport, Codice Fiscale, proof of income (buste paga, CUD/730, dichiarazione dei redditi), ISEE, preliminary contract. Banks conduct a perizia (property valuation by a bank-appointed surveyor). Approval takes 2–6 weeks. Italian mortgage market 2026: LTV typically up to 80% (100% for under-36s with "Mutuo al 100%" government guarantee — Fondo Consap for prima casa). Fixed-rate mortgages dominant in 2026.
Notaio selection and due diligence
2–4 weeks of notarial due diligenceThe buyer typically chooses and pays for the notaio (Art. 1475 Codice Civile). The notaio conducts: full title search, verification of building permits (agibilità, conformità urbanistica), checks for condominial debt (debiti condominiali — new owner inherits up to 2 years of prior unpaid condominium fees under Art. 63 Legge 220/2012), and confirmation that all mortgages on the property will be discharged at closing.
Rogito Notarile (Final Deed)
1 day (after all due diligence complete)Completion takes place at the notaio's office. Both parties sign (or a representative with notarial procura). Payment: typically by assegno circolare (bank draft) or bonifico bancario (SEPA transfer). The notaio reads the full deed, explains it (in Italian — buyer may request certified translation), and both sign. Notaio then files with the Conservatoria and Catasto within 30 days. Mortgage registered simultaneously if applicable.
Post-completion: IMU, utilities, and residency
2–4 weeksRegister change of ownership with the Comune for IMU/TASI purposes. Transfer utility accounts. If using as primary residence (prima casa): register official residence (iscrizione anagrafica) at the Comune within 18 months to maintain prima casa tax benefits. Consider contents insurance (assicurazione casa) and, if mortgaged, mandatory polizza incendio and polizza vita required by lender.
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Imposta di Registro (registration tax) | 2% of cadastral value (prima casa — first home); 9% of cadastral value (second home or investment) | Minimum €1,000. For prima casa, must establish residency within 18 months. If buying from developer/builder (less than 5 years since construction): IVA 4% (prima casa) or 10% instead of Imposta di Registro. |
| Imposta Ipotecaria (mortgage registration tax) | €50 (first home/prima casa); 2% of mortgage amount (second home) | Applies to the mortgage registration with the Conservatoria. |
| Imposta Catastale (cadastral tax) | €50 (prima casa); 1% of cadastral value (second home) | Paid at the time of rogito. |
| Notaio fees (onorario notarile) | 1–2.5% of purchase price (€2,000–6,000 for a typical €200K purchase) | Notarial fees are regulated by tariff (Art. 82 Legge Notarile). Includes deed preparation, registration, and disbursements. Buyer pays. Additional costs for mortgage deed if applicable. |
| Estate agent commission (provvigione) | 2–4% per side (buyer pays 2–4% + VAT; seller pays 1–2% typically) | In Italy, BOTH buyer and seller typically pay the estate agent commission. Total agent cost for buyer: 3–6% of purchase price + IVA 22%. Non-negotiable in many agencies. |
| Bank mortgage arrangement fee (perizia + istruttoria) | €500–2,000 (bank valuation + processing fees) | Perizia (property valuation): €300–500. Istruttoria bancaria: €500–1,500. |
| IVIE (tax on Italian property owned by non-residents) | 0.76% of property value per year | Annual tax on Italian real estate declared by non-residents on Italian tax return (Quadro RW). Offset by IMU paid locally. |
| Total transaction costs estimate (second home, via agent) | 9–15% of purchase price | Prima casa: 4–8% total. Second home: 9–15% total (including all taxes, notaio, and agent fees). |
The Notary — Mandatory for All Purchases
The notaio in Italy is a mandatory civil law notary (public officer — publicly licensed professional) who plays a central role in all property transactions. Responsibilities: verify identity of parties, check title and encumbrances, verify building permits and agibilità (certificate of occupancy), explain the deed to both parties (required by law, in Italian), witness signatures, collect and remit taxes to the Agenzia delle Entrate, register the transfer with the Conservatoria dei Registri Immobiliari, and register any mortgage. The notaio is impartial — they represent neither buyer nor seller. Fees: regulated by ministerial tariff, typically 1–2.5% of purchase price (€1,500 minimum). The notaio is chosen and paid by the buyer. Find notai at notariato.it (official notaries register).
Mortgage
Italian mortgage market in 2026: main banks offering mutui include Intesa Sanpaolo, UniCredit, BancoBPM, Banco BPM, BPER, Crédit Agricole, Fineco. Compare at mutui.it, Chebanca!, MutuiOnline, or via a mortgage broker (mediatore creditizio). Typical 2026 rates (ECB deposit rate at 2.0%; Euribor down significantly from 2023–2024 peaks): variable (variabile): Euribor 3M + 1–1.5% = approx. 3.0–3.5%. Fixed (fisso 20 years): IRS 20Y + 1.2% = approx. 2.5–4.0%. Hybrid (primo triennio fisso, poi variabile): competitive. Minimum property assessment (perizia): ordered by bank (€300–500 fee paid by borrower).
Standard: 20% deposit (LTV 80%). First-time buyers under 36: access Fondo Garanzia Prima Casa (Consap) for mutuo at 100% LTV — no deposit required. LTV up to 100% also via specific bank products with higher rates. Banks in 2026 are cautious about properties in municipalities with declining populations.
EU citizens: same terms as Italian citizens. Non-EU buyers: eligible for Italian mortgages but require Italian residency (permesso di soggiorno) or prove strong ties to Italy. Non-resident non-EU buyers: most banks require 30–40% deposit, shorter terms (15–20 years). Some banks (Intesa Sanpaolo International, UniCredit foreign client division) specialise in non-resident mortgages. Key requirement for all buyers: Italian Codice Fiscale. Non-resident buyers may access 100% mortgages only in rare cases.
Land Registry
Italy has two separate registers: (1) Conservatoria dei Registri Immobiliari (deed registry) — records all property transactions, mortgages, and charges. Maintained by the Agenzia delle Entrate. Accessible online via Agenzia delle Entrate's public portal. (2) Catasto (cadastral registry) — technical/fiscal register of all Italian properties, managed by Agenzia delle Entrate. Contains: planimetrie (floor plans), categories (A/2 = abitazione civile, A/3 = abitazione economica), rendita catastale (assessed value used for tax calculations). Discrepancies between catasto and actual property are common in older buildings and must be regularised (variazione catastale) before or at the sale.
Taxes
IMU (Imposta Municipale Propria): annual property tax on non-primary residences (seconde case, investment properties) at 0.86–1.14% of cadastral value (raised by 160% under the specific municipal rate). Primary residence (prima casa): IMU-exempt (except luxury properties: A/1, A/8, A/9 catasto category). TARI: annual waste collection tax — all property owners or tenants must pay, based on property size and household members. Administered by Comune. IVIE: tax for non-residents owning Italian property (0.76% of property value annually, credited against IMU paid). IMU for commercial properties: different rates. Second home buyers: full IMU + TARI. Property capital gains (plusvalenza): taxed at 26% imposta sostitutiva if sold within 5 years of purchase; exempt after 5 years (with some exceptions for land and building plots).
New Build vs. Existing Property
New build (nuova costruzione): bought from developer (costruttore). IVA 4% prima casa, 10% second home, 22% luxury. Developer provides 10-year construction warranty (garanzia decennale postuma — Art. 1669 Codice Civile). Check: certificato di agibilità, conformità urbanistica, fideiussione bancaria (bank guarantee for advance payments). Existing property (usato): bought from private individual or investment company — Imposta di Registro 2%/9%. Older properties may have energy efficiency issues — check the APE (energy certificate) class; class G–F properties will face EU mandatory renovation requirements under the EU Buildings Directive timeline. Rural property (rustico/casale): additional complexities — agricultural land restrictions (vincolo agricolo), septic tanks, water sources, rural building permits. Heritage property: if listed (vincolato) by the Soprintendenza dei Beni Culturali, strict restoration obligations and right of first refusal by the State.
Selling Property
Selling Italian property: similar process — typically via estate agent (2–3% commission + VAT paid by seller) + notaio (split cost or buyer pays). Capital gains tax: plusvalenza taxed at 26% flat rate (imposta sostitutiva) if sold within 5 years of purchase; or at ordinary IRPF rates if seller elects ordinary taxation. Exempt if: held over 5 years; sold by inheritance; primary residence for most of the ownership period. From 2024: properties benefiting from Superbonus renovation tax credits are subject to special gain calculation rules. Seller must provide buyer with: certificato di agibilità/abitabilità, APE (Attestato di Prestazione Energetica — energy performance certificate, mandatory from 2006 and updated periodically).
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