How to Buy Property in Italy: The Process, Taxes and Key Considerations Before Purchasing

It is worth beginning the process of buying property in Italy by answering one question: where should the second home be located, and what purpose should it serve? A seaside apartment, a villa in Tuscany or a house in one of Italy’s smaller towns can fulfil entirely different roles. It may be a place to spend a few weeks each year, a base for longer stays or a property also intended for rental. The choice of region and town affects more than the purchase price. It also influences maintenance costs, the character of the property and its future potential. The Italian market is highly diverse. In the south of the country and in some central regions, properties can be found at lower prices than in the north or in the best-known tourist destinations.

Before beginning the search, it is therefore worth defining both the location and the budget. In addition to the property price itself, buyers should allow for taxes, notary and agency fees, as well as translation and interpreter costs. In total, these additional expenses may amount to approximately 10–15% of the property’s value. At Partners International, the process begins before any properties are viewed. We first identify the client’s needs and purpose of purchase, then select the right market and specific addresses. This ensures that Italy’s extensive property market does not become simply another list of listings for the client to review, but instead serves as the starting point for a well-informed decision.

Where should you begin when buying property in Italy?

Italy has an exceptionally diverse property market. Someone wishing to spend several months a year here will look for a different address than a person interested in rental income, while a client treating the purchase as a way to diversify their assets will have different priorities again. The first step should therefore be to choose the region and town. Only then is it worth moving on to a specific property. Location directly affects the price, as well as maintenance costs and the ways in which the property can be used. Prices will be higher in the most sought-after tourist destinations. Significantly more affordable listings can be found in less well-known parts of the country, although a lower price does not always mean a better purchase. The same applies to plots of land. An attractive price can quickly become irrelevant if the intended development proves impossible. Before purchasing, it is therefore essential to verify how the plot may be used and what restrictions apply to the specific site.

First, choose the market. Then the address. Only at the end, the specific property.

How much does it cost to buy a house in Italy?

The price shown in a listing is not the full cost of purchase. The budget should include tax, notary and agency fees, the cost of translating documents and an interpreter’s attendance during procedures requiring their presence. Altogether, these additional costs may amount to approximately 10–15% of the property’s value, although the final figure depends on the specific transaction. This is particularly important when comparing listings. Two properties with similar prices may involve entirely different total acquisition costs, depending on their status and the method of purchase. The budget should therefore be set not as the maximum amount allocated to the house or apartment itself, but as the total funds required to complete the transaction.

A cheap house in Italy? First, find out why it is priced that way

The Italian market includes properties that may initially appear to be exceptional bargains. When buying a home abroad, however, it is wise to remain cautious about listings priced significantly below comparable properties in the same location. There may be a reason for the low price. The property may carry debt, be subject to third-party rights, have a tenant entitled to continue occupying it, require costly work or be located in a building whose common areas are due for renovation. The location itself may also be the issue. A property may look appealing in photographs but, in practice, offer limited access to infrastructure, be far from the town’s key amenities or attract little interest from tenants. When a property is considerably cheaper than comparable addresses, the most important question is therefore not “how much can I save?” but “why does this property cost less?”

This also applies to plots of land. The price of the land alone does not mean that the home of your dreams can be built on it. Development rights must be verified before purchase. The same principle applies to the €1 home schemes popular in Italy. In such cases, the purchase price is only one component of the overall undertaking. The scheme’s terms and the obligations relating to the subsequent renovation and use of the property are equally important. In the premium market, price is one of the relevant parameters, but it should never be the sole selection criterion.

What does the property purchase process in Italy involve?

Once the region and property have been selected, the process moves to a stage of particular importance from the buyer’s perspective: due diligence. Before proceeding with further formalities, the property documentation must be reviewed, primarily to verify its legal status, the lawful status of the building and any existing encumbrances. Only after these checks have been completed should the transaction proceed to its subsequent stages. One of these is the proposta d’acquisto, a purchase offer submitted to the seller. This is a formal document, not merely a declaration of interest in the property. Once accepted by the seller, the process moves forward. The offer may be registered and accompanied by payment of a deposit.

A codice fiscale, or Italian tax identification number, is also required to complete the transaction. At Partners International, we help clients navigate this stage and prepare for the remaining formalities. The next step is an appointment with a notary. The notary is responsible for the notarial procedures relating to the transaction, rechecking the documentation and ensuring that the deed is correctly prepared. Once the deed has been signed, the property is handed over. Certain technical matters remain, such as transferring utility accounts. On paper, the entire process may appear relatively straightforward. In practice, each stage requires the appropriate documentation, adherence to deadlines and cooperation between several people. This is why coordinating the entire process is so important when buying property abroad.

Who can assist with buying property in Italy?

The purchase of a property abroad should not rely on a single person being responsible for everything. Different elements of the transaction require different areas of expertise. The role of the estate agency is primarily to understand the market, select suitable properties, manage the search process and conduct negotiations. Legal and notarial matters, however, require the involvement of appropriate independent specialists. At Partners International, we do not replace the notary or legal adviser. We give clients access to our network of local contacts and recommend trusted specialists who can handle individual elements of the transaction. This is an important distinction. A good adviser should not promise to manage everything alone. Their role is to know when another expert is needed and to identify the right person. When buying in Italy, this means combining property market expertise with a local network of specialists who help complete the transaction in accordance with the requirements of the Italian market.

Property purchase tax in Italy – 2% or 9%?

One of the most frequently asked questions about buying property in Italy concerns the tax rate. When purchasing a property on the resale market, one relevant factor is its cadastral value. This is usually lower than the property’s market value and, in certain cases, forms the basis for calculating the tax. When a property is purchased as a prima casa, the tax is 2% of its cadastral value. In the case of a seconda casa, the rate is 9%. Prima casa refers to a primary home—a property connected with actually residing in Italy and meeting specific conditions. A property purchased by a Polish citizen therefore does not automatically qualify for this preferential treatment.

A seconda casa is a second home—a property purchased, among other reasons, for holidays or with rental in mind. When buying a new-build property, VAT applies instead. Depending on whether the property meets the conditions for prima casa or is purchased as seconda casa, the rate may be 4% or 10% of the purchase price respectively. The distinction between prima casa and seconda casa therefore has a direct impact on the transaction costs.

IMU – property tax after purchase

The costs do not end on the day the notarial deed is signed. When purchasing a property as a seconda casa, the annual property tax, IMU – Imposta Municipale Unica, must also be taken into account. Its amount depends on the property’s characteristics and local taxation rules. As a broad estimate, it may be around 1% of the property’s value, so this expense should also be considered at the planning stage. A second home also involves ongoing expenditure: property maintenance, utilities, building-related charges and, in the case of a house, the garden, swimming pool or periodic property care while the owner is away. This is precisely why buying property in Italy should be considered from a long-term perspective. The purchase price is the beginning of the calculation, not the end.

A second home in Italy – both a lifestyle and an asset decision

Above all, owning a home in Italy can mean having a place to return to for years. Morning coffee on the terrace, several weeks by the sea, an extended winter stay or the opportunity to spend part of the year in a chosen region all give the purchase a significance that extends far beyond the investment itself. At the same time, the property remains part of the owner’s assets. When choosing an address, it is therefore worth considering it from two perspectives: is this genuinely a place where you want to spend time, and do its location and characteristics justify committing the capital? This is precisely where the role of an adviser begins.

At Partners International, our aim is not to show clients the largest possible number of properties. The Italian market is extensive enough for the search itself to quickly become time-consuming. Our role is to curate the selection: to understand the client’s needs, identify the right market and recommend addresses that suit the stated purpose of the purchase. Only then do we move on to a specific apartment, villa or house. Once the decision to buy has been made, managing the process correctly becomes just as important as the property itself. This is why we draw on a network of trusted local contacts and connect clients with experts responsible for each area of the transaction.

In Italy, a good property purchase begins with the right address. And even before that, with the right selection.