Can I buy property in Italy
You probably can buy a property in Italy. Most foreign citizens can buy a property in Italy and as Italy uses a system of “reciprocity” if Italians can buy in your country then you can in theirs.
All European Union (EU) citizens can buy property in Italy, as can citizens of countries with bilateral agreements with Italy concerning property purchases, including the US and UK.
Indeed, the Italian authorities in many areas are actively encouraging investment in Italian real estate. Some towns, particularly those with low populations, are offering cash incentives to those willing to buy a property and renovate it to be their primary residence.
Can I gain residency by buying a property?
Currently, there isn’t a residency-by-investment in real estate programme operational in Italy. This is a residency route more commonly known as the golden visa program, which is popular in Greece and Spain.
If you want to live in Italy long-term, as a non-EU citizen you will have to apply for a visa.
Buying in Italy as a foreigner: Code Fiscale
When buying a property in Italy, it’s essential that you obtain a Fiscal Code Number (codice fiscal). This works much like your National Insurance Number in the UK, and is necessary for paying taxes, accessing healthcare and more. You can obtain your codice fiscale from the Italian tax office.
Can I invest in Italian property?
Yes, you can, and given recent rises in property values, Italian property looks like a good investment for capital growth.
However, investing for rental income is more complicated. Non-residents can own and rent out their property, but any rental will be subject to local laws, just as it is for Italian owners. Some regions may have restrictions, such as only allowing long-term rentals.
Non-residents generating income from their property will need to pay IRPEF (Imposta sul Reddito delle Persone Fisiche), which is a tax on their gross rental income without deductions for expenses.
Can I “work from home” in my Italian property?
As a non-EU citizen, you can spend up to 90 days in any 180-day period in Italy without a visa. If you wish to stay longer, there are several visa options available, including new digital nomad visa.
If you are spending less than this time in Italy and remain a tax resident in the UK (or elsewhere), you are essentially working while on holiday, so there are no restrictions.
Are €1 properties in Italy the real deal?
It is true that the Italian government has significantly lowered the property prices in some low-density areas to €1 to encourage foreign investment. However, the property you buy will not be key-ready. You will need to pay for considerable renovations to be able to live safely in the property. Most €1 homes are old and need significant modernisations to be usable in today’s age. The price is designed to attract buyers willing to pay for renovations and other necessary fees, such as builders, surveyors, rewiring and more.
Should you wish to buy a €1 home, we advise you plan out what needs to be done to the property before making an offer and considering the additional buying fees you’ll pay on top of the purchase price. These additional fees often total around 10% of the asking price, but this is usually when the property is several thousand euros. To effectively budget for the additional buying fees, we recommend you speak to a financial advisor.