Investing in Italian Real Estate: Top Things to Know

Italy offers a rich blend of history, lifestyle, and long-term value—making it a dream destination for expat property investors. Whether you’re looking for a rustic farmhouse in Tuscany, a city apartment in Milan, or a rental villa on the Amalfi Coast, there are key factors to understand before diving in.

Top Things to Know When Investing in Italian Real Estate

1. Property Prices Vary Greatly by Region

From affordable homes in the countryside to luxury real estate in cities and coastal areas, Italy’s property market is highly regional. For example:

• Southern Italy (like Calabria and Puglia) offers some of the country’s most affordable prices.

• Tuscany, Lake Como, and the Amalfi Coast remain popular with international buyers but come at a premium.

• Major cities like Milan, Rome, and Florence provide capital appreciation and strong rental potential, but often with higher entry costs.

Understanding your goals—whether lifestyle-driven, income-focused, or retirement planning—is key to choosing the right location.

2. Legal and Bureaucratic Complexity Requires Local Guidance

Buying property in Italy as a foreigner is allowed, but the process can be complex:

• You’ll need a Codice Fiscale (tax code) to begin.

• A Notaio (notary) is required to finalize the sale, and they are neutral parties—not legal representatives.

• Due diligence, including checking for liens and verifying planning permissions, is essential.

We strongly recommend hiring an independent property lawyer and working with a local agent who understands the needs of foreign buyers.

3. Taxes and Fees Add to Purchase Costs

Understanding tax rules is one of the top things to know when you want to invest in Italian real estate. Expect to pay an additional 7–10% on top of the property price to cover:

• Purchase taxes (varies by whether the home is a primary or secondary residence).

• Notary and legal fees

• Agency commission (typically 3–5%, sometimes split between buyer and seller)
  

Italy also imposes annual ownership taxes and may tax rental income if you plan to let the property.

The rules differ for residents vs. non-residents, so tax planning is essential—especially if you’re purchasing through a foreign company or planning inheritance transfers.

4. Lifestyle Appeal That Enhances Long-Term Value

Italy isn’t just a place to invest—it’s a place to live and enjoy. The combination of Mediterranean climate, rich culture, culinary heritage, and slower pace of life makes it a magnet for retirees, second-home owners, and digital nomads alike.

Regions like Tuscany, Umbria, and Sicily offer an unmatched quality of life for those seeking scenic landscapes, vibrant local communities, and a connection to tradition. Meanwhile, cosmopolitan hubs like Rome and Milan offer international schools, career opportunities, and thriving expat networks.

Even if you’re buying primarily for investment purposes, lifestyle appeal can enhance rental demand and long-term property value.

5. Renovation Opportunities and Risks

Italy has many old properties with charm and potential, especially in rural or less developed areas. Restoration can add serious value—but it also brings risk.

• Budget carefully: renovation costs in Italy can vary and timelines often shift.

• Be sure to get all building permits and work with qualified professionals.

• For protected buildings or those in historical zones, stricter rules apply.
  

Government incentives (like the Superbonus program) have helped offset renovation costs in recent years, though availability changes—so be sure to check the latest.

Ready to Invest in Italy? Let’s Talk

Before diving in, it's wise to consult a property expert, understand Italy's tax implications, and consider the differences between resident and non-resident ownership. A little research goes a long way!

If you want to explore investment properties in Italy, we can help you. APW Group was founded by expats, for expats; building upon over 30 years of experience in property and fixed income investments.

Our team brings a wealth of experience in the global property market, guiding you through everything from discovering the perfect home to securing visas and navigating local laws with confidence. We’ve helped over 6,000 expats progress their property portfolio in cities all over the world, from Spain and Portugal, to Bali and Phuket.

Looking for your entry point into the Italian market? Get in touch today.