Is Italy Good for Expats? A Property Investor's Guide

Italy has long been a dream destination for travellers, retirees, and digital nomads alike. But is Italy good for expats, particularly those looking to invest in property? From its scenic landscapes and rich culture to its appealing property prices and residency incentives, Italy offers a unique blend of lifestyle and investment opportunity.

Is Italy Good for Expats Investing in Property?

1. Attractive Real Estate Prices Across the Country

Compared to many Western European countries, Italy offers relatively affordable real estate, especially in southern regions and smaller towns. While cities like Milan and Rome carry premium prices, you can still find excellent value in places like:

• Puglia: Known for charming trulli homes and coastal towns

• Le Marche: Underrated, scenic, and ideal for countryside retreats

• Calabria & Sicily: Popular for €1 home schemes and long-term potential
  

For investors, this presents an opportunity to enter a maturing market with both short- and long-term rental potential.

2. High Quality of Life with Lower Costs
   

Italy’s relaxed lifestyle, Mediterranean climate, world-class food, and healthcare system all contribute to its high quality of life. Combine that with lower living costs compared to countries like the UK, US, or Switzerland, and it becomes an attractive base for expats looking for lifestyle and value.

Cities like Bologna, Florence, and Turin offer a blend of culture, services, and investment potential, without the congestion and cost of Rome or Milan.

3. Tax Incentives for New Residents
   

Italy offers favorable tax regimes for new residents, including:

• Flat tax of €100,000/year for high-net-worth individuals on foreign income

• 70%–90% income tax exemption for new residents working in Italy

• No inheritance or wealth tax on foreign assets

These schemes are especially appealing for retirees or remote workers with income sources abroad.

4. Residency and Visa Options for Property Buyers
   

Italy provides several visa and residency paths that complement property investment:

• Elective Residency Visa: Ideal for retirees or those with passive income

• Investor Visa: Available with investments of €250,000 or more in startups, or €500,000 in Italian companies

• EU Blue Card and Freelance Visas: Viable for skilled workers and digital nomads

Buying property doesn’t automatically grant residency, but it supports visa applications and long-term planning.

5. Growing Short-Term and Long-Term Rental Market
   

Thanks to Italy’s booming tourism industry and the rise in remote work, the rental market is increasingly lucrative. Investors can tap into:

• Short-term holiday rentals in historic cities or coastal areas

• Long-term rentals for students, professionals, and digital nomads

Regulations vary by region, so it's critical to work with local legal experts to navigate licensing and taxation.

6. Infrastructure and Bureaucracy: Challenges to Consider
   

While Italy offers many advantages, expat investors should be aware of bureaucratic hurdles:

• The property buying process can be slow and paper-heavy

• Local laws and renovation rules may vary significantly

• Language barriers can complicate transactions without proper representation

Working with a bilingual agent, lawyer, and notary is essential to a smooth experience.

Italy: Lifestyle Goals and Long-Term Opportunity

With its relatively low entry prices, high rental demand, and favourable tax regimes, Italy offers a compelling package for those who approach it with informed strategy and local guidance.

Whether you're eyeing a Tuscan villa, a beachside apartment, or a city pied-à-terre, Italy could be more than a lifestyle choice — it could be your next smart investment.

Thinking of Investing in Italian Property?

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.