There is some truth in the rumors that buying a property in Italy is difficult. With a complex legal system, many hidden costs, and more, buying real estate in Italy can be more difficult than buying real estate in many other countries.

Here are some reasons why buying a property in Italy is difficult:

Complex legal system

Italy is infamous for its bureaucracy, and this is also evident in real estate transactions.

The legal hurdles in Italy’s real estate transactions are more challenging for sellers than buyers, as sellers must provide many documents before proceeding with the sale.

For example, sellers would have to provide a declaration of the property condition, a certificate of provenance showing how they came into ownership of the property, a cadastral document providing information about the property’s legal and physical characteristics, a certificate confirming that the property complies with local urban planning and zoning laws, and more.

However, buyers still face substantial hurdles. For example, a Codice Fiscale (Italy’s version of a tax identification number) is required to purchase property in Italy, so an individual must obtain this fiscal code before even beginning the process of purchasing property in Italy.

Buyers outside Italy can obtain this at their local consulate. While the process is straightforward, you should be prepared for some paperwork and significant waiting time.

Also, in Italy, the notary’s (notaio) role in property transactions is more complex than expected. Unlike in many countries where notaries are just witnesses to the signing of contracts, in Italy, notaries are public officers with a legal duty to ensure that contracts comply with the law.

They verify the legal status of the property, including whether it is free from encumbrances and whether it complies with Italian property laws. While this process helps safeguard the buyer, it also affects their ability to move forward with the purchase.

Hidden costs

In Italy, there are multiple taxes and other costs that may not be immediately evident. And this can quickly add up, making the overall purchase price higher than it first appears.

One of the most significant taxes buyers face is registration tax (Imposta di Registro). This tax is due during the notary deed when the property transfer is officially recorded. For primary residences, the registration tax is 2% of the cadastral value. For second homes or properties intended for investment, it’s 9% of the cadastral value.

Another fee that may surprise people buying property in Italy is VAT on new properties (known as IVA in Italy). For buyers purchasing a new home as their primary residence, VAT is 4%. But for residential properties for second homes, it is 10%, and for commercial properties, it is a whopping 22%.

Another cost that often surprises buyers is notary fees. The issue is not being unaware of the fee but of its size. Since notaries in Italy play a significant role in property transactions, their fees can be substantial.

The fee generally ranges between 1% and 2% of the property’s purchase price. That is, for a property priced at €200,000, you might pay between €2,000 and €4,000 for notary services.

Building restrictions

Italian regulations on renovations and modifications to properties can be highly restrictive.

More often than not, buyers need to renovate after a property purchase. For example, you may want to replace old windows or update the plumbing after buying a stone farmhouse in Tuscany. However, such modifications could affect the building’s historical integrity.

For this reason, Italy has heritage protection laws that seek to preserve the nation’s cultural and architectural heritage, such as historic buildings and properties located in protected areas.

When you buy such properties, you must obtain permission from the authorities to carry out renovations. The process of obtaining approval can be time-consuming and expensive.

Generally, properties older than a certain age (usually 50 years or more) may fall under the category of beni culturali (cultural goods), which are protected by Italian law, and any work to be carried out on them must be approved by the Sovrintendenza (regional office of cultural heritage).

Also, properties in protection zones (like UNESCO World Heritage sites, historic city centers, or rural areas with significant historical value) may have additional restrictions placed on them, which prevent or limit modifications to the structure.

In addition to the difficulty of obtaining approvals for renovations, restorations can be expensive after obtaining approval. Restoration of historic properties (such as restoring old frescoes, preserving wooden beams, and more) requires specialized professionals, who are usually more expensive than standard construction workers doing standard renovations.

Language barrier

Unless you understand Italian, the language barrier can make buying property in Italy difficult.

The compromesso di vendita (the preliminary sales contract), rogito (the final deed of sale), and other legal documents in real estate transactions are usually written in Italian.

Foreign buyers who are not versed in Italian can miss key clauses in the transaction. And this leads to complications or disputes.

On average, property values in Italy have grown moderately year-over-year. In 2024, the local property market saw an increase in house prices of about 3% compared to 2023. Certain properties (like historic properties or those in coastal areas) saw more significant growth.

Also, there’s been an increase in the number of property transactions, which shows that demand among buyers is picking up. Residential real estate is the most popular in the Italian property market.

In large cities (like Milan, Rome, and Florence), there’s a strong demand for luxury properties. At the same time, rural areas and small towns (such as Tuscany, Umbria, and Sicily) have experienced increased demand from international buyers looking for second homes or retirement properties.

A thriving tourism industry also drives a strong demand for rentals. Most Italian rental properties take less than 24 hours to get tenants, and many people opt for long-term rentals. Also, rental rates have increased year-on-year, with the rental market in 2024 seeing almost a 14% increase in yield over 2023.

The advantages of buying real estate for personal residence include the following:

• Scenic beauty: Italy has a variety of stunning landscapes, such as the mountain resorts in the Alps, the rolling hills of Tuscany, the sunny beaches of Sardinia and Sicily, and more. Buying property in Italy allows you to immerse yourself in these beautiful surroundings.
• High quality of life: The lifestyle in Italy is more relaxed than in many other countries. Also, the country is famous for its cuisine, art, and culture. This makes owning a house and living in the country appealing for people seeking a less stressful and really enjoyable environment.
• Rich culture and history: Italy has some of the most culturally and historically rich areas in Europe, such as the ancient Roman ruins, Renaissance art, and more. Living in Italy places you in close proximity to these treasures.
• Favorable climate: Italy has a pleasant Mediterranean climate in most regions, with warm summers instead of excessively hot and mild winters. Thus, the country offers year-round pleasant weather for outdoor lifestyles throughout much of the year. The advantages of buying real estate for investment include the following:
• Affordable property values: Property prices in major and touristy areas like Rome, Milan, Venice, Florence, and Naples can be expensive. But house prices in certain regions are much lower than in many other European countries. With proper search, you can find a €1 home that will not cost you an arm in renovations.
• Property values appreciate over time: Property prices have been increasing year-on-year. This means you can make a profit if you buy a property in Italy.
• Strong rental market: Italy attracts millions of visitors each year for tourism, and this creates a strong demand for rental homes. Also, rental rates have increased significantly in recent years. For these reasons, investing in rental property has significant income potential.
• Government incentives and programs: The Italian government sometimes offers incentives for restoring historic properties and €1 homes. Also, there are tax benefits for foreign buyers who establish residency in Italy. For example, the registration tax (Imposta di Registro), which is usually 9% of the property value, can be reduced to 2% when you purchase a property that will be your primary residence.

While Italy offers many advantages to real estate buyers, there are also a few disadvantages to consider. Disadvantages of buying real estate in Italy include:

• Higher costs in popular cities: Real estate prices in popular cities can be high. For more affordable properties, you may have to check small, rural areas.
• High transaction costs: The cost of completing a real estate transaction in Italy is high compared to other countries. These include notary fees, registration tax, real estate agent fees, VAT, and more.
• Bureaucracy complexity: Italy is infamous for a slow and complex bureaucratic system. For example, unlike elsewhere, where notaries are simply eyewitnesses, in Italy, they verify the legality and legitimacy of the contract. And this slows the process. The increased bureaucracy can make real estate transactions take several months to complete, even after you’ve agreed on a price.
• No direct path to residency: Unlike in many other countries, buying property in Italy does not offer a path to residency.
• Restrictions on renovation: Italy has many historic homes that often require extensive renovations to meet modern standards. Unfortunately, heritage protection laws limit how much you can alter these homes. Obtaining permits for renovation can be a lengthy and costly process. Many times, you may be unable to renovate the property to your heart’s desire.
• High renovation expenses: Restoring historic properties requires specialized professionals, who are more expensive. Thus, even after going through the lengthy and costly process of obtaining renovation approval, carrying out the renovations can be expensive.
• Rental property challenges: Italy has complex inheritance laws that may limit how foreign owners transfer their property. For example, Italy has laws dictating that a portion of a deceased’s estate must go to certain heirs (such as children and spouses) irrespective of what their will specifies. Also, Italy imposes inheritance taxes, which depend on the relationship between the deceased and the heirs. While direct descendants like children may pay lower rates, more distant relatives or non-relatives face higher taxes.

In addition to the property’s purchase price, you should budget for property taxes and fees when buying real estate in Italy. Some of these taxes and their rates are as follows:

Some of the cheapest locations in Italy to buy real estate are:

Calabria

Calabria, at the toe of Italy’s “boot,” is one of the most affordable regions for real estate in the country, as prices in some areas are as low as €50 to €100 per square foot (approximately €500 to €1,000 per square meter). Calabria towns with affordable real estate include:

• Reggio Calabria
• Vibo Valentia
• Scilla
• Locri
• Gerace

Sicily

The island of Sicily in southern Italy is one of the most affordable places to buy real estate in the country. While coastal areas like Taormina or Palermo can be expensive, inland towns and smaller villages offer great value, with prices ranging between €60 to €150 per square foot (approximately €600 to €1,500 per square meter). The top affordable towns on the island are:

• Caltanissetta
• Enna
• Agrigento
• Ragusa
• Trapani

Molise

Molise is a very small city in southern Italy. The region's rural charm makes it an excellent place for affordable real estate, with many properties available for between €50 and €100 per square foot (approximately €500 to €1,000 per square meter). Top affordable areas in Molise are:

• Campobasso
• Isernia
• Termoli

Abruzzo

Abruzzo offers mountainous landscapes and medieval towns at a much lower price than other regions in central Italy. Real estate prices in rural areas are as low as €75 to €125 per square foot (approximately €750 to €1,250 per square meter). Top affordable towns in Abruzzo to consider are:

• L’Aquila
• Teramo
• Sulmona

Trentino-Alto Adige

If you want affordable real estate in Northern Italy, consider Trentino-Alto Adige, which is known for its Alpine landscapes and ski resorts. Areas around well-known tourist destinations can be expensive. But surrounding rural areas have some of the most affordable real estate in Northern Italy, with prices ranging between €100 and €200 per square foot (approximately €1,000 to €2,000 per square meter). Top affordable areas are:

• Val di Non
• Val di Fiemme

Before moving into your Italian property, here are a few things you should do:

• Ensure you have completed all legal and administrative steps (mainly signing the final deed of sale and registering the property in your name).
• Obtain permissions for renovations necessary to bring the property up to modern standards and complete all works.
• Ensure that all necessary utilities are set up and functioning.
• Furnish your property to your taste.
• Notify all relevant bodies of your updated contact information to facilitate correspondence.
• Set up insurance.
• Settle into the community by learning the language, understanding the local culture, and joining local social groups.