Buying a home in Italy as a foreigner

Four questions to settle before you view anything

1. Are you allowed to buy? For a citizen of the European Union, the notary’s national council describes no special condition. For a citizen of a country outside the EU, it says legal acts are valid in Italy only if there is reciprocity, that is, only to the extent that an Italian citizen could do the same in your country, and that the notary checks this case by case. A non-EU citizen who is resident in Italy shows a valid residence permit or a long-term residence permit instead. The separate guide on whether non-residents can buy property in Italy sets out the legal basis.

2. Do you have an Italian tax code? The codice fiscale is the identification number used in dealings with Italian public bodies, and the tax authority says only the code it issues is valid. A first code for a foreign citizen requires an in-person appointment, unless you apply through an Italian consulate where you live. See the tax code guide.

3. How will you pay? The deed must record in detail how the price was paid. Read the guide to opening an Italian bank account to buy before you transfer anything.

4. Will you be in Italy to sign? If not, a power of attorney can stand in for you, but it has formal requirements. See buying with a power of attorney from abroad.

The purchase, in the order it happens

The notariat’s own guidance warns that a purchase proposal or a preliminary contract is already a binding commitment, and advises involving a notary before you sign either. The choice of notary is free: the estate agent or the lender may not impose one. The buyer pays the notary’s fees unless otherwise agreed with the seller. No law fixes a notary fee or an agent’s commission: the notary must quote the fee in writing before taking the instruction (D.L. 1/2012, art. 9), and the commission is whatever is agreed or customary locally (L. 39/1989, art. 6). Any percentage you are quoted is a negotiated figure, not a legal one.

At the deed (rogito, the notarial deed of sale) the notary identifies the parties, checks the seller really owns the property and has the right to sell it, looks for existing mortgages, and applies the correct tax regime. If you do not understand Italian, the notariat’s guide says the deed can be drawn up in a language the notary knows, with an Italian translation attached, or in Italian with a translation prepared by an interpreter you choose; in both cases the text is read out to you before signature.

What the taxes come to

These rates are national. There is no regional variation in the registration tax, mortgage tax, cadastral tax or VAT on a purchase; a point the sources Payotte read do not cover is the land-book (tavolare) territories (Trento, Bolzano, Trieste, Gorizia and part of Udine), so ask a notary there how the deed is taxed.

Calculation, using these official rates: on a €300,000 resale home bought from a private seller without relief, registration tax is 9% = €27,000, plus €100, so €27,100 in taxes. With the relief it is 2% = €6,000 plus €100. The notary pays these to the tax authority when the deed is registered. Use the purchase costs calculator for your own figures.

On a non-VAT sale to an individual buying a home, you can ask the notary to apply the prezzo-valore rule, which taxes the cadastral value instead of the price, and which the tax authority says also cuts the notary’s fee by 30%. The worked case in its guide: a cadastral income of €900 and a €200,000 price give a base of €113,400 and registration tax of €10,206 instead of €18,000.

The prima casa relief and foreigners

The relief is not reserved for Italians. It depends on the home’s cadastral category (A/2 to A/7 and A/11, not A/1, A/8 or A/9) and on where it is: in the municipality where you live, or where you will move your residence within 18 months, or where you work. A foreigner who lives abroad and does not intend to move to Italy will not meet the residence condition. The guide on the prima casa residence requirement for foreign buyers covers this in detail.

What owning costs afterwards

The municipal property tax (IMU) is set by each municipality. By law the main home in categories A/2 to A/7 is exempt; other buildings carry a base rate of 0.86%, which a municipality can raise to 1.06% (1.14% in some cases). The rate for a given town is published by the municipality and on the finance ministry’s portal. In the Province of Bolzano the equivalent tax is called IMI and in the Province of Trento IMIS.

Which professional to consult

A notary is the one professional the purchase cannot do without, because the deed is reserved to a notary. A surveyor (geometra) or architect can check the cadastral and planning position of the property on your side. A real estate agent finds and negotiates, and a mortgage broker helps if you borrow; see the pages on notaries, surveyors, agents and mortgage brokers. Payotte does not list or rank notaries.