The information in this guide is provided for general informational purposes only and constitutes broad guidelines, not legal advice. Legal advice and representation are provided exclusively through a formal client-attorney relationship and are tailored to your specific circumstances.
Non-residents can legally buy property in Italy without establishing residency first. US, British, and Australian citizens all qualify under Italy’s Reciprocity Principle, which governs which non-EU nationals can purchase Italian real estate. Non-residents are simply recorded as residente all’estero (resident abroad) in the final deed.
The property-buying process runs in three contractual stages, can take from 60 to 180 days from offer to registered deed (unless there are delays due to building irregularities or sanatoria procedures [retrospective legalization and sanitization of work carried out without the required permits]), and requires a codice fiscale (Italian tax code) before any contract is signed.
Who this guide is for
US and UK citizens, retirees, and international investors buying Italian property from overseas, including those purchasing without traveling to Italy for every stage. At My Lawyer in Italy, we help our clients from the very start of the property-buying journey.
What you’ll achieve
A completed, legally registered Italian property purchase with an accurate tax budget and clear title.
Prerequisites
- A passport from a country covered by Italy’s Reciprocity Principle (US, UK, and Australian citizens qualify for residential purchases)
- A realistic acquisition budget: additional costs beyond the purchase price for a second home include taxes, notary fees, and agency costs
- A timeline of 60-180 days from offer to final deed
Step 1: Confirm your right to buy
Non-EU buyers must come from a country with a bilateral arrangement covering property ownership. The Ministero degli Affari Esteri (Italy’s foreign ministry) maintains official reciprocity tables, and US, UK, and Australian citizens all benefit from reciprocity for residential real estate.
If you hold a valid Italian residence permit, you can purchase property regardless of your nationality’s reciprocity status.
At My Lawyer in Italy, we run all of these checks for our property clients.
Step 2: Get your codice fiscale
The codice fiscale is a 16-character alphanumeric tax code issued by Italy’s tax authority, Agenzia delle Entrate, and no property contract can proceed without it.
We look after this bureaucracy and obtain a codice fiscale for our clients, under the Power of Attorney.
Step 3: Hire an independent Italian property lawyer
If you haven’t already, appoint your own legal counsel before you make any offer, not after.
My Lawyer in Italy, as an independent Italian property lawyer, can review contracts in your interest, identify risks in due diligence, and advise on tax structuring before you commit any funds. The notaio (notary), selected by the buyer, handles and authenticates the deed and remits taxes to the Italian state but does not represent the buyer or the seller. Many foreign buyers assume the notaio is protecting their interests. That misunderstanding is expensive.
Step 4: Run pre-contract due diligence on the property
Italy has no title insurance system, so legal certainty must be established through pre-contract searches. Signing the preliminary contract before due diligence is complete is the most common mistake foreign buyers make.
As your lawyer in Italy, we will conduct and coordinate legal due diligence, connecting you and collaborating with qualified technical professionals (such as architects and surveyors), to obtain and review:
- Visura catastale: The cadastral record confirming boundaries and property classification
- Visura ipotecaria: A lien and mortgage search confirming the property is unencumbered
- 20-year title continuity check at the Conservatoria dei Registri Immobiliari
- Stato legittimo check: Confirms the building’s physical layout matches all approved construction permits; any discrepancy can block the sale or create post-purchase legal liability
- Energy performance certificate (APE)
- Property tax confirmation
Pay particular attention to the stato legittimo on older or rural properties. Abusivismo edilizio (unauthorized construction) can result in demolition orders, fines, and an inability to resell. Regularizing unauthorized historical construction through a sanatoria process typically costs €5,000-€50,000 or more, and that cost investigation must happen before you sign anything.
Step 5: Submit the proposta d’acquisto
Make a formal written purchase offer with a deposit of a percentage of the agreed price.
The proposta d’acquisto (purchase proposal) is your opening contractual commitment. If the seller accepts and you withdraw, you typically forfeit the deposit.
Have your lawyer review all conditions in the offer before you transfer any funds.
Step 6: Sign the compromesso
Sign the preliminary contract only after due diligence has returned clean results.
The compromesso (also known as the contratto preliminare di compravendita) becomes legally binding the moment both parties sign. At this stage, you pay a deposit of 10-20% of the purchase price.
The protection runs both ways: if you withdraw after signing, you forfeit the deposit. If the seller withdraws, they must return double the deposit amount. Discovering a cadastral problem after this point is costly and difficult to resolve.
Step 7: Complete the rogito and pay acquisition taxes
Under a notarized power of attorney, we will represent our client and appear before the notaio to sign the atto notarile (rogito). The rogito transfers legal title and triggers your tax obligations.
Here is what you’ll pay at closing:
Second home:
- Registration tax: 9% of the cadastral value
- Cadastral tax and mortgage tax: each a fixed €50
- Notary fees: typically €2,000-€4,000
Prima casa (first-home benefit):
- Registration tax drops to 2% of the cadastral value
- Same fixed €50 cadastral and mortgage taxes
New-build from a developer:
- VAT replaces registration tax: 10% for a standard property, or 4% for a prima casa-qualifying property
An important warning on prima casa eligibility: Claiming the 2% rate requires that you have no other property in the same municipality and that you commit to establishing residency within 18 months of the deed. Luxury-classified properties (categories A/1, A/8, and A/9) are excluded entirely. Miss the 18-month residency deadline and the Agenzia delle Entrate reclaims the difference between the 2% and 9% rates, plus interest and a 30% penalty. Confirm prima casa eligibility in writing before the rogito is scheduled.
Step 8: Open an Italian bank account and plan for succession
An Italian bank account is not required to close the deal; the notaio can hold escrow funds. But paying Italian property taxes and utilities from a foreign account adds unnecessary friction and fees. With a specific power of attorney, we open a bank account on behalf of a non-resident client during the property purchase process so that the transfer of utilities and other formalities can proceed immediately upon completion.
Italian forced-heirship rules (legittima) protect a spouse’s and children’s reserved estate shares, and they apply to Italian property regardless of your nationality. Under EU Regulation 650/2012, you can elect the law of your home country to govern your entire estate by specifying that choice in a will. Without that election, Italian law applies by default.
Italian inheritance tax on property passing to a spouse or child carries a €1 million allowance per beneficiary; amounts above that threshold are taxed at 4%. We are experts in closing property purchases and estate planning for foreign clients in Italy. We will advise you on the best approach and strategy for your family’s circumstances, and have helped clients purchase and plan the succession of property and assets all over Italy.
A note on €1 house schemes
The widely publicized €1 houses are administered by individual municipalities in depopulated Italian towns, and foreigners are eligible to participate. There is no single national €1 house law. Each municipality sets its own renovation timelines, penalties for non-completion, and eligibility conditions. Total restoration costs typically reach €15,000-€100,000 or more. Review the specific municipality’s terms fully before committing to any program.
Start your Italian property purchase with the right legal team
Buying property in Italy as a foreigner is straightforward when you have independent legal counsel working solely in your interest. The notaio handles authentication; your lawyer handles your protection.
If you’re a US resident buying a second home or retiree planning a move to Italy, contact us to discuss your transaction. Our team provides bilingual legal support for real estate acquisitions and cross-border tax compliance, covering both the purchase itself, succession planning and post-closing obligations like Italian property tax reporting and worldwide income disclosure.