Real Estate

Real estate investments for foreigners

Contrary to what one might naturally think, real estate investments are not the exclusive domain of wealthy individuals. The real estate sector is open to everyone. By leveraging credit, it is possible to invest in real estate even with limited liquidity.

Of course, a certain level of expertise and in-depth knowledge of the sector is necessary: at Italy Visa Investments, we can provide you with that.

Real estate investments are among the most widespread economic activities in Italy.

These investments have proven to generate long-term profits that are far from negligible. Moreover, they allow investors to diversify their investment portfolios and increase their income—this is the primary need that most of our foreign investor clients seek to fulfill.

Real estate investments can be divided into several types of transactions, primarily:

Buying and selling with the intent to resell as quickly as possible: If the goal is not to resell promptly, and the investor intends to live in the property, then the investment is merely theoretical. At the same time, waiting months or years to resell the property could expose the investor to potential risks from real estate market price fluctuations.
Purchasing to rent out: In this case, the investor buys a property to “generate income” by renting it out and collecting a monthly rental fee. This option is highly appealing for those who can invest in real estate. However, it also carries risks, as the investor never truly knows who they are renting to, and Italian regulations regarding eviction do not particularly favor property owners.
Investing in real estate funds: This involves converting real estate investments into shares, allowing investors to generate liquidity without having to purchase a property directly. The main advantage is benefiting from an annual return, while taxation is handled by the fund management company. Most importantly, the investor is not burdened with the responsibilities and obligations that come with directly owning a property.

Everyone is aware of how attractive real estate investments can be, as they are traditionally considered the safest form of investment.

It is often said that “real estate never dies.” Unlike stock funds, which are subject to the violent fluctuations of the stock market, or other types of investments where the initial capital can be lost in just a few months, real estate does not carry such risks. In any case, it should be reiterated that real estate purchases are the most suitable tool for diversifying an investment portfolio.

The appeal of real estate investment is so strong that, according to the latest survey by the Italian Federation of Business Brokers affiliated with Confcommercio, “despite the particular economic situation we are experiencing—characterized by international instability due to the Russia-Ukraine conflict, rising inflation, and increasing mortgage rates—real estate remains a safe-haven asset.”

This is evident from the fact that in 2022, despite the severe economic and socio-political difficulties faced by Italy and the rest of the world, real estate transactions still managed to increase by 5.4% compared to 2021.

Recently, foreign investors—especially from China and Russia—have entered the market in significant numbers. These foreign investors mainly seek large properties in Italy’s major cities, particularly Rome, to be used for residential purposes or commercial activities. This category of investors is generally not concerned with the final purchase price but prefers to acquire properties that are easier to buy and sell. They often divide these properties or rent them out, with a particular interest in spaces for retail stores, corporate offices, hotels, bars, restaurants, and similar establishments.

Typical scenarios / Case studies

The typical scenarios have been developed by drawing on the most significant corporate immigration cases that the firm regularly handles, with the aim of creating structured, complex examples that help the reader navigate their own situation. The case studies, by contrast, illustrate individual real-life matters, anonymised to protect client confidentiality, presented with full factual and contextual detail.

Relocation

US professional chooses Italy: elective residence obtained and future planned

American professional obtains an elective residence visa while maintaining ties with the USA. Integrated assistance from legal strategy to property search..

Application completed in approximately 3 months without additional requests

Read the full case

Business

US opera singer obtains work authorization in 7 days

American opera singer with contracts already signed with an Italian theatre. Self employment work authorization obtained on an urgent basis to meet professional commitments.

Work authorization issued within 7 days from submission of the application

Read the full case

Real Estate

US client purchases property in Rome: secure transaction

American client assisted in the purchase of a property in Rome. Urban planning issues and contractual risks identified and resolved before signing, transaction completed through notarial power of attorney.

Purchase completed within one month, entirely managed remotely

Read the full case

Business

American investor: from New York to a villa in Tuscany

Cross-border property transaction with full relocation service. Purchase of a high-end property, with tax status, residency and NHS registration handled remotely.

Complete relocation service, from property due diligence to handing over the keys

Read the full case

Retirement

Canadian couple, retirement property in Puglia

From Toronto to the Itria Valley. Purchase of a farmhouse with cadastral issues, 7% flat tax on foreign pensions, elective residence visa and healthcare transition.

7% flat tax activated, cadastral issues resolved before the deed of sale

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Business

British entrepreneur, opening a business in Milan

Post-Brexit, a London-based tech entrepreneur establishes an operational headquarters in Milan. Immigration pathway as a non-EU national, company incorporation, and tax planning.

European operational hub established with self-employment visa successfully obtained

Read the full case

Tax Planning

Swiss retiree: 7% flat tax regime in Southern Italy

A banking executive relocates from Zurich to Calabria. Management of the Swiss occupational pension pillar, Italy-Switzerland Tax Convention, and deregistration from the cantonal tax register.

7% flat tax activated on all foreign-sourced income

Read the full case

Retirement

American couple: retirement project in Abruzzo with visa and flat tax

From Connecticut to Abruzzo. Elective residency visa, 7% flat tax coordinated with IRS and FATCA obligations, and transition from Medicare to the Italian NHS (SSN).

7% flat tax activated on Social Security and 401(k) pension income

Read the full case

Relocation

German couple, from Munich to Tropea

Retired engineers from the Bavarian automotive sector. Multi-tier pension management, Italy-Germany Tax Convention, and the 7% preferential tax regime.

Three German pension pillars optimised with Italian flat tax

Read the full case

Business

Startup tech: apertura filiale italiana per il mercato EU

A Bay Area SaaS company establishes a Milan headquarters. Innovative startup SRL, EU Blue Card for the team, transfer pricing, impatriates tax regime, and GDPR compliance.

Operational within 5 months, payroll cost −35% with impatriates tax regime

Read the full case

Business

Fashion brand, representative office in Milan

Brand premium newyorkese apre presidio a Milano. Strutturazione per evitare stabile organizzazione, trasferimento direttrice creativa e gestione showroom.

Rischio stabile organizzazione prevenuto, presidio EU operativo

Read the full case

Corporate

Manufacturing company, ICT transfers to Italy

Multinazionale giapponese trasferisce 3 figure chiave in Piemonte. Permessi ICT per manager e specialista, coordinamento consolare e regime impatriati per tutti i dipendenti.

3 trasferimenti completati in 4 mesi e mezzo, linea produttiva avviata nei tempi previsti

Read the full case

How the Boschetti Law Firm Can Be Useful for Foreign Real Estate Investments in Italy

The real estate world is highly complex and filled with risks and obstacles. Only a deep and thorough understanding of the field allows for long-term, consistent success rather than occasional gains.

Foreign investors looking to invest in real estate must be aware that every transaction carries a certain level of risk.

Finding the right deal requires patience and perseverance—it is not easy to identify the perfect opportunity among the thousands of listings available on the private market and at auctions.

Boschetti Law Firm, through its team of attorneys involved in the Italy Visa Investments project, as well as its network of professionals and real estate agents with whom it collaborates daily, provides high-level legal consulting services to foreign investors seeking to purchase property for investment purposes.

Our consulting activity is summarized in a final business plan, where we outline the investment’s financial framework. This includes all additional costs beyond the purchase price, as well as the estimated resale value. From this, we calculate the ROI (Return on Investment), which, as previously mentioned, must be at least 30%.

The investment opportunities we identify come from specialized real estate websites and portals, as well as from the real estate agencies we collaborate with daily. We constantly monitor potential opportunities within the real estate market, so when a foreign investor contacts us, we are already equipped with tailored solutions based on their needs.

Our focus is strictly on those types of properties that, according to the general preferences of our clients, have the potential to become a true blooming flower—a valuable asset capable of generating significant profits for our foreign investors.

Simple and fast steps

Real estate investment for foreigners in Italy involves several key steps:

First and foremost, it is essential to identify the right property. This is done by exploring the most common real estate portals, agency websites, and auction platforms. From the outset, it is crucial to determine the intended use of the property—whether it will be a residential unit, a commercial space, or another type of asset. Identifying the right property requires assessing its desirability based on various factors. For residential properties, these include location, access to public transport, proximity to city centers, and the availability of essential services such as supermarkets, pharmacies, and hospitals.
Once a potential opportunity is identified, it is important to conduct thorough checks to ensure the property’s compliance with urban planning and cadastral regulations. This includes verifying cadastral, urbanistic, building, dimensional, volumetric, and conservation status. These inspections should be carried out with the support of qualified professionals such as architects, surveyors, and engineers.
Next, a renovation plan should be developed to enhance the property’s value. This may involve making structural improvements or optimizing the layout. For example, adding a second bathroom or incorporating an open-plan kitchen into the living area can significantly increase the property’s market appeal. It is essential to obtain quotes from multiple construction companies to choose the best option in terms of cost-effectiveness. The renovation should be entrusted to a reputable and skilled company, but at the same time, costs must remain reasonable to ensure that profits do not fall below the expected margin.
A business plan must then be drafted, taking into account all renovation costs and any other expenses involved. These costs are added to the purchase price of the property. On the other side of the calculation, an expert must estimate the potential future selling price. It is crucial to establish a minimum price threshold below which the investment would no longer be profitable. The difference between the expected profit and the invested capital determines the ROI, which should be at least 30%. Otherwise, the real estate investment would not be financially viable.
Finally, the property is put up for sale. To enhance its appeal during visits, an additional staging service can be used to furnish the space, making it more attractive to potential buyers. The perception of a well-furnished home is significantly better than that of an empty space. Once the right buyer is found—meaning one willing to purchase the property at or above the predetermined minimum price—the property can be sold, successfully completing the real estate investment process.

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Via dei Gracchi, 151
00192 Roma – Italy

info@italyvisainvestments.com
Tel: + 39 – 06 889 21971

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Investor visa: how to prove the source of funds?

The source of funds must be demonstrated through banking and financial documentation proving ownership, availability, transferability, and lawful origin of the capital: recent bank statements (typically covering the last 3 months), certifications from the financial institution, and documents evidencing the source of funds (income, sale of assets, donations, or other traceable transactions).

For the Italian investor visa (minimum €500,000 in a company or €250,000 in an innovative startup), documentation must be in Italian or English (or officially translated) and verifiable. Authorities carry out anti-money laundering checks and also require proof of no criminal convictions and of the lawful origin of the funds.

Real estate purchase as a foreigner: does buying a property grant a residence permit?

No, purchasing a property in Italy does not automatically grant a residence permit. A non-EU national may freely buy property, subject to the condition of reciprocity, but residing in Italy requires an independent residence title: elective residence, investor visa, work, or another legal ground предусмотрed by law.

However, owning property can be a useful requirement for several types of residence permits, particularly elective residence. It demonstrates a connection to the territory and satisfies the accommodation requirement, as well as indicating the availability of sufficient financial resources. Therefore, the purchase should be part of an overall immigration strategy.

Foreigner buying property in Italy: what taxes apply and what incentives are available?

A foreign buyer pays the same taxes as an Italian citizen: a registration tax of 9%, or reduced to 2% if the “first home” benefit applies; VAT at 4% or 10% if purchasing from a developer. In addition, there are mortgage and cadastral taxes (€200 each for a first home).

The “first home” benefit is also available to foreigners, provided they establish residence in the municipality where the property is located within 18 months of purchase. Special tax regimes for new residents or inbound workers may offer further advantages on the taxation of foreign

Elective residence based on property purchase: what is the minimum income required?

There is no minimum amount set by law. The consulate assesses on a case-by-case basis whether the applicant has sufficient means to support themselves without working in Italy. In practice, an annual income from passive sources (pension, annuities, dividends) of at least €31,000 for a single applicant is generally considered sufficient, with higher thresholds for dependent family members.

Elective residence is intended for individuals who wish to relocate to Italy without carrying out any work activity. Owning a property or having a long-term rental agreement strengthens the application. Proof of passive income sources is the key requirement.

Opening a representative office in Italy: what are the tax obligations and advantages?

A representative office does not carry out commercial activities in Italy: it promotes the business, gathers information, and manages relationships with clients and suppliers without entering into contracts. As it does not constitute a permanent establishment, it does not generate taxable income in Italy and is not subject to corporate income tax (IRES) or VAT on its activities.

The advantages: a physical presence in the Italian market without direct taxation, low start-up costs, and no obligation to prepare separate financial statements. The obligations: registration with the REA (Economic and Administrative Index) at the Chamber of Commerce, keeping accounting records for expenses incurred, and filing withholding tax returns if employees are hired.

Innovative startup in Italy: what tax incentives are available for foreign founders?

Foreign founders of innovative startups may benefit from a 30% personal income tax (IRPEF) deduction (up to 50% in certain cases) on investments in the company’s capital, the favorable tax regime for new residents, and exemption from Chamber of Commerce fees and stamp duties for the first five years.

The startup must be registered in the special section of the Companies Register and meet the requirements set out in Law Decree 179/2012, which are also verified by the Investor Visa for Italy Committee. As for immigration pathways, the investor visa requires a minimum investment of €250,000 in an innovative startup.