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Real Estate: Property in Italy for foreigners

Buying a property in Italy as a foreign investor means moving within a legal system that combines civil law, urban planning, national taxation and specific rules for nationals of non-EU countries. The decision to buy property in Italy involves an attractive market, but the regulatory framework, consular formalities, Italian tax code (codice fiscale), reciprocity condition and international tax planning are all technical steps that, if managed from abroad without legal supervision, expose the buyer to avoidable risks.

Studio Legale Internazionale Boschetti, through its Italy Visa Investments division, assists foreign individuals and companies who wish to buy an apartment in Italy or other property in Italy for residence, rental yield or wealth planning. We are not a real estate agency: we are an international law firm, coordinating notaries, tax advisors, surveyors and property finders from our own network as the client’s single point of contact, in Italian, English, Spanish and Portuguese, with clients from the United States, the United Kingdom, Germany, Switzerland and the United Arab Emirates.

Our scope covers the entire cycle of the transaction, from preliminary structuring to post-purchase management: an integrated vision that translates buying property in Italy as a foreigner into legally sound, tax-efficient operations, consistent with the client’s broader international wealth position.

Can foreigners buy property in Italy?

Yes. Italian law allows foreign citizens to buy property in Italy, but the subjective requirement varies according to the buyer’s citizenship and residence status.

Citizens of the European Union, of the European Economic Area and of Switzerland may purchase without any restriction, on the same footing as Italian citizens. A valid identity document and an Italian tax code (codice fiscale) are sufficient: the Firm obtains the codice fiscale on the client’s behalf.

For non-resident non-EU citizens, the purchase is admitted provided that the so-called reciprocity condition applies: the Italian Ministry of Foreign Affairs and International Cooperation verifies that the buyer’s country of citizenship, in turn, allows Italian citizens to acquire real estate on its territory under analogous conditions. For the main nationalities of our client base, including the United States, Canada, the United Kingdom, Switzerland and the United Arab Emirates, reciprocity is already ascertained and the purchase is admitted without further verification.

A different rule applies to the non-EU foreigner lawfully residing in Italy. A foreigner holding a valid residence permit (permesso di soggiorno), on any ground, may acquire property in Italy on full parity with Italian citizens, without needing to verify reciprocity. The same rule extends to family members lawfully residing with the permit holder.

The acquisition can be made either as an individual or through a company, whether Italian or foreign. The choice between these two structures is not neutral: it affects the tax burden, liability, succession strategy and the way buying property in Italy as a foreigner integrates with the client’s overall wealth planning. Assessing the optimal structure is an integral part of the advice the Firm provides in the initial stages of the transaction.

Our real estate services for foreign buyers

The Italy Visa Investments division offers ten real estate services dedicated to foreign buyers, structured as complementary stages within a single integrated process. Each service addresses a specific need of the international purchaser and may be activated individually or as part of a comprehensive mandate. The Firm assists the client in selecting the most suitable scope of services for their project, avoiding unnecessary duplication of costs and ensuring that every phase of the transaction remains coordinated under a single legal direction.

The advisory services include:

    The property buying process in Italy: step by step

    The property buying process in Italy unfolds in technically distinct stages, each presenting specific features that matter for the foreign buyer. The Law Firm intervenes at every stage, calibrating its support according to the complexity of the transaction and the client’s presence (or absence) on Italian territory.

    The property search is the stage at which the Law Firm puts the client in touch with the property finders of its network, independent professionals who select properties based on the investor’s profile and carry out the first documentary check. The Law Firm does not operate as a real estate agency and maintains a position of independence vis-à-vis the market.

    Next comes the issuance of the Italian tax code (codice fiscale), which is indispensable for any real estate operation in Italy. The Law Firm requests it on behalf of the client at the competent Italian Consulate or through a power of attorney, avoiding unnecessary travel.

    The purchase offer is the first binding economic commitment. The Law Firm reviews it before signing, checking pre-emption clauses, termination conditions, deposit payment terms and timelines, with particular attention to the implications of the caparra confirmatoria, a form of confirmatory deposit which many foreign legal systems do not recognise in the same way as Italian law.

    The preliminary contract (compromesso) binds the parties to the rogito under pre-defined terms. The Law Firm negotiates clauses, suspensive conditions and guarantees, registers the preliminary contract in the real estate registers where appropriate and handles the payment of the deposit.

    The due diligence is the stage at which we verify the twenty-year chain of title, the existence of mortgages or encumbrances, cadastral compliance, urban planning lawful status, absence of litigation and the anti-money-laundering traceability of foreign funds. It is the stage at which most of the issues that would otherwise emerge at the rogito and jeopardise the transaction are prevented.

    Due diligence: what foreign buyers must verify before signing

    Due diligence is the most critical phase for any foreign buyer of Italian property and the area where the Law Firm concentrates the highest density of legal scrutiny. The check on the chain of title covers the past twenty years and confirms that the seller is the actual legal owner and that no third party holds adverse rights. The urban planning compliance assessment verifies that the building, as it physically stands, matches the permits issued by the municipality: any discrepancy must be resolved before the rogito, since unauthorised works may prevent the lawful transfer of ownership.

    The cadastral check ensures that the property’s cadastral data correspond to its actual configuration, a requirement that has become mandatory at signing. The review of tax debts and pending tax positions on the property protects the buyer from inheriting obligations that, by Italian law, follow the building rather than the seller. Finally, the anti-money-laundering documentation required for foreign buyers under Legislative Decree 231/2007 covers the traceability of cross-border funds, the source of wealth declarations and the disclosure obligations imposed on the notary, all of which Italy Visa Investments prepares in advance to avoid surprises at the closing table.

    The notarial deed of sale (rogito) is the public deed transferring ownership. The Firm prepares and reviews the deed, coordinates the interpreter where required by law, attends the signing in person or, in the case of remote acquisition, represents the client on the basis of an apostilled power of attorney.

    The process concludes with post-purchase assistance: utility transfers, registration of any rental agreements, IMU filings, ongoing monitoring of recurring tax obligations. For the foreign owner residing abroad, who does not directly receive communications from municipalities and the Italian Revenue Agency, this stage is structural, not accessory.

    Tax benefits for foreign property buyers in Italy

    The Italian legal system provides several preferential tax regimes that may concern the foreign buyer, some related to the nature of the property, others to the transfer of fiscal residence to Italy. Tax planning is an integral part of the Italy Visa Investments service, not an accessory consultation: the optimal tax structure must be assessed before the purchase, because some choices are not reversible after the rogito.

    The €200k Flat Tax – increased to the €300k Flat Tax by the 2026 Budget Law for individuals transferring their tax residence to Italy from 1 January 2026 – is the substitute tax regime applicable to foreign-source income, reserved for individuals who have not been tax residents in Italy for at least nine out of the previous ten tax years. It replaces the personal income tax otherwise due on foreign income with a fixed annual lump-sum tax of three hundred thousand euros, regardless of the actual amount of income earned, for a maximum duration of fifteen tax years.

    The 7% regime for foreign pensioners is available to recipients of foreign-source pensions who transfer their residence to a municipality in Southern Italy or in an area affected by seismic events, with a population not exceeding twenty thousand inhabitants. An equivalent substitute tax of seven percent applies to all foreign-source income, including pension income, for nine tax years. This incentive has contributed to a significant wave of relocations by international retirees to the southern regions of Italy.

    The first-home tax reduction is also accessible to foreign citizens, provided they transfer their residence to the municipality where the property is located within eighteen months of the rogito and formally declare this commitment in the deed. It reduces the registration tax from nine to two per cent on the cadastral value and significantly lowers the overall cost of the acquisition. It is the principal tax benefit for foreigners buying property that our clients typically activate when they choose to settle in Italy.

    The renovation tax deductions also apply to non-resident owners carrying out works on Italian property. The ordinary renovation bonus, the Ecobonus and the Superbonus, in the versions still in force, may be used through tax deduction or, where the law allows, through credit assignment or invoice discount. The compatibility of each incentive with the position of a non-resident client requires a preliminary case-by-case assessment.

    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
    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
    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
    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
    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
    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
    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
    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
    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
    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
    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
    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

      How Studio Legale Internazionale Boschetti can help you buy property in Italy

      Studio Legale Internazionale Boschetti, through its Italy Visa Investments division, assists investors, entrepreneurs, executives and foreign families who choose Italy to acquire, lease or develop real estate. The scope of our intervention covers the entire cycle of the operation, from preliminary structuring to the rogito and the post-purchase formalities.

      The Law Firm is not a real estate agency. We maintain a position of independence vis-à-vis the market and the sellers, and we put the client in touch with the independent property finders of our network, selected by geographic area, market segment and transaction type. We coordinate notaries, tax advisors, surveyors, technical experts, interpreters and consultants under a single legal direction, so that the foreign buyer has a single point of reference and a single professional responsibility to rely on.

      Our client base is international by vocation. We regularly assist buyers from the United States, the United Kingdom, Germany, Switzerland and the United Arab Emirates, as well as Canada, Brazil, Argentina and Australia. The Law Firm works in Italian, English, Spanish and Portuguese, with consolidated experience in remote management for buyers who plan the operation from abroad and prefer to be present in Italy only for the essential stages, or not at all, acting through an apostilled power of attorney.

      Our positioning stems from almost twenty years of practice in immigration law, international mobility and cross-border wealth advisory. For this reason we approach the real estate transaction not as an isolated episode, but as part of a broader design that demands legal consistency, asset protection and strategic vision.

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      Via dei Gracchi, 151
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      info@italyvisainvestments.com
      Tel: + 39 – 06 889 21971

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      Day: Monday – Friday
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      Can foreigners easily buy property in Italy?

      Yes. Citizens of the European Union, of the European Economic Area and of Switzerland may buy property in Italy without restriction. Non-EU citizens may purchase if they hold a valid Italian residence permit (permesso di soggiorno) or if the reciprocity condition applies between their country of citizenship and Italy, as ascertained by the Italian Ministry of Foreign Affairs.

      What is the 7% rule in Italy?

      The 7% rule is the substitute tax regime for foreign pensioners who transfer their residence to a municipality in Southern Italy with a population of fewer than twenty thousand inhabitants. All foreign-source income, pensions included, is subject to a flat seven per cent tax for nine tax years, in place of ordinary Italian taxation. Eligible regions include Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise and Puglia. The regime is one of the most attractive incentives available in Europe for international retirees and is frequently combined with the purchase of a residential property in the same municipality.

      Can a foreigner buy a house in Italy?

      Yes. A foreigner may buy a house in Italy under three possible scenarios: as a citizen of the European Union, of the European Economic Area or of Switzerland, with full parity to Italian citizens; as a non-EU citizen holding a valid Italian residence permit; or as a non-resident non-EU citizen whose country of citizenship has a reciprocity agreement with Italy. The acquisition may take place either in the buyer’s name as an individual or through an Italian or foreign company, and may be completed remotely through an apostilled power of attorney.

      Is Italy a good place to buy real estate?

      Italy combines several factors that make it structurally attractive for international real estate investment: a market with undervalued opportunities in regions of high cultural and landscape value, an extensive base of tourist and rental demand in major destinations, established preferential tax regimes for new residents (Flat Tax 200k, 7% rule for foreign pensioners) and a stable property law framework. Net returns depend on the segment chosen (private residence, short-term rental, buy-to-let, property flipping) and on the quality of the structuring upstream of the purchase, which is precisely the area where Italy Visa Investments operates.

      How much is real estate tax in Italy?

      Acquisition taxes for a non-resident foreign buyer purchasing a second home from a private seller are: registration tax at nine per cent on the cadastral value, plus fixed mortgage tax and cadastral tax of fifty euros each. If the first-home reduction applies, registration tax drops to two per cent. Purchases from a developer within five years of construction are subject to VAT (ten per cent for standard residential, twenty-two per cent for luxury) in place of registration tax. Once ownership is acquired, the recurring municipal property tax (IMU) is due annually on the cadastral value and varies according to municipal rates.

      Do you get citizenship if you buy a house in Italy?

      No. Italian law does not provide for citizenship by real estate investment. Buying a house in Italy may, however, support residence-based pathways: the property may serve as evidence of stable accommodation for residence permit applications, and once the foreigner has lawfully resided in Italy for ten consecutive years, they may apply for Italian citizenship by naturalisation. Italian citizenship by descent (iure sanguinis) is governed by an entirely separate path, which depends on documented Italian ancestry, not on property ownership.

      How long does the property buying process usually take in Italy?

      The typical duration from purchase offer to rogito is three to five months, depending on the complexity of the property, the outcome of the due diligence and the timing of the buyer’s documentation. Issuance of the Italian tax code (codice fiscale) is generally rapid, within a few weeks through the Italian Consulate. The preliminary contract is usually signed thirty to sixty days after the offer is accepted, and the rogito follows within sixty to ninety days from the preliminary, which is the ordinary timeframe to complete the legal and fiscal checks. Where the property requires reclamation of urban planning issues, the timeline extends accordingly.

      Can I buy property in Italy remotely, without traveling there?

      Yes. Italian law allows the purchase of real estate through an apostilled power of attorney granted to a trusted representative, which may be Studio Legale Internazionale Boschetti itself. The power of attorney must be drawn up before a notary in the buyer’s country of residence, translated into Italian by a sworn translator and apostilled in accordance with the 1961 Hague Convention. The Firm prepares the draft, coordinates with the foreign notary, attends the rogito on the client’s behalf and reports back at every stage of the transaction. Remote acquisitions are routine for our international client base.

      What happens if I want to rent out my property in Italy?

      Rental income generated by the property is taxable in Italy regardless of the owner’s residence. The non-resident owner may choose between ordinary IRPEF taxation, with progressive rates, and the cedolare secca substitute tax (twenty-one per cent on open-market leases, ten per cent on rent-controlled leases). Short-term tourist rentals are subject to specific obligations, including registration with the municipality, the regional CIN identifier and tourist-tax collection. The Law Firm assists clients in selecting the optimal tax regime, drafting compliant lease agreements and handling all post-signing formalities.

      Can I buy a house in Italy as a non-resident?

      Yes. Non-residence does not in itself prevent the purchase. A non-resident EU citizen may buy under full parity with Italian citizens; a non-resident non-EU citizen may buy if the reciprocity condition between their country and Italy is met (which is the case, among others, for nationals of the United States, the United Kingdom, Canada, Switzerland and the United Arab Emirates). The non-resident buyer must obtain the Italian tax code (codice fiscale), comply with anti-money-laundering rules on cross-border fund transfers and consider the impact of the IMU and other ongoing taxes on non-resident owners. The Law Firm manages the full process and the buyer may complete it without setting foot in Italy.

      The ItalyVisaInvestment website is owned by Studio Legale Boschetti and is the go-to resource for foreigners who wish to invest in Italy, obtain elective residence, or apply for an investment visa.

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