Foreign citizens: what do you need to buy a house in Italy?

For foreign nationals wishing to purchase a house or a property in Italy, there are specific legal requirements and procedures to follow. However, in general, the process is quite accessible, especially if certain conditions are met. Depending on the buyer’s nationality, the requirements may vary slightly, but there are some essential steps and documents that are necessary for everyone.

1. Verifica del "Trattamento di reciprocità"

First of all, it is important to verify the so-called reciprocity principle. This principle establishes that a foreign citizen can purchase property in Italy if their home country allows Italians to purchase real estate in that country. The verification of reciprocity depends on the citizenship and the country of origin of the foreign buyer.

For citizens of European Union (EU) countries, European Economic Area (EEA) countries (Iceland, Liechtenstein, Norway), and Switzerland, there are no restrictions. Citizens of these countries have the right to purchase property in Italy without any specific limitations.

Citizens of countries outside the EU or EEA must verify reciprocity. This information can be obtained through the Italian embassy or consulate in their home country, or by consulting the Italian Ministry of Foreign Affairs.

2. Codice Fiscale (Tax Code)

The Codice Fiscale (Tax Code) is an essential document for anyone wishing to engage in economic or administrative activities in Italy, including purchasing property. The codice fiscale is a personal identifier used for all legal and tax-related procedures.

Foreign nationals can request the codice fiscale:

• At the Agenzia delle Entrate (the Italian Revenue Agency).

• Through the Italian embassy or consulate in their home country.

The codice fiscale is essential for signing the purchase contract and making the related payments.

3. Opening an Italian Bank Account

Although not mandatory for purchasing a property, having an Italian bank account can greatly simplify the process, especially when it comes to paying taxes and expenses related to the property (such as taxes, utilities, etc.). Many Italian banks offer foreigners the opportunity to open accounts, provided they have a codice fiscale.

4. Preliminary contract (Compromise)

Once the property is found, the buyer and seller typically sign a preliminary sales contract (called a "compromesso"). This document commits both parties to the sale and purchase of the property. At this stage, the buyer makes a deposit, which can range from 10% to 30% of the total property price.

The compromesso specifies all the important details of the property and the sale, such as the price, a description of the property, the date of the transfer of ownership, and the legal and technical conditions.

5. Notarial deed (Rogito)

In Italy, the purchase of a property must be formalized in the presence of a notary. The notarial deed ("rogito notarile") is the final act of sale, through which ownership of the property is officially transferred from the seller to the buyer.

The notary plays a crucial role in the purchase process, as they verify the legality of the transaction, ensure the property is free of mortgages or other liens, and confirm that all taxes have been paid. The notary is also responsible for the official registration of the property in the land registry (catasto).

The buyer is responsible for paying the notary’s fee, as well as the taxes related to the transaction (registration tax, mortgage tax, and cadastral tax).

6. Duties and taxes

Purchasing a home in Italy involves the payment of various taxes, which vary depending on the type of transaction.

• Registration tax (Imposta di registro): This applies when the seller is a private individual. The rate depends on whether the buyer is purchasing the property as a primary residence or a second home. The registration tax for a primary residence is 2% of the cadastral value, while for a second home it is 9% (unless it is a luxury home or villa, in which case different rules may apply).

• Mortgage and cadastral taxes (Imposta ipotecaria e catastale): These taxes are usually fixed at €50 each if the property is a primary residence. If it is a second home, both the mortgage and cadastral taxes are 1% of the cadastral value.

  
  

7. Residence permit (for non-EU citizens)

Purchasing a home in Italy does not necessarily require a residence permit, but if a foreign national wishes to live in Italy for an extended period, it may be necessary to apply for one. A residence permit is required for stays longer than 90 days and must be requested from the Italian authorities after entering the country.

8. Legal and Real Estate assistance

Although it is not mandatory, it can be very helpful to hire a real estate lawyer or a real estate agent to guide you through the purchase process—especially for foreign buyers who may not be familiar with Italian laws. A lawyer can ensure that the sales contract is clear, that all documents are in order, and that the entire process proceeds smoothly.

9. Expenses and ancillary costs

In addition to the purchase price of the property, it is important to consider other costs, including:

• Notary fees

• Real estate agency fees, if an agent is used

• Taxes and duties related to the purchase

• Expenses for any renovations or work needed on the property

  
  

Conclusion

In summary, a foreigner who wants to buy a house in Italy should:

• Verify the reciprocity agreement (if not an EU or EEA citizen)

• Obtain a codice fiscale (Italian tax code)

• Consider opening an Italian bank account

• Sign a preliminary contract (compromesso) and pay a deposit

• Finalize the sale with a notarial deed (rogito notarile)

• Pay the relevant taxes and fees

  
  

Are you looking for a property in Tuscany but unsure which area to choose? Ask us—we’ll help you make the best decision based on your needs!

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