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Italy
Every figure carries its source and last-checked date.
€3.306
Price per m² (capital)
11-15%
Total buying costs
7.2%
Gross rental yield
+16%
5-year price trend
If you want to buy property in Italy, expect a market with a wide price spread and a paper-heavy but well-defined process. In Rome, apartments averaged EUR 3,306 per square metre at the end of 2025, while Milan is pricier at EUR 5,184. On the Ligurian coast the average sits around EUR 2,800 per square metre, and rural southern regions start near EUR 1,100. Nationally, prices rose about 16% between 2021 and 2025, a steady climb rather than a boom.
The main caveat is cost: Italy has the highest buying costs of the 12 countries we compare, at 11-15% of the purchase price for a second home. The picture is softer than it looks, though. On resales, the prezzo-valore mechanism lets the 9% registration tax be levied on the lower cadastral value instead of the price you actually pay, which often reduces the effective burden considerably.
In return, Italy offers strong rental fundamentals, with a national average gross yield of 7.2%, and a purchase process that typically completes in 8 to 16 weeks.
Key facts
| Price per m² (capital) | €3.306 | idealista price index (Rome, end 2025, +7% y/y; Milan is pricier at EUR 5,184/m2) |
| Price per m² (coast) | €2.772 | Immobiliare.it regional data (Liguria average, June 2026: EUR 2,772/m2, +3.5% y/y; provinces from EUR 2,303 Genova to EUR 3,613 Savona; premium sea-view stretches higher, southern coasts far cheaper) |
| Price per m² (rural) | €1.100 | Immobiliare.it regional data, June 2026 (southern/inland regions: Calabria EUR 961/m2, Molise EUR 1,046, Sicily EUR 1,172, Puglia EUR 1,439) |
| 5-year price trend | +16% | ISTAT house price index, cumulative 2021-2025 (annual: +2.5, +3.8, +1.3, +3.2, +4.0) |
| Total buying costs | 11-15% | |
| Gross rental yield | 7.2% | Global Property Guide national average, Jan 2026 (7.23%); wide spread: Catania ~9.2%, Palermo ~8.3%, Milan ~5.3%, Florence ~5.9% |
| Cost of living (EU = 100) | 97 | Eurostat comparative price level index, household consumption 2025 (Italy 97.1, EU-27 = 100) |
Buying costs
Costs on a €250,000 purchase: €27.500 - €37.500
| Transfer tax | 9-10% | Imposta di registro 9% for second homes from a private seller (min EUR 1,000; may be levied on the lower cadastral value via prezzo-valore); 10% VAT on new builds from a developer (22% for luxury categories) |
| Notary | 1-2.5% | Typical Italian notary fee range, degressive with price, often with a EUR 2,000-5,000 minimum |
| Registration | 0.1-0.2% | Imposta ipotecaria + catastale: fixed EUR 50 each from a private seller (EUR 200 each on VAT purchases), so well under 0.2% on typical prices |
| Legal | 1-2% | Customary independent lawyer fee (optional but advisable; the notary is neutral, not the buyer's counsel) |
Taxes for non-residents
| Annual property tax | IMU for second homes: 0.86% base rate, municipalities may raise it to 1.06%, on the uprated cadastral value (cadastral income x 1.05 x 160); large cities and tourist municipalities typically apply the maximum | Law 160/2019 framework; idealista IMU 2026 guide |
| Wealth tax | - | No wealth tax on Italian property for non-residents; IVIE (1.06%) applies only to Italian tax residents' foreign real estate |
| Rental income tax | 21% | Cedolare secca flat-tax option: 21% on the first short-let property, 26% from the second, ordinary business regime (income tax + VAT) from the third |
| Capital gains | 26% | 26% substitute tax if sold within 5 years of purchase (or progressive IRPEF); fully exempt after 5 years of ownership or if used as main residence |
| Inheritance | Due on Italian-situs assets only: 4% for spouse and children (EUR 1 million allowance per heir), 6% for siblings (EUR 100,000 allowance), 6% for other relatives to the 4th degree, 8% for unrelated heirs; same rates as for residents | PwC Tax Summaries (D.Lgs. 346/1990 regime) |
The buying process
| Can foreigners buy? | Yes, no restrictions | EU/EEA nationals buy freely; other nationals under the reciprocity principle or with an Italian residence permit; codice fiscale required |
| Mortgage as non-resident | Limited | Available from major Italian banks but at stricter terms; max ~35% debt-to-income, codice fiscale required |
| Typical duration | 8-16 weeks | Typical 2-4 months from accepted offer via compromesso (preliminary contract) to rogito (final deed); longer around holiday periods |
Residency & golden visa
Golden visa: Investor Visa for Italy: EUR 250,000 in an innovative startup, EUR 500,000 in an Italian company, EUR 1 million philanthropic donation or EUR 2 million in government bonds. Real estate does not qualify and does not count as proof of funds.
The buying process step by step
- 1
Get a codice fiscale
The codice fiscale is the Italian tax code, and nothing moves without it. You need it to sign contracts, open a bank account and pay taxes, and banks require it for any mortgage application. EU and non-EU buyers alike can obtain one; it is the practical starting point of every purchase.
- 2
Make an offer (proposta d'acquisto)
Once you have found a property, you submit a written purchase proposal, usually with a small deposit attached. If the seller accepts, the proposal becomes binding on both sides. From this accepted offer, the road to the final deed typically takes 8 to 16 weeks.
- 3
Sign the compromesso
The compromesso, or preliminary contract, fixes the price, deposit and completion date. It is the legally decisive moment: walk away afterwards and you lose your deposit, while a seller who withdraws generally owes you double. Many buyers register it to protect their claim on the property.
- 4
Due diligence
Between compromesso and completion, the notary verifies title, mortgages and liens on the property. An independent lawyer, typically costing 1-2% of the price, is optional but advisable, because the notary is a neutral official rather than your personal counsel. Checks on planning compliance and cadastral records happen here.
- 5
Complete at the notary (rogito)
The rogito is the final deed, signed before a notary with all parties present or represented. The balance of the price is paid and ownership transfers on the spot. Notary fees typically run 1-2.5% of the price, degressive as prices rise, often with a EUR 2,000-5,000 minimum.
- 6
Registration and taxes
The notary registers the deed and settles the transfer taxes: 9% registration tax on a second home from a private seller (minimum EUR 1,000), or 10% VAT on a new build from a developer, rising to 22% for luxury categories. The fixed imposta ipotecaria and catastale add EUR 50 each from a private seller, or EUR 200 each on VAT purchases.
Frequently asked questions
Can foreigners buy property in Italy?
Yes, EU and EEA nationals can buy property in Italy without any restrictions. Buyers from other countries can purchase under the reciprocity principle, meaning Italians must be allowed to buy in your home country, or by holding an Italian residence permit. US, UK, Canadian, Swiss and most Western nationals qualify. Every buyer needs a codice fiscale, the Italian tax code.
What are the total buying costs in Italy?
For a second home, expect total buying costs of 11-15% of the purchase price, the highest of the 12 countries we compare. The largest item is the 9% registration tax when buying from a private seller (minimum EUR 1,000), or 10% VAT on new builds from a developer (22% for luxury categories). Crucially, on resales the prezzo-valore rule lets the registration tax be calculated on the lower cadastral value rather than the actual price, which often reduces the real burden. Add 1-2.5% notary fees, 1-2% for an optional lawyer, and small fixed registration duties. The customary agency commission of around 3% plus VAT comes on top.
What annual taxes do I pay on a second home in Italy?
The main annual tax is IMU, charged on second homes at a base rate of 0.86%, which municipalities may raise to 1.06%. It is levied on the uprated cadastral value (cadastral income x 1.05 x 160), not the market price, and large cities and tourist municipalities typically apply the maximum rate. There is no wealth tax on Italian property for non-residents.
Can I get an Italian mortgage as a non-resident?
Yes, but on limited terms. Major Italian banks lend to non-residents at a typical maximum of 50-60% loan-to-value, with up to 70% possible for EU or Schengen residents at some lenders. Banks also cap your debt-to-income ratio at around 35%, and a codice fiscale is required before you can apply.
How long does buying a house in Italy take?
Typically 8 to 16 weeks, or 2 to 4 months, from accepted offer to the final deed. The path runs from the proposta d'acquisto through the compromesso preliminary contract to the rogito at the notary. Expect delays around Italian holiday periods, especially August.
Does buying property in Italy give me a visa or residency?
No, real estate does not qualify for the Investor Visa for Italy, and property does not even count as proof of funds for it. The visa requires EUR 250,000 in an innovative startup, EUR 500,000 in an Italian company, a EUR 1 million philanthropic donation or EUR 2 million in government bonds. As a non-EU owner you can still stay visa-free for up to 90 days in any 180-day period.
Can I rent out my Italian property to tourists?
Yes, but every short-term rental needs the national CIN code (Codice Identificativo Nazionale), which must appear in all listings and at the property; without it you risk fines up to EUR 8,000 and delisting from platforms. On the tax side, the cedolare secca flat tax is 21% on your first short-let property and 26% from the second, while from the third property you are treated as a licensed business. The national average gross yield is 7.2%, with Catania around 9.2% and Milan around 5.3%.