Real Estate Legal Advisory — Italy 2026
Buying Property in Italy as a Foreigner: Step-by-Step Legal Guide 2026
MG Law Firm — Updated July 2026
Key Takeaway
Foreigners can buy property in Italy. The process runs: codice fiscale → proposta d’acquisto → compromesso with deposit → due diligence → rogito before a notaio. Purchase tax for non-residents: 9% imposta di registro on the cadastral value for second homes (existing properties). A codice fiscale is required before any transaction. The entire process typically takes two to four months. Remote purchase via power of attorney is fully available.
Italy is consistently among the top destinations for international property buyers. Whether the goal is a rural renovation project in Tuscany, an apartment in Rome, a coastal home in Sicily, or a commercial investment in Milan, the Italian legal framework accommodates foreign buyers — provided the transaction is structured correctly from the outset.
The risks in Italian real estate are not in the buying — the system is well-established — but in the execution. Specifically, the dangers lie in purchasing without adequate due diligence, misunderstanding what the notaio does (and does not) verify, or underestimating the ongoing fiscal obligations of non-resident ownership. For that reason, this guide walks through each stage of the process with the legal precision international buyers need.
This is the pillar guide for the MG Law Firm Italian real estate cluster. More detailed coverage of due diligence, the notarial process, property taxes, and remote transactions is available in the linked companion articles throughout this guide.
Can Foreigners Buy Property in Italy? Legal Eligibility
EU and EEA citizens can purchase Italian property on exactly the same terms as Italian nationals — no additional authorization is required, and there are no restrictions based on nationality within this category.
Non-EU citizens can also buy Italian real estate, subject to the principio di reciprocità (reciprocity principle): Italy grants the right to purchase to nationals of countries that equally permit Italian citizens to acquire property in their territory. In practice, citizens of the United States, United Kingdom, Canada, Australia, Switzerland, Japan, and most other Western nations face no restriction. However, the specific reciprocity status for your nationality should be verified with a qualified Italian lawyer before signing any document.
Moreover, foreign companies and non-EU legal entities may also acquire Italian property. Eligibility for corporate buyers depends on the entity structure, jurisdiction of incorporation, and the nature of the acquisition. Each situation should be assessed individually.
Important note for non-residents: eligibility to purchase does not require holding Italian residency, a visa, or an Italian bank account. What is always required is a codice fiscale (Italian tax identification number) — obtainable at any Italian consulate abroad or directly at an Agenzia delle Entrate office in Italy.
Step-by-Step: The Italian Property Purchase Process
An Italian real estate transaction typically follows five stages. The timeline from accepted offer to deed is usually two to four months, though renovation-heavy or financing-dependent transactions may take longer.
From Initial Offer to Preliminary Contract
Codice Fiscale
Obtain your Italian tax code before doing anything else. Without it, no bank transfer, no notarial deed, no property registration is possible. Fortunately, it can be obtained at any Italian consulate in your country of residence — or directly in Italy. The process takes minutes and is free of charge.
Proposta d’Acquisto (Purchase Offer)
Once you identify a property, you submit a written purchase offer with an earnest deposit — typically a modest sum. If the seller accepts, the offer becomes binding on both parties. In contrast, if the seller declines or withdraws after acceptance, the deposit is returned; if the buyer withdraws, it is typically forfeited. In any case, legal review of the proposta before signing is strongly advisable — it is a binding document.
Contratto Preliminare — Compromesso
The preliminary contract locks in the price, terms, and closing date. A caparra confirmatoria (confirmatory deposit) of 10–20% of the agreed price is typically paid at this stage. If the buyer withdraws without cause, the deposit is forfeited. Conversely, if the seller withdraws without cause, the buyer is entitled to double the deposit in return. In addition, the compromesso should be registered with the Agenzia delle Entrate to protect the buyer’s rights against third-party claims on the property.
Due Diligence and Final Deed
Due Diligence
The period between compromesso and rogito is the window for comprehensive legal, cadastral, and urbanistic checks. Specifically, this stage identifies any mortgages or liens on the property, unauthorized construction, discrepancies between registered floor plans and physical reality, missing habitability certificates, and planning violations. Overall, a full due diligence investigation by an independent Italian lawyer is the single most important risk-reduction step in an Italian property purchase.
Rogito — Atto Notarile di Compravendita
The final deed is executed before a notaio — a state-appointed official who is legally neutral between buyer and seller. At this stage, the notaio authenticates the deed, verifies the identities and title status, collects applicable taxes on behalf of the Italian revenue authority, and registers the transfer at the land registry and cadastral office. Full payment of the purchase price balance is made by certified bank transfer at signing.
Property Purchase Taxes and Costs for Foreign Buyers (2026)
Italian property taxes on purchase depend on three factors: whether the property is existing or new-build; whether it will be the buyer’s primary residence in Italy (prima casa) or a second/investment property; and the property’s rendita catastale (cadastral income value). Importantly, tax is applied to the cadastral value, not the contractual sale price, for existing residential properties.
| Tax / Cost | Prima Casa (Primary Residence) | Seconda Casa (Second Home) | |
|---|---|---|---|
| Imposta di Registro (existing properties) |
2% on cadastral value | 9% on cadastral value | |
| Imposta Ipotecaria + Catastale (existing properties) |
€50 + €50 (fixed) | €50 + €50 (fixed) | |
| IVA (VAT) (new-build from developer) |
4% on sale price | 10% (standard) or 22% (luxury) | |
| Notaio fees | Approximately 1–2.5% of property value (varies by transaction) | ||
| Real estate agent commission | Typically 2–4% (buyer and seller each pay their own agent) | ||
Prima casa eligibility for non-residents: the reduced 2% rate requires either having legal residency in the municipality of purchase, or committing to transfer residency there within 18 months of the deed. As a result, most non-resident foreign buyers purchasing a second home or investment property will not qualify and should budget on the basis of 9%. Tax treatment must be assessed on a case-by-case basis with a qualified Italian tax and legal advisor.
What Due Diligence Must Cover
The Italian real estate market carries specific legal risks that are not always visible from property listings or even from a physical inspection. Therefore, a professional due diligence investigation before signing the compromesso should cover all of the following:
- ►Visure ipotecarie e catastali: searches at the mortgage registry and cadastral office to identify existing mortgages, liens, rights of way, or encumbrances registered against the property
- ►Conformità catastale e urbanistica: verification that the registered cadastral floor plan (planimetria) matches the actual physical state of the property — discrepancies must be regularized before the deed
- ►Abusivismo edilizio: check for unauthorized construction or modifications without municipal building permits — one of the most common and legally significant risks in Italian real estate
- ►Certificato di agibilità: certificate confirming the property meets habitability and safety standards — its absence affects the property’s legal usability and re-sellability
- ►APE (Attestato di Prestazione Energetica): mandatory energy performance certificate — must be provided by the seller and attached to the deed
- ►Condominium status: if the property is in a condominium building, review outstanding debts owed by the unit to the association — these can transfer to the buyer under Italian law
For a comprehensive checklist tailored to international buyers, see our dedicated guide: Property Due Diligence Italy: Complete Checklist for Foreign Buyers.
The Role of the Italian Notary (Notaio)
The notaio is frequently misunderstood by international buyers. In fact, the notaio is not a private lawyer acting in the buyer’s interest. Rather, they are a pubblico ufficiale — a state-appointed public official — whose role is to ensure the legal validity of the transaction, not to protect either party.
Responsibilities include: drafting the final deed (rogito) in legally valid form; verifying the identities of the parties and their capacity to contract; conducting title searches and verifying property ownership; collecting applicable taxes and remitting them to the Agenzia delle Entrate; and registering the deed at the Conservatoria dei Registri Immobiliari and the Agenzia del Territorio.
However, what the notaio does not do is conduct a full legal due diligence investigation on the buyer’s behalf, advise on the advisability of the purchase, or protect the buyer from undisclosed physical defects or planning irregularities. For this reason, an independent legal advisor remains essential. See: Italian Notary in Real Estate: What Foreign Buyers Need to Know.
Buying Property Remotely in Italy
The majority of MG Law Firm’s international real estate clients complete their Italian property purchase without being physically present in Italy for any signing. Indeed, this is legally straightforward through a procura speciale (special power of attorney) — a notarized document authorizing a legal representative to sign on the buyer’s behalf.
The procura must be executed before a notary or consulate in the country where the buyer is based, apostilled (or legalized, depending on the jurisdiction), and officially translated into Italian. Once in place, the designated representative can sign the compromesso and the rogito, conduct the banking transfers, and complete every step of the transaction on the buyer’s behalf.
That said, remote coordination still requires careful legal management: verified property access, consistent liaison with the selling party, real-time due diligence reporting, and structured fund transfer procedures. For the full operational guide, see: Buying Property Remotely in Italy: Legal Guide.
Ongoing Property Taxes for Non-Resident Foreign Owners
Owning Italian real estate as a non-resident creates annual fiscal obligations in Italy, regardless of whether the property is used, rented, or vacant. In practice, these fall into four main categories:
- ►IMU (Imposta Municipale Unica): the primary annual property tax, levied by the municipality on all residential properties that are not a resident’s primary home. Rates are set by each comune within national parameters and applied to the property’s revalued cadastral value. IMU is paid in two instalments (June and December); non-resident foreign owners are liable on their Italian property.
- ►TARI (Tassa Rifiuti): the municipal waste collection tax, invoiced based on the property’s surface area. Even vacant properties can be liable if the municipality determines there is the potential for waste production.
- ►Rental income taxation: if the property is rented, income is taxable in Italy. Non-resident landlords are subject to Italian income tax on Italian-source rental income; a cedolare secca flat-rate option may be available for residential leases. Furthermore, double taxation treaties between Italy and the buyer’s country of residence will determine how rental income is treated in the home jurisdiction.
- ►Foreign asset disclosure: many jurisdictions require residents to disclose foreign-owned real estate. For example, US citizens must comply with FBAR and FATCA requirements, while UK taxpayers have disclosure obligations under HMRC rules. These requirements should be assessed before purchase in the country of residence.
For a dedicated overview of the Italian tax position for foreign property owners, see: Italy Property Taxes for Foreign Owners 2026.
Key Considerations Before You Buy
Legal and Due Diligence Essentials
- ►Never sign the proposta or compromesso without legal review. Both are binding contracts. Understanding what you are signing — in a language most buyers are not fluent in — is not optional. Moreover, conditions and penalty clauses vary considerably between transactions.
- ►Due diligence is not the notaio’s job. Specifically, the notaio validates the legal form of the transaction. An independent lawyer, however, investigates the actual legal, urbanistic, and fiscal condition of the specific property being purchased.
- ►Budget beyond the purchase price. Total transaction costs — taxes, notaio fees, legal fees, agent commissions — typically add 10–15% to the purchase price for a non-resident buyer. Therefore, always budget on that basis before making an offer.
Currency, Succession and Tax Planning
- ►Currency and transfer planning. Payment at the rogito is required in euros. Unplanned currency conversion at the wrong moment can be expensive; consequently, planning FX strategy ahead of the signing date is a standard part of international property coordination.
- ►Succession implications. Property acquired in Italy may be subject to Italian inheritance law at the owner’s death, including forced heirship rules (legittima), depending on the applicable law. This should therefore be considered in estate planning, particularly for buyers from common-law jurisdictions. EU Regulation 650/2012 provides a framework but outcomes vary by individual circumstances.
Italian Real Estate Legal Advisory
Get Legal Support Before You Buy in Italy
MG Law Firm provides independent legal advisory for foreign buyers throughout the Italian property purchase process: offer review, due diligence, notarial coordination, and remote transaction management. We work with clients in the US, UK, Canada, Australia, and across Europe. Fully bilingual. Fully remote-capable.
Get Legal Support Before You BuyFrequently Asked Questions
Can foreigners buy property in Italy?
Yes. EU citizens can buy on the same terms as Italian nationals. Non-EU citizens can purchase under the reciprocity principle — citizens of the US, UK, Canada, Australia, and most Western countries are eligible. However, the specific reciprocity status for your nationality should be confirmed with a qualified Italian lawyer before proceeding.
What is the step-by-step process for buying property in Italy?
The process runs: codice fiscale → proposta d’acquisto with earnest deposit → contratto preliminare (compromesso) with 10–20% deposit → due diligence → rogito (final notarial deed). From accepted offer to deed, the process typically takes two to four months.
What taxes do foreigners pay when buying property in Italy?
For existing properties: 9% imposta di registro on cadastral value (second home / non-resident) or 2% (prima casa with residency commitment). For new builds from a developer: 10% IVA (or 22% for luxury). Fixed imposta ipotecaria and catastale of €50 each apply to existing residential properties. Tax treatment should always be assessed individually.
What does due diligence mean when buying Italian property?
It covers: mortgage and lien searches (visure ipotecarie), cadastral floor plan conformity, planning compliance and absence of unauthorized construction (abusivismo), certificate of habitability, energy performance certificate (APE), and condominium debt status. Independent due diligence by a lawyer is, moreover, the key risk-reduction step in any Italian purchase.
What does the Italian notary (notaio) do?
A state-appointed public official — neutral between buyer and seller — the notaio authenticates the final deed, verifies title and identities, collects taxes on behalf of the state, and registers the transfer. Importantly, the notaio does not conduct full property due diligence on the buyer’s behalf and does not act as the buyer’s legal advisor.
Can I buy property in Italy without visiting Italy?
Yes. A procura speciale (power of attorney) allows a designated legal representative to sign all documents — including the compromesso and the rogito — on your behalf. The procura is executed before a notary or consulate in your country of residence, apostilled, and translated. Remote purchases are consequently common and fully manageable with professional legal coordination.
What ongoing taxes does a non-resident foreigner pay on Italian property?
Non-residents pay IMU (annual municipal property tax) and TARI (waste tax). If the property is rented, rental income is subject to Italian income tax. Additionally, many jurisdictions require disclosure of foreign-owned real estate in the owner’s home country. IMU rates vary by municipality and are calculated on the cadastral value. A case-by-case fiscal assessment is recommended.
This article is for informational purposes only and does not constitute legal, tax, or financial advice. Italian property law, tax rates, and procedural requirements are subject to change and vary based on individual circumstances. A qualified legal and tax assessment is recommended before any property transaction. Last updated: July 2026.
