HOW TO BUY A HOME

THE BASICS

All EU citizens are free to buy property in Italy. It is also possible for American citizens to purchase real estate and buy property in Italy, thanks to a reciprocity treaty that Italy has with the United States. This same rule goes for citizens of the countries that have bilateral agreements with Italy concerning a property purchase.

These steps to buying a home might look familiar:

• Look into a mortgage. While most Italian banks will lend to foreigners, it’s smart to get an idea of just how much they’re willing to lend before you get started.

• Engage a real estate agent.

• Choose a property and make an offer.

Your real estate agent should be able to help you through every bit of the process. It would be a good idea to choose an agent with experience working with foreign purchasers.

FINDING A HOME

There are several online websites or phone apps which can be useful in locating a home. It is important to understand, these websites do not show the full picture when it comes to what is for sale. There is often a plethora of unlisted properties, so if you’re not seeing exactly what you’d like online, you might need to contact an agent or go directly to the town and locate for sale signs.

Here are some popular Italian real estate websites:

• immobiliare.it

• idealista.it

• casa.it

• gate-away.com

FEES

As a general rule of thumb, an average of around 15% of the purchase price is what you can expect to pay in tax, notary fees, real estate agent fees, survey costs, and legal fees. That means if you’re purchasing a €35,000 home, you should budget an extra €5,250 to cover the majority of fees.

Note that VAT is typically only paid if you’re purchasing a home from a company. If you purchase from a private seller, VAT should not be charged.

Below is a chart of estimated fees. Many of these fees will vary based on the region you’re buying in.

THINGS TO BE AWARE OF

Buying a home in Italy can be a lengthy and complicated process, even for experienced buyers. There are a number of factors that can contribute to the length of the process, including the following:

• Contested wills: If a property is being sold during a contested will, the process can take longer as the courts work to resolve the dispute. This can occur if a parent with multiple children passed away, and the children disagree with who should have the rights to the home or monies gained from the sale.

• Legal issues: If there are any legal issues with the property, such as liens or outstanding tax bills, these will need to be resolved before the sale can be finalised.

EXCHANGING MONEY

If the majority of your funds are not in euros, you'll need to consider the cost of currency conversion when planning your expenses. The fees for currency conversion vary widely, so it's important to compare rates before you make a transaction. It's also important to note that not all banks support international wire transfers. However, there are a number of options available for transferring money internationally, so you should be able to find a solution that works for you.

Here are some tips for saving money on currency conversion:

• Compare rates from different banks and currency exchange providers before you make a transaction.

• If you have a multinational bank in your area, check their member currency exchange rate. Banks like Chase, HSBC, RBC, or Westpac might have surprisingly good exchange rates compared to well known money transfer services.

• Consider using a money transfer service that offers competitive rates and low fees.

Here are some popular international money transfer services:

• Wise

• Revolut

• Remitly

• Western Union

• OFX

PROPERTY TAXES

Once you’re a homeowner in Italy, you’ll be responsible for paying property tax. Italian property taxes are typically 2% - 9% of the assessed value of the home. If you are a tax resident and the property will be your primary residence, you will pay the 2% rate. If you are a non-resident or a resident purchasing a second home, you will pay the 9% rate. You can expect other fees to be included in your tax payment. Regardless of your property’s assessed value, you’ll almost never pay less than €1,000 per year.

LIVING IN YOUR NEW HOME

A common question asked is if you’ve purchased a home, does that grant you the right to live in it permanently? In short, the answer is no. As a non-EU or EEA citizen, simply owning a property in Italy does not give you the right to live in it any longer than your tourist visa would typically allow. For Americans, Australians, Canadians, and post-Brexit UK citizens, your passport grants a full 90 days out of every 180 days visa free, as of the time of writing this page.

Buying a home does, however, increase the likelihood of a “permesso di soggiorno” being granted. This literally translates to a residence permit, which is something you’ll certainly need to apply for if your intention is to live in Italy full time. If you’re retiring in Italy, you’ll have a permesso di soggiorno granted upon an approved retirement visa.

CONCLUSION

Buying a home in Italy can seem like a daunting task. Many have come before you and succeeded, so strap your work boots on and give it a go! Our best advice to you is to find an experienced real estate agent. They will help you through the purchasing process every step of the way. We also highly recommend asking expat groups online for their experiences and advice. A kind stranger might have great recommendations for the area you’re interested in!