Buying Guide Details
Buying Property in Italy
Overview
- Low-cost flights have opened up Italy to visitors and home buyers
- Countryside, coast, mountains and cities – there’s a massive choice of property for sale
- There are many parts of Italy with very cheap properties
- Just because a property is expensive, do not think that it can’t make a great investment
Brits have been buying property in some parts of Italy for many decades but particularly since the boom of the 1960s. For most of this time, demand from the UK has been predominantly for property in the regions of Tuscany and neighbouring Umbria, with thousands of derelict farmhouses being renovated into some of Italy’s most desirable and expensive properties. Many Brits have ended up relocating permanently to this idyllic countryside.
Choice
These rural regions are still the dream of many overseas property purchasers, but the proliferation of low-cost airlines to a host of regional Italian airports has not only opened up the rest of the country to more British visitors, but makes a property in Italy a viable holiday destination rather than a permanent lifestyle change.
Some of these ‘newly discovered’ regions of Italy offer a great choice of property at very reasonable prices, both restoration projects and habitable homes, including new-build property. Renovation costs are relatively cheap in Italy, meaning a renovation property in Italy is an excellent way to see a healthy return on your total investment.
Italy’s cities have history in abundance; the likes of Rome, Florence and Venice have been attracting tourists for centuries and continue to be some of the most culturally rich cities in the world. University towns and the commercial power of Milan and Turin provide another aspect of property ownership: investment in properties that provide short- or long-term rental returns from professional and academic tenants.
The ski resorts of the Alps and Apennines have often been considered ‘budget’ locations for winter sports enthusiasts but in this competitive market there is a constant need to upgrade facilities and provide good value for money. Many of these resorts now recognise the importance of year-round tourism and the need for amenities that bring in visitors during the summer months, a major consideration for property buyers relying on rental income.
View property for sale in Italy
Summary
With such a wealth of property in the countryside, on the coast, perched in the mountains and set in one of its historic cities, the overseas property buyer with an eye for buying a property in Italy has never had this much choice to realise their dream.
The Property Market in Italy
Property prices in Italy are usually quoted in ‘euros per square metre’. Like any other property market, in Italy it is impossible to give a definitive guide to what prices should be in any given town or region – with great diversity in the type, age, size, condition and location of property it is very difficult to give an accurate ‘like for like’ comparison.
With such a range of landscapes, climate and culture throughout Italy, it is rather difficult to compare, say, a three-bedroom farmhouse in Le Marche with a three-bedroom farmhouse in Valle d’Aosta – the two areas are quite different and a home buyer is unlikely to ‘switch’ areas purely based on price.
Certain regions, or areas within regions, have long been popular with overseas property buyers, for example, Tuscany and Umbria, and prices will tend to be higher there compared to a similar property in a lesser known region. When buyers started to find themselves priced out of homes in Tuscany, they started looking to neighbouring Umbria and prices have risen dramatically there as a result. More recently, with Umbrian prices so high, Marche has become a popular destination.
With improved travel connections, other parts of Italy have been opened up to intrepid property buyers. With low-cost airlines servicing previously remote corners of the country it becomes viable to have a holiday home in, for example, Apulia in the southeast, where property prices have traditionally been low but are now creeping upwards with the increased demand.
Overall, capital appreciation in the Italian property market has been steadily rising thanks to a sluggish stock market, and with demand from overseas property buyers in particular on the increase, a well-considered Italian home will continue to reap rewards for many years. As ever, efforts in research and taking expert advice will go a long way to ensuring that a home in Italy will be a happy and rewarding purchase.
Property Hotspots
- Apulia – the sunny and scenic southeast of Italy has been opened up thanks to regular low-cost flights to Bari and Brindisi. Property prices have been rising significantly but they are still competitive by Italian standards
- Tuscany – a perennial favourite. Though property prices are very high in some parts, there are cheaper areas if you look. The lifestyle and tourism means that whatever you spend, the area will always be a good long-term investment
- Umbria – prices are nearly on a par with Tuscany, but nevertheless the climate and landscape are as wonderful as ever – a terrific place to relocate or buy a holiday home. Tourism means letting potential is very good.
View property for sale in Italy
Homes Overseas Property Club
Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.
The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.
For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com
Property Buying Process
- While the amount of Italian red tape is well known, and bureaucracy tends to move rather slowly, buying a property in Italy is actually pretty straightforward – if somewhat time consuming
- Anyone wishing to buy an Italian property must first obtain a tax identification number (codice fiscale) from the Italian authorities
- There are then three main buying stages. The buyer makes an offer, which commits him/her to buying the property at the given price. If the seller accepts, a deposit (usually 10%) is paid
- Both parties then sign a legally binding buying proposal (compromesso di vendita). This outlines the details of the transaction, including the scheduled completion date
- Should the seller withdraw, they must pay the buyer double the value of the deposit. If the buyer pulls out, he/she loses the deposit
- On completion, both parties sign the final contract (rogito) in the presence of a notary, who then issues the deeds and informs the land registry to transfer ownership. The remainder of the balance, plus all taxes, must then be paid at this point.
Fees & Taxes
- Buyers should set aside around 15% of the purchase price to cover costs
- Stamp duty/land registration tax for non-residents (i.e. second-home owners) varies from 10% of the declared price for urban property up to 17% for a rural property. Most homes are considered urban
· Residents or those intending to make a permanent move will pay 4% stamp duty
- VAT on new properties ranges from 10 to 20%, depending on whether the property is considered a ‘luxury home’. This is usually included in the price
- Reduced rates of 4% VAT are available for those who build their own property
- Estate agent’s fees are usually between 3 and 5% per cent, notary fees average around 3% and legal costs tend to amount to around 2% of the purchase price
- Local taxes (ICI) of between 0.4 and 0.7% also apply to anyone owning a home in Italy.
For more information on buying property in the different regions of Italy, please select from the following list:
Buying property in Italy
1
2 Next