Buying Property in Italy as an American

Buying property in Italy as an American is an exciting opportunity to embrace la dolce vita. However, navigating the process can be challenging, especially when faced with unfamiliar legal and bureaucratic systems. Without the right guidance, the journey can feel overwhelming.

The Italian and American conveyancing processes differ in several key ways, but these differences shouldn’t discourage prospective buyers. With the right information, purchasing a home in Il Bel Paese can be a smooth and rewarding process.

In this article, we’ll break down the essential steps, highlight the key differences between the Italian and American property-buying processes, and provide practical insights to help you make informed decisions.

Which law regulates real estate transactions in Italy, national or regional law?

In Italy, national law governs the process of purchasing and selling real estate, ensuring a uniform legal framework across the country.

However, each region enforces its own urban planning regulations, making every transaction unique.

While Italian civil law regulates the contractual aspects of a property purchase, regional and municipal rules dictate the technical requirements a property must meet.

Is it possible to buy property in Italy as an American, or do I need to be an Italian citizen?

Having an American passport is all you need to buy property in Italy as an American. Italian law follows the principle of reciprocity, meaning that if Italian citizens can purchase property in a particular country, then citizens of that country – such as the U.S. – can buy property in Italy under the same conditions.

As an American, you can purchase property in Italy either as a private individual or through a U.S.-based company.

Who are the mandatory and recommended professionals in an Italian property transaction?

While not mandatory, when buying property in Italy as an American there are several professionals that can be involved in the Italian conveyancing process, offering valuable support:

1. Real Estate Agents

When searching for a property online, buyers typically interact with real estate agents first. However, their role in Italy differs significantly from their U.S. counterparts. Unlike in the U.S., where buyers and sellers each have their own agent, Italy has a single real estate agent representing both parties. The agent is hired by the seller to market the property but also facilitates the transaction for the buyer. This means that unless the buyer hires an independent advisor, no professional will be solely committed to protecting their interests.

2. Real Estate Attorneys

Though not required by law, hiring a real estate attorney is highly advisable. Their role includes:

• Conducting thorough legal due diligence, ensuring the property complies with zoning laws, has the necessary permits, and holds a valid certificate of habitability.
• Drafting a reservation offer, an initial agreement outlining the buyer’s and seller’s commitments.
• Preparing the preliminary contract, a legally binding agreement between both parties before the final sale.
• Representing the buyer at the final deed signing through a Power of Attorney, eliminating the need for the buyer to travel to Italy.

If hiring an attorney, ensure they are fluent in English to provide accurate translations of legal documents, preventing misunderstandings.

3. Surveyors or Architects

A surveyor or architect can verify that the property complies with urban planning and cadastral regulations, helping to prevent costly legal issues after purchase. For example, if a previous owner made unauthorized structural changes – such as expanding a terrace or adding a room without proper permits – the new owner could face fines or even be required to demolish the additions. Similarly, if the property’s official records don’t match its actual layout, it could lead to delays in obtaining utilities, unexpected tax reassessments, or legal disputes. A thorough assessment by a qualified professional ensures that the property is legally compliant before finalizing the purchase.

4. Mortgage Advisors

For buyers seeking a mortgage in Italy, working with a mortgage advisor can simplify the process and help secure the best financing options.

By assembling the right team of professionals, American buyers can confidently navigate the Italian real estate market and ensure a smooth property transaction.

The only mandatory professional in an Italian property transaction is a notary public. As an impartial public official, the notary ensures that the transaction complies with Italian law. Their responsibilities include drafting and authenticating the deed of sale, verifying that the seller has the legal right to transfer ownership, and identifying any encumbrances or liens on the property. Additionally, the notary is legally required to collect property transaction taxes on behalf of the Italian State.

What’s the difference between the Notary public’s due diligence and the real estate attorney’s due diligence?

In the U.S., real estate transactions typically involve attorneys who safeguard their client’s interests throughout the process. In Italy, however, hiring a real estate attorney is not mandatory although it is highly recommended, especially for foreign buyers unfamiliar with the country’s legal framework.

A notary public plays a crucial role in Italian property transactions. As an impartial third party working for the Italian State, the notary ensures that the transaction complies with Italian law. However, by law, notaries cannot advocate for either the buyer or the seller. Their due diligence is limited to verifying that the property is free of liens or encumbrances.

By contrast, a real estate attorney, selected and hired by you, works solely in your best interests and conducts thorough, independent due diligence. Beyond checking for liens, an attorney can assess potential legal or financial risks, investigate the property’s legal status, and uncover hidden clauses that may put the buyer at a disadvantage. Before signing a preliminary contract, an attorney can review terms and conditions, ensure they align with the buyer’s expectations, and negotiate amendments if needed.

For non-Italian buyers, combining the expertise of both a real estate attorney and a notary public provides a strong layer of protection, safeguarding both the investment’s quality and the buyer’s peace of mind.

Finally …

If you’re wondering how achievable buying property in Italy as an American is, understanding the Italian conveyancing process is essential.

Schedule a consultation or contact us today to learn how we can support you with buying property in Italy as an American.

By doing so, you’ll protect your interests and ensure a smooth, worry-free experience!