Italy’s timeless charm, rich cultural heritage and stunning landscapes continue to attract foreign nationals dreaming of owning a piece of la dolce vita. Whether you’re looking for a vacation home, an investment property, or planning a permanent move, buying property in Italy as a foreigner is entirely possible — and increasingly popular.

At De Tullio Law Firm, we specialize in assisting international buyers with every step of the property purchasing process in Italy. In this guide, we’ll explain the legal and practical aspects you need to consider before making your Italian property dream a reality.

Can Foreigners Buy Property in Italy?

Yes — foreign nationals can buy property in Italy. However, the process may vary depending on your country of origin:

EU citizens enjoy the same property ownership rights as Italian citizens.

Non-EU citizens can purchase property in Italy if there is a reciprocity agreement between Italy and their home country.

Australians Can Buy Property in Italy

Australia does have a reciprocity agreement with Italy. Australian citizens can freely buy property in Italy, whether for personal use, as a holiday home, or as an investment.

Note: In April 2025, Australia introduced a two-year ban on foreign buyers purchasing established residential properties within Australia. This law does not affect Australians buying property abroad, including in Italy. Australian citizens remain fully eligible to purchase real estate in Italy during this period.

Step-by-Step Guide to Buying Property in Italy as a Foreigner

Buying property in Italy as a foreign national involves several important legal and administrative steps. Each stage must be carefully managed to protect your investment and comply with Italian law. Here’s a detailed guide to what you need to know and do — with practical tips to avoid common pitfalls.

Step 1: Engage a Qualified Property Lawyer

While it is not mandatory to hire a lawyer when purchasing property in Italy, engaging an independent Italian property lawyer is strongly advisable, especially for foreign buyers.

Why having a lawyer matters:

• Estate agents and notaries cannot protect your interests or provide legal advice.

• Italian property law is complex — especially when it involves inheritance issues, co-ownership, or non-resident tax planning.

• Only an independent lawyer can review and draft personalised contracts that reflect your specific situation.

• Your lawyer can prevent costly mistakes before they happen — and protect your investment if things go wrong.

What your lawyer does:

• Conducts thorough due diligence before you sign anything

• Drafts or reviews reservation offer, preliminary contract and deed of sale

• Advises on issues like joint purchases, marital property regimes, or inheritance planning

• Manages risks around permits, zoning, co-ownership and tax liabilities

• Coordinates with the notary, agent, bank, and seller — often via power of attorney if you’re abroad

Examples of risks without legal advice:

A Canadian buyer relied solely on the estate agent and notary. They discovered too late that the property’s septic system was unauthorised — resulting in €18,000 in fines and mandatory renovations.

A couple from the USA bought a holiday home together but didn’t get legal advice on co-ownership. After one passed away, Italian inheritance law left the surviving partner with no automatic rights — and a dispute with the deceased’s heirs.

Step 2: Obtain a Codice Fiscale (Tax Code)

The Codice Fiscale is Italy’s equivalent of a national tax identification number. You’ll need it to:

• Open an Italian bank account

• Pay taxes and fees

• Register the property in your name

Your lawyer can obtain this for you by power of attorney without your physical presence in Italy.

Step 3: Conduct Legal Due Diligence

Your lawyer performs thorough checks to ensure the property is legally and physically sound:

• Verify clear title of ownership

• Check for liens, mortgages or debts

• Confirm planning permissions, building compliance and zoning regulations

• Investigate any inheritance claims or pending legal disputes

Never skip due diligence or rely only on seller or agent assurances.

Example:

A British buyer purchased a home in rural Tuscany only to discover post-sale that an extension had been built without planning permission. The local authorities later issued a demolition order. The buyer had to spend thousands on legal fees and building amnesty procedures — all of which could have been avoided with proper legal checks.

Step 4: Sign a Reservation Offer (Proposta di Acquisto)

This initial written offer expresses your intent to buy the property and may include a small deposit to hold it off the market temporarily while due diligence is done.

Why it’s important:

• Signals your seriousness to the seller

• Locks in price and terms for a limited time

• Grants priority during negotiations

Beware of Boilerplate Reservation Offers

Estate agents often use generic reservation offers that:

• Are not personalised to your circumstances

• Lack important clauses protecting your deposit and right to withdraw

• Are designed mainly to protect the seller or agent

Example:

An Australian buyer lost a €5,000 deposit after signing a standard reservation offer with no exit clause when title issues arose.

Have your lawyer draft or review the reservation offer to include protections.

Step 5: Sign the Preliminary Contract (Contratto Preliminare / Compromesso)

After due diligence clears, you sign the Preliminary Contract, a legally binding agreement that sets the terms for the sale.

Includes:

• Final price

• Deposit amount (usually 10–20%)

• Carrying forward reservation offer conditions such as mortgage approval or property delivery date

• Detailed inventory of what is included (fixtures, furnishings, etc.)

Risks of a Generic Compromesso

Many estate agents rely on generic contract templates which may:

• Omit essential protections like mortgage or visa contingencies

• Fail to specify what is included in the sale

• Ignore renovation permits or planning constraints

Example:

A UK buyer forfeited a €30,000 deposit because the agent-drafted contract lacked financing clauses and the mortgage was denied.

Always have your lawyer draft or carefully review the compromisso to ensure full protection.

Step 6: Sign the Final Deed of Sale (Rogito)

In Italy, the final deed must be signed before a public notary (notaio) who legally transfers ownership, registers it with the tax office, and records it in the property registers within the required legal timeframe.

Key points:

• The deed is read aloud in Italian; if you don’t speak Italian well, an interpreter with the qualifications required by notarial law must be present.

• The full purchase price balance is paid.

• Ownership is officially registered in your name.

Important Legal Note About Notaries

Notaries are official public officers appointed by the Italian State, and their involvement is legally required to finalize any property transaction in Italy. Importantly, it is usually the buyer’s right to select the notary who will oversee the signing and registration of the deed.

• By law, notaries must remain impartial and cannot therefore advise or represent either party.

• They ensure the transaction complies with legal formalities and tax laws.

• They read and register the deed but do not protect buyer interests.

How a Lawyer Supports You at Rogito

• Arrange for a trusted interpreter if needed.

• Review the deed in advance to ensure all terms are correct.

• Liaise with the notary and seller to resolve last-minute issues.

• Represent your interests throughout, ensuring no surprises at signing.

Step 7: Pay Taxes and Register the Property

Following the signing of the Rogito, you must pay related taxes and fees:

• Registration tax

• Cadastral and mortgage taxes

• Notary and legal fees

• Ongoing property taxes like IMU and TARI

De Tullio Law Firm can handle all registration and tax matters to ensure proper compliance and registration in your name.

Buying Property in Italy as a Foreigner:

Costs and Taxes

Expense Type	Typical Cost
Purchase Taxes	Vary based on property type (main residence vs. second home)
Notary Fees	Approximately 1–2% of the purchase price
Legal Fees	Typically 1–3% of the purchase price
Agency Fees	3–5% if using a real estate agent
Annual Property Taxes	Vary by region and property classification

Common Pitfalls to Avoid when Buying Property in Italy as a Foreigner

Signing Contracts Without Legal Review

Avoid signing any documents without an independent lawyer’s review. Even “reservation agreements” can be legally binding in Italy.

Underestimating Renovation Costs

Many picturesque homes — especially those in historic towns — require significant renovation. For instance, €1 homes in Abruzzo may demand €20,000–€50,000 in restoration, sometimes more.

Mortgage Misconceptions

Italian banks often require 40–60% down payments for non-residents. Getting pre-approval is essential before house hunting.

Ignoring Tax and Inheritance Planning

Italy has different rules on inheritance and capital gains. Not planning ahead can lead to hefty tax bills later.

Local Restrictions

Some rural or historic zones have regulations restricting renovations or tourist rentals. Always check with the local Comune (municipality).

Buying Property in Italy as a Foreigner.

Why Choose De Tullio Law Firm?

With 60 years of experience specializing in Italian property and inheritance law, De Tullio Law Firm provides foreign buyers with:

• Tailored legal advice in English

• Independent contract reviews

• Full legal due diligence services

• Assistance with tax and inheritance planning

• Transparent communication at every step

Finally …

Whether you’re still exploring or ready to purchase, De Tullio Law Firm is your trusted legal partner throughout Italy. We make your property purchase in Italy safe, legally sound, and stress-free. Contact us today for a free consultation and take the first step toward your Italian property dream.