Yes, foreigners can buy property in Italy.
In fact, Italy has very few restrictions on foreign property ownership, and it is relatively straightforward for foreigners to purchase a property in the country.
However, the process of buying property in Italy can be complex and time-consuming, especially for those who are not familiar with the Italian legal system and language. It is highly recommended to seek the services of a reputable real estate agent, lawyer, and translator to guide you through the process.
Foreigners buying property in Italy are also required to obtain a codice fiscale, which is a tax identification number. Additionally, they will need to open an Italian bank account and obtain a permit to purchase from the local authorities.
In Italy, property tax is called “Imposta Municipale Unica” (IMU), which is a tax on the ownership of real estate properties, including residential and commercial properties. The IMU tax is calculated based on the cadastral value of the property and is paid annually to the local municipality where the property is located.
The amount of IMU tax can vary depending on the municipality and the type of property. In general, the tax rate ranges from 0.4% to 1.06% of the cadastral value of the property. However, properties that are considered luxury properties, such as villas or historical buildings, can be subject to higher tax rates.
In addition to IMU, there is also a tax on the purchase of properties in Italy, called “Imposta di Registro,” which is a transfer tax paid by the buyer at the time of the purchase. The amount of Imposta di Registro is calculated based on the purchase price of the property and is generally around 9% to 10% of the purchase price for non-resident buyers.
It is important to keep in mind that property taxes and fees in Italy can vary depending on the location and type of property. It is advisable to consult with a local expert, such as a real estate agent or lawyer, for more detailed information regarding the taxes and fees associated with buying and owning property in Italy.
Photograph by: davide ragusa