Italy, with its rich history, breathtaking scenery and exquisite cuisine, often tops the list for many American citizens when considering buying property abroad.
However, the process can seem difficult and fraught with legal ambiguity. Simple answer to the question “Can US citizens buy property in Italy?” yes, but there is more to this than mere affirmation.
Buying property in Italy as a US citizen is fully permitted by Italian law.
This is primarily because of the principle of reciprocity: Italy opens its property market to nationals from countries where Italian citizens are likewise permitted to purchase property. Given that the United States offers this opportunity to Italians, American citizens are correspondingly granted the privilege to acquire residential and land properties in Italy.
However, there are some nuances and complications to consider in this process, as it can be completely different than buying real estate in the United States.
1. Hiring a notary
In Italy, all real estate transactions are overseen by a notary (notaio), a highly specialized lawyer representing the Italian government. Notaio ensures the legality of the transaction, including drafting the final contract, calculating taxes, and registering the property in the name of the new owner.
2. Preliminary contract and preliminary agreement
Before the final contract, a pre-contract or preliminary agreement is usually drawn up. This document describes the terms of sale and commitment between buyer and seller regarding the future transfer of title. This is a legally binding document, so it is essential to seek legal advice before signing.
3. Purchase cost
Buying real estate in Italy involves many costs other than the purchase price of the property, including stamp duty, cadastral and mortgage taxes, notary fees, agent fees and possibly value added tax ( VAT) if the property is new. In total, these costs can account for about 10-20% of the property’s purchase price.
4. Tax code
All buyers of real estate in Italy need a tax code (codice Financial), which is an identification number used for all interactions with Italian government authorities, including tax authorities. You can obtain this code from your local Italian tax office or from an Italian embassy or consulate abroad.
5. Funding
Getting a mortgage as a non-resident can be a bit trickier in Italy. Some Italian banks offer mortgages to foreign buyers, but these often come with stricter terms than those for residents. Some funding options are through local banks or other international financing options. The buying process can be a bit daunting for those unfamiliar with the legal structure and assets of the Italian market, but there are always experts available to help. Real estate agents, lawyers and other professionals familiar with Italian real estate law can make the process smoother and easier.
US citizens can certainly buy real estate in Italy, but they should be prepared for a slightly different process than they might use to return home.
Despite these obstacles, the dream of owning a home under the Tuscan sun or overlooking the Venice canals can become a reality with careful planning and expert guidance.
As always please do your own research when buying a property in Italy, this article is meant as a guide and cannot be relied upon due to changes in Italian Law and due process. Happy house hunting!
Photo by Luca Bravo
