Italy is a popular destination for house-hunting looking to buy either a holiday home or a permanent base in the country, and it's true that in some areas property is comparatively cheap.
While there have long been adverts targeting foreign buyers, there are now an increasing number of social media accounts advertising 'cheap EU dream homes' or 'cheap Italian property' to English-speakers.
These range from entirely genuine to somewhat less so, but even if the advert itself is legit and the property really is on sale for the price advertised, there are some things you need to factor in first.
Hidden fees
The price quoted in adverts always excludes the notary fees (parcella del notaio) and estate agent commission (provvigione agenzia immobiliare), which tend to add around one-to-three and two-to-five percent respectively to the cost.
While you can avoid the agency fees if you're buying from a private seller, in Italy you have to go through a notary or notaio (the legal specialist who handles the sale) to ensure that the transaction is legally binding and compliant with Italian law.
READ ALSO: EXPLAINED: The hidden costs of buying a home in Italy
Those costs are in addition to the amount you'll need to pay the taxman: more on that below.
'Nuda proprietà'
Pay careful attention to the type of sale, especially if you see it is being sold 'nuda proprietà'. This is a unique quirk of the Italian property system that allows older homeowners to sell their home for a low price on the condition that they can stay in it until they die.
READ ALSO: Nuda proprietà: The Italian property-buying system that can lead to a bargain
The purchase price is usually low, so these types of sales often appear in 'cheap property' lists, but unless you're willing to wait for years or even decades to be able to actually use your home, this might be one to steer clear of.
Renovation costs
Another reason for properties to be cheap is that they are in need of significant renovation. Many older Italian properties don't comply with current regulations when it comes to things like energy efficiency or earthquake safety.
While some people enjoy the challenge of a renovation project there are several things to consider, especially the Italian permit system.
Depending on the type of work you want to do, you are likely to need either a permesso di costruire (construction permit) or to file a 'Declaration of the Commencement of Activity', known as a Scia (Segnalazione Certificata di Inizio Attività) or DIA (Dichiarazione di Inizio Attività).
Navigating the permit system can be complicated, especially if your Italian is still at beginner level, but failure to secure the correct permit can ultimately result in you being ordered to tear down any work you have done.
Bear in mind also that if the property is classed as a building of historic importance, you'll find it very difficult to get planning permissions to get any type of renovation work done.
Renting
If you're thinking your holiday home might cover its costs by being rented out when you are not there, then be sure to familiarise yourself with the rules on holiday rentals in your area.
On both a local and national level, Italy is increasingly imposing strict controls on the use of platforms such as Airbnb in an attempt to counter housing shortages for locals.
The northern city of Bolzano, for example, put a cap on tourist accommodation in September 2022.
In late 2024, Italy introduced a nationwide ban on lock boxes for self check in - which means hiring a property manager to conduct check-ins in person when you're not around.
Following a recent rule change, all owners of short-term lets in Italy are now required to hold a national identification code (codice identificativo nazionale, or CIN).
Bear in mind that any income you receive from renting a property in Italy is subject to Italian taxes; if you're using Airbnb, the platform should now automatically withhold 21 percent of your earnings for taxes.
Accessibility
One common reason for an Italian property to be priced lower than you would expect is that it's in the middle of nowhere.
If you're an introvert, that might sound great, but consider how remote you really want to be.
Are you really happy to go without human contact for days at a time, or do you want the option of occasionally being able to walk to a bar to chat to someone?
Is the property hooked up to public utilities, or off-grid? If the latter's the case, what condition is the septic tank in - and how much would a new one cost you?
If you were hoping to turn the place into a part-time holiday rental or even a full-time B&B, bear in mind you may find it hard to attract customers if you're far off the beaten path.
Property taxes
Besides the hidden costs outlined above, you'll need to factor various taxes into your considerations.
As the buyer of a property in Italy, you'll need to pay the imposta di registro (property registration tax, equivalent to stamp duty in the UK).
This amounts to two percent of the property's valore catastale (taxable base value assigned in Italy's land registry) if it will be your primary residence, or nine percent if it's a second or holiday home.
READ ALSO: What taxes do you need to pay on a second home in Italy?
That's if you buy from a private seller; when buying straight from a developer, you'll typically be liable to pay VAT of between four and ten percent, rising as high as 22 percent for luxury properties.
There are additional fixed fees of between €50 and €200 for land registry tax (imposta catastale) and mortgage tax (imposta ipotecaria), depending on the type of purchase.
And it doesn't end there; once you've bought the property, there are a range of other taxes you may be required to pay on an ongoing basis.
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