When searching for the perfect getaway in Italy, it's important to find a balance between your budget, lifestyle, and desired location. We'll guide you through the details you need to know if you're considering buying a property in Italy. We'll help you navigate the process of getting the most out of your property budget, including insights on how foreigners can obtain a mortgage in Italy.
If you've ever wanted to experience the Italian lifestyle, whether as a digital nomad or someone looking for a new place to call a summer home, buying a property in Italy is truly exciting. With its historical heritage and architecture, Italy provides an irresistible backdrop for those who wish to invest in this country.
We'll guide you through the details you need to know if you're considering buying a property in Italy. We'll help you navigate the process of getting the most out of your property budget, including insights on how foreigners can obtain a mortgage in Italy.
Buying a property in Italy as a foreigner is relatively easy because there are no restrictions on foreign ownership.
However, it's important to note that the Italian authorities can conduct verifications, including criminal record checks and other aspects, as part of the purchasing process.
Despite these necessary checks, foreigners still enjoy the same rights and opportunities as Italian citizens when acquiring real estate in Italy.
As an American citizen, you can buy property in Italy due to bilateral agreements between the two countries.
These agreements, also known as reciprocal agreements, ensure that the same privileges granted to Italians buying property in the US are extended to US citizens when buying homes in Italy. This mutual understanding enables US citizens to enjoy the same rights and privileges as Italian citizens in property ownership.
UK citizens can buy property or land in Italy, regardless of whether they reside there or not.
It may be necessary to provide documentation that confirms your rights under the UK's Withdrawal Agreement, such as an EU residency certificate (certificato di residenza), to ensure compliance with the required regulations.
Property prices in Italy are heavily influenced by location.
City centers typically command higher prices compared to areas outside the center. Major cities like Rome, Milan, and Florence are known for their higher price ranges. In contrast, smaller cities such as Bergamo and Genoa offer more affordable options.
Location | Price m2 in the city center | Price m2 outside of the center |
---|---|---|
Venice | 4,243 EUR | 2,387 EUR |
Bologna | 4,156 EUR | 2,856 EUR |
Rome | 7,363 EUR | 3,479 EUR |
Florence | 5,742 EUR | 3,568 EUR |
Milan | 8,961 EUR | 4,733 EUR |
Naples | 4,071 EUR | 1,960 EUR |
Bergamo | 2,587 EUR | 1,200 EUR |
Genoa | 3,050 EUR | 2,150 EUR |
Turin | 3,425 EUR | 1,752 EUR |
When searching for the perfect getaway in Italy, it's important to find a balance between your budget, lifestyle, and desired location.
Among the most popular cities, Rome and the picturesque landscapes of Tuscany stand out as favored choices for Brits and Americans. Milan, renowned as Italy's financial and fashion capital, has recently experienced a notable increase in real estate investment.
In 2023, Sicily's popularity has risen as the filming location for the highly anticipated HBO series, White Lotus 2, further adding to Italy's allure as a diverse and captivating destination for property investment.
Finding the perfect property can be a challenging task. The good news is that foreigners can obtain a mortgage in Italy, which allows them to make the most of their property budget.
Getting a mortgage in Italy as a foreigner involves several steps:
Navigating the system in a new country can be challenging. However, there is good news. Homevest provides an excellent solution simplifying your cross-border house-buying journey through one convenient platform.
With Homevest, you can streamline the process and make your international property purchase much more accessible and hassle-free.
When applying for a mortgage in Italy as a foreigner, you will typically be required to provide the following documents:
It's important to note that specific requirements may vary depending on the lender and individual circumstances.
For instance, if the applicant is a non-EU citizen, he will be required to present a valid residence permit. For EU citizens, the loan application process remains identical to that of Italian citizens.
Having an Italian tax code or a codice fiscale is essential to get a mortgage in Italy.
You can obtain your Italian codice fiscale at no cost by applying at any tax office (Agenzia delle Entrate) in Italy or at an Italian consular office or embassy in your home country.
Obtaining an Italian tax code is straightforward for EU citizens or countries within the Schengen area. You only need your passport and sometimes proof of address such as a bank statement or utility bill.
Intesa Sanpaolo, UniCredit, and Banco PBM are among the lenders in Italy that provide mortgage options to foreigners.
Intesa Sanpaolo is one of Italy's most competitive mortgage lenders, serving many non-resident applicants. If you want to move forward with Intesa Sanpaolo, you should know the variable rate is 1.45% + Euribor 1m, and the term range varies between 5 and 30 years.
UniCredit Bank accepts a wide range of currencies, including EUR, CZK, DKK, NOK, SEK, CHF, GBP, HUF, RON, BGN, ISK, JPY, and USD. The variable rate for a UniCredit mortgage is 1.38% + Euribor 3m, and the term range varies between 5 and 30 years.
Banco PBM provides fixed-rate and variable-rate mortgages tailored to your specific situation. The variable rate for Banco PBM mortgage is 1.55% + Euribor 1m, and depending on the customer profile, you should know a 1000 EUR evaluation fee is applied to the principal.
Whether you live and work in the UK, Germany, or the United States, Homevest can be a reliable option that accelerates buying a property in Italy directly from abroad.
Homevest is a digital platform that simplifies applying for and receiving mortgage offers from local banks.
To get started on this journey, here's what you need to do:
#1. Visit homevest.io and create a free account
#2. Upload your documents and apply for credit pre-approval
The Homevest interface is intuitive and user-friendly. Before you can begin uploading documents, it's necessary to verify your phone number. This provides an additional layer of data security.
Once your phone number has been verified, you can begin uploading the required documents for bank pre-approval. These include:
Depending on the requirements of your chosen creditor, you may also have the option to upload additional documents.
#3. Manage your mortgage file
After submitting your documents, banks interested in your application will contact you within a maximum of ten working days. They will provide details about the offers they have available.
From this point onwards, you can track the progress of your application and manage your file directly from your account.
As you set your budget for buying property in Italy as a foreigner, it's essential to keep in mind the various taxes and expenses that you may be required to pay.
These additional costs should be taken into consideration to ensure a comprehensive financial plan:
Service | Price |
---|---|
Registration tax | 3-7% |
Value Added Tax (VAT) | 4-22% |
Land Registry Tax | 1% |
Notary Fee | 1-2.5% |
Real Estate Agent’s Fee | 1.50-4% |
When buying new properties in Italy, the tax system is different.
Instead of registration tax, buyers are required to pay Value Added Tax (VAT). The VAT rate depends on the buyer's situation. For those purchasing their first home and intending to reside there, the VAT rate is 4%.
Buyers of second homes or non-residents are charged a VAT rate of 10%. Luxury homes with an A1 rating in the Property Register have a higher VAT rate of 22%.
With Homevest by your side, buying a property in Italy becomes a simpler journey. Once you've considered your options and the budget, you're ready to embark on the la dolce vita experience.
Sources used and checked on July 2023:
We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.
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