Real estate investment in Italy
Foreigners can buy, sell and rent out real estate without restrictions in Italy.
Statistics confirm the liquidity of investments: the price of residential real estate grows every quarter by an average of 1%. Five years ago, an apartment of 100 m² cost an average of €290,000, and today it is sold for €309,000.
of housing in Italy
increase per quarter
of the transaction amount
How the residential property price index is growing in Italy
Cost of a 3-bedroom apartment in Italy
Apartment in the historic centre of Milan
Apartment in a 10-minute drive
from the Milan Cathedral
Apartment in Genoa, Turin
What do investors buy?
The most expensive real estate is in the Italian Alps on the border with Austria, Milan, Rome, and the northwest coast.
- penthouses and attic apartments
- townhouses and mansions
- historical villas
Italy residence permit or citizenship by real estate investment
Obtaining an Italy residence permit and citizenship is not connected with purchasing real estate. Italy has a program for getting a residence permit by investing in the country’s economy. The investment amount ranges between €500,000 and €2,000,000. There is no option for investing in real estate.
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Taxes and associated costs
Property owners pay an annual tax of 0.4% to 0.76% of the cadastral value.
Rental income is included in the income tax base. The income tax rate is progressive from 23% to 43%.
Electricity, gas, water, heating, and garbage collection
Internet, TV and telephone
If the seller has owned a property for less than five years, they pay a capital gains tax. The income tax base includes the difference between the sale and purchase prices. The income tax rate is progressive from 23% to 43%.
The agency fee ranges from 2% to 5%.
of real estate in Italy
Capital gains tax
Paid on the difference between the purchase and sale prices
Frequently asked questions
Yes. All foreigners are allowed to buy real estate in Italy. There are also no restrictions on the sale and rental of real estate, either.
Yes. Real estate properties in Italy are liquid assets. the price of residential real estate is growing every quarter by an average of 1%. Five years ago, an apartment of 100 m² was worth an average of €290,000, and today it can be sold for €309,000.
Foreigners in Italy can also freely buy, sell, and rent out real estate.
Buyers of real estate in Italy pay value-added tax for new buildings or registration tax for secondary real estate and additional fees. The associated costs will be from 9% to 33% of the contract’s value.
Property owners pay an annual ownership tax — from 0,4% to 0,76% of the cadastral value.
Sellers of real estate pay capital gains tax on a progressive scale from 0 to 43%.
No. Italian citizenship cannot be obtained by investment. But foreigners can partake in the Italy residence permit program first. After 10 years of permanent residence in the country, they can get Italian citizenship by naturalization on a general basis.
To get a residence permit in Italy, investors can choose one of four options:
- from €250,000 — investments in innovative startups;
- from €500,000 — investments in the authorized capital of Italian companies;
- from €1,000,000 — investments in socially significant projects;
- from €2,000,000 — purchase of government bonds.