Buying Property in Italy as a Non-Resident: What You Need to Know

For many high-net-worth individuals, buying a property in Italy is not just about securing a beautiful second home — it’s about investing in a lifestyle, anchoring personal wealth in a stable jurisdiction, and building a tangible connection with a country rich in heritage, culture, and opportunity.

Whether you’re purchasing a historic villa on Lake Como, a penthouse in Rome, or a countryside estate in Tuscany, the process is not without complexity — especially for non-residents. But with the right guidance, it can be smooth, efficient, and even enjoyable.

This article walks you through the key considerations, legal steps, and strategic insights for buying property in Italy as a non-resident.

Why Italy? A Real Estate Market With Character and Opportunity

Italy’s real estate market offers something few other countries can match: timeless beauty, architectural richness, and competitive pricing. Even in 2025, prime Italian property — especially outside Milan and Rome — is undervalued compared to France, Switzerland, or the UK.

Moreover, the Italian legal system provides strong ownership protection, a transparent land registry, and stable long-term rights for foreign owners.

Key reasons why wealthy buyers choose Italy:

• Tangible assets in a low-volatility market

• Long-term family use and heritage planning

• Strong international interest and resale potential

• Emotional connection with culture, food, and landscape

• Alignment with strategic relocation or tax planning (e.g., €100k flat tax)

Can Non-Residents Buy Property in Italy? Yes — But with Conditions

Foreigners can absolutely buy property in Italy, including residential, commercial, and agricultural real estate. However, the rules vary depending on your country of residence and citizenship.

Italy applies the principle of reciprocity: if Italians can buy property in your home country, then you can buy property in Italy. This is generally not an issue for most jurisdictions — including Switzerland, the UK, the US, the EU, Canada, and most Middle Eastern countries.

However, there are practical limitations:

• As a non-resident, you may face restrictions in accessing Italian financing (mortgages are possible, but harder).

• You’ll need an Italian tax code (codice fiscale) and a local notary to complete the transaction.

• Property taxes and rules on rentals differ from those for residents.

At Knotted, we help our clients navigate these steps through a structured, private process — with trusted legal and tax experts who specialize in assisting foreign buyers.

The Buying Process: A Clear Step-by-Step Overview

Buying a home in Italy involves several phases. While it’s less “automated” than in Anglo-Saxon countries, it is also more protective for both parties.

1. Tax Code and Bank Account

The first step is to obtain a codice fiscale (a tax identification number), which is required for all real estate transactions. This can be done through the Italian consulate or with our help in Italy.Opening an Italian bank account is highly recommended, as most transactions — especially those involving notaries — must be settled locally.

2. Property Search and Due Diligence

Whether you're looking at off-market villas or luxury apartments in historic centers, the due diligence process is critical. It involves:

• Verifying legal ownership and land registry

• Checking zoning rules and building permits

• Reviewing utilities and condominium regulations (for apartments)

This is where most risks lie for non-residents. We always suggest working with an independent legal advisor — not just the seller’s agent — to ensure you are protected.

3. Preliminary Agreement (Compromesso)

Once an offer is accepted, both parties sign a preliminary contract that defines the terms of the sale, payment schedule, and any conditions. A deposit (usually 10%) is paid at this stage.

This agreement is legally binding and includes important clauses — especially for foreign buyers, who may need to include conditions related to permits or financing.

4. Final Deed (Rogito Notarile)

The final contract is signed in front of an Italian notary, who also handles the registration of the deed with the land registry. At this point, the remaining balance is paid, and ownership is officially transferred.

The notary acts as a neutral public officer and is legally responsible for ensuring the legitimacy of the transaction.You can attend in person or grant a power of attorney to a trusted representative.

What Taxes and Costs Should You Expect?

Italy’s property transaction costs are relatively moderate, but vary depending on whether you buy from a private seller or a developer.

Key costs include:

• Registration tax (imposta di registro): usually 2% (if primary residence) or 9% (if secondary)

• Notary fees: typically 1–2% of the property value

• Legal and technical fees: for due diligence and contract drafting

• Annual property taxes (IMU, TASI): only apply to secondary homes

• Wealth tax on foreign-owned Italian properties: currently not in place for residents under the €100k flat tax

It is also possible to structure the acquisition via a foreign company or trust, depending on your tax residency and objectives. In some cases, clients opt to include the property in a life insurance wrapper, particularly when estate planning is a concern.

Residency: Do You Need It to Buy?

No — residency is not required to buy property in Italy. However, many buyers are also exploring relocation options, especially with the introduction of:

• The €100k flat tax regime for new residents

• The 7% tax regime for pensioners relocating to southern regions

• The Italian investor visa and elective residence visa

Knotted works closely with clients who wish to combine real estate acquisition with a tax-optimized relocation strategy. We ensure the timelines, documents, and decisions align — whether you plan to live in Italy full-time or only part of the year.

Real Estate as a Strategic Asset

We often say that in Italy, real estate is not just a place to live — it’s a legacy. Many of our clients buy with a 20- or 30-year horizon, sometimes even longer. The blend of emotional value and legal durability is rare in today’s investment world.

From generational homes in Tuscany, to cross-border footholds near Switzerland, to strategic rentals in Rome or Milan, Italy offers options for every profile — if approached with care.

Knotted: From Aspiration to Acquisition

At Knotted, we support international clients at every step of the journey.We’re not real estate agents — we’re strategic advisors who coordinate legal, tax, relocation, and emotional factors into a coherent, personal plan.

We help you understand what to buy, how to structure it, and why it matters for your broader financial picture.

📩 Thinking about buying property in Italy?Write to us at info@knotted.ch or

📲 message us on WhatsApp at +41 76 771 30 22 — and let’s start designing your Italian chapter.