International Investors
Foreign Buyers
- Can a US citizen legally buy a house in Italy? Yes. Italian law allows non-EU foreigners to buy property if the condition of reciprocity applies. For the United States, reciprocity is met, so the purchase is permitted.
- Is residency in Italy required for the purchase? No. Residency is not a requirement to buy a house in Italy. However, it affects allowances and taxes (e.g., “prima casa”).
- What are the standard phases of the sale? Property search → purchase proposal → preliminary agreement (compromesso) with deposit → notarial deed (rogito) and transcription. The notary verifies titles, mortgages, identities, and registers the deed.
- What is the principle of reciprocity and who verifies it? It is the rule that the foreigner can perform the act if an Italian can perform the equivalent in their country. Practical verification is managed by the notary and the legal counsel handling the transaction. Details: MAECI – Reciprocity.
- What documents are needed to buy? Passport, Italian Tax Code, bank details/justification of funds (anti-money laundering), optional power of attorney if signing remotely; property documents (title, surveys, APE, etc.).
- How to estimate the price and yield? Consult the official OMI quotations by zone and type and compare them with the market and rents. Also, evaluate renovation costs and local tourist demand.
- What taxes are paid on purchase in Italy? Depending on the case: Registration Tax (or VAT if the seller is a company), plus mortgage and cadastral taxes; notarial and mediation fees.
- What recurring taxes apply to ownership (IMU/TARI)? Second homes pay IMU (municipal rate based on cadastral value) and TARI (waste tax). The “main residence” is exempt from IMU if the requirements are met.
- How is rental income taxed in Italy? Rents contribute to income in Italy; the cedolare secca (substitute regime) is possible for residential property. Check any local requirements for short-term rentals.
- Must I declare the property owned in Italy in the US? Yes. It falls under foreign asset and income obligations.
- How to avoid double taxation between Italy and the US? The rules of the treaties and the two legal systems apply. Generally, taxes paid in Italy on property income can be credited in the US, according to current regulations.