Comparing Italy’s Real Estate System with the UK, USA, Canada, and Australia

Aug 20

Buying property in Italy is, in many respects, a different experience than in the UK, the United States, Canada, or Australia. The contrasts lie not only in the process itself – how agents conduct their work, the availability of information, the legal machinery, the pace of financing and completion – but also in the way people think about property.

What follows is not a step-by-step guide but rather a comparison drawn from professional experience and reliable sources, written with the hope of showing how reasoning shifts across cultures when it comes to real estate. Whether one imagines restoring a farmhouse, moving straight into a finished home, buying a second residence, or considering property as an investment, the Italian lens is not quite the same as the Anglo-Saxon one.

The aim is not to prescribe, but to observe – to set beside one another these different habits of mind and practice, and to offer readers a clearer sense of the landscape they are stepping into.

The Role of Agents and Buyer Representation

One of the first surprises for many foreign buyers is how differently the role of the real estate agent is conceived. In the Anglo-Saxon world, one is accustomed to clear lines of allegiance: in the United States and Canada, there is a listing agent on one side, a buyer’s agent on the other, each defending the interests of their respective client. In the United Kingdom and Australia, the pattern shifts slightly, but the assumption remains that the agent is engaged by the seller and paid accordingly, while the buyer stands across the table as the counterparty.

In Italy, things are not so neatly divided. The agent is a mediator, a figure who, by law, owes truthfulness and fairness to both parties. Their duty is not to fight on one side, but to bring the sides together. For this reason, their commission is due from both buyer and seller, and is usually earned at the moment a binding preliminary contract is signed. The fee commonly runs between two and four percent on each side – often around three – plus VAT.

This “double commission” often astonishes newcomers. Yet it reflects the Italian spirit of transaction: the agent is not your lawyer, nor your hired advocate, but a broker of understanding, a professional tasked with carrying both voices into a single conversation. To the Anglo-Saxon mind this can appear unusual, even unfair. But seen differently, it is simply another cultural approach: less adversarial, more mediated, and in its way, more focused on the closing itself rather than on combat along the way.

Lack of Built-in Buyer’s Agents: Because Italy’s default is a single intermediary agent, a private buyer in Italy is not automatically “represented” by an advocate in the way an American or Canadian buyer would expect (italymagazine.com). An Italian agent’s goal is to close the sale, not to negotiate purely in the buyer’s favor. In practice, as a buyer in Italy you may end up contacting many listing agents for different properties and receiving a wide range of service quality. The concept of an exclusive buyer’s agent is still emerging in Italy (some agencies do offer “property finder” services, but it’s not the norm) (marktedesco.com). In contrast, an American buyer will usually have a realtor dedicated to finding suitable homes, advising on value, and negotiating on their behalf, and a British or Australian buyer typically interacts directly with the selling agent unless they’ve hired a specialized buying consultant.
Agent Cooperation: One advantage of Italy’s system is that because both sides pay commission, an agent you trust can potentially show you other agencies’ listings through a co-agent arrangement (each agent then takes their respective client’s fee) (itcasa.it). This can widen your search without you personally juggling multiple agents. However, this only works if you have not already contacted the other agency yourself; Italian agents are protective of their client leads (itcasa.it). In countries with an MLS (Multiple Listing Service) like the US and Canada, any agent can generally show you any listed property, but in Italy there is no universally adopted MLS for all agents (more on that below). Some Italian franchises and networks share listings internally, but the market is fragmented (marktedesco.com).
Service and Professionalism: Culturally, foreign buyers often notice Italian agents operate differently from what they’re used to. For example, agents in Italy might not be as proactive about understanding a buyer’s needs or following up promptly. As one expat observed, Italian agents tend to simply show the property you inquired about, with little attempt at a tailored search or after-visit follow-up (italymagazine.com). Staging of homes is rare in Italy – a property is often shown as-is, even if cluttered or dated, which can require the buyer to “see past” cosmetic issues. By comparison, British and Australian estate agents typically expect to handle the entire marketing and negotiation for the seller, and in the US/Canada a buyer’s agent would actively screen listings, set up viewings, and advise the buyer on making offers.

In the UK, USA, Canada, and Australia, the advertised price typically already factors in the seller’s agency fee, and as a foreign buyer you wouldn’t normally pay an additional commission (except in the case of hiring a personal property finder). Understanding these differing practices helps avoid confusion and ensures you get the right support for your purchase.

Transparency of Property Information and Listings

Italy – No Central MLS, Multiple Portals: Italy’s property market lacks a single centralized listing database accessible to the public. In the US and Canada, the MLS (Multiple Listing Service) means most properties for sale are listed in one network (with public-facing sites like Zillow, Realtor.com, etc.), and in the UK sites like Rightmove and Zoopla aggregate the vast majority of listings. Australia similarly relies on a couple of major portals (realestate.com.au, Domain) where agents post all their properties. In Italy, by contrast, there are many listing websites – Immobiliare.it, Idealista, Casa.it, Gate-away, to name a few – and not all agents use all sites (wise.com). Some agencies only advertise on their own website or local outlets. There are a few regional MLS-type systems that groups of agencies use internally (one example is Agestanet with ~1,900 agencies), but these are not open to consumers (marktedesco.com). This means as a buyer you might have to search across multiple websites and even physically visit local agencies to discover all available properties.

Data and Accuracy: The level of detail in Italian listings can vary widely. Many online listings in Italy include a few photos, basic metrics (square meters, number of rooms), and a short description. Floor plans are not always provided (though they are increasingly common on sites like Immobiliare.it). Exact addresses are often omitted; you might see just the town or a general area, since agents are wary of competitors or buyers going straight to owners. Also, because there’s no strict MLS, duplicate listings for the same property appear with different agencies – sometimes at different prices or with outdated availability. It’s not uncommon to inquire about a listing you found online and learn that it’s already sold or was off-market; agents may leave “sold” listings up as bait for inquiries. In countries like the US and UK, there are stronger norms (and rules in MLS) about updating status and providing accurate info (e.g. in the UK an agent must not misrepresent a property per consumer protection laws). In Italy, ensure you or your representative verify important details and don’t assume “if it’s listed, it’s available” without confirmation.
Property Price and History Visibility: Another transparency difference is access to historical data. In the UK, anyone can look up Land Registry sold prices for properties (and sites like Zoopla will show price history and how long a listing has been on the market). The US and Canada also have records of past sales and often display price change history on consumer sites. Italy’s system is less transparent to the public – there is a database of transacted prices (OMI, Osservatorio del Mercato Immobiliare) but it gives ranges by area, not specific house sale prices. You usually cannot easily find what a particular house last sold for. Moreover, an Italian agent might not volunteer how long a home has been on the market or if the price was cut. As a buyer, you have to piece together information. Utilizing multiple sources (and asking the right questions) is key. For example, a local geomètre or surveyor can help assess if an asking price is reasonable by comparing it to recent area sales, whereas in North America your agent would normally do a comparative market analysis with MLS data.
Off-Market and Private Sales: In Italy, a significant number of properties are sold privately or off-market, sometimes within networks of acquaintances or through informal channels. There is a cultural element of privacy; some owners prefer not to publicly list their home. In the UK, off-market (“quiet”) sales exist but are mostly in the high end of the market. In the US/Canada, “For Sale By Owner” (FSBO) deals are a minority. Italy’s proportion of private sales is estimated around 20% (marktedesco.com) – if you limit yourself to internet searches, you might miss these opportunities. Conversely, because agents in Italy charge both parties, even sellers who find a buyer privately sometimes channel the deal through an agent to handle paperwork (and then both pay commissions).

Legal Process and Due Diligence: Italy vs Other Countries

Legal Professionals – Notary vs Solicitor: One of the major differences between Italy and the UK (or other Anglo countries) is who handles the legal conveyancing. In the UK, it’s standard to use a solicitor or licensed conveyancer to manage the sale contract, searches, and title transfer (itcasa.it). Similarly, in the US and Canada the closing process often involves an escrow company and/or attorneys who prepare the purchase agreement and deed (varies by state/province).
In Italy, however, the preliminary contract (Compromesso) is usually drafted by the estate agent or a notary, and the final deed of sale (Rogito) is executed by a notary (Notaio). Italian notaries are highly qualified lawyers given public authority to register property deeds. They act as an impartial guarantor that the sale is legally valid – verifying the seller’s title, checking for liens or mortgages, and ensuring taxes are paid. The notary prepares and witnesses the final act of sale, which all parties sign in person (or via power of attorney) and then records it in the Land Registry. Because of this system, hiring a separate lawyer in Italy is not mandatory. In fact, most Italian buyers do not use a lawyer for a standard home purchase, relying on the notary and agent to handle paperwork.

Should Foreign Buyers Hire a Lawyer? While not required, some foreign buyers in Italy choose to engage an independent lawyer for extra reassurance, especially if they don’t speak the language or the deal is particularly complex. A lawyer may review permits on past renovations, check for pending disputes, or confirm the absence of debts or liens. However, it is important to understand how the Italian system differs from the UK or North America. Here, the notary already has a central role in verifying that the title is clear and that the contract is validly executed and registered. Beyond this, matters such as planning compliance or technical surveys are usually handled directly by the real estate agency in collaboration with trusted surveyors and professionals. In fact, that is the essence of the agency’s work: to coordinate and safeguard the entire process on behalf of the client, bringing all checks under one roof. By contrast, a lawyer in Italy typically works only for the party who hires them, and their role is not to guide the deal to closure but to demonstrate that their involvement added value. This sometimes leads to duplication of tasks already covered by the agent and the notary, or to unnecessary complications that slow down the process. For most buyers, the most effective formula is to have a competent bilingual notary together with an experienced, specialised agency whose role is precisely to manage all verifications, balance the interests of both parties, and ensure the transaction moves efficiently to completion.
Preliminary Contracts vs Final Contracts: In Italy, once you find a property and agree on price, the process typically goes: you sign a written Offer (Proposta d’acquisto) with a small deposit, then after acceptance both parties sign a Preliminary Sale Contract (Compromesso or Contratto Preliminare) which is a legally binding contract detailing the sale terms, usually with a larger down payment (caparra) of 10–30% - but it really depends on the type of contract and there is not one general rule. This is a crucial difference: in Italy the deal is effectively locked in at the preliminary stage – if the buyer pulls out without cause, they lose their deposit; if the seller pulls out, they must return double the deposit to the buyer (caparra confirmatoria). This provides strong protection against gazumping (the seller accepting a higher offer after yours) or either party changing their mind. By contrast, in England and Wales, an accepted offer is not binding until contracts are formally exchanged much later in the process – it’s during that interim that gazumping can occur, which is a known risk in the UK. In the US and Canada, an offer (once signed by both) usually becomes a binding purchase agreement much earlier, but it often includes contingency clauses (for inspection, financing, etc.) that allow the buyer to withdraw with no penalty if something comes up. Italy’s preliminary contract can include conditions (e.g. “subject to getting a mortgage by X date” or “pending planning permission for extension”), but if no such clauses are inserted, both sides are firmly committed once they sign it(italianrealestatelawyers.com). Typically a few weeks or months after the Compromesso, the final Deed of Sale (Atto Notarile) is signed in front of the notary, at which time the balance of the purchase price is paid and ownership is transferred (amongstromans.com)
- Timeline Note: Because the binding agreement happens earlier in Italy, it can actually make the closing process feel more secure once you’re past the preliminary stage – neither party can easily back out. In the UK, the equivalent of Italy’s preliminary is only reached at the very end (exchange of contracts), right before completion. In Australia, for private treaty sales, a contract is usually signed early and may have a short cooling-off period (or none, if waived), and at auction it’s instantaneous and binding, similar to Italy’s immediate commitment once winning the bid.
Due Diligence and Surveys: In a UK or US transaction, it’s expected that the buyer will do various inspections (survey, structural inspection, pest, etc.) during a due diligence period. The buyer’s solicitor in the UK also conducts local searches (checking for planning proposals, utility access, etc.) and verifies the title is clean. In Italy, some due diligence tasks are handled by the agent and notary – for example, checking the title, land registry, and that the property isn’t subject to liens or debts is part of the notary’s job before the deed (itcasa.it). Agents in Italy are also obligated to collect and check the property’s documents (ownership, cadastral plan, conformity certificates) before listing (marktedesco.com). However, Italy has an additional critical area to check: urban planning and building compliance. In Italy, many properties — especially older ones — may show small discrepancies between the current layout and the cadastral records, or have past works not yet updated in the paperwork. This is not unusual, and Italian law now requires sellers to provide a Relazione Tecnico-Urbanistica (a technical compliance report by a surveyor, architect, or geometra) before the sale can proceed. In practice, private owners often commission this report only once there is genuine interest in the property, since it carries a cost, but without it you cannot even go to the notary.
For this reason, the real risk of “buying something you cannot actually buy” is very low. The important step is to have an agent review the documentation and, before submitting any offer, think carefully about what conditions you want for your own safety. For example, an offer can be bound to seeing the property in person or to the outcome of an inspection — meaning you can agree a price even from overseas, but still remain free to walk away if the condition on inspection is not satisfactory.
The key is not to be overly anxious: with the right paperwork checks, and clear conditions written into your offer, the process is structured to protect you without unnecessary duplication of costs. If one wants an extra form of safety besides what the broker says, the advice would be to hire a local geometra, as the local has established relationships with contractors and government employees over the years of his experience. For instance, a geometra can tell you if that window is legally big enough or if that extra room was built without permission.
A local geometra will often do an informal inspection, giving you valuable advice. In Italy, you don’t “accidentally” buy something unregularised at the notary. At the rogito, the seller must declare conformità catastale (that cadastral data and the floor plan match the real state), and the notary checks the documentation. Meaningful discrepancies or unpermitted works must be regularised (e.g., plan update or sanatoria) before the deed can go ahead. Just as with many other things in life, it’s not so much what you do, but how you do it and with whom.
So the system itself protects you. The practical approach is simple: have your agent review the paperwork early and, if you’re abroad, bind your offer to clear conditions (e.g., receipt of the technical report and a satisfactory in-person inspection). That keeps the process straightforward—no paranoia required, just normal checks done at the right time.
Title Insurance and Risk: In North America, title insurance is commonly used to protect against any defects in title or recording errors. In Italy, title insurance is not typically used – the notary’s role and the public registration are deemed sufficient (especially in the northern provinces of Italy that used to be historically part of Austria). The notary is personally liable if they fail to uncover an issue that should have been caught in the title examination, which gives them a strong incentive to be thorough. That said, the Italian system places more onus on the buyer to ensure the property itself is what they think it is (in terms of condition and permitted use). Italy’s land registry (Conservatoria and Catasto) can be complex; sometimes multiple parcels or buildings are involved. It is worth having a very experienced agent double-check that the property’s boundaries and ownership history are clear.

Financing and Mortgages for Foreign Buyers

Italy – Limited LTV and Strict Criteria: Financing a property in Italy as a foreigner is possible, but generally more challenging than in the UK, North America, or Australia. Italian banks do offer mortgages to non-residents, but they typically require a larger down payment and extensive paperwork (wise.com). As of 2025, non-Italian buyers can usually borrow at most around 50–60% of the property’s value (wise.com). Some banks might go up to 70% in select cases (especially if you have very strong financials or an EU residency), but the conservative loan-to-value is the norm (amongstromans.com). This means you should expect to put 40–50% cash down. In contrast, domestic Italian buyers often can get 80% LTV or even 90% if they are young first-time buyers, but those higher LTV products are rarely available to non-residents (investropa.com). Mortgage interest rates in Italy can be variable or fixed; recently rates have been around 3–5%. Keep in mind Italian mortgages can take quite some time to process – approvals might stretch 3 to 6 months for a non-resident (italianrealestatelawyers.com), so factor that into your timeline or consider pre-approval well in advance.

Eligibility and Process: Italian banks will require proof of income, tax returns, and often a deeper look at your overall asset and liability picture. If your income is not in euros, they may apply stricter affordability criteria (for example, some banks only count a fraction of foreign income for safety). It’s often necessary to present Italian-translated documentation and to have a local bank account. Given the complexities, many foreign buyers use a mortgage broker or specialist who knows which banks lend to overseas clients (wise.com). Using a broker does incur a fee, but they can save you from going bank to bank on your own. Another strategy is to finance through an international arm of a bank from your home country (e.g. HSBC International for some nationalities) or to refinance a property in your home country to release equity for the Italian purchase (some Americans and Canadians take a home equity loan at home to essentially pay cash in Italy). In short, cash is king in Italy – a lot of foreign purchasers simply pay cash, either because they can or because the mortgage route is too slow or uncertain (pierolorenzorealtor.com). While some sources suggest that obtaining an Italian mortgage can feel like an ‘impossible mission’, in practice much depends on the specific deal and situation. If the agent is experienced and maintains a good relationship with the seller, timing is rarely an obstacle. Moreover, Italian purchase contracts can often be structured with staged payments, meaning a mortgage is not always necessary. Ultimately, it comes down to how well the realtor is able to negotiate a fair and feasible arrangement for both parties.
Comparisons: In the UK, mortgage lending to foreigners is somewhat limited but not unheard of. Major UK banks prefer borrowers who live and work in the UK, but a non-resident could get a loan from select lenders, especially for buy-to-let investments, albeit at higher interest and lower LTV (often 50-70% max). The USA has a few programs for foreign national mortgages – typically requiring around 30-40% down and proof of foreign income, and often at higher rates. Many foreign buyers in the US (e.g. investors from China or Europe buying in New York or Florida) actually pay cash as well, due to the difficulty of establishing credit. Canada until recently was quite open to giving mortgages to foreigners with a 35% down payment if they met certain criteria, but with the 2023 foreign-buyer ban (discussed in the next section), financing became moot for many, and even before that banks in Canada often required the borrower to have some Canadian credit history or to hold substantial assets in Canada. Australia traditionally allows non-residents to borrow only from a few lenders and typically at no more than 60-70% LTV, plus requiring Foreign Investment Review Board approval for the property purchase first. So in general, financing abroad often requires larger down payments across the board. Italy’s 50-60% LTV is in line with these cautious approaches.
Mortgage Costs and Conditions: An Italian mortgage will come with closing costs – expect an appraisal (perizia) fee, administrative fees, and a mortgage registration tax. The mortgage (loan) registration tax is 0.25% of the loan amount for a primary residence loan, or 2% for a second home loan. This is usually part of the closing costs paid via the notary. Rates in Italy can be fixed for up to 20-30 years or variable (linked to Euribor). Italian mortgages don’t offer the same kind of refinancing culture as in the US, but they are not rigid either. It is in fact possible to renegotiate the terms of an existing loan, and unlike many other countries, they rarely include prepayment penalties — so you can also pay it off early if you wish. In practice, this means buyers retain room to adapt their financing if market conditions or personal circumstances change.
Currency and Exchange: One financial consideration for any foreign buyer is currency exchange risk. If your income or assets are in GBP, USD, CAD, or AUD and you’re purchasing in EUR, swings in the exchange rate can affect your effective cost. Some buyers mitigate this by using forward contracts or a service like Wise for transfers (to get good exchange rates and low fees) (wise.com). If you take a mortgage in Italy, it will be in euros, so you’ll be exposed to exchange fluctuations on your monthly payments if your income remains in your home currency.

Typical Purchase Timelines and Procedures

Expect a longer timeline on average to complete a purchase in Italy compared to many other countries: from the start of your property search to closing the sale, 3 to 6 months is common (investropa.com). However, this should not be discouraging, as it is only an average and depends on many factors — such as the negotiation process, whether all paperwork is already in place, whether any bureaucratic updates are needed, or if the property is currently rented. In many cases, especially when the property is represented by a competent agent who already has the documentation ready and the bureaucratic status in order, once a price reflecting market value is agreed upon, the negotiation is swift and the purchase can even be finalized within a day. Once you have an accepted offer, the interim between signing the preliminary contract and the final deed can be a few months by mutual agreement – it can be shorter if both parties are ready (some cash purchases close in 4-6 weeks total), or longer if, for example, the buyer needs time to secure a mortgage or the seller needs time to vacate (it’s not unusual to sign a Compromesso and then schedule the final Rogito 3-4 months later). If a mortgage is involved, Italian banks can significantly extend the timeline – approvals taking up to 6 months mean some closings happen 6+ months after the initial offer (italianrealestatelawyers.com). As a foreigner, add a bit of extra time for getting your codice fiscale, opening a bank account, and possibly money transfers through currency controls.

UK: In the UK, the process from offer accepted to completion often takes around 2 to 3 months, but it can vary. A lot depends on the chain (if you are buying from someone who also needs to buy their next home, delays compound). The conveyancing (solicitor) process and local searches typically need several weeks. It’s not unheard of for a straightforward cash purchase with no chain to complete in 4-6 weeks in England, but 8-12 weeks is more typical. Scotland has a different system (missives and a more binding offer process), usually a bit faster and with less gazumping risk, but that’s beyond our Italy focus. The key difference is that in the UK nothing is certain until near the end – you might spend weeks in legal checks and mortgage arrangements only for the deal to fall through if either side backs out before exchange of contracts. This uncertainty can make the UK process stressful, whereas Italy front-loads the commitment (after which a collapse is much rarer).

USA/Canada: In the US, most home purchases close within 30 to 60 days of an offer being accepted (often about 45 days for financed purchases). This is facilitated by the standardized contracts and the fact that once a purchase agreement is signed, the clock starts on all contingency periods (inspection, appraisal, etc.) and closing tasks. It’s relatively fast-paced – for example, inspections happen in the first 7-10 days, appraisal by day 20, mortgage approval by day 30, then closing by day 45 or so. If you’re a cash buyer in the US, closings can happen even faster (2-4 weeks) since you eliminate loan approval time. Canada is similar; a 60-90 day closing is common, but there’s flexibility. In both countries, the bulk of the due diligence is done within those few weeks after the contract, not before the offer. This contrasts with Italy, where you might spend time doing due diligence before signing the preliminary contract, and then have a quieter period before closing.

Australia: Australia’s timeline varies by state, but commonly once you sign a contract (or win at auction), settlement is set about 30 to 60 days later. There’s often a fixed settlement date agreed in the contract. The process tends to be very deadline-driven – missing the settlement date can incur penalties. Many Australian sales happen via auction with no conditions, so the timeline is literally: auction day hammer falls (contract unconditional), then 4-6 weeks later you settle and get the keys. If it’s a private sale, you might have a cooling-off period of a few days (except in some states or if waived), and maybe finance or inspection conditions that need a couple of weeks, but everything is still quite brisk. The system is efficient partly because of standardized contracts and the expectation that buyers check things (or get building/pest reports) before making an offer, particularly for auctions.

Cultural and Practical Factors: In Italy, certain times of year can slow things down. August is famously vacation month – good luck getting banks, agents, or sometimes sellers to move quickly then. Similarly, around Christmas/New Year offices might be slow. If you are planning a purchase, try to avoid having your critical stages in mid-August. By contrast, markets like the US are “open year-round” (with maybe a slight holiday slowdown). Also, an Italian seller may not be in a rush to move out; they might be selling an inherited property and operate on their own pace. It’s important to maintain polite persistence and work closely with your agent to keep things on track. Bureaucratic steps like obtaining mortgage clearances, or if the seller needs to get missing paperwork (e.g. an updated cadastral plan or an energy certificate), can introduce delays. Build some flexibility into your expectations.

Private Buyers Planning to Renovate

Buying a property in Italy with the intention to renovate is a popular path, especially for those drawn to the charm of rustic farmhouses or historical village homes. How does this experience compare to countries like the UK, US, Canada, or Australia?

Abundant Old Properties vs. “Fixer-Uppers”: Italy offers an abundance of older properties with character – think stone farmhouses, village houses, even part of a medieval borgo. Many are structurally sound but in need of modernization (outdated kitchens, old bathrooms, no central heating, etc.), while others are semi-derelict. For private buyers with a restoration dream, Italy is a treasure trove. In the US, by contrast, while you can find fixer-uppers, the construction style (often wood frame) and age of houses (frequently post-WWII in suburbs) mean projects are typically more about cosmetic update or adding space, not restoring 300-year-old walls. The UK has old houses too (Victorian, Georgian eras), and renovation is common, but the scale in Italy can be bigger (entire stone country houses) and the infrastructure in rural areas (access to utilities, etc.) might be less developed. Australia and Canada have fewer very old homes (except some heritage properties); renovations there are often to 20-50 year-old houses or a knockdown-rebuild scenario, rather than preserving historic features.

Permits and Regulations: Renovating in Italy requires navigating Italian building regulations and permit systems. Any significant work (structural changes, adding a bathroom, changing windows size, etc.) will need planning permission from the local Comune (municipality) – typically a Permesso di Costruire for major changes or a SCIA (Certified Notice of Start of Activity) for moderate renovations. If the property is in a historic center or is formally protected (vincolato), additional approvals from heritage authorities are needed; this can slow things considerably or limit what you can do (e.g. you may be forced to use specific materials or techniques). An Italian local geometra will know what’s allowed and will file the applications and help design the new plans. Compared to the UK, where you’d apply for Planning Permission for extensions or major works and adhere to Building Regulations (with inspections at stages), Italy’s process is similarly strict on paper but enforcement can be inconsistent.
In the US, permits are local too, but some places are more lenient and the onus is on the contractor to follow codes; in Italy your director of works (Direttore dei Lavori) – often your geometra/engineer – is legally responsible for overseeing compliance. It’s worth noting Italy has earthquake-proofing codes in many areas; if you renovate, you might be required to do structural improvements (which is good for safety, but adds cost). IIf you really want to buy a property and already envision its future potential, at Italy Buying Agent we always recommend engaging an engineer or a geometra to prepare an estimate of renovation costs before submitting an offer — or, alternatively, making your offer conditional upon the result of such an estimate. Unless you are a contractor yourself and have a sharp eye for these matters, it is difficult to gauge costs accurately, especially since building techniques and material prices vary from country to country. Even if you do make your own rough estimate and the agent agrees with you, a good agent should still advise commissioning a professional estimate from a geometra. This way you have a clear and fair overview, and you are ultimately protected because your decision is based on a professional assessment rather than your own guesswork. Australia also has strict building codes (especially for electrical, plumbing – often must use licensed trades), and if the property is heritage-listed, renovations require special permissions similar to Italy.

Finding Contractors and Managing the Project: One of the biggest challenges for a foreign renovator in Italy is managing the renovation from afar. Good, reliable contractors (“impresa edile” for a building firm) can be hard to secure, as tradespeople are often booked well in advance. If you don’t speak Italian fluently, communication can be a barrier in getting quotes and discussing work details. It’s highly recommended to hire a Project Manager (“Direttore dei Lavori”) or a Geometra who can oversee the project on your behalf. This professional will coordinate the various trades, apply for permits, ensure work is up to standard, and handle surprises. Initially, some foreigners are hesitant to pay an extra fee for a project manager, but many come around when they realize how valuable it is to have someone local who knows the ropes. In the UK or US, you might serve as your own general contractor on a small renovation or hire a GC for a larger one – in Italy the analogous figure is often the geometra/architect who designs the project and then oversees it. Their fees might be ~5-15% of the project cost depending on scope, but it’s usually worth it. Having a project manager crack the whip (politely) keeps things moving.
The way this is usually handled at Italy Buying Agent is through a clear and proven formula: appointing a trusted geometra (surveyor) as direttore dei lavori (site supervisor), while at the same time engaging a master contractor who takes full responsibility for coordinating all workers and subcontractors. From our network, we can recommend reliable professionals to cover these roles, ensuring that the project is managed with competence and accountability. In this setup, the client deals exclusively with their case manager at Italy Buying Agent as the single point of contact. The case manager then coordinates communication with the geometra, the contractor, and all parties involved, guaranteeing full transparency and eliminating any potential conflicts of interest. Renovation costs in Italy are notoriously difficult to estimate on a per-square-metre basis. Giving a single number that applies to all situations is nearly impossible. Just as renovation prices differ between central London’s Piccadilly Circus and a remote rural village, so too do they vary dramatically across Italy — from big cities to small provincial towns, and everything in between. This is why buyers should not get lost in the overwhelming amount of generalised information available online. Instead of trying to ‘understand the Italian market’ as a whole, it is far more effective to focus on one narrow area — ideally down to a single town or locality. By narrowing the scope, you can study the market in detail, gain reliable insights, and avoid being misled by broad averages that don’t reflect local realities. Think of it as a ‘divide and conquer’ approach: break down the process into small, manageable chunks. This way, you build confidence step by step, and your decisions will be grounded in specific, real-world data rather than vague generalisations sold as confidence.

Comparative Experience: If you’ve renovated a house in the UK or Australia, you dealt with builders, quotes, maybe frustration with delays – expect similar in Italy, but with the added dimensions of bureaucracy and language. If you’re coming from a background of DIY, note that DIY is less common in Italy for big jobs (and not advisable unless you really know local building methods). Italian hardware stores (ferramenta) exist, but you may not find the same supply of materials to just buy and do yourself. Hiring professionals is the norm for significant works. In the US and Canada, renovations are often done faster (American crews might gut and remodel a house in a couple of months, working long days). In Italy, the pace may be slightly slower due to permitting speed and season. Timing matters when buying a property to renovate. For instance, if you purchase a ruin in January and obtain the permits within a couple of months, you are well placed to begin works in spring. However, in northern regions, winter construction is often impractical — cold temperatures and even snow can make certain types of work impossible. Build a buffer into your timeline and budget.

In conclusion, for private buyers planning to renovate, Italy offers a rewarding adventure: you can end up with a completely personalized home full of character. Compared to doing this in your home country, you’ll need more patience and outside help, but the result – whether a stone farmhouse in Tuscany or a wooden chalet in Trentino – can be well worth the effort. One of the remarkable aspects of restoring a ruin is that you are not only creating a home for yourself but also bringing beauty and value back to something that had long been abandoned. In a way, it is almost as if the house chooses you: many ruins linger on the market for years, even decades, overlooked by countless buyers. Then, one day, the right person arrives, breathes new life into the place, and proves wrong all those who never believed in its potential.

Private Buyers Seeking Move-in-Ready Homes

Not everyone wants to take on a renovation. If you’re a private buyer who prefers a turnkey, move-in-ready home, Italy has options – from fully renovated historic apartments to newly built condos or villas. Here’s how the experience of finding and buying a ready-to-go property in Italy compares with the UK, USA, Canada, and Australia.

Availability of Move-in-Ready Homes: Italy’s housing stock is older on average, but there has been an increasing supply of renovated homes targeted at foreign buyers (often advertised as “recently restored” or “chiavi in mano” meaning turnkey). According to one report, a large portion of overseas buyers actually request move-in-ready properties – one study noted over 60% prefer restored or new homes rather than fixers (gate-away.com). So the demand is there, and developers or homeowners have responded by prepping properties for sale in updated condition. In cities and larger towns, you’ll find modern apartments or newly built ones (especially in suburbs of cities like Milan, Rome). In rural areas, you may find farmhouses that have been restored by a previous expat or by local agencies flipping to international clients. By contrast, in places like the US or Canada, a “move-in-ready” home is almost expected for a normal sale (unless marketed as a fixer-upper). Sellers often repaint, stage, and fix minor issues to attract buyers. In the UK, many houses are sold in decent lived-in condition, though cosmetic freshness varies; the concept of staging is catching on but less universal than in North America. Australia similarly sees most homes presented neatly (often styled by professionals for the sales campaign). In Italy, as noted earlier, staging is uncommon – a house might be perfectly move-in-ready in terms of having no structural needs, but still may be cluttered with old furniture or personal items during viewings. So don’t let superficial aesthetics put you off; focus on the bones and finish quality. If the place is empty and freshly redone, then great – you can truly move in with just your suitcases.

Fixtures, Fittings, and Furniture: One important difference: what’s included in a “ready” home. In Italy, the norm is that built-in fixtures (plumbing, heating systems, boilers, etc.) stay with the property, but furniture and often appliances are negotiable or excluded. In the UK, you fill out a “fixtures and fittings” list as part of the contract to specify what stays (sellers sometimes take appliances, but leave built-in cabinetry). So, if you want a home truly turnkey, clarify what the deal is with all furniture. Many foreigners have purchased Italian homes that came fully furnished – this can be convenient if it’s a second home and you want to start enjoying it immediately. “Move-in-ready” should mean all utilities and systems are functioning – double-check things like the heating system, hot water, etc., especially if the home was unoccupied for a while.

New Builds vs. Renovated Old Builds: If buying a brand-new property from a developer (common on the outskirts of cities or in some resort developments), you’ll get a modern layout, new electrical and plumbing, energy-efficient windows, etc. These are definitely move-in-ready, though note that sometimes in Italy new builds are sold “unfinished” internally (you might encounter something called “venduta al grezzo” meaning the structure is done but you have to finish interiors – likely not what you want if seeking turnkey). New builds come with a 10-year builder’s warranty on structural defects by law (similar to the NHBC 10-year warranty in the UK). If it’s a renovated older home, ideally the critical things have been updated (roof, wiring, insulation). In Italy, electrical and gas systems should come with proper certification. Rather than chasing paperwork yourself, simply ask if everything is in order. If you’re not confident about doing this due diligence alone, a competent broker you trust will advise you correctly and, if needed, suggest a quick check by a local electrician or plumber. Compare to North America or Australia, you’d likely get a home inspection to verify move-in condition; you can similarly hire a professional in Italy for an inspection, even if everything looks fine.

Buying a move-in-ready home in Italy often means a smoother process, with fewer unknowns compared to properties in need of major work. That said, part of doing things properly is making sure previous renovations were carried out with the correct permits and that utilities are active and in order. These are not matters for the buyer to stress over or attempt to manage personally: with a competent agent following the case, everything is checked and coordinated in advance.

Unlike in some countries where utility transfers happen with a quick phone call, in Italy procedures can involve extra steps, and if mishandled could mean delays. A good agent ensures there is no disruption and that the handover from seller to buyer is seamless, so that when the keys are passed, you can simply move in and enjoy your new home without surprises.

Cultural Preferences: Italians themselves often prefer new or fully renovated homes nowadays (the days of multi-generation families all doing building projects is fading). But many Italian sellers still don’t “dress” a home for sale. As mentioned, you might find a perfectly good home with clutter or need of a paint job. Don’t equate that with it not being move-in-ready. Paint is cheap and easy; focus on the expensive elements (roof, windows, heating). A move-in-ready Italian home might not be decorated to your taste. Cosmetic changes are easy to do once it’s yours, though. On the flip side, if you buy a home in Italy that’s been used as a holiday rental or showcase, it might come very stylishly furnished (some developers or agencies sell fully furnished “show homes”).

Second-Home Buyers (Holiday Homes)

Italy has long been a favorite destination for second-home buyers – those purchasing a vacation home for personal use (with maybe some rental on the side) or as a part-time residence. If you’re considering joining the ranks of foreigners with a sunny Italian retreat, it’s helpful to know how this experience compares with owning a second home in countries like the UK, USA, Canada, or Australia.

Welcoming Environment for Holiday Homes: First, Italy generally welcomes international second-home buyers. There are no general restrictions on foreigners buying homes for leisure (subject to reciprocity treaties as discussed) (investropa.com investropa.com). This sets Italy apart from places like Canada and Australia which have started to restrict foreign purchases to combat housing affordability issues (canada.ca reuters.com). For example, Canada currently bans foreign buyers from acquiring residential properties (with some exceptions) until 2027 (canada.ca), and Australia requires foreign non-residents to get approval and limits them to buying new properties, now even banning purchases of established homes for a couple years (reuters.com). The UK and USA have no such bans – foreign second-home owners are common in London, New York, Florida, etc., though the UK does impose extra taxes on them as noted. Italy, in contrast, actively courts foreign buyers in many regions to bolster the real estate market and local economy. So as a second-home buyer, you’ll find the legal process straightforward. You won’t have to ask government permission or anything like that, which is a relief.

Taxes and Running Costs: When buying in Italy as a non-resident, the property will be treated as a second home (seconda casa), which carries some cost implications. The main one is the registration tax: 9% compared to 2% for a primary residence. But remember, this is not 9% of the purchase price — it’s calculated on the much lower cadastral value, so in practice it usually works out to just a few percent of what you actually pay. On top of that, there’s the yearly IMU property tax (since it won’t be your primary residence) and the annual trash collection fee (TARI). These are standard, modest costs — ranging from a few hundred euros in many cases to higher amounts only for larger or luxury homes. There’s no need to drown in the details or get lost in conflicting online advice: before moving forward, a competent agent will always provide you with an accurate breakdown of the accessory costs tied to your specific property. It’s simple, standard practice, and ensures clarity from the outset. When comparing to other countries: in the US, property tax is annual and can be substantial (foreign owners pay the same rates as locals, but no exemptions like homestead for second homes). In the UK, council tax on a second home is the same as primary (some areas even charge a premium on second homes to discourage leaving them empty). Also, the UK introduced a 2% Stamp Duty surcharge for overseas buyers and still has the 3% second home surcharge – a foreigner buying a holiday flat in London might pay 5% extra stamp duty. Italy has no equivalent surcharge just for being foreign or a second home, beyond the standard different tax classes. This can make Italy more financially attractive for a holiday retreat.

One specific tip: if you ever decide to spend enough time in Italy to become a resident and make the home your primary, you can apply for primary home status and enjoy tax breaks (no IMU). But as long as you’re using it as a second home, budget for those ongoing costs. Utilities in Italy can be higher per unit than in, say, the US – especially electricity. Some utility companies offer suspended contracts for periods of non-use, but you’d generally keep at least minimal service.

Using the Home and Rental Potential: Many second-home owners want the flexibility to rent out the property when they’re not using it. In Italy, you absolutely can rent your property (short-term to tourists or long-term), but there are some regulations to heed. If you do short-term holiday lets (Airbnb style), you’re supposed to register with the local authorities (many regions have a registry for vacation rentals, and you must report guests’ information to the local police portal within 24 hours of check-in – a standard safety requirement) and collect tourist taxes if applicable in that town. If you rent enough days per year or have multiple properties, you might be considered running a hospitality business (which would require a VAT number and different tax regime). However, occasional renting is usually treated as “locazione breve” (short lease) and is fairly straightforward: you can opt to pay a flat 21% tax on the rental income (cedolare secca) which covers Italian taxes on that income.

Travel and Convenience: Practical point – how easy is it to reach your second home? Italy has many remote idylls, but if you need to fly in and then drive 3 hours up winding roads, you may use it less often. Foreign buyers often choose locations with good transport links (for example, a home in Umbria or Tuscany but within 1 hour of an airport, or an apartment in a city like Rome that you can get to by train/flight easily). Compare this to, say, an American’s beach condo in Florida which might be a quick flight and short taxi from an airport – convenience matters if you plan frequent visits. Good news: Italy’s infrastructure (trains, highways) is quite good in many parts. If you base near a major line or autostrada, getting there is simpler. Also, keep an eye on low-cost airline routes – many European owners pick spots served by Ryanair, EasyJet, etc., making it cheap to pop over for a long weekend.

Second Home Financing: We discussed mortgages – many second-home buyers use cash or finance in their home country. If you do plan to mortgage and rent out the property part-time, note that Italian banks typically don’t factor potential rental income into lending (whereas some UK buy-to-let mortgages are based on rental yield, etc.). In the US, you can get a second-home mortgage relatively easily if you qualify overall, since interest is deductible up to limits and lenders treat it similarly to a primary (just with the requirement you occupy it some portion of the year). Italian loans don’t have a distinction “vacation home loan” – it’s just a loan on a non-primary residence.

Resale and Exit: Think long term: if someday you want to sell your holiday home, what are the implications? Italy has a capital gains tax of 26% if you sell within 5 years of purchase (for non-primary homes). After 5 years, no capital gains tax for individuals. Many people hold second homes for longer anyway, but keep that in mind if you foresee a short-term hold. In countries like the US, there’s capital gains tax on second homes anytime (no exemption like you get for a primary residence), and Canada taxes 50% of the gain as income. The UK charges capital gains on second homes as well. So Italy’s rule is actually favorable if you keep the home 5+ years – any appreciation is yours tax-free. Additionally, consider currency fluctuations as part of your investment – when you eventually sell, converting euros back to your currency could yield a profit or loss independent of the property market.

Italy stands out in how accessible it makes this dream (relative to some countries now shutting foreign buyers out). With prudent planning regarding taxes, management, and integration into the local fabric, your Italian holiday home can provide joy for years and perhaps even become a family legacy. And unlike a time-share or other arrangement, it’s your home – you set the schedule, you leave your belongings, you truly get to live in Italy for chunks of time. As many repeat buyers will attest, after a while, what starts as a second home begins to feel like a first home for your heart.

Investors (Buy-to-Rent and Investment Buyers)

Investors – those primarily motivated by rental yield or capital appreciation – will find the Italian real estate market quite different from the high-octane, investor-driven markets of the US, Canada, or Australia. Italy often requires a more nuanced, long-term approach. Let’s compare key points for property investors:

Market Growth and Appreciation: Italian property prices have seen much slower growth over the past decade compared to places like the US or Canada. In fact, after the 2008 global financial crisis, many areas in Italy saw prices stagnate or decline for years, only recently starting a modest recovery (wise.com). House price indices in 2024 showed around +2-3% year-on-year growth on average, which is relatively low. By contrast, many Anglophone countries had boom cycles – e.g., Canada’s major cities saw double-digit annual rises at times, Australia’s cities likewise until interest rate rises cooled them, and the US had strong appreciation in 2020-2022 especially. The UK’s property market has seen uneven growth, with certain regions surging ahead. Italy, on the other hand, is less about sweeping national booms and more about hidden pockets of opportunity. For a pure investor chasing quick capital gains, it might not look like the obvious destination. But with the guidance of a good local agent, you can be shown those micro-markets where values are quietly rising. It’s a bit like the secret spot where old villagers go every autumn to pick mushrooms — they’ll never tell you where it is, unless you’re part of the circle. It’s more of a steady, slow-burn market with specific hotspots (like city centers of Milan, Rome, or tourist magnets) performing better. The upside is Italy’s prices are not as frothy, and the risk of a sharp market crash driven by speculation is lower. Essentially, Italian real estate behaves more like a place to preserve value (and enjoy lifestyle benefits) than a get-rich-quick asset.

Rental Yields: If your goal is rental income, Italy can offer decent yields in certain segments, but with caveats. Long-term residential rental yields in many Italian cities are moderate (often around 3-5% gross in cities, less in very expensive areas like central Milan or Rome). This is partly because Italians have a high home-ownership rate and rental demand is not as uniformly strong as in, say, Germany. Also, strong tenant protections mean rents don’t rise quickly on sitting tenants (standard contracts are 4+4 years with controlled increases if any). In tourist areas, short-term rentals can yield more. For instance, an apartment in Florence or on the Amalfi Coast rented to tourists weekly can generate a healthy income in high season. Some data suggests 6-8% yields in certain “emerging” regions catering to tourists (investropa.com investropa.com). But you must factor management costs for short-lets (cleaning, advertising, property manager fees). In the USA, investors often do well with both long-term (multi-family apartments in cities can yield 5-8% in some states) and short-term (like Airbnb in vacation spots, albeit with more regulation coming). The UK’s buy-to-let market used to be a big play, but taxation changes (no full mortgage interest deduction, additional stamp duty) and potential rent controls are making it less lucrative. Italy’s benefit for investors is a relatively low flat tax on rental income (21% cedolare secca, if you opt for it and rent to individuals) which is simpler than progressive rates. Additionally, no capital gains tax after 5 years means if you hold and then sell, you keep the profit (none of the hefty 28% CGT like in the UK for second properties, for example, or the inclusion in income in Canada). On the other hand, transaction costs in Italy are relatively high — typically over 10% once you add taxes, notary fees, and agent commission. While the seller may bear some costs in producing documentation, the main expenses generally fall on the buyer.

Tenant Laws and Management: Italy has pro-tenant laws. If you sign a standard lease (4 years + renew 4 years), it can be difficult to evict a non-paying tenant – the court process can take many months, even over a year in bad cases. This is a risk for investors used to US or Canadian systems where eviction for non-payment can be done in weeks or a few months via a tribunal. Some Italian landlords mitigate risk by using transitory contracts or renting to students or tourists where different rules apply. Also, credit histories aren’t as commonly used in Italy to screen tenants (no equivalent of a FICO score). Many landlords rely on personal references or prefer renting to known acquaintances. As a foreign investor, you’d want to hire a local property management firm or rental agent to handle finding tenants, contracts, and any issues. The cost is typically around 8-10% of rent for management, plus a fee for finding a tenant (often one month’s rent commission). In the US, property managers for long-term rentals charge similarly ~8-10%.

Commercial and Other Segments: So far we talked residential. Italy’s commercial real estate (offices, retail) is a different beast and likely beyond the scope of a typical individual investor unless you’re quite experienced. Generally, yields on commercial are higher but vacancy risk is also higher, especially post-COVID with remote work affecting office occupancy. Some foreign investors consider niche segments like agricultural land (especially with the dream of running an olive farm or vineyard). Land in Italy is cheap in some areas, but turning it into a profitable operation is another story – one might do it more for lifestyle than ROI, unless seriously entering agribusiness.

Exit Strategy and Liquidity: Real estate in Italy is less liquid than in more frenzied markets. It can take longer to sell a property, especially if it’s not in a prime area. Investors should be prepared for potentially months or even a year+ to find a buyer when they want to exit (except for very in-demand properties). In hot US markets, investors can flip houses in weeks or sell tenanted properties relatively quickly through MLS. In Italy, the pool of buyers might be smaller and they often prefer move-in-ready (if you improved the property, good). But for example, selling a tenanted property in Italy – you might have to offer the tenant first right to buy if it’s their primary home (Italian law gives tenants a right of first refusal in some cases of sale, but they need to match the offer). Or you might need to wait for lease expiration if the buyer wants it vacant. So plan the exit carefully. One plus: if you keep for 5+ years, as mentioned, no capital gains tax. In the UK, an investor selling a rental gets hit with CGT; in the US, they can defer via 1031 exchange but ultimately there’s tax; in Italy long-term hold is rewarded by tax-free gains.

In essence, an investor in Italian real estate should have a long-term horizon and perhaps a hybrid motive (some personal use or at least enjoyment of owning property in Italy, since pure financial returns may not outperform other countries). Italy’s allure for investors lies in the stability and tangible nature of the asset in a desirable location, combined with solid rental prospects in tourist areas. Culturally, Italians see real estate less as a vehicle for fast profit and more as a store of wealth, expecting gradual appreciation rather than sudden surges. If you adopt a similar mindset – aiming for steady income and lifestyle value – you’ll be aligned with the market’s reality.

That said, niche opportunities do exist. Certain local markets, often invisible online and closely guarded by residents, can deliver remarkable returns over time – much like the secret spots where old-timers go mushroom picking and never reveal their location. Access to these pockets usually requires strong local connections and a knowledgeable agent, as they are rarely available to outsiders scanning portals from abroad.

Part-Time Residents and Lifestyle Investors

This category of buyer is a blend of the previous ones – the part-time or lifestyle investor is someone who isn’t purely investing for profit, but also plans to use the property for personal enjoyment. Perhaps you want to spend a few months a year in Italy (escaping winters, or enjoying summers) and rent it out when you’re not there, hoping to at least cover costs. Or maybe you see it as a step toward retirement: use it part-time now, more later, and generate some income in between. Let’s explore considerations for this profile, comparing across countries.

Flexibility and Dual Use: Italy is ideal for lifestyle investors because it’s a wonderful place to actually spend time. Many people buy with the intention of splitting time between their home country and Italy. As mentioned, owning as a non-resident doesn’t limit your ability to stay up to 90 days out of 180 (if non-EU) visa-free, or longer if you get a visa. In the US or Australia, foreign owners don’t automatically get any visa privileges either (owning property generally doesn’t confer residency rights in these countries, except some very high-value investment visa programs). So in that sense, Italy is similar – property doesn’t equal visa – but Italy is part of the Schengen zone which for many nationalities allows 90-day stays easily. Lifestyle investors usually prioritize location and comfort over maximum yield. You might choose a slightly more expensive or larger property than a pure investor would, because you want to enjoy it. And you might purposely block some high season weeks for yourself (sacrificing some rental income).

Managing Rentals When Away: One important aspect is how to manage renting out your home when you’re not in Italy. This is where a local property manager or co-host is essential. They can handle check-ins, cleanings, guest issues. Their fee might be 20-30% of rental income for short-term rentals (common on Airbnb management services). That’s similar globally – property managers for vacation rentals often charge around 20% in the US too. It’s worth it because you get peace of mind and someone to watch the place. Some lifestyle owners in Italy also make informal arrangements with neighbors or local friends to keep an eye on the home and maybe handle keys (sometimes in exchange for a small stipend or just goodwill). Italian communities can be very helpful if you build relationships – for example, your neighbor could turn on the heat a day before you arrive in winter, or the local caretaker could water your plants.

Financial Balance: Lifestyle buyers should still run the numbers: with part-time personal use, you likely won’t maximize rental income. Make sure you can comfortably afford the property without rental, in case you decide not to rent or find it too much hassle. Any rental income then is a bonus to defray costs (covering annual taxes, condo fees, etc.). Many see it as: “I get a holiday home that partly pays for itself.” That’s realistic if in a good location. Just don’t expect it to fully pay for itself year-round unless you seldom use it personally and treat it like an investment property.

Resale and Legacy: Perhaps you intend to pass this home to your children or sell when you retire. Lifestyle investors often hold long term. Italy is happy to have foreign owners, but note estate planning: a property in Italy will fall under Italian inheritance law for the portion located in Italy. Italy has forced-heirship rules (reserved shares for children, etc., though for non-residents sometimes your home country’s law can apply). If you plan to keep it in the family, consider those aspects (consult a legal advisor on cross-border inheritance to avoid headaches later). In other countries, inheritance can also be complex if you’re not careful (e.g., if a foreigner dies owning US property, there can be US estate tax implications). Italy’s inheritance taxes are actually relatively low for close relatives and with high exemptions. But forced share could override a will if you’re not aware.

In summary, as a part-time or lifestyle investor in Italy, you get to savor the best of both worlds – the financial aspect of owning a tangible asset that can generate income, and the personal joy of living in Italy on your own schedule. It’s a path many have taken and few regret; in fact, often the only “complaint” is that they end up wanting to spend more and more time in Italy! Plan carefully but embrace the lifestyle fully, and your Italian home will reward you not just in monetary terms but in quality of life.

Buying Directly from Developers or Building Firms (New-Build Purchases)

Our final section addresses those buying property directly from a developer or construction company, such as a new-build house or apartment, or an off-plan purchase (where the property is not yet completed). This scenario has its own set of procedures in Italy, and it’s useful to compare with similar purchases in the UK, USA, Canada, and Australia.

Off-Plan and New Construction in Italy: Italy, unlike say Spain, hasn’t had as massive an off-plan building boom in many tourist areas (much of Italy’s appeal is older properties). However, there are new developments, especially around cities and some resort areas. Buying “off-plan” (sight unseen except plans) is something Italian law has specific protections for. Law 122/2005 requires developers to provide a bank guarantee or insurance bond for any deposits paid by a buyer before the title transfer (investropa.com investropa.com). This is crucial: it means if the developer goes bankrupt or fails to complete, your deposit is protected and can be refunded via the guarantee. In the past, some foreign buyers in Italy (and elsewhere) lost deposits when developers collapsed, so this law was a response. Always ensure the developer issues the fidejussione (guarantee) for each payment you make – it’s your right. In the UK, when buying a new build, you usually exchange contracts with a 10% deposit held in escrow (or covered by a warranty scheme) and pay the rest on completion. The UK has the NHBC or similar 10-year warranty schemes as well for new homes, which protect deposit if not completed (up to certain limits) and cover defects after. Italy similarly mandates that at the time of final deed, the developer must give the buyer a Decennial Insurance Policy (polizza decennale postuma) that covers serious structural defects for 10 years (itcasa.it). This is like an insurance-backed warranty. The notary will usually ensure it’s provided.

If you’re buying a home that a builder just finished (but you’re the first sale), you will be paying VAT instead of registration tax. For a second home, VAT is 10% of the purchase price (or 22% if the property is categorized as luxury, A1/A8 categories). For a primary residence, VAT is 4%. VAT is on the declared price (no cadastral value reduction). This can sometimes make new builds slightly more expensive in tax than buying an equivalent used home (where you’d pay 9% on a low cadastral value). But new homes often have energy efficiency that saves money later, so it’s a trade-off. In the UK, new builds are exempt from VAT entirely (builders can zero-rate the sale), and the buyer just pays Stamp Duty like any other. In the US/Canada, you don’t pay a special tax on new homes except what’s state sales tax on construction materials embedded (some provinces in Canada do have a new homes GST/HST but with rebates). So Italy’s approach is unique in charging VAT on new properties – factor that in your budget.

Buying Process Differences: When dealing with a developer, you might sign a Preliminary Contract directly with the developer (similar to a Compromesso between private parties, but it will reference building specifications, deadlines for completion, payment schedule). If the property is not finished, that prelim contract should be registered in the land registry (trascrizione) to protect your interest. The notary can do that. This prevents the developer from double-selling or putting new mortgages on it. Final completion will occur when the property is finished and habitable (has a habitability certificate). At that point, you do the deed and pay the balance.

In the UK and Australia, off-plan buyers also pay in stages (initial deposit, then possibly stage payments for construction milestones or just the remainder at the end). Italy’s developers sometimes ask for stage payments as construction progresses. If you do that, each payment must be guaranteed by the bank guarantee as mentioned. In some cases, especially smaller developments, a buyer might instead agree to pay a larger deposit and nothing more until completion (with developer using their own financing to build).

Negotiation and Price: Buying from a developer, prices are often non-negotiable or only slightly so. You’re usually paying a fixed list price unless the market is slow or many units remain unsold. Developers may be more willing to offer incentives (like including a better finish or a garage upgrade) rather than drop price. In the US, new home builders might throw in free upgrades or covering closing costs rather than reducing base price (to keep values consistent).

Buying New Abroad vs Home Country: Foreign buyers in Italy should be aware of differences: for instance, in Italy there isn’t a culture of model homes and sales offices like in the US. You might meet the developer or agent at a site office or even at a notary’s office to discuss. The documentation will include a Capitolato (specifications list) detailing materials and finishes. It’s often very detailed (tile type, window brand, etc.). Make sure you get an English translation or have someone go through it with you if you don’t read Italian, so you know what you’re getting. In some cases, you can choose finishes (tiles, paint colors, etc.) if you buy early enough – developers often allow some customization.

Incentives and Energy Efficiency: New Italian homes must meet modern energy standards (thermal insulation, solar hot water in many cases, etc.). This means better energy classes (A, B, etc.) which lowers running costs. They also often come with modern amenities: e.g. underground garages, elevators, centralized heating/cooling systems or heat pumps, etc. Many buyers appreciate the hassle-free nature: no need to worry about old roofs or ancient plumbing. It’s more akin to what you’d expect at home if you buy a newly built house. The downside is sometimes new homes in Italy lack a bit of the “historic charm” – they might be in less central locations or have a more standardized style and are usually more expensive. It’s a personal choice: some prefer a brand new condo for convenience, others want a medieval palazzo flat for atmosphere.

In places like the US, buying new is common in suburbs (whole new subdivisions), and in Australia, house & land packages or new units are quite standard for many. Italy’s new builds are fewer in number due to planning restrictions and the abundant old housing stock. But if you find a reputable developer, you can definitely get a modern turnkey property.

Comparative Protections: Italy’s law with the bank guarantee is actually stronger than some other countries. For example, in Spain, such laws existed but were sometimes flouted. In the US, deposits go to escrow typically, which is safe. In Australia, deposit goes to a trust. So Italy’s method with a bank guarantee is a different mechanism but similar aim: protect buyer’s money. Italy’s 10-year defect insurance is similar to the UK/North Europe’s concept; the US relies more on state laws requiring builders to fix defects or on private warranty insurance purchased. So Italy isn’t behind on protections.

In closing, buying directly from a developer in Italy can be a streamlined experience of getting a brand-new home. It spares you from renovation hassles and often comes with modern comforts. Ensure you leverage Italy’s legal safeguards for off-plan purchases and hold the developer to their obligations. Compared to other countries, the process isn’t drastically different – it’s about paying attention to the contract details and guarantees. Many foreign buyers have successfully bought new apartments in places like Lake Garda or new villas in Puglia’s resort communities, for instance, and enjoyed a smooth process.

Buying real estate in Italy as a foreigner involves navigating a system that has notable differences from the UK, USA, Canada, or Australia. Whether you are a private buyer renovating a rustic home, seeking a turnkey property, investing for rental income, balancing lifestyle with investment, or purchasing a brand-new development, being informed is your greatest asset. Italy’s property market offers tremendous rewards – tangible (beautiful properties, often at more affordable prices) and intangible (the cultural and lifestyle riches of il Bel Paese) – but it requires patience, due diligence, and adaptability to local practices. By understanding the role of agents, the transparency (or opacity) of listings, legal processes with notaries, financing constraints, typical timelines, and cultural nuances, you put yourself in a position to successfully secure your Italian dream property while avoiding pitfalls.

In comparison to the more standardized processes in Anglophone countries, Italy can feel bureaucratic and old-fashioned at times, yet it also provides strong legal protections and a highly personal touch to transactions. Each section of buyers we explored has its own considerations, but a few universal tips bear repeating to all foreign buyers: take your time, research thoroughly, get local expert help, and never be afraid to ask questions. As the Italians might say, piano piano si va lontano (slowly, slowly one goes far). With the right preparation, your journey to owning property in Italy can be smooth and ultimately deeply satisfying – whether it’s for investment, enjoyment, or a bit of both.

Sources:

Italy Magazine – experiences of an expat house-hunting and agent practicesitalymagazine.com italymagazine.com
Mark Tedesco (interview with Italian agent) – roles of Italian agents, lack of public MLS, commission structuremarktedesco.com marktedesco.com
Itcasa Guide – detailed insight into Italian buying process, agent obligations, survey vs. UK, notary roleitcasa.it itcasa.it
Wise (2024) – UK-oriented guide, confirming mortgage LTV 50-60%, taxes (9% non-resident), and typical costswise.com wise.com
Piero Lorenzo Realtor blog (2025) – comparison Italy vs USA, highlighting slower process, difficult financing (foreigners often pay cash)pierolorenzorealtor.com pierolorenzorealtor.com
Amongst Romans blog – real buyer story, hiring lawyer, costs (3% agent fee, 2-4% notary, etc.), reciprocity issue for Canadians/Aussiesamongstromans.com amongstromans.com
Investropa (2025) – timeline 3-6 months, legal requirements like deposit 10-20%, mortgage up to 80% for localsinvestropa.com investropa.com
Government of Canada – announcement of foreign buyer ban extension to 2027canada.ca
Reuters – Australia banning foreign purchases of existing homes 2025-2027reuters.com
Italian Civil Code / Legal provisions – (as referenced in secondary sources regarding guarantees and decennial insurance for new builds).

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