How To Buy A Holiday Home In Italy: A Step-By-Step Guide

Italy offers more than just a beautiful backdrop—it’s a country full of character, with historic towns, stunning coastlines, and world-famous food. For many UK buyers, owning a home here is a chance to enjoy a different pace of life.

However, buying property in Italy comes with its own set of rules. The legal process, taxes, and paperwork can be quite different to what you might expect at home.

We’ll walk you through what to expect when buying a holiday home in Italy, covering key details such as legal requirements and purchase costs.

Buying A Property In Italy

There’s something for every type of buyer in Italy. It has everything from countryside farmhouses to seaside apartments. Plus, property in many areas remains relatively more affordable than other parts of Europe, and the lifestyle on offer is hard to match.

Here are some of the key benefits of buying a house in Italy:

• Climate: Italy enjoys long, warm summers and mild winters in many regions.
• Scenery: From rolling hills and vineyards to lakes and beaches, the country offers a wide range of natural beauty.
• Culture and lifestyle: Italy is known for its food, history, art and relaxed way of life.
• Accessibility: Regular flights from the UK make weekend trips and extended stays easy to plan.
• Property value: Prices in rural and southern regions can be significantly lower than in other European holiday destinations.
• Rental potential: In popular areas, you may be able to let your property to holidaymakers and earn rental income.

The Process Of Buying A House In Italy²

Buying property in Italy involves several key steps, especially for non-residents. Here’s what to expect:

1. Research and budget planning

Start by deciding where you’d like to buy and what type of property you’re looking for. Set a clear budget, including room for taxes, legal fees, and ongoing costs.

2. Get your finances in order

If you plan to take out a mortgage, you’ll need to speak to Italian lenders. Non-residents may find it harder to access finance, and you’ll usually need a higher deposit.

3. Open an Italian bank account

Although not always mandatory, having a local account can make the transaction process easier, especially for paying fees and setting up utilities.

4. Apply for a tax number (codice fiscale)

A codice fiscale is the Italian equivalent of a National Insurance number. It’s a personal tax code used to identify you for all legal and financial matters in Italy. This includes buying property, opening a bank account, signing contracts, and paying taxes.

This is a legal requirement for buying property in Italy. Without it, you can’t proceed with the sale. You can apply through the Italian tax office (Agenzia delle Entrate) or at an Italian consulate in the UK.

5. Search for properties
   You can browse Italian property websites such as:

• idealista.it
• immobiliare.it
• casa.it
• trovocasa.it

Using a local estate agent can also help, especially one familiar with non-resident buyers.

6. Make an offer

Once you’ve found a property, you can submit a formal offer through the agent or directly to the seller.

7. Sign the purchase proposal contract (proposta d’acquisto)

This document sets out your intent to buy the property, and it usually includes the offer amount and terms. A small holding deposit may be required.

8. Hire a solicitor or notary

Choose an independent lawyer or notary with experience in Italian land law. They will run legal checks, confirm ownership, and ensure no debts or planning issues are tied to the property.

9. Get a property survey

A structural survey isn’t mandatory, but it’s strongly recommended. It helps uncover any hidden issues before you commit.

10. Sign the preliminary contract (compromesso)

If the offer is accepted and legal checks are complete, you’ll sign a preliminary agreement. At this stage, a deposit is paid to secure the sale, which can be anywhere between 30-40% for non-residents¹

11. Sign the final contract (rogito)

This is the official deed of sale that’s signed in front of a notary. Once signed, the balance of the payment is made and ownership is transferred.

12. Pay taxes and fees

You’ll be required to pay:

• Registration tax or VAT (depending on property type)
• Stamp duty
• Notary, legal, and agency fees

You’ll also need to budget for ongoing local property taxes (IMU, TARI etc.).

13. Register the property

The notary will usually register the property with the local land registry on your behalf, making the transfer legally binding.

14. Set up your utility bills

Arrange connections for electricity, water, gas and internet. This is often done after completion, though some services may already be in place.

15. Set up your insurance

It’s advisable to take out holiday home insurance to help protect your new property from risks such as theft, damage and unoccupancy.

If you’re looking for insurance, Intasure can help. Our holiday home insurance can help protect you from unforeseen risks, such as lightning damage, storm damage accidental damage and fire. Fill in our online form to get an instant quote or call us on 0345 111 0680 to speak to one of our advisors.

Costs Of Buying A Property In Italy

Purchasing a property in Italy involves several additional expenses beyond the property’s purchase price:

• Property price: This will vary depending on location, condition, and demand. Coastal areas and tourist hotspots typically command higher prices.
• Registration tax (Imposta di Registro): For second homes, registration tax is 9% of the cadastral value of the property (often lower than the market value), with a minimum payment of €1,000².
• Land Registry Tax (Imposta Catastale): When buying from a private seller, these are usually fixed at €50. When purchasing from a company, it is usually €200. These cover the registration of the sale and updating public records⁷
• Notary fees: Notary fees are mandatory and typically range from 1% to 2.5% of the property’s declared value, depending on the property’s price and complexity of the transaction³.
• Legal fees: Solicitor fees usually range from 1% to 2% of the purchase price, plus VAT².
• Estate agent fees: In Italy, both buyer and seller typically pay agency fees. The buyer’s commission is usually 3% of the property’s value, plus VAT⁵
• VAT or IVA: VAT applies only if you are buying a new build from a developer. The standard rate for a second home is 10% of the purchase price⁷. For luxury properties (classified as A1, A8 or A9), VAT is 22%⁹.
• Miscellaneous fees: Additional costs may include mortgage arrangement fees, translation services if you don’t speak Italian, and currency exchange costs.
• Insurance: There are also insurance taxes to keep in mind. In Italy, the standard Insurance Premium Tax (IPT) is 21.25%, which applies to most types of insurance, including home insurance. Policies covering homes in Vatican City are exempt from this tax.

In addition to IPT, some insurance premiums are subject to extra charges. The most common is a 1% levy that supports the Solidarity Fund for Victims of Extortion. This applies to premiums covering fire, theft, general liability, and motor damage or third-party liability risks⁷.

Best Places To Buy A House In Italy

Italy offers a wide range of locations for holiday home buyers, from coastal retreats to mountain escapes. Here are some of the most popular areas to consider:

• Tuscany: Known for rolling hills, vineyards, and historic towns. Popular with overseas buyers looking for countryside homes with character.
• Sicily: Offers affordable property prices, Mediterranean beaches, and Baroque towns. Ideal for buyers looking for sun, sea, and culture.
• The Italian Lakes (Lake Como, Lake Garda, Lake Maggiore): Scenic waterside towns with luxury villas and apartments. A strong tourist appeal makes it a good option for rental income.
• Puglia: Increasingly popular for its whitewashed villages, olive groves, and traditional Trulli houses. Property here tends to be more affordable than in northern regions.
• The Italian Alps: A great choice for winter sports enthusiasts. Areas like South Tyrol and the Aosta Valley offer mountain homes with access to ski resorts.
• Le Marche: Less crowded than Tuscany, with similar landscapes and architecture. A good option for buyers seeking a peaceful, rural setting.
• Abruzzo: Mountains, national parks, and a short drive to the coast. Property remains relatively inexpensive.
• Umbria: Often called “the green heart of Italy”. Offers medieval towns, lakes, and countryside, with a more tranquil feel than neighbouring Tuscany.

Requirements When Buying A Holiday Home In Italy

Before you buy a holiday home in Italy, consider the local requirements:

• Codice Fiscale (Tax Code): You’ll need an Italian tax code before signing any contracts. This is used for all official processes, including property registration and utility setup.
• Valid ID and proof of funds: A valid passport and proof of income or financing are required during the purchase process.
• Notary involvement: An Italian notary must oversee the sale. They draft and register the deed, confirm ownership, and ensure the transaction is legally binding.
• Preliminary contract (Compromesso): Once a price is agreed, a preliminary contract is signed and you pay a deposit, usually 40-50%¹. This is legally binding.
• Final deed of sale (Rogito): The transaction is completed in front of the notary. Once signed, the deed is officially registered, and ownership transfers to the buyer.
• Residency not required: You don’t need to be a resident to buy a holiday home in Italy. However, some tax rates and utilities may differ for non-residents.
• Rental regulations: If you intend to let the property, you may need to register with the local municipality and comply with tourist rental rules. Requirements vary by region.

What Is The Property Market Like In Italy?

The Italian property market has gained momentum over the past year, with rising house prices as a result. Popular regions such as Tuscany, Lombardy, and coastal areas continue to attract strong interest from local and international buyers.

• House prices have increased: Average prices have seen moderate growth, especially in high-demand regions like Florence, Milan, and along the Amalfi Coast. Some rural and southern areas remain more affordable, though prices are beginning to rise there too.
• Demand remains strong: Interest from overseas buyers has increased, particularly from those seeking holiday homes in scenic or historic locations. Domestic demand is also recovering, helping to boost overall market activity.
• Historically low property prices: Italy has long offered relatively low property prices compared to other Western European countries. Factors such as population decline in rural areas and a high number of unoccupied properties have kept prices low, though this is starting to change in more sought-after locations.
• Rental demand is rising: With Italy being a major tourist destination, short-term rental markets in cities and holiday hotspots remain active. Local regulations may apply, particularly in historic centres and popular regions.

Can I Rent Out My Property In Italy?

Renting out your holiday home in Italy can be a good source of income, but it’s important to understand the local regulations and tax obligations involved:

• Local regulations: Italy has strict rules for short-term holiday lets, and these vary by region and municipality. In many areas, you’ll need to register the property with the local town hall (Comune) and follow rules around safety standards, guest registration, and length of stay.
• Tourist rental registration: Some regions require property owners to obtain a codice identificativo (registration number) or specific authorisation before listing a property for short-term rental. Failure to comply can result in fines of up to €8,000 for not having one, or up to €5,000 for failing to display it on your property⁶
• Tax obligations: Non-residents must pay tax on rental income earned in Italy. Income must be declared to the Italian tax authorities, even if it’s also reported in your home country.
• EU/EEA residents: Generally taxed at 21% under Italy’s flat-rate “cedolare secca” scheme (if eligible), or under standard income tax rates with deductions⁸.
• Non-EU residents: Taxed under standard Italian income tax rules, with limited access to deductions.

If you’re planning to let your property, having insurance can help keep your investment protected. Holiday let insurance can cover you against risks such as lighting damage, accidental damage and fire, to help with extra peace of mind when renting to paying guests.