For those who dream of buying property in Italy, the process can often be exciting as well as complicated. Here we answer some of the most commonly asked questions regarding the real estate purchase process.

What are the requirements to buy property in Italy?

Firstly, you do not need to be an Italian citizen or even a resident to purchase property in Italy. The ability for US citizens to buy property in Italy is due to “reciprocity”, conditions outlined in article 16 of “Decreto Regio”, no.262 of March 16, 1942 stating that foreign citizens can benefit from the civil rights which are normally granted to Italian citizens only if Italian citizens can benefit from the same rights in their counterparts’ countries. 

Therefore, you can purchase property in Italy if there is an international treaty between Italy and your country of origin, such as the US, that permits this condition of reciprocity. Secondly, the only requirements to purchase property are that you have an Italian tax code (codice fiscale) and it is advised to have an Italian bank account. Also, it is feasible to complete the entire purchase process remotely by appointing a power of attorney to represent you in concluding the purchase if you cannot be present in Italy.

Do I need to speak Italian to purchase property in Italy?

Although speaking Italian is not a legal requirement to purchase property in Italy, having a basic knowledge of the language may be helpful during the process. While it is possible to make a formal offer or preliminary contract in English, by law, the final contract of sale must be in Italian. If you do not speak Italian, you will need an interpreter or an Italian professional consultant. It’s important to remember, Italian legal writing is very technical and, therefore, an accurate understanding of the legal processes involved in purchasing a property is fundamental for translators or interpreters involved in the transaction.

It's common for real estate agents to use pre-printed contracts with English translations for foreign nationals. However, these translations are frequently not accurate and can lead the buyer to misinterpret the contents of the agreement. In the case of litigation, the Italian version of a contract will always prevail, so it’s vitally important that legal documents are always signed with the assistance of a bilingual lawyer who is experienced in real estate law.

What is the role of the notary in an Italian property purchase?

A notary is an Italian public official who authenticates the legal paperwork involved in the purchasing process and ensures it complies with real estate laws and regulations. No matter if the property is sold by a private individual or real estate agent, the notary is responsible for examining all the documents regarding the sale. The notary will also prepare the final deed of sale and ensure the terms of the contract are clear to both parties. Selecting the notary is the responsibility of the buyer but oftentimes foreign buyers rely on recommendations provided by the real estate agent. However, the notary is a neutral party and does not act in the interests of the buyer nor the seller. Generally, it is advised to select a notary who operates in the same area where the property is located.

What are the steps involved in the purchase process?

The purchase offer is the first step in the purchase process. The offer is submitted by the buyer and once it is accepted by the seller, the deal is now binding for both parties. It is at this time that the preliminary contract (contratto preliminare) will be drafted. This document is a crucial step as it outlines all the essential details of the property and the terms and conditions of the sale. Once signed, a deposit is made, generally 10% to 30% of the value of the sale price, and the contract is registered with the Italian Revenue Agency (Agenzia delle Entrate). This serves as the legally binding private contract between the prospective buyer and the seller, but does not transfer ownership of the property. It is not until the signing and transcribing of the final deed (rogito notarile), prepared by a public notary, that property ownership is transferred from the seller to the buyer.

Can a US citizen apply for an Italian mortgage?

To apply for a mortgage, both EU and non-EU nationals must provide evidence of identification in order to apply for a mortgage. Non-EU nationals must also provide a permit of stay (permesso di soggiorno) with their application. However, if the individual meets the other general criteria and proves to be a low-risk borrower, some banks will grant mortgages to non-residents as well. They have also been shown to accept applications for those that are relocating on the basis of family reunification. Overall, banks are more likely to accept mortgage applications for individuals residing in Italy or have the intention of relocating and living there with their family members.

If I purchase a property in Italy, can I live there without any time restrictions?

Buying real estate in Italy does not automatically imply permanent residency. However, if you are a non-EU citizen, you do not need a visa to enter Italy but you will only be allowed to stay in the country for 90 days. If you are a US citizen, you are able to travel to 27 European member countries of the Schengen Area visa-free for a maximum of 90 days. However, there are visas that non-EU citizens can apply for which allow their holders to stay in Italy for prolonged periods of time. Once such visa is the Elective Residence Visa, which is a renewable one-year residence permit granted to foreigners with high financial assets on the condition that they do not seek employment while living in Italy. In fact, one of the requirements to apply for the Elective Residence Visa is owning or renting a property.

Should I hire a lawyer when buying property in Italy?

Unlike in some other countries, where the role played by lawyers in real estate transactions can be exhaustive, Italian attorneys are involved mainly during the initial phases of the purchasing process. This role includes carrying out due diligence and negotiating the terms and conditions between the buyer and seller. It’s also possible to grant your lawyer power of attorney to act on your behalf if you are unable to travel to Italy to complete the purchase in person. Hiring an experienced bilingual lawyer is also helpful for translation purposes and ensures English-speaking buyers fully understand the scope of the commitment and legal consequences implied in the contract.

If you would like more information on buying property in Italy and how a team of experts can help guide you through the process, don’t hesitate to contact us at [email protected].