According to Oldypak Capital LP report, in 2021, real estate in Italy became cheaper. In some regions, the price drop has reached 20%. This country even has a program whereby houses are sold for just 1 euro: it started in Sicily, and now has spread almost all over Italy.
How much is real estate in Italy
Italy is conventionally divided into “south” and “north. In the north, life is more expensive and higher property costs, but more opportunities. To the south, prices go down. Relatively inexpensive is the central part of the country.
As elsewhere, property prices in Italy depend on the demand, the level of development, the size of the settlement, as well as individual characteristics.
According to Oldypak Capital LP report Since 2020, the priorities of choice have changed, and the most in demand is more spacious housing in the south of the country, at more affordable prices.
The most inexpensive region, but gaining in popularity, is considered Calabria. It is located in the southern Appenine peninsula. The area has recently been actively built up, and prices are rising.
Democratic offers can be found in the town of Scalea – about 1000 euros per square meter. In Costa del Dei, Pizzo, Zambrone, Tropea, there are many premium properties at prices in excess of one million euros. In this part of the country there are no industrial enterprises, a good environment, mild climate, clean beaches and sea, beautiful landscapes, historical architectural values … Yes, the tax rate in Calabria is lower than in the north.
And here are the most expensive regions of Italy – the island of Capri, Sardinia, Sicily, Ligurian coast (Portofino), Lake Como and Lake Garda, the Amalfi coast, the cities of Rome, Milan, Venice. In the past two years, real estate prices around lakes Como, Garda, Maggiore, Lugano, Iseo rose by 65-70%.
There are many centuries-old luxury villas on Lake Como, owned by celebrities. The most popular towns are Lecco, Bellagio, Menaggio, Varenna and Colico.
On the island of Garda, the most popular for buying apartments and townhouses with their own infrastructure.
How a foreigner to buy property in Italy
For a foreigner to buy property in Italy there are no restrictions. You can buy any objects as individuals and legal entities.
An important point. The purchase of real estate in Italy does not entitle a foreigner to a residence permit, but on some grounds may be considered an advantage. To get a residence permit other grounds – investment in the economy, studies, work, business, family reunification, marriage.
Buying a property gives a foreigner the right to obtain a multiple Schengen visa, which will allow a foreigner to stay in Italy to 90 days within six months and travel to other Schengen countries.
To buy property in Italy a foreigner must obtain a tax code and open a bank account.
For the object of the buyer chooses, paid a deposit of 5-10%. After the preliminary agreement is signed the main notarial agreement is signed in two languages, and the real estate value is deposited.
All fees and taxes must be paid in advance. The documents are submitted for registration by a notary (in time registration can take from several days to three months), and upon completion a certificate of transaction is issued.
But the title is transferred to the buyer immediately after the signing of the contract. Transactions can be done remotely.
What about taxes?
Property buyer must pay tax. Its size depends on the type of property (primary or secondary), the number of items in the property, the status of the buyer (resident or non-resident).
For foreigners without a residence permit taxes are substantially higher. In Italy, they are among the highest in Europe. Foreigners pay taxes on a progressive scale, from 23-43%, plus municipal fees. It is important to familiarize yourself with this part of the upcoming expenses even before the purchase.
How much can I earn from renting?
Rental rates, if the property is acquired for investment purposes, depend on the region, time, and duration.
On the coast, for example, one or two room apartment rents for an average of 500-700 euros, in Milan or Rome – from 850-900 euros per month. Taxes on rents are 21%. It is possible to use the services of management companies.
The average yield from renting in past years ranged from 4-6%. In 2021 it rose to 7.8%. The most lucrative segment in the rental is commercial real estate, stores (11.6%) and offices (9.2%).