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Italy is a popular house-hunting destination among foreign nationals, with many being attracted by the prospect of purchasing a holiday home on the country’s sunny coastline or in one of its many quaint countryside villages.
While there have long been adverts targeting foreign buyers, there is now an increasing number of social media accounts advertising ‘cheap Italian properties’ to English speakers.
These range from entirely genuine to somewhat less so, but even if the advert itself is legit and the property really is on sale for the price advertised, there are many reasons why it likely won’t end up being ‘cheap’.
Inspections
It’s strongly advisable to order a thorough property inspection before making any offer.
This is done by a geometra (surveyor), who will check the property’s structure and look out for any issues that the home might have, including seismic or hydrogeological risks or damage to the electrical system and plumbing.
They could also give you a quote on how much you’ll have to spend for any necessary repair or maintenance work.
Inspection costs generally range from €350 to €1,200.
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Renovation costs
With cheap properties, the likelihood that you will need to carry out major renovation work is very high.
In the case of an old home, this could mean fully gutting it, updating the electrical system, or adding heating or cooling systems.
And if you have your eyes set on a place in a city’s historic centre, keep in mind that there could be strict building requirements applying to the property, meaning you may find it hard to get any construction permit approved.
READ ALSO: Five expensive mistakes to avoid when buying a house in Italy
The costs of renovations can vary greatly depending on the size of the property, where it’s located and extent of the project.
Expect to pay anything from €1,000 for a bathroom restyle to over €100,000 for a whole house renovation.
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Construction permits
Before you start tearing walls down and dreaming up add-ons, you’ll have to get a construction permit (minor ‘cosmetic’ changes may not require a permit, but more serious construction work will).
There are two types of permits in Italy.
The CILA, or Comunicazione Inizio Lavori Asseverata (Sworn Notice of Commencement of Works), is for less substantial changes, such as updating electrical systems, reorganising interior spaces, or creating false ceilings.
In this case, the architect, engineer or contractor, generally called the tecnico, would outline the work that needs to be done and certify that it complies with existing legislation.
For any major work involving structural changes, you’ll need a SCIA, or Segnalazione Certificata di Inizio Attività (Certified Notice of Commencement of Construction), which requires an engineer to present the project to local authorities and verify its adherence to local laws before starting work.
Permit costs can vary depending on the rates set out by the local administration. However, a CILA permit generally costs around €500, while a SCIA costs around €700.
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Property taxes
The purchase of a property in Italy is subject to different taxes.
Italy’s land registry tax (imposta catastale) is a fixed €50 charge if you buy a property from a private seller or a €200 charge if you buy from a registered company.
The mortgage tax (imposta ipotecaria) will set you back the same amounts – €50 if you buy from a private seller and €200 if you buy from a registered company.
If you’re buying from a private seller, the registration tax (imposta di registro) equals nine percent of the cadastral value of the property – but won’t be lower than €1,000.
If you’re purchasing your primary residence (prima casa), this drops to two percent, but comes with the same condition: it can’t be lower than €1,000.
If you’re buying from a registered company, the registration tax will be a fixed €200 fee.
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When buying from a company, you’ll also be subject to IVA (the Italian equivalent of VAT). This will range from four percent to 22 percent of the purchase price depending on whether the property is your primary residence (four percent), a second home (10 percent) or a luxury dwelling under the A/1, A/8 and A/9 cadastral categories (22 percent).
As a final note, second-home owners and owners of luxury properties must also pay Italy’s IMU tax in two yearly instalments (one in June and one in December).
You can find details on who the tax applies to and how to calculate it here.
Notary fees
You’ll need a notary (notaio) to validate the property purchase contract and ensure that the deed is legally registered.
READ ALSO: EXPLAINED: What is an Italian notary and what do they do?
There is no fixed fee for this, with costs varying depending on the location and type of property you buy.
The absolute baseline would be around €1,500, but fees can run into the thousands even in the case of cheap homes bought for major renovation.
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Agente immobiliare fees
If you’re buying a house through a real estate agent (agente immobiliare), they’ll take a percentage for their services.
Though they vary from firm to firm, fees usually ranges between two and five percent of the purchase price.
Spese condominiali
An independent home is not subject to ‘condominium fees’ (spese condominiali), but if you’re buying an apartment, keep in mind that you’ll have to pay extra monthly fees for upkeep and maintenance of public spaces.
If you find an apartment in a historic building in the centre of a major city with a curated communal garden, expect your spese condominiali to be as steep as €400-500 per month.
For an average apartment, however, fees are usually between €80 and €100 a month.
What about one-euro homes?
Several years on from the scheme’s introduction, one-euro homes are still available in multiple areas of the country under attempts to breathe new life into depopulated areas and unburden local authorities of old, unwanted properties.
But while buying a house for less than the price of a caffè at the local bar is still possible, the houses available under the scheme are usually in a very poor state of repair, requiring major investments from new owners.
READ ALSO: ‘Italy’s one-euro homes cost a lot more than one euro – but can be worth it’
And total costs can be very high, with reports of some international buyers spending hundreds of thousands of euros on renovations – many times more than the property’s potential market value.
See more information about buying a home in Italy in our property section.