Buying a Masseria in Puglia: Legal Guide for Foreign Buyers
Thinking of buying a masseria in Puglia? A guide to due diligence, rural building rules and what foreign buyers need to know before purchasing.
How to Negotiate the Price of a Property in Italy: A Practical Guide for Foreign Buyers
Negotiating a property price in Italy? A practical guide to preparation, market research and the legal framework every foreign buyer should know.
Breach of Preliminary Contract in Italy: Remedies for Buyers and Sellers
What happens if a preliminary contract is breached in Italy? A guide to deposits, court remedies, and how buyers and sellers can protect themselves.
How to Buy Property in Italy as a Foreigner: Complete Step-by-Step Guide
A complete guide to buying property in Italy as a foreign buyer: every legal step, from the first search to the final deed of sale.
First Home Benefits in Italy for Foreign Buyers: Who Qualifies and How
Can foreign buyers claim Italy’s prima casa tax benefit? Yes, if certain conditions are met, with savings up to thousands of euros on purchase taxes.
The Preliminary Contract in Italy: A Complete Guide for Foreign Buyers
Everything you need to know about the Italian preliminary contract (compromesso): what it must contain, the deposit rules, registration and how to protect yourself as a buyer.
Real estate prices in Italy, stable in February 2022
Real estate prices in Italy vary greatly by region During the month of February 2022, the asking price for property for sale was highest in the Trentino Alto Adige region, at €2,892 per square meter. On the contrary, for a property for sale in the Calabria region, only €919 per square meter was asked, the lowest value in Italy. In the same month, the asking price for rental properties was highest in the Lombardy region, at €14.75 per square meter per month. On the other hand, the lowest average asking prices were in the Calabria region, with only €5.03 per square meter per month, the lowest value nationwide. In February 2022, an average of €1,922 per square meter was asked for residential property for sale, a decrease of 0.47% compared to February 2021 (€1,931 per square meter). Over the past two years, the average price in Italy peaked in March 2021 at €1,944 per square meter. The month in which the lowest price was asked was April 2020: an average of €1,883 per square meter was asked for a property for sale. Average rental price (€/m²) Rental prices In February 2022, an average of €11.37 per square meter per month was asked for residential rental properties, an increase of 0.62% compared to February 2021 (€11.30 per square meter per month). Over the past two years, the average price in Italy peaked in February 2022 at €11.37 per square meter. The month in which the lowest price was asked was April 2020: for a rental property, an average of €10.30 per square meter per month was asked. Italian regions – selling prices (€/m²) Basilicata 1.373 Calabria 919 Campania 1.849 Emilia Romagna 1.830 Friuli 1.447 Lazio 2.438 Liguria 2.522 Lombardy 2.147 Marche 1.550 Molise 1.011 Piedmont 1.334 Puglia 1.289 Sardinia 2.194 Sicily 1.1206 Tuscany 2.443 Trentino Alto Adige 2.892 Umbria 1.130 Valle d’Aosta 2.623 Veneto 1.753
How inflation, war in Ukraine, affect the Italian real estate market
Inflation, war: the consequences for the Italian real estate market Inflation is never good for the real estate market. Sooner or later, it prompts the Central Bank to raise the prime rate, that is, the interest rate that they apply banks when they borrow money, the same money they borrow to issue mortgage loans. The latter become way more expensive which obviously affects the demand for real estate acquisitions. Inflation in Italy was limited to 1,7% for the whole of 2021. That was because at the beginning of last year inflation was even very slightly negative because of falling demand, for instance for oil and gasoline and for other goods due to the pandemic situation. Indeed, in the last few months inflation was well above 4% on average, compared to the same months of 2021. The problem is that in the medium-term, inflation seems bound to increase. Here are the main inflationary factors in the present and medium term economic landscape: Energy prices have increased by more than 40% compared to a year ago. Especially gaz, gasoline and diesel are way more expensive. The war in Ukraine can only worsen the situation. In order to fight back against European sanctions, Russia could even suspend gas deliveries to Europe. Italy alone imports 45% of its gas from Russia. Shutting down the gas tap, Russia could severely damage the Italian economy, since not only would gas prices skyrocket, but also some industries would be compelled to severely diminish or even alt their production. Diversification is possible, Qatar will enormously increase its production by 2024, renewable energies are now competitive and Italy could increase its gas production to cover 15% of its needs ( it was 17,000,000,000 m³ in 2000, it’s now only three billions cubic meters). Nevertheless these measures takes time. Wheat will only become more expensive because of the war. Italy imports 100 m of wheat from Russia every year, and a 120 million tons from Ukraine. Both countries are going to drastically reduce or stop their expectations to Italy, the former because of sanctions, the latter because of the war. Sanctions against Russia would prevent Russian companies and citizens to invest or spend money in Italy. In general, about 300 companies involved in exchanges with Russia are at risk for our country, which in 2021 alone exceeded 4 billion euros. Italy exports 7 billion a year of products to Russia and imports 12.6 billion of gas and raw materials, in particular steel. And let’s not forget that, indirectly, Ukraine will also stop exporting the raw material that is basic for Italy of pasta: wheat, of which we import at least 120 million kg per year (in addition to the 100 million imported from Russia). Nevertheless the war could have some positive effects on the real estate market Although these effects are unlikely to compensate the above-mentioned negative effects, they are: The European central banks, although inflation is high, could hesitate to drastically increase its interest rates, in order not to suffocate the economic recovery that was taking place after the pandemic Since other investments are risky, savers could choose real estate as a safe harbor In the end, war is never good for the economy. Therefore, cunningly analyzing the situation and anticipating the damaging effects of conflicts can avoid dramatic consequences.
Buy a house in Italy with residence abroad: what benefits can you get?
First home bonus for moving abroad Many speak of brain drain, describing this phenomenon as a all Italian “curse”. However, this is often accompanied by another equally frightening factor: bureaucracy. In fact, when young people emigrate for work, they have to face a thousand quibbles not only in their new country, but also in their own homeland. This is also the case of those who intend to buy a house, while maintaining their residence outside Italy. In this case, however, there are straightforward and easily implemented solutions. In fact, if this is the first property owned, it is possible to enjoy the same tax advantages that a citizen resident in our country would have. Let’s see what are the steps to follow. A clarification on AIRE registration Many people think that in order to buy your first home in Italy, you must be registered with AIRE (Anagrafe Italiani residenti all’estero). But this is a mistaken belief: in fact, seasonal workers, military personnel, diplomats and all those who have spent less than 12 months abroad are excluded. If you fall into these categories then you only need to fill in a self-certification when you draw up the deed of purchase. Residence abroad and home purchase In general, the buyer is required to transfer within 18 months the residence in the municipality of the property declared as “first home”. Alternatively, this can also be the place where the person regularly carries out his activity. If, however, we are talking about an individual who has moved permanently abroad, it is sufficient that the house purchased in his name is the first one he owns on Italian territory. In this case, the buyer can take advantage of the reduction of the VAT rate, which stands at 4%, as well as all the other benefits that we have discussed in this guide dedicated to the subject. The limits of the facilitation You can enjoy the benefits provided that the property purchased does not fall within the luxury real estate, indicated by the cadastral codes A1, A8 and A9. It is also not possible to claim rights on other homes, even if shared with other people. For example, it is not possible to own one in communion with a spouse or relative. Similarly, those who enjoy usufruct or bare ownership are also excluded. In order to complete the transaction, it is therefore necessary to present declarations of “non-possession” that can confirm that you do not fall into this category. However, it is acceptable if the old property is sold within one year of the deed. You still have to pay the property tax, IMU on average from three to five hundred € per year.
Italy: on sale 1500 properties at auction under 50,000 €
Does buying a house at auction really save you money? The answer is affirmative! Indeed, that’s the only real reason why the auction market in Italy grows so fast. In addition, the auction market offers a great choice in terms of properties. Why do properties go to auction? There are 3 main reasons: The property is owned by a citizen who is unable to pay his debts. The property is owned by a company that has declared bankruptcy. The property is owned by a public body or by the Italian State which is obliged to sell the property through a public auction. In addition, contrary to some time ago, it must be known that now it is possible to visit, before the purchase, the property put up for auction. Of course, the procedure is different, as you have to make a request on the ministerial site deputy or ask directly to the delegate for custody. Properties at auction for less than 50,000 euros To help you in your search, we offer 1500 listings of properties at auction for less than 50,000. All properties have an elevator and are in good condition. Public houses on auction, how to participate – Invimit website Invimit Sgr, a company 100% owned by the Ministry of Economy and Finance, has put up for sale maisons publiquespublic houses at auction in 33 Italian cities including Milan, Venice, Palermo and Florence. There are about 474 properties in all, for a total value of over 155 million euros. Here’s what you need to know to make an offer The first step is to visit Invimit’s website and go to the section Real Estate Showcase, where it is possible to consult all the offers for the properties at auction. Here you can download technical documentation, prices and the rules for submitting bids. Then you can call the toll-free number 800 190 569, from abroad +39 0835700045 for information on the procedure and the forms necessary for the submission of the bid. Also at this number you can book an inspection: it is possible to visit the properties at auction up to 10 days before the deadline. Up to two people can participate in the inspections. Private citizens or investors can participate in the purchase by offering a price for the purchase equal to or greater than the sale price indicated in the auction notice. Once all the offers have arrived, a public auction will be held, the date of which will be communicated on the Invimit website. What are the public houses at auction There are various types of properties on auction: residential homes, former businesses and offices. As anticipated, 474 units for sale, for a total value of over 155 million euros, located in 33 Italian cities including Milan, Rome, Venice, Turin, Florence, Bologna, Trieste, Palermo and Sassari. Lombardy is the region with the most properties for sale: 53 in all, including homes, stores and offices for a total value of over 17 million euros.