Buying Property in Italy as a Foreigner
Italy places no general restriction on foreign ownership of property or businesses. What it does impose is a set of administrative prerequisites, and a specific legal condition for buyers from outside the European Union. None of them is difficult. All of them take time, and a buyer who leaves them until a deadline is approaching will miss the deadline.
By the team at KW Hospitality · Updated
The reciprocity condition (non-EU buyers)
Italian law admits foreign nationals to civil rights, including the right to acquire property, on a basis of reciprocity: broadly, an Italian citizen must enjoy comparable rights in the buyer's country. Citizens of EU and EEA member states, and holders of an Italian residence permit of the relevant kinds, are outside this test entirely.
For most countries reciprocity is satisfied and the point is procedural. It is nonetheless a condition the notary must verify, and where a buyer's nationality raises a question it should be resolved at the outset, not at completion. If you are buying through a company, the relevant analysis concerns the company as well as its owners.
The Italian tax code (codice fiscale)
An individual tax identification code, required for essentially every formal act in Italy: signing a deed, opening a bank account, holding a utility contract, being a company director. It is free, it is not a tax residence status, and holding one creates no Italian tax liability by itself.
Non-residents may obtain one through an Italian consulate abroad or through a representative in Italy holding a power of attorney. Consular processing times vary considerably by post, which is the usual reason this becomes urgent.
Banking and the movement of funds
Completion funds are normally provided by Italian bank draft or traceable transfer, and Italian anti-money-laundering rules require the origin of funds to be documented. This is a substantive requirement, not a formality: the notary records the means of payment in the deed.
Buyers are usually advised to have an Italian account, or to complete through an Italian corporate vehicle that has one. Non-resident account opening involves identification and source-of-funds checks that take longer than most buyers anticipate, and should be started early.
Acting through a representative
You need not attend in person. A power of attorney (procura) allows a representative to act for you, but it must be in a form Italian law recognises. Executed abroad, that normally means notarisation plus an apostille under the Hague Convention, or full legalisation where the apostille does not apply, and a sworn translation into Italian.
Each of those steps is administrative and each takes days to weeks. A power of attorney requested a fortnight before completion is a power of attorney that will not be ready.
What buying does not give you
Acquiring property in Italy does not confer a right of residence, and it does not confer citizenship. Italy has no scheme granting residence in exchange for a residential or commercial property purchase. This is a persistent misconception among buyers arriving from jurisdictions that operate such programmes.
Routes to residence exist and are separate from the purchase. They are set out on our page on residence and the investor visa.
A realistic sequence
- Before you view anything. Obtain the tax code. Confirm the reciprocity position if you are non-EU. Establish with your own adviser whether you will buy personally or through a company.
- While you are searching. Open the Italian account or incorporate the vehicle. Prepare source-of-funds documentation. Instruct Italian legal and tax advisers.
- Once a property is identified. Due diligence, then the preliminary contract. If you will not attend completion, start the power of attorney now.
- Completion. Deed before the notary, with a sworn interpreter if you do not speak Italian.
Talk to us about an acquisition in Italy
Write to us with what you are considering. We reply in English, and we will tell you honestly when we think Italy — or a particular market — does not fit the brief.
Contact our teamConfidential portfolioFrequently asked questions
Can a non-EU citizen buy a hotel in Italy?
In general yes, subject to the condition of reciprocity, which is satisfied for most countries. EU and EEA citizens, and holders of the relevant Italian residence permits, are not subject to the test at all. Where a buyer's nationality raises a question it should be resolved before an offer is made.
Do I need an Italian tax code to buy?
Yes. The codice fiscale is required for the deed and for essentially every related formality. It is free to obtain, creates no tax liability by itself, and can be requested through an Italian consulate or through a representative in Italy.
Does buying property in Italy give me residence or citizenship?
No. Italy has no residence-by-property-purchase scheme. Routes to residence exist but are entirely separate from a property transaction and have their own qualifying criteria.
Do I need an Italian bank account?
It is not strictly mandatory in every case, but completion funds must be traceable and their origin documented, and in practice most transactions are completed through an Italian account or an Italian corporate vehicle. Opening one as a non-resident takes time and should be started early.
Can someone complete the purchase on my behalf?
Yes, under a power of attorney in a form Italian law recognises. Executed abroad this normally requires notarisation, an apostille and a sworn translation. Allow several weeks.