Buying Italian Property as a Foreigner 2026: Compromesso, Notaio, IMU

Buying Italian Property as a Foreigner 2026: Compromesso, Notaio, IMU

The path to owning an Italian villa for STR runs through compromesso (preliminary contract), rogito notarile (notarial deed), IMU annual property tax and, for non-EU buyers, the decreto flussi visa channel. Below we walk a UK or US buyer through the seven stages, with realistic costs in EUR and the foreigner-specific friction at each step.

Italy has no general restriction on foreign property ownership. The condizione di reciprocita (reciprocity condition under art. 16 disp. prel. cod. civ.) requires that your country of residence allow Italians to buy property there. The UK, US, Ireland, Canada and Australia all qualify. The only hurdle that changed post-Brexit is the residency permit if you intend to spend more than 90 days per 180 in Italy, but for an STR investor visiting twice a year for property management, no visa is needed.

Stage 1: Codice Fiscale Before Anything Else

You cannot make an offer in writing, sign a compromesso or open an Italian bank account without a codice fiscale (Italian tax ID). Obtain it through your nearest Italian consulate (London, NYC, Chicago, LA, SF, Dublin) using form AA4/8 plus a passport copy. Free of charge in most consulates, processing time 1 to 2 weeks.

For a US buyer using a Delaware LLC, the LLC needs its own codice fiscale issued via form AA9/12, which requires apostilled formation documents and a designated rappresentante fiscale resident in Italy.

Stage 2: Proposta di Acquisto (Written Offer)

The proposta is a binding written offer to buy at a stated price, normally drafted by the estate agent. By signing it you commit to the price and the agent commits to withdraw the property from market for 15 to 30 days. A deposit (caparra confirmatoria) of 5% to 10% of the purchase price is paid to the agent or held in escrow.

If the seller accepts, the proposta converts automatically into a binding preliminary agreement. If you withdraw, you forfeit the caparra. If the seller withdraws, you receive double the caparra back under art. 1385 cod. civ.

Stage 3: Compromesso (Preliminary Contract)

The compromesso (contratto preliminare di vendita) is the formal preliminary contract under art. 1351 cod. civ. It binds both parties to complete the sale on a future date, usually 60 to 90 days after signing. At compromesso you typically pay a further 20% to 30% of the price as an additional caparra.

The compromesso must be:

• In writing (often signed by scrittura privata authenticated by notary, but not yet a notarised deed)
• Trascritto (registered with the Conservatoria dei Registri Immobiliari) within 30 days, which protects you against the seller selling the same property to a third party
• Specific on the property (catastal data: foglio, particella, subalterno) and the price

For a non-resident, signing the compromesso usually requires either flying to Italy or appointing a procuratore in Italy by notarised, apostilled procura speciale (cost in London: GBP 150 to 250 plus apostille).

Stage 4: Rogito Notarile (Notarial Deed of Sale)

The rogito is the actual transfer of ownership, drafted and read aloud by an Italian notaio. The notaio is a public official appointed by the Italian state, not a lawyer for either side. The notaio's role:

• Verify the seller's title back to at least 20 years (the prescription period for adverse possession)
• Check for mortgages, easements and any iscrizione pregiudizievole on the property
• Calculate and collect the imposte di registro, ipotecaria and catastale at the closing
• Register the deed with the Agenzia delle Entrate within 30 days

Notaio fees are partially regulated and run roughly 1% to 2.5% of the price (more on cheaper properties because of fixed components). For a EUR 300,000 villa, expect EUR 4,500 to 7,500 in notaio fees plus stamp duties.

Stage 5: Imposte di Registro and Other Closing Taxes

Closing costs depend on whether you buy as prima casa (first home with intention to reside) or seconda casa (second home). For a non-resident STR investor it is invariably seconda casa:

Tax	Seconda casa rate	Base for calculation	Note
Imposta di registro	9%	Valore catastale rivalutato (typically 50% to 70% of market price)	Or 22% IVA if buying from a developer within 5 years of construction
Imposta ipotecaria	EUR 50 fixed	n/a	For private-to-private sale
Imposta catastale	EUR 50 fixed	n/a	For private-to-private sale
Notaio fee	1% to 2.5%	Purchase price	Partially regulated
Estate agent fee	3% to 5% + IVA	Purchase price	Paid by buyer in Italy

Concrete example for a EUR 300,000 villa in Tuscany with valore catastale EUR 180,000:

• Imposta di registro: 9% × EUR 180,000 = EUR 16,200
• Imposte ipotecaria + catastale: EUR 100
• Notaio: EUR 6,000
• Estate agent: 4% + 22% IVA = EUR 14,640
• Total closing costs: roughly EUR 37,000 on top of the purchase price

Stage 6: IMU Annual Property Tax for Non-Residents

IMU (Imposta Municipale Unica) is the annual property tax. For a seconda casa owned by a non-resident, the rate is set by each comune within a national range of 0.46% to 1.06% of the rendita catastale rivalutata 5%. In tourist hotspots like Florence, Rome, Venice and Como, expect the maximum rate.

Worked IMU calculation for the Tuscan villa above:

• Rendita catastale (from visura catastale): EUR 1,200
• Rivalutata 5%: EUR 1,260
• Base IMU (× 160 for residential category A): EUR 201,600
• IMU at Florence comune rate 1.06%: EUR 2,137 per year

IMU is paid in two instalments: acconto by 16 June, saldo by 16 December. F24 codes 3918 (comune) and 3919 (Stato). Foreign IBAN payment is accepted but most non-residents pay through their commercialista to avoid late-payment errors.

TARI (waste collection tax) adds EUR 200 to 600 per year depending on comune and unit size.

Stage 7: Decreto Flussi Visa for Long-Stay Owners

If you intend to spend more than 90 days per 180 in Italy (e.g. running the Airbnb personally seasonally), you need a long-stay visa. Three routes for property owners:

• Visto per residenza elettiva (elective residence): requires passive income of EUR 31,000 per year for an individual or EUR 38,000 for a couple, plus property in Italy. No work permitted in Italy. Best for retired US owners
• Decreto flussi annual quota: limited to specified job categories, not generally usable by STR investors
• Investor visa for Italy: requires EUR 250,000 in an Italian innovative startup or EUR 500,000 in an Italian company. Not normally a fit for STR investors

Common Mistakes Foreign Buyers Make

• Skipping the visura catastale before compromesso: discover the property is actually category C/2 (storage) instead of A/3 (residential), making it ineligible for residential STR letting
• Buying without an English-speaking notaio: the rogito is read aloud in Italian. If you do not understand, you need either a sworn translator or a notaio who runs a parallel English text. Cost of sworn translator at rogito: EUR 300 to 500
• Forgetting condominio approval for STR: many Italian condominio regolamenti restrict short-term letting. Check the regolamento di condominio before compromesso
• Underestimating renovation timeline: a SCIA (Segnalazione Certificata di Inizio Attivita) for renovations takes 30 to 90 days, plus actual works. Budget 6 to 12 months between rogito and first Airbnb guest

Frequently Asked Questions

Can a UK citizen buy property in Italy after Brexit?

Yes. The reciprocity condition is satisfied because Italians can freely buy in the UK. Brexit did not change ownership rights for UK nationals in Italy. The only change is that staying long-term requires a visa (residenza elettiva or investor) rather than EU freedom of movement.

Do I need an Italian bank account to complete the purchase?

Strongly recommended but not strictly mandatory. The notaio accepts a bonifico from a foreign bank, but Italian sellers often demand assegno circolare (cashier's cheque from an Italian bank) at the rogito. Opening an account at Intesa Sanpaolo, UniCredit or BNL takes 2 to 4 weeks for a non-resident; some buyers use Wise multi-currency accounts in EUR.

Can I get an Italian mortgage as a non-resident?

Yes, but at higher LTV restrictions (typically 50% to 60% LTV for non-residents vs 80% for residents) and higher rates. Intesa Sanpaolo, UniCredit and BNL all offer non-resident mortgages. Documentation: 3 years of UK or US tax returns, bank statements, valuation in Italy. Approval: 6 to 10 weeks.

What is the role of the geometra in the purchase?

The geometra is the technical surveyor who verifies the visura catastale, building permits and any abusi edilizi (illegal works). Highly recommended for any pre-1980 property. Cost: EUR 400 to 1,200 depending on property complexity.

Are there inheritance tax issues for my UK or US heirs?

Italian inheritance tax applies to Italian property regardless of the heir's residence: 4% to 8% with EUR 1 million exemption for spouses and direct descendants. For US heirs, the 1955 US-Italy estate tax convention grants a US foreign tax credit. For UK heirs, IHT applies on top with no double tax treaty in place (UK has no IHT treaty with Italy).

How long does the entire purchase process take?

Realistically 3 to 5 months from offer to keys: 1 month to negotiate and sign compromesso, 2 to 3 months for due diligence and mortgage approval, 1 month to schedule rogito. Allow an extra 1 to 2 months if you need to set up a Delaware LLC or appoint a rappresentante fiscale.

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