Find Your Courage Today
“You have brains in your head. Feet in your shoes. You can steer yourself any direction you choose!"
- DR SEUSS
For as long as I can remember I've loved traveling and I’ve been lucky enough to visit 25 different countries on 5 continents. I've enjoyed trips to Italy, France, England, Scotland, Ireland, Sweden, Denmark, Morocco, Mexico, Brazil, Costa Rica, Colombia, Australia, Japan, China, Thailand, India and many more.
In all of my travels, no place speaks to me as much as Italy! I’m not Italian or of Italian heritage, mind you. And I only speak basic Italian at this point. My love for Italy started on a high school trip a long time ago when the food, the culture, the lifestyle, and the people started getting deep into my soul. It’s almost as if I’ve been possessed by a charismatic, friendly alter ego.
But let’s get real. Loving Italy and buying a home in Italy are two very different things. I’m guessing you know that already if you’re reading this. There are so so many questions that quickly come to mind. Can foreigners buy property in Italy? What can I afford? Where should I buy? Is a “one Euro” home a real option? How do I find and work with an Italian real estate agent? What are taxes and closing costs like? What legal help do I need? To name a few.
Don’t let that stop you. My family and I are proof positive that despite all of the questions, you can do it!
Read on to learn more about my buying journey and if you feel like you need help, you can set up a free 30-minute call with me. Or you can set one up now. There’s no catch. I’m not going to charge you now or later, just share my experience to help you along the way.
Turning Your Dream Into Reality
1. Research & Location
Before diving into the property market, take some time to research different regions in Italy. Maybe you have some already, which is great, but the time will be well spent. Each area offers its own unique charm, amenities, and lifestyle - and most importantly you will start to get a sense of the relationship between the historical allure of Florence, the rustic beauty of Tuscany, and the coastal splendor of the Amalfi Coast as it relates to property values.
In my case, I used two real estate websites simultaneously - www.idealista.it and www.immobiliare.it. They both have English versions of their websites. I had numerous saved searches set to notify me of properties that might fit my preliminary criteria. All in all, it took me about 3-4 weeks to get a sense of what was out there, refine my criteria and create a short list of properties I might be willing to look at. Best of all, I was able to find the real estate agents that were most active in Cividale Del Friuli, the village that I was targeting. I did some outreach to them in a mix of English and Google-translated Italian to figure out which ones were willing to work with international buyers.
2. Regulations & Legalities
It’s important to know that Italian property laws and regulations are a little different than in the United States, but this is an area I did not worry about too much.
To answer the question posed above, YES, foreign citizens can buy property in Italy, with few unexpected conditions. What the authorities want to know is that you are who you say you are and that you are not money-laundering or up to other nefarious activities. Proving that isn’t all that difficult, but there will be some hoops to jump through in terms of getting powers of attorney in place, working through something called an Apostille (a process to verify documents to be used in an international transaction) and gathering other documents (e.g., I needed a marriage certificate because my wife and I are both on the deed.)
The bottom line is you will rely on local notaries and may need lawyers in both the United States and Italy to navigate the intricacies of Italian real estate law and ensure a smooth transaction. I happened to use a law firm recommended by D&G Property Advice (more on them later!). My bilingual lawyers were wonderful, easy to work with remotely and not all that expensive.
3. Budget & Financing
Clearly you will need to determine your budget and explore financing options. While cash transactions are common in Italy, know that securing a mortgage from an Italian bank or your home country's financial institution is also possible. Factor in additional costs such as property taxes, notary fees, and maintenance expenses when budgeting for your purchase.
My budget was $300,000 and I pretty much stuck to it. I was looking for places that had 3 or more bedrooms and I quickly confirmed that there were many properties in my price range after doing research on Cividale market via Idealista and Immobiliare websites. If you are a budget conscious buyer like I was, it’s well worth exploring villages and cities that are adjacent to the normal hit list of most popular cities. In Friuli-Venezia Giulia for example, cities like Trieste and Udine offer great value, have amazing food and culture to offer, and are also well within striking distance of other cities you may still want to have access to. Cividale for example is only 30 minutes from Trieste and Udine and about 2 hours from Venice by train. Not to mention that Cividale is tucked in the beautiful northeastern corner of Italy close to Slovenia, Croatia and Austria.
Back to the mortgage requirement, I don’t have any experience with it because I happened to do a cash transaction. But I understand my friends at D&G Property Advice are able to help with that. I didn’t deal with Italian banking and bankers for a mortgage, but I do have an Italian bank account now. It’s fair to say they are a little “old school” if you will, so an introduction from a company like D&G can go a long way to smoothing the path to a mortgage. One last note on taxes, getting what’s called a “Codice Fiscale” is necessary for tax purposes. Forms to fill out are minimal. The key is to be able to follow up if necessary to get the forms expedited. Again, D&G can be helpful here.
4. Reliable Agents & Advisors
Partnering with a reputable real estate agent who specializes in the Italian market is important of course. A knowledgeable agent will provide valuable insights and help you find properties that align with your preferences and budget. Finding agents with a track record and client testimonials isn't the easiest thing but you can do it when you start creating a shortlist on Idealista and Immobiliare.
I was able to find about 5 agents that had many active listings in Cividale and were willing and able to work with international buyers. I ended up working closely with two of them. One represented the seller and thankfully was not charging a commission on the transaction (turned out he was the brother of the seller!) The other agent is one who has expertise in short-term rentals. We got to know each other through my search process and I’ve since hired her to represent us as a property manager. (Short-term rentals in Italy is a whole other post I have to write yet. Stay tuned!)
OK, here's where the advisor part comes in! One of the great myths of real estate brokering is that agents represent everyone. Remember that real estate agents represent SELLERS. So... I found an advisor that would exclusively represent a buyer throughout the process -- D&G Property Advice. I dealt with Daniel (the “D” in D&G) directly who quickly became invaluable in our journey. D&G are experts in project managing Italian real estate transactions. They also have all kinds of connections to the financial and legal ecosystems in Italy and internationally to fill in gaps that local Italian real estate agents can’t. I have to say that finding Daniel and D&G was THE most important part of my successful purchase. The sooner you commit to having a company like D&G on your team, the better off you will be. It will be money well spent!
5. Property Viewing
OK, so this is a step that might seem difficult but really it’s not so bad. Afterall, what you are really doing is planning a vacation or two to Italy! These are just trips that might include both sightseeing and property viewing.
In my case, I had visited Cividale with my family already, so I was pretty familiar with the area and what neighborhoods are desirable. Using my short list and email, I scheduled viewings of potential properties to assess their condition, location, and suitability. Along the way some of the realtors showed that they weren’t that reliable, but in the end I was able to see 10 properties in a 4-day visit, from which I created a shortlist of 2-3 properties that I wanted to pursue.
If you are not yet familiar with a city or cities that you might be interested in, then I suggest you consider doing a pre-buying vacation trip that includes each of the cities you have in mind. My “pro tip” here would be to do the pre-buying trip in the “shoulder” or off season when airfare and hotel rates tend to be lower. Then do your viewings at a different time of year so you have a sense of how these differing seasons affect the vibe and ebb-and-flow of your target cities. In my case, I came to realize that some of my favorite restaurants in Cividale closed in the off-season. It didn’t change my decision, but that’s information I wouldn’t have known otherwise.
6. Due Diligence
Conducting thorough due diligence, including property inspections, title searches, and verifying legal documentation is important and can be complicated. Getting quotes from reputable firms is the key and while you could ask a real estate agent for help, I'd be careful there. Remember, real estate agents represent sellers and they have an incentive to not want to waste time on this step. What's more I learned that in Italy the law allows sellers to “guarantee legality” at offer contract, but that's a red herring. Better to use an independent company like D&G that will point you in the right direction. They will pay attention to zoning regulations, building permits, and any potential liabilities associated with the property for you so no need to stress about getting it right yourself!
Another learning for me from this phase of the process was about how long it might take, given the architects and/or inspection companies will invariably find something wrong that needs to be addressed before you can close. We had issues with the floor plan that was on file with the city and had to correct and refile that with them. All in all I think this step took about 3 months because the local authorities are not the speediest (again no different than any other country as far as I know). So my advice is to just be patient here - it’s a virtue for a reason!
7. Negotiating
Once you've found the perfect property, negotiate the purchase price with the seller or their representative. Your real estate agent can assist in crafting a competitive offer and negotiating favorable terms on your behalf. Be prepared to provide a deposit, typically around 10% of the purchase price, upon acceptance of your offer.
Here’s my pro tip on this subject - think ahead about making Euros available. I’m guessing most of you reading this don’t already have an Italian bank account or regularly make international money transfers. After fumbling around a couple times to deal with Fidelity Investments to transfer funds abroad, I took D&G’s advice and set up an account with Moneycorp. They act as an intermediary, have competitive foreign exchange rates and are very easy to use. This will also pay off post-purchase. Just this past week I used them to send funds from my US bank to my property manager in Italy and it took only 3 days from start to finish.
8. Closing & Legal Formalities
You will finalize the sale through a notary public, who acts as an impartial legal representative for both the buyer and seller. The notary conducts title searches, verifies the legality of the transaction, and ensures all contractual obligations are met. If you are in Italy for the closing, you will sign the deed of sale (the “rogito”) in the presence of the notary and pay the remaining balance to complete the purchase. If you are not able to be in Italy, you can delegate that responsibility through a power of attorney (POA). I delegated to D&G because I was unable to be in Italy for the closing.
A positive aspect of this stage is Italian notaries are empowered to do a lot more than their counterparts in the United States. They are actually acting as the title company, including taking possession of funds as an escrow agent. No need to worry about that. Italian notaries are legal professionals who act as public officers in Italian real estate transactions. They are also able to transact business in English and Italian. Our deed drafts as well as the final deed were presented to us in both languages.
9. Post Purchasing Considerations
After acquiring your Italian property, you will need to attend to post-purchase responsibilities such as transferring utilities, registering for property taxes, and obtaining insurance coverage. If you plan to rent out your property, familiarize yourself with landlord-tenant regulations and consider enlisting the services of a property management company.
As I mentioned above, I’ve ended up working with one of two real estate agents I met during the search process to assist with the post-purchase situation. I could not recommend this more! You will get a feel for many agents as you conduct your search so be on the lookout for ones who you think you can work well with longer term.
CONCLUSION
Buying property in Italy is a rewarding endeavor that offers the opportunity to immerse yourself in the country's rich culture, stunning landscapes, and vibrant communities. By conducting thorough research, seeking expert guidance, and navigating the purchasing process diligently, you can turn your Italian property dreams into a reality. With the right preparation and guidance from local teams like your real estate agent and a company like D&G Property Advice, owning a piece of Italy's timeless beauty can be both achievable and immensely fulfilling. Buona fortuna! (Good luck!) YOU CAN DO THIS!