Illegal extensions, mismatched cadastral records and a nationality test most buyers have never heard of — what actually trips up foreign buyers in Italy.
Italy draws property buyers with its historic centres, coastline and a buying process that, on paper, looks straightforward: one contract, one notary, one deed. In practice, several of the real risks are specific to Italy and rarely explained clearly to foreign buyers before they sign. Here are six worth understanding before you commit.
1. Unauthorized construction (abusivismo edilizio)
Extensions, converted attics, enclosed terraces and internal walls added without planning permission are common, especially in older buildings and in the south. Buying a property with undisclosed abusivismo can mean fines, an order to demolish the unauthorized part, and real difficulty reselling until it's regularized. Regularizing it after the fact (sanatoria) typically costs anywhere from a few thousand euros to well over €50,000, depending on the scale of the work and the municipality.
How to reduce it. Never rely on the seller's word that "everything is in order." Have an independent geometra or technical surveyor compare the registered floor plan against the property as it actually stands, before you sign a preliminary contract.
2. Cadastral records that don't match the property
Italy's land registry (catasto) holds the official floor plan and the cadastral category that determines your property tax. After decades of small renovations, it's common for the registered plan to no longer match reality — a knocked-through wall, a converted room, an extra bathroom. This is a legal defect, not a cosmetic one: it can block a sale, and once corrected, it can push the property into a higher cadastral category and raise your annual tax bill.
How to reduce it. Request a visura catastale and have it checked against the physical property (conformità catastale) as part of due diligence, not as a formality at the notary's desk.
3. The reciprocity test for non-EU buyers
EU citizens can buy freely. Non-EU citizens are subject to Italy's "condizione di reciprocità": you can buy in Italy only if Italians can buy equivalent property in your home country. In practice this clears easily for US, UK, Australian, Japanese, Swiss, Brazilian and most Latin American buyers — but Canada is a notable exception, because Canada's 2023 restriction on foreign buyers cuts the other way under the reciprocity rule. The notary checks your nationality against the Foreign Ministry's (MAECI) official tables, which normally takes two to three weeks.
How to reduce it. Confirm your nationality's status before you commit to a purchase timeline, not after — a reciprocity check that comes back negative can derail a deal that's already under contract.
4. Both sides pay the agency commission
Unlike markets where only the seller pays, in Italy it's standard for both buyer and seller to pay the agent's commission — typically around 3% plus 22% VAT on each side. Buyers who don't budget for this are often surprised by the total cost on top of the purchase price.
How to reduce it. Ask the agency for its exact commission rate in writing before you make an offer, and build it into your total-cost calculation from the start.
5. IMU applies in full — there's no second-home break
Non-residents and owners of a second home pay IMU, Italy's municipal property tax, every year, with no exemption. The rate is set by each municipality within a national band and applied to a revalued cadastral value, not the market price — so it can look low relative to what you paid, but it's a permanent annual cost that many buyers forget to model.
How to reduce it. Ask your notary or a local accountant (commercialista) for the specific comune's current IMU rate before you buy, and treat it as a recurring cost, not a rounding error.
6. The flat-tax regime is for a specific kind of buyer, not everyone
Italy offers a flat annual tax on foreign-source income for people who move their tax residence to Italy after being non-resident for at least nine of the previous ten years. It's a genuine benefit for some relocating high-net-worth buyers, but it is not a general property-tax break, and the entry price has risen sharply — from €100,000 a year when it launched, to €200,000 in 2024, to €300,000 for anyone opting in from 2026 onward (plus €50,000 per additional family member). Most buyers simply won't qualify or won't find it worthwhile, and the regime says nothing about IMU, registration tax or agency fees.
How to reduce it. Treat the flat-tax regime as a specialist relocation question for a tax adviser, separate from the basic cost of buying and owning property in Italy.
FAQ
Can foreigners buy property in Italy? EU citizens buy freely; most non-EU citizens can too, subject to the reciprocity check, though a handful of nationalities are currently excluded. Do I need an Italian bank account? Not strictly, but it makes paying utilities, IMU and running costs far easier. Is a notary always required? Yes — the notaio is mandatory, independent of both parties, and responsible for registering the deed. Does the flat tax reduce my property tax? No, it applies to foreign-source income, not to IMU or the taxes due on the purchase itself.
How we help
We check unauthorized construction and cadastral conformity before you sign, confirm your reciprocity status early, and model the full cost — agency fees, registration tax or VAT, and ongoing IMU — so the number you plan around is the real one. Informational only, not legal or tax advice; Italian tax rules change and your specific situation should be confirmed with a qualified notaio or commercialista.