You have been visiting Italy for years with your family, returning each year for its rich culture, great food and incredible landscapes. Now, you have decided to take the leap and purchase a second home in the vacation country you love. It turns out that real estate in Italy is hot right now as demand continues to increase and foreigners flock to the Italian shores. Some villages will even pay you to live in Italy. If you are considering buying a second home in Italy, the first question is likely to be: Where do I begin? Whether you plan on moving to Italy or looking to buy it as an investment property as well, there are a few considerations to keep in mind when purchasing a second home in Italy.
Do The Calculations On Affordability
A key question to answer when buying a second home abroad is whether you can afford it. Before you begin exploring locations in Italy for a second home, establish your budget. Your budget will determine the locations you can consider. For instance, a seaside home in Sardinia can cost €200,000 or more. A good tip is to research property price trends across Italy to see the current average prices in different regions. During June 2023, Trentino Alto Adige topped the list at €3,150 while the Calabria region cost the lowest at €924. If you prefer a bit of luxury and sun-kissed locations along southern Italy like Salento and Polignano A Mare, be prepared to splurge a bit more as the average home can cost around €1,000,000.
Check Restrictions on Residence And Ownership
Generally, Italy does not have restrictions on foreigners purchasing second homes. You should, however, check that your home country does not have any restrictions on residents buying second homes overseas. If you require financing or purchase a property in Italy, you are required to have a bank account in Italy and codice fiscale (tax number).
You should also have any property evaluated before signing the sale purchase agreement to verify the prices and that there are no ongoing legal problems. It is also recommended that you check with the Land Registry that the property is registered.
Prepare Yourself For The Taxes and Additional Expenses
Typically, overseas buyers spend up to 12 percent of their home purchase price on taxes for a home in Italy. However, the additional cost considerations don’t end there. There is also the cost of maintaining your second home in Italy. You can estimate to spend between 1-3 percent of your home’s market value on home maintenance each year. This includes the annual payment of waste removal and municipal tax. There will also be the estate agency’s costs, registration tax, and VAT charges. The VAT charge only applies to new build properties.
Buying a second home in Italy comes with both costs and benefits. Take the time to understand the process. The good news is: you are a step closer to owning a piece of heaven in the Italian sunshine.
