A Practical Guide for Irish Buyers Purchasing Property in Italy
Introduction
Italy’s sun‑kissed coastlines, historic towns and world‑renowned cuisine make it a dream destination for many Irish families and investors. Yet buying a home abroad can feel daunting, especially when you must navigate a different legal system, language and tax regime. This guide breaks down everything Irish buyers need to know – from securing a codice fiscale to understanding Italian property taxes, mortgages, and the most popular regions for purchase. By the end you’ll have a clear roadmap to turn your Italian property ambition into reality.
1. Why Irish Buyers Choose Italy
| Appeal | Typical Irish Buyer |
|---|---|
| Lifestyle – Mediterranean climate, food, culture | Retirees and remote‑workers seeking a slower pace |
| Investment potential – price growth in southern regions | Investors looking for holiday rentals |
| Proximity to the UK & Ireland (short flights) | Families wanting a second home for holidays |
| Strong legal protections for foreign owners | Anyone wanting a secure, long‑term asset |
The Italian market has shown steady price growth of around 3 % in 2024, with demand rising across both northern cities and southern countryside properties. This makes it an attractive option for both personal use and capital appreciation.
2. Understanding Italian Property Laws for Foreigners
2.1 Who Can Buy?
- EU citizens (including Irish) can purchase property without restriction.
- A valid passport or ID, an Italian tax number (codice fiscale), and an Italian bank account are the only formal requirements.
- No residency or “Golden Visa” is needed for the purchase itself, although a separate visa may be required if you plan to live there long‑term.
2.2 The Role of the Notary
Italian law mandates a public notary (notaio) to oversee the transaction. The notary:
- Verifies the seller’s title and ensures there are no liens.
- Calculates and collects registration, cadastral and mortgage taxes.
- Registers the deed (rogito) and updates the land registry.
The buyer traditionally selects and pays the notary’s fees (usually 1 %–2.5 % of the purchase price).
2.3 Legal Representation
While not compulsory, hiring a bilingual solicitor or property lawyer is strongly advised. They will:
- Translate contracts and ensure clauses protect your interests.
- Conduct due‑diligence checks on the property’s zoning, building permits and any outstanding debts.
- Guide you through the proposta d’acquisto (letter of intent) and the contratto preliminare (pre‑sale agreement).
3. Financial Preparation
3.1 Codice Fiscale and Bank Account
- Apply for a codice fiscale at the nearest Italian consulate in Ireland or through an Italian tax office. Expect a processing time of 2‑3 weeks.
- Open an Italian bank account (or a Euro‑denominated account with an Irish bank that offers SEPA transfers). This simplifies paying taxes, notary fees and mortgage instalments.
3.2 Mortgage Options for Irish Buyers
| Provider | Typical LTV* | Approx. Interest Rate (2025) |
|---|---|---|
| Italian banks (e.g., UniCredit, Intesa Sanpaolo) | 50 %–60 % for non‑residents | 3.5 %–4.5 % (fixed 5‑10 yr) |
| International lenders (e.g., HSBC Expat, BNP Paribas) | Up to 70 % (subject to stricter criteria) | 3.2 %–4.0 % |
| Irish mortgage brokers with cross‑border products | 60 %–70 % (rare) | 3.0 %–4.2 % |
*LTV = Loan‑to‑Value. Non‑resident borrowers usually receive lower LTVs than Italian citizens.
Tips for securing a mortgage:
- Prepare a full dossier – proof of income, Irish credit report, tax returns, and the codice fiscale.
- Consider a local mortgage broker who speaks Italian and can negotiate with banks on your behalf.
- Factor in currency risk – the euro‑pound exchange can affect repayments. Many Irish buyers use forward contracts or specialist FX services (e.g., Wise) to lock in rates.
3.3 Additional Costs to Budget
| Cost | Typical Range |
|---|---|
| Registration tax (prima casa) | 2 % of purchase price (up to €1 000) |
| Land‑registry, cadastral & mortgage taxes | €168 flat fee or 1 % of price |
| Notary fees | 1 %–2.5 % |
| Legal fees (solicitor) | 1 %–2 % |
| Real‑estate agency commission | 3 %–8 % (often split between buyer & seller) |
| Survey/inspection (Geometra/Architetto) | €300‑€1 200 depending on size |
| Property insurance (building) | €200‑€600 per year |
Overall, budget an extra 8 %–12 % of the purchase price for these ancillary expenses.
4. Step‑by‑Step Buying Process
| Step | What to Do | Who’s Involved |
|---|---|---|
| 1. Define Budget & Financing | Set purchase ceiling, apply for mortgage pre‑approval | Buyer, mortgage broker |
| 2. Obtain Codice Fiscale & Bank Account | Apply at Irish consulate or in Italy | Buyer |
| 3. Property Search | Use portals (Idealista, Immobiliare) and local agents | Buyer, estate agent |
| 4. Viewings & Due Diligence | Attend viewings, request cadastral extracts, check utilities | Buyer, agent, solicitor |
| 5. Submit Proposta d’acquisto | Formal letter of intent, often with 10 % deposit | Buyer, seller, agent |
| 6. Hire Notary & Lawyer | Choose notary, sign contratto preliminare | Buyer, notary, solicitor |
| 7. Survey/Inspection | Engage Geometra or Architetto for structural check | Buyer, surveyor |
| 8. Finalise Mortgage | Submit appraisal, sign loan agreement | Buyer, lender |
| 9. Sign Rogito (Deed) | Pay remaining balance, taxes, and fees; notarised transfer | Buyer, seller, notary |
| 10. Register Property | Notary files deed with land registry; you receive title | Notary |
| 11. Post‑Purchase | Set up utilities, insurance, and if needed, renovation permits | Buyer |
All contracts are drafted in Italian; having a bilingual solicitor ensures you understand every clause before signing.
5. Taxes and Ongoing Costs
5.1 Property Taxes
| Tax | Rate (2025) | When Paid |
|---|---|---|
| IMU (Imposta Municipale Unica) | 0.4 %–0.76 % of cadastral value (varies by municipality) | Annually |
| TASI (Tax on Indivisible Services) | Often bundled with IMU; up to 0.25 % | Annually |
| IRPEF (Income Tax on Rentals) | 23 %‑43 % on net rental income (if you let the property) | Annually |
| Capital Gains Tax | 26 % on profit if sold within 5 years (exempt after 5 years) | At sale |
5.2 Irish Tax Implications
- Foreign Income Reporting: Rental income from Italy must be declared on your Irish tax return. You can claim a credit for Italian tax paid to avoid double taxation (Ireland‑Italy tax treaty).
- Capital Gains: Gains realised on the sale of an Italian property are taxable in Ireland, with a credit for any Italian CGT paid.
- Wealth Tax: Ireland does not have a wealth tax, but you must disclose overseas assets on the Form 11 self‑assessment.
Consult a cross‑border tax adviser to optimise your situation.
6. Choosing the Right Location
6.1 Popular Regions for Irish Buyers
| Region | Typical Price (€/m²) – City Centre | Highlights |
|---|---|---|
| Tuscany (Florence, Siena) | €5 500‑€7 500 | Scenic countryside, wine, art |
| Lazio (Rome suburbs) | €4 500‑€6 500 | Proximity to capital, transport |
| Lombardy (Milan outskirts) | €5 000‑€8 000 | Business hub, excellent infrastructure |
| Puglia (Alberobello, Lecce) | €2 500‑€3 500 | Affordable seaside, growing tourism |
| Umbria (Perugia, Assisi) | €2 800‑€4 000 | Quiet, historic towns, lower taxes |
6.2 Factors to Consider
- Purpose: Holiday let vs. primary residence – affects location, rental yield, and tax treatment.
- Connectivity: Proximity to airports (e.g., Rome Fiumicino, Milan Malpensa) and high‑speed rail.
- Renovation Potential: Older farmhouses in the south can be bought cheaply but may need costly upgrades.
- Local Services: Healthcare, schools (if moving with family), and English‑speaking community.
7. Finding Property and Working with Agents
7.1 Online Portals
- Idealista.it – comprehensive listings, price trends, and virtual tours.
- Immobiliare.it – strong regional coverage, especially in the north.
- Casa.it – user‑friendly filters for price, size, and amenities.
7.2 Engaging a Local Agent
- Look for agents who are members of FIAIP (Italian Federation of Real Estate Professionals).
- Request references from other Irish or UK buyers.
- Clarify commission structure – typically 3 %–5 % of the sale price, payable by the seller but sometimes shared.
7.3 Using an Irish Intermediary
Many Irish buyers hire a home‑based property consultant who liaises with the Italian agent, translating documents and coordinating viewings. This can reduce language barriers and streamline the process.
8. Common Pitfalls and How to Avoid Them
| Pitfall | Prevention |
|---|---|
| Scams or fraudulent sellers | Verify title at the land registry; never transfer money before the notary is involved. |
| Undisclosed debts or liens | Conduct a full visura catastale and visura ipotecaria through your solicitor. |
| Unexpected renovation costs | Obtain a detailed building survey; request quotes for any needed works before signing. |
| Currency exchange losses | Use a specialist FX provider (e.g., Wise) to lock in rates and avoid hidden bank margins. |
| Misunderstanding tax obligations | Engage a cross‑border tax adviser early; keep all receipts for deductible expenses. |
9. Moving In and Managing Your Italian Home
9.1 Setting Up Utilities
- Electricity & Gas: Enel (north) and Acea (central) are main providers. Opening an account can be done online with your Italian tax number.
- Water & Waste: Managed by local Comune; registration is usually part of the notary’s hand‑over paperwork.
- Internet: Providers such as TIM, Vodafone Italy and Fastweb offer broadband; many offer English‑language support.
9.2 Insurance
- Building Insurance is mandatory for mortgage borrowers and strongly recommended for all owners. Typical premiums range €200‑€600 annually.
- Contents Insurance protects personal belongings; consider a policy that covers both Italy and Ireland for travel‑related claims.
9.3 Rental Management (if applicable)
- Register with the local Comune for short‑term tourist rentals; obtain a licence di locazione turistica where required.
- Hire a property management company to handle bookings, cleaning, and compliance with Italian tax reporting.
9.4 Seasonal Maintenance
- In southern regions, winter heating checks and summer cooling maintenance are essential.
- Regularly inspect the roof, drainage, and any historic stonework to prevent water ingress.
Conclusion
Buying a home in Italy is an exciting venture for Irish expats and investors, offering lifestyle benefits and solid long‑term value. By securing a codice fiscale, understanding the mandatory notary process, budgeting for taxes and fees, and working with bilingual professionals, you can navigate the market with confidence. Whether you’re eyeing a Tuscan villa, a Ligurian seafront apartment, or a Piedmont chalet, the steps outlined here will guide you from dreaming to holding the keys in your hand.
Ready to start your Italian property journey? Begin by obtaining your codice fiscale, explore reputable property portals, and reach out to a bilingual solicitor who can turn your Mediterranean dream into a secure investment.