Finding cheap property in Italy

If you’re thinking about buying property in Italy, then here are some important facts you need to know:

1. Foreigners can buy property in Italy without restrictions. This is good news if you’re a non-EU resident and hoping to buy your dream Italian home.
2. Demand for property has increased when it comes to foreigners looking for holiday homes. In 2023, there was an increase in purchases by foreign buyers reaching 13.5% compared to just 10.9% in 2019.
3. If you’re a landlord and want to invest in Italian real estate, then the average rental yield for 2024 stands at 7.04%. Rental yields are highest in cities such as Rome, Milan and Florence, however city properties are generally more expensive than rural or seaside locations.
4. Over the last five years Italy’s house prices have increased by 8.2%, which is good if you’re looking to buy now, as prices are stable, however, if you’re planning to sell quickly, you might not make a lot of profit.
5. If you’re prepared to carry out restoration work, then there is scope for finding a great deal with Italy’s ‘Case a 1 Euro’ scheme. This is where dilapidated homes in rural areas are sold for just €1 if the buyer commits to restoring them. Read on for more information about this Government scheme.

Before planning to buy a property in Italy, there are some essential steps you need to take. We have summarised a few below, but make sure you talk to a property professional or lawyer, so you know exactly what’s required of you.

• You need an Italian tax identification number from the tax office. You can apply for this whilst in the UK from the Italian consulate or by visiting the local municipality office in your specific Italian region.
• You need an Italian bank account to buy a property in the country. To open this account, you’ll need proof of identity and address, a tax ID number and proof of income.
• If you need a mortgage**, you have the choice of securing a loan from an Italian bank or one in your home country. Make sure you’ve researched your loan options prior to agreeing a property sale.

The above points are merely a rough guide and may not include all the important steps before purchasing a property. If you need advice, contact our iad Overseas property consultants and they can connect you with relevant professionals.

Prior to starting your search, it’s a good idea to think about what kind of region you want to live (or buy) in. Do you yearn for a life by the sea? Would you like to be near the hustle and bustle of the city? Or is a quiet countryside life the right move for you?

Once you know what you’re looking for in terms of lifestyle, you can narrow down the regions in which to start your search.

Just like other countries, if you’re looking for a city pad, then you can expect to pay more. Cities such as Rome and Milan are heavily populated, and property comes with a hefty price tag. Popular seaside destinations and the Italian Lakes also command high property prices.

So where are the cheapest areas to find your Italian hideaway? We’ve selected some regions where you can get the most value for your money.

Located in the centre of Italy (but considered part of Southern Italy), and just 31 miles from Rome, Abruzzo offers buyers charming hilltop towns, national parks and picturesque properties.

House prices in this part of the country have always been lower compared to the wider country and currently (September 2024) the average price for a property is €1,368 (£1,139) per m2. When compared to popular cities such as Rome where prices are €3,382 (£2,816) per m2 or Verona where prices are €2,572 (£2,141) per m2, it’s clear that potential buyers could find themselves a real bargain in this lovely region.

Another region in Southern Italy, here house prices are at €948 (£789) per m2 in September 2024. This mountainous region is at the tip of the Italian ‘boot’ and home to some stunning coves and beaches. With towns such as Pizzo (famous for its gelato) and the clear waters of San Nicola Arcella, Calabria is a hidden gem with plenty to offer short and long-term visitors.

Italy’s largest island and known throughout the world for being home to Europe’s tallest (and active) volcano, the majestic Mount Etna, Sicily is not only a top vacation spot but it’s also an ideal location to find an affordable property. Towns such as Ragusa and Caltanissetta offer properties as low as €732 (£609) per m2.

If you’re hoping for a taste of Sicilian cuisine and culture, then the average property price in the region is listed at €1,163 (£968) per m2 in September 2024.

At the foot of the Alps, Piedmont in northwestern Italy is the second largest region (after Sicily) and is known for its wine production. With acres of lush green hills and vineyards, the views are simply breathtaking. Its landscape has been described as similar to Tuscany but without the large-scale tourism.

Average house prices in the area are around €1,378 (£1,147) per m2.

What can you buy for €1? Not much these days! However, if you’re in the market for an Italian hideaway and up for a restoration project, then your dream house could cost as little as €1 with this popular government scheme.

As a way to promote sustainability and preserve Italian heritage, the Government launched the ‘Case a 1 Euro’ scheme. This is where old and/or dilapidated houses are sold for as little as €1 in certain parts of Italy. It is also a way to encourage the growth of the population in towns and villages that have become less popular over the years.

Foreign buyers are allowed to buy €1 properties if they have an Italian tax code and if they are willing to commit to the restoration and renovation of the property.

There are timelines a buyer must stick to when taking part in this scheme. For example, they must start renovation works within two months of obtaining all the relevant permits and must get a revaluation of the premises within 365 days of the purchase.

To assist with what are often quite difficult restorations, the Government also offers renovation bonuses and tax reductions to buyers.

Many of these properties are in Southern Italy in areas such as Sicily, Sardinia, Calabria, Molise and Tuscany.

Although the scheme is marketed as a €1 house purchase, often these homes are sold at auction so may cost considerably more.

If you’re hoping to secure a property in Italy which costs less than the market value, then you might want to consider the judicial auction process.

Properties are put up for auction when an owner defaults on a loan and the bank or creditor takes possession of the property. The creditor then asks a judge to demand payment from the owner, if they can’t pay the property is put up for auction to pay off the debt.

Although auctions give you access to properties under market value (often starting at around 5 to 10%  less), the process can be very complicated. It requires a strong understanding of the law in case a debtor tries to contest the sale or any other legalities that arise. Often the sale needs to go through quickly (cash purchases are normally the fastest way to purchase am auction property) which can be difficult if you’re waiting to get a mortgage.

So, while foreign investors are allowed to take part in such auctions (as long as they have all the relevant tax and bank information), it isn’t the easiest way to buy a cheap property.

If you’re looking for property in Italy, then our team is here to help. Our iad Overseas property consultants are fluent in Italian and English and are very knowledgeable about the country when it comes to buying a property.

From investors to expatriates, our team can help you find your cheap Italian home. Get in touch with us today to start your search.

** Credit is a commitment and must be repaid.