Italian homes average €2,188/m² asking — half of what prime US metros cost — and purchase taxes are charged on an even lower official value. The catch is process, not price. Here's the 2026 picture for foreign buyers and renters.
Figures verified 8 July 2026Italy allows US and Canadian citizens to buy property under reciprocity rules, with no residency requirement and no foreign-buyer surcharge. You need a codice fiscale, an Italian bank account in practice, and a notary (notaio) — the notary is a public official who runs the closing, verifies title, and collects the taxes. Budget roughly 1–2.5% for notary fees plus agency commission (commonly ~3% + VAT per side) on top of the tax.
| Scenario | Tax | Charged on |
|---|---|---|
| Resale home, private seller — second home | 9% registration tax (+€50 + €50 fixed) | Cadastral value |
| Resale home, private seller — prima casa | 2% registration tax (min €1,000) | Cadastral value |
| New build from developer — second home | 10% VAT (+€600 fixed) | Purchase price |
| New build from developer — prima casa | 4% VAT (+€600 fixed) | Purchase price |
Standard contracts run 4+4 years (free-market) or 3+2 (agreed-rent); both must be registered with the Agenzia delle Entrate — an unregistered lease is a red flag, and you'll need the registered contract for your permesso renewals and residency registration. Expect a 2–3 month deposit and agency fees of about one month's rent. Rents average €14.45/m² nationally, but the spread is wide: Milan is Italy's priciest market, while much of the south rents below €10/m².
Proposta, compromesso, rogito — the three stages, who holds your deposit, and where deals die.
How the taxable value is calculated, and why the tax bill on a €300,000 home can be surprisingly small.
4+4 vs 3+2 contracts, registration, deposits, and getting a lease before you have a permesso.