How a Foreigner Buys Property in Italy

Picture a buyer at a kitchen table a long way from Tuscany, a farmhouse in the hills open on the laptop, a first message from Italy waiting for an answer. The house is easy to picture. What lies between that screen and a signature in a notary’s office is what this piece sets out.

Can a foreign national buy property in Italy?

The answer depends on citizenship. Citizens of EU States are outside the question that follows. Citizens of non-EU States can perform valid legal acts in Italy only if the condition of reciprocity is met, that is, only to the extent an Italian citizen could perform the same act in the citizen’s State. The Consiglio Nazionale del Notariato, the national council of the Italian notaries, sets the rule out in these terms.^[1]

The check is delegated to the notary. It is made case by case and, if needed, with the help of the Italian Ministry of Foreign Affairs,^[1] because the result depends on both the act and the national law of the person. This article does not name any State for which reciprocity is or is not met.

Residence-permit holders are in a different position. According to the Consiglio Nazionale del Notariato, lawfully resident non-EU citizens who hold a valid residence permit (permesso di soggiorno) or a long-term residence permit can perform legal acts regardless of reciprocity, if they show the document to the notary before the act.^[1] The permit types that the Ministry of Foreign Affairs lists are in “Can Americans Buy Property in Italy?”.

What is the codice fiscale, and how is it obtained?

The Italian tax code comes next. Almost every step of a purchase needs a codice fiscale. A person who does not have one requests it on form AA4/8 from the Agenzia delle Entrate, the Italian revenue agency, personally or through a delegate, at any of its offices.^[2]

Persons resident abroad can also submit the form to the Italian consulate in their country of residence, whose procedure varies.^[2] The Italian Embassy in Lisbon describes the consular route as a residual one, for a foreigner who does not need to travel to Italy and cannot delegate anyone.^[3] The application states the reason for the request and attaches an identity document.^[3]

How do the offer and the preliminary contract work?

A purchase usually begins with a written offer, the proposta d’acquisto, often with a small deposit. What an accepted offer amounts to depends on what it says and on the parties’ intention. An offer that the maker has bound himself or herself to keep open cannot be revoked during that time,^[4] and a contract is concluded when the offeror learns of the acceptance.^[5] The effects of each document are set out in “Offer, Preliminary Contract, Deed: Who Is Bound, and When”.

The parties then sign a preliminary contract, the compromesso or contratto preliminare, that fixes the price, the terms and any conditions on which the sale depends. It is a binding contract to conclude the sale later. It is registered and taxed, as “The True Cost of Buying a Home in Tuscany” describes. If it is made by public deed or an authenticated private deed, it can also be transcribed in the land registry, which gives the buyer priority over later entries against the seller.^[6] Those effects lapse unless the deed of sale or a related act is transcribed within one year of the date agreed for the deed and in any case within three years of the transcription.^[6]

Then comes the deposit. The contract often provides for a caparra confirmatoria, a confirmatory deposit. Under the Civil Code, if the party who gave the deposit is in breach, the other may withdraw and keep it. If the party who received it is in breach, the other may withdraw and demand double. The party not in breach may instead ask for performance or termination of the contract, and then damages follow the general rules.^[7] The Joint Sections of the Court of Cassation have held that the right to withdraw and keep the deposit requires a breach that is attributable to the other party and not of slight importance.^[8] The Civil Code sets no amount: the size of the deposit is agreed by the parties.^[7]

What happens between the preliminary contract and the deed?

Checks on title, cadastral and planning status and charges on the property are described in “Due Diligence: What Sinks a Purchase”. Three further points apply to every purchase.

The first is the energy certificate, the APE (attestato di prestazione energetica). The seller must make it available during negotiations and deliver it. For the preliminary contract delivery is all that is needed, while the deed must contain a clause stating that the buyer has received the information and must attach the certificate.^[9] If the clause or the attachment is missing, the parties are jointly liable for an administrative fine of €3,000 to €18,000, but the deed stays valid.^[9][10]

The second is payment. At the deed the parties declare how the price was paid, and whether a mediator was used, a subject covered in “The Bank Account and the Source of Funds”. At the request of at least one party, the notary holds the price in a dedicated account until registration and transcription, as “The True Cost of Buying a Home in Tuscany” explains.

The third is financing, which “Mortgages for Non-Resident Buyers” covers.

What happens at the deed?

The deed, the rogito, is signed before a notaio, a public official who is not the representative of either party. The notary identifies the parties, checks their capacity and the seller’s title, verifies the legal formalities and informs the parties of the deed’s legal consequences.

The balance of the price is paid, the deed is read and signed, and the notary then registers it with the Agenzia delle Entrate and transcribes it in the land registry. Transcription makes the transfer effective against third parties.

Can a buyer sign through a power of attorney?

A buyer who cannot attend can be represented by an agent under a procura, a power of attorney. The power must be in the form required for the contract itself: a public deed or an authenticated private deed.

If it is made abroad, it must normally carry an Apostille under the Hague Convention of 1961, or legalisation, unless a treaty exempts it, and be translated into Italian.^[11] A power made before an Italian consul is an Italian public act and needs neither the Apostille nor a translation. The notary who will sign the deed assesses whether the document is sufficient, so its text is normally settled with that notary beforehand.

How long does a purchase take?

The time a purchase takes is agreed between the parties in the preliminary contract. It depends on the checks, on any loan, and on the parties’ availability. Individual transactions vary, and notaries and public offices apply the rules case by case.

Does a buyer need a lawyer?

The notary takes part in every purchase, but the notary acts for neither party. Whether a buyer takes separate advice is the buyer’s decision.