1 euro Properties in Italy

5 december, 2023

It has already been a few years since Italy has attracted the international interest with the unique possibility to purchase a real estate for the symbolic sum of 1 euro. There are now many Italian municipalities that open calls for tenders every year which aim to counter the depopulation of small residential centers. This opportunity is particularly attractive for the foreigners who would like to own a property in some picturesque Italian village.

How does the purchase of 1 euro property work for foreigners?

First of all, it should be specified that the 1 euro property purchase is linked to certain obligations for the buyer.

The requirements to participate in the calls for tenders vary from Municipality to Municipality but in general they all require:

  • Restructuring plan to be submitted within a certain period of time – usually from 2 months to 1 year from the time of purchase. The plan must indicate the planned works to redevelop the property making it habitable. Furthermore, after obtaining the relative permits for the works, the last ones must start within a certain period of time established by the Municipality.
  • Residential purposes or tourist-business purposes. Some announcements allow to use the 1 euro properties both as a main residence and for tourist or business purposes. The intentions of the buyer, however, should be communicated to the municipality at the time of presentation of the purchase proposal as the Municipality takes into consideration the needs for which the property is purchased and for the assignment.
  • Costs to be paid by the buyer. The 1 euro properties buyers are responsible for all the costs linked to the property, to the renovation works, to the notary fees and to all the utility contract transfers. For this reason before proceeding with the purchase proposal it is necessary to take into consideration all these costs.
  • Guarantee policy. Usually as a guarantee of the commitment undertaken to complete the property renovation the municipality requires a sum from 1,000.00 to 5,000.00 euros. This policy expires at the end of the works.

In addition, in order to proceed with the purchase of a property in Italy the foreign citizens should ask the assignment of an Italian tax code number which is used for the calculation and the payment of all taxes. The tax code could be requested in the country of origin or residency at the Italian Consulate or, once in Italy, at the Revenue Agency.

The 1 euro property buyers, therefore, must be aware that by making the proposal (often online) to the Italian Municipality of interest, they assume the obligation to cover all expenses as well as carrying out the renovation works within a certain period of time. Often the houses for sale are in a state of neglect and deterioration and major renovations are needed. But it is also important to know that the buyer could take advantage of specific concessions that the Italian state offers in case of such works.

The 1 euro property purchase procedure including the calls for tenders, the renovation works planning and the application for subsidies requires a careful examination of the necessary documents, as well as the necessary requirements for the candidates and for this reason our law firm invites the foreign citizens to consult trusted professionals to evaluate the investment even before presenting their purchase proposal.