The Real Cost of Buying a House in Italy (2026 Breakdown)

As of 2023 average prices for apartments in Italy come in at €1,850 per sqm. As always Rome and Milan are among the highest priced, with annual price growth anticipated to come in at between 3% to 5% a year for the next few years until 2026. Buyers should also be mindful of the notary fee, which is currently sitting pretty at around 2% to 3%, as well as a registration tax of 9% (which may decrease to 4% on purchase of a second home) on top of it all, so getting familiar with Italian real estate purchasing a bit more complicated as they will need to get hold of a Codice Fiscale in order to be able to conclude on the purchase.

• Average house price in Italy (2023): €1,850/m²
• Rome: €3,200/m². Milan: €3,900/m². Naples: €2,500/m²
• Projected annual price increase (2026): 3-5% in urban areas
• Notary fees are approximately 2-3% of property price
• Registration tax is 9% for second homes, 2% for primary residences

While house prices in Italy are still reasonable when compared to other European countries it's also important to bear in mind the extra costs and bureaucracy you may encounter.

Current House Prices in Italy (2023)

The Italian housing market is complex and varied, largely due to the rich history and culture of each area. As of 2023, the average house price per square meter is €1,850 in Italy, which works out to about €1,850 or 3,590,000 Lira or $2,000 USD. In the capital city of Rome, you can expect to pay up to €3,200/m² (approximately 6,208,000 Lira or $3,460 USD). This rises to €3,900/m² in Milan. Naples is the more affordable of the three cities with prices averaging out at €2,500/m² (approximately 4,850,000 Lira or $2,700 USD).

The figures reveal the stark differences in property prices between cities and regional areas with city land prices set to hold strong due to high demand and limited supply. In contrast, towns and rural areas offer more affordable opportunities for those looking to relocate from the cities in search of a slower paced lifestyle and lower cost of living.

Projected Trends for 2026

Looking ahead to 2026 real estate market forecast, the Italian real estate market is expected to experience an overall annual increase of 3-5%. Italian cities such as Rome and Milan will continue to see significant interest from locals, employees and from foreign workers and expatriates working for multinational companies in Northern Italy. The popularity of beaches and picturesque views will also continue, with strong demand for properties in picturesque Tuscany and Amalfi Coast and other similar locations in Italy.

The real estate market in Italy is witnessing a strong upward trend in prices due to ever-increasing demand from tourists as well as foreigners wishing to relocate there. This is due to a wide range of factors, including the history, culinary traditions, as well as the unique climate found in the country.

Buying in up-and-coming up areas of up-and-coming cities like Milan or Rome is a smart option, as new infrastructure projects and gentrification are beginning to up values.

Requirements for Buying Property in Italy

Buying property in Italy involves a number of steps. A Codice Fiscale, which is Italian tax code number, is required for the purchase and sale of any immovable property. This tax code number can be obtained from the Italian Revenue Agency and serves as an identity number for tax purposes.

Opening a bank account in Italy is highly recommended in order to have a local account in which to pay the mortgage and bills. This and the notary fees, that amount to 2-3% of the property price, need to be considered at the time of purchase. The transfer tax, also known as Stamp Duty, depends on whether the purchase is for a primary or secondary home. The transfer tax on second homes is set at 9% while it amounts to 2% for the main residence.

Common Mistakes When Buying Property in Italy

When searching for a property to buy, it’s quite natural to get caught up in the search and to simply look at the initial purchase price. Buyers then inevitably underestimate all the extra costs associated with buying a property. These may include notary fees, registration taxes and fees charged by the real estate agency. Therefore, it’s vital to budget all of these when buying a property.

Poor Location Understanding the local zoning laws and regulations for the area you’re purchasing in can also be a mistake. Local zoning and regulations can vary greatly from one area to another and can impact any renovations you’re planning or the use of your new property. Another common mistake isn't budgeting enough for ongoing property maintenance and repairs. This is especially true with older properties that can require more frequent and costly repairs to keep them in good condition.

it's essential to seek advice from a solicitor local to your area or a local estate agent who is well-versed in Italian real estate legislation to steer you clear of any complications which could arise.

Cultural Tips for Buying a House in Italy

The article explains that there are several cultural considerations to be aware of when purchasing real estate in Italy. In general, negotiation of the selling price is expected, and the initial offer to the real estate agent is always lower than the advertised “asking price”. This gives you an opportunity to negotiate in a fair and constructive manner.

Although often no more than a casual amble through the property, in Italy viewings are sometimes less formal and the vendor or agent may just show round rather than carry out a detailed tour. We always recommend taking an interest in the property and the local area as it really helps to build up a rapport with vendors and increases the chances of success.

Comparisons with Other Countries

Real Estate in Italy Italian real estate offers the best of both worlds when it comes to affordability and charm when compared to other countries in Europe. If you compare the prices to neighboring France and Switzerland for example, you'll find that Italy is generally an affordable option. Although you should be aware that some property prices in popular tourist spots can rise. Land and property prices are lower for rural areas and towns which aren't as popular with tourists.

Prices in Italy are higher than in countries such as Portugal or Spain, where it’s possible to buy in many cases a similar asset for less. Nonetheless, in Italy you can buy antique, historic and impressive real estate with a very high standard of quality and more than acceptable for the additional expense. Therefore for many buyers, whether as an investment or to live full time, Italy presents good value for money and a unique blend of history and lifestyle.

2026 Updates in Italy's Housing Market

Eco renovation cashback coming in Italy in 2026 we're now only a couple of years away from 2026 and as things stand the new Italian government will be introducing cashback schemes to help fund the eco renovation of existing homes. The renovations should help to create more sustainable housing stock in Italy.

The shift in remote work trends and the rise of the digital nomad are bringing new pressure to bear on the global property market. Tuscany, with its incredible scenery and lively cities is a popular destination for would-be remote workers who are looking for a better work life balance. As remote work becomes more mainstream it's likely that real estate markets in cities with a high tech focus will start to feel the impact of a new type of worker.

Practical Information for Buyers

Real estate agents in Italy are called agenti immobiliari. A commission usually amounts to around 3% of the selling price of the house, and this commission is paid in equal parts by buyer and seller.

One tax which will arise in your mind as you begin your home buying adventure is the property tax. In Italy it's called IMU, and is based on local costs (calculated per square metre) and land value. You should consider this cost when trying to decide in which area you want to buy as, obviously, it can have a major impact on affordability.

Purchase the property in an area with low IMU rates and also look for any government incentives for carrying out the renovation in a sustainable way.

Cost Breakdown Table

Frequently Asked Questions About Italy

What is the average house price in Italy?

As of 2023, the current average rate is of €1,850 per square meter. However, costs can vary greatly depending on the location, such as Rome and Milan, which tend to be more pricey.

Can foreigners buy property in Italy?

Yes, foreigners may buy real estate in Italy. In order to purchase property, you'll need a Codice Fiscale, which is the Italian tax code.

What are the additional costs when buying a house in Italy?

In addition to the price of a property, you have to factor in the costs of the notary, the registration taxes and the agent’s commission.

How does Italy's property market compare to other European countries?

Cost of Studying in Italy Italy is relatively cheap than France and Switzerland but on the higher side than in Spain and Portugal. In general, Italy enjoys the right balance between antiquity and modernity.

Are there any incentives for buying property in Italy?

Yes, the Italian government offers incentives for eco-friendly renovations, and in some rural areas it can be a great environmentally-friendly option for buyers.

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