Buying property in Italy as an American: what US buyers need to know

Yes. Americans can buy property in Italy on essentially the same terms as Italians, because the reciprocity rule is met: Italians can buy freely in the US. You need an Italian tax code (codice fiscale) and funds you can trace by bank transfer, and you do not need to live in Italy. What changes is the process: there is no MLS, no escrow and no title insurance, the notary does the legal checks, the buyer usually pays the real estate agency a commission, and offers become binding much earlier than in the US.

Can a US citizen buy a house in Italy?

Yes. Italian law lets foreigners buy property when Italians can do the same in their country. This is the reciprocity condition (condizione di reciprocità). The US meets it, and the notary confirms it as part of the deed.

You do not need residency, a visa or an Italian address to buy. But owning a home in Italy gives you no right to live there: that is a separate visa question, covered below.

What do you need before you start?

• A passport. It is your ID for the offer, the contracts and the deed.
• An Italian tax code (codice fiscale). Every contract, payment and utility account uses it. It is free, and you can request it from an Italian consulate in the US. See how to get a codice fiscale from abroad.
• Funds ready to move, or a mortgage plan.
• A way to sign. If you do not speak Italian, the notary will require an interpreter at the deed. If you cannot travel, you can give a power of attorney (procura) to someone you trust, signed at an Italian consulate or before a US notary with an apostille.

An Italian bank account is not legally required, but it makes paying taxes, utilities and condominium fees much easier.

Why there is no MLS in Italy

There is no multiple listing service. Homes appear on several property portals at once, often posted by more than one real estate agency, with different photos and sometimes different prices. Sold prices are not published home by home as US buyers are used to. The asking price is where talks begin, not where they end.

Who pays the real estate agency?

In the US, buyers are used to the seller covering commissions. Italy works differently.

Most Italian sales go through a real estate agency acting as a mediator (mediatore). By law, a mediator must be impartial between buyer and seller, and it is usually paid by both sides. The buyer's commission is usually 2–4% of the price, plus 22% VAT. It is not fixed by law, can be negotiated, and normally becomes due when the seller accepts your offer.

The real estate agency earns a percentage of the price, so it has no interest in negotiating it down for you. That is not a criticism, just how the incentives work.

Offers and deposits are binding early

This is the biggest practical difference from the US, where offers are often subject to inspection, appraisal and financing contingencies.

1. The written offer (proposta d'acquisto). You usually sign an irrevocable offer, valid for a set number of days, with a deposit. If the seller accepts it, it binds both sides.
2. The preliminary contract (compromesso). Within weeks you sign it and pay a deposit (caparra confirmatoria), usually 10 to 20% of the price. If you walk away, you lose it. If the seller walks away, they must pay you back twice the amount.
3. The final deed (rogito). The notary reads the deed, collects the taxes and registers the sale. You pay the balance and get the keys.

You can write conditions into the offer, such as mortgage approval, but sellers may refuse them. The safer habit is to do the checks before you sign.

No escrow, no title insurance: the notary's role

Italy has no escrow companies, and title insurance is uncommon. The notary (notaio) fills much of that role. A notary is a public official, impartial by law, usually chosen and paid by the buyer. Before the deed, the notary:

• checks who owns the property and whether there are mortgages, liens or other rights on it;
• checks the land-registry data and the parties' identity;
• verifies the reciprocity condition;
• records how every payment was made;
• collects the purchase taxes and registers the sale.

Two gaps remain. The notary relies partly on the seller's declarations about planning compliance, so a technical check by an architect or surveyor is worth having. And the deposit is usually paid straight to the seller, not into escrow. A notary can register the preliminary contract in the property registers to protect you, and can hold the balance until the sale is registered.

Wiring money from the US

Every payment must be traceable, by bank transfer or banker's draft, and the deed records each one. Cash is not an option.

• Source of funds. Italian banks and notaries must run anti-money-laundering checks. Keep statements that show where the money came from.
• Exchange rate. US banks often build a margin into the dollar-to-euro rate. Compare with a currency specialist; some buyers fix a rate until the deed.
• Large transfers. Check your daily wire limit, send a small test payment first, and confirm bank details by phone, never only by email.
• Timing. Allow a few working days. The balance is often paid at the deed by banker's draft (assegno circolare) from an Italian bank.

Can Americans get a mortgage in Italy?

Yes. Italian banks lend to non-residents, but expect a larger deposit, more paperwork, and documents translated and sometimes apostilled. The loan is in euros, so with a dollar income you carry the currency risk. Most US mortgage lenders do not lend against property abroad, and many buyers at this price level pay cash or borrow against assets at home.

What it costs on top of the price

Purchase taxes depend on who sells and on the home's cadastral value; then add the notary, the agency commission and technical checks. See the real costs of buying property in Italy.

The US tax side, in general terms

This is general information. Work with a cross-border tax adviser who knows both systems.

• Worldwide income. The US taxes its citizens on their worldwide income, wherever they live. Rent from your Italian home, and any gain when you sell, must be reported in the US.
• Italy taxes it too. Rent from Italian property is taxed in Italy, and a gain on sale may be. The US foreign tax credit and the US–Italy income tax treaty exist to limit double taxation; how they apply depends on your facts.
• FBAR and FATCA. These reporting rules cover foreign financial accounts and certain financial assets, such as an Italian bank account. A home you own directly is generally not itself reported on them, but the Italian account you use for the purchase and bills may be. Owning through a company or trust changes the analysis.
• Currency. For US tax, the gain is measured in dollars, so exchange-rate moves can change the taxable result.

Inheritance: Italian rules and your US estate

Italian inheritance tax applies to property located in Italy, even if the owner never lived there. Rates for spouses and children are low by international standards, with a large tax-free allowance for each of them. Ask the notary for the current rates and allowances for your heirs.

Italian succession law also reserves shares of an estate for close family, and choosing another law in a will needs care for Americans, whose succession law is set state by state. The US estate tax applies to US citizens' worldwide estates, and the two countries have an estate and inheritance tax treaty. Plan with an Italian notary and a US estate planner together.

Staying in your Italian home: the 90-day rule

US citizens can stay in Italy without a visa for up to 90 days in any 180-day period, counted across the whole Schengen area. Your passport must be valid for at least three months after you plan to leave the Schengen area.

To stay longer you need a national visa from an Italian consulate, then a residence permit (permesso di soggiorno) in Italy. Buying property gives you neither. For people who will not work in Italy, the usual route is the elective residence visa, which asks for passive income of about €31,000 a year per applicant and a home in Italy. See the elective residence visa and buying a home.

US vs Italy: how the buying process differs

FAQ

Do I need to be in Italy to sign the deed?

No. You can give a power of attorney to someone you trust, signed at an Italian consulate in the US or before a US notary with an apostille. The notary will tell you the exact form required.

How long does buying a home in Italy take?

From the first search to the keys, usually three to six months. Checks, financing and the seller's own timing decide where you land in that range.

Can I buy Italian property through a US LLC?

Companies can own property in Italy, but a US LLC can change how both countries tax the income and the sale, and may add reporting. Ask a cross-border tax adviser before choosing.

Can I rent out my Italian home when I am not there?

Yes, but the rent is taxed in Italy and must also be reported in the US. Short-term rentals have their own local rules, so check them before you buy if rental income matters to you.

How Giusto helps

Your dedicated Buyer's Agent works only for you: our AI reads the main property portals every day, removes duplicates and sends only the homes that match, and viewings are always organised with you, in person or remotely for qualified clients. Planning and land-registry checks are always free, so problems surface before your offer becomes binding.

The search and the proposals are always free. If one of the homes catches your eye and you decide to go ahead, our fee is 20% of what we save you on the asking price. If you don't save, you don't pay.

Start your search on giustohomes.com

Sources

• Italy international travel information — U.S. Department of State
• Elective residency visa — Consulate General of Italy, Los Angeles
• Elective residency visa — Embassy of Italy, Washington DC

Figures as of October 2026. Rules change: always confirm with the notary or a tax adviser before signing.