Buying real estate in Italy

We experienced that many buyers are not just investing – they want a base in Italy for work, holidays or retirement, living full- or part-time in the “Bel Paese”.

Tuscany, Lake Como and Lake Garda still lead; and Milan, Italy’s financial and fashion capital, is a key target. In the last two years demand has also grown in the South, especially in Sicily and Puglia, thanks to beautiful landscapes and more accessible prices. Celebrity interest is rising too. Actress Helen Mirren, for example, owns a large estate in Puglia where she spends part of the year.

From a pricing perspective, Italy is a mosaic of micro-markets. Some areas now rival Europe’s main capitals, while others are racing ahead as exclusive seaside and mountain resorts. In Milan’s prime districts, high-end apartments range roughly in price between EUR 13,000 and EUR 23,000 per square metre. For holiday villas, top prices reach about EUR 21,000/m² in Porto Cervo, EUR 19,000/m² in Portofino, and EUR 15,000/m² in Forte dei Marmi. In the Dolomites values are around EUR 10,700–13,000/m² in leading resorts such as Corvara, Selva Val Gardena, Ortisei, and Cortina; while on Lake Garda peaks are about EUR 8,100/m² in Sirmione. Further south, Sorrento and Capri have seen double-digit price increases.

The role of the advisor is crucial. Legal and tax due diligence includes checking, for non-EU investors, any limits based on reciprocity or bilateral treaties, since violation can result in the nullity of the deed. It is important to verify planning and building compliance and confirm that the client’s intended use is feasible. Properties in historic centres such as Venice, Rome, Milan, and  Como may be subject to cultural-heritage restrictions that may limit alterations and grant the state a right of pre-emption. In such cases the notary must notify the Sovrintendenza Beni Culturali, and the effectiveness of the deed is suspended for 60 days, while the price is usually held in escrow by the notary. If the state does not exercise its right, the transfer becomes fully effective and the funds are released.

From a tax point of view it is essential to select the most efficient investment vehicle – direct ownership, a foreign company, or an Italian newco – in line with tax, governance, and wealth planning objectives. A further incentive is the flat tax regime for new residents: EUR 200,000 per year, plus EUR 25,000 for each qualifying family member, on foreign-source income. This option can be attractive for expats and international high net-worth individuals (HNWIs) with significant assets and income abroad. A possible increase of the flat tax to EUR 300,000 from 2026 has been discussed but is not yet law. In conclusion, a legal and tax review is decisive for a successful investment.

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Alessandro Occhionero is a lawyer based in Milan since 2003. A qualified Lawyer at Supreme Court of Cassazione since 2016, specialised in property law, expropriations for public utility purposes and tax law, Alessandro is a Partner of Sofiae - Solidoro Finulli & Partners.