Italian Notarial and Compliance Support Real Estate
The dream of owning a home in Italy, perhaps in the Tuscan countryside, a vibrant art city, or a coastal resort in Sicily, captivates many. For a US citizen, this project isn’t just a romantic ambition, but a concrete real estate investment opportunity. To answer the question of whether a US citizen can purchase real estate in Italy and what rules and procedures to follow to avoid risks, we’ve developed this short guide highlighting 5 common mistakes to avoid when purchasing property in Italy. US citizens can legally purchase real estate in Italy thanks to the principle of reciprocity between the two countries. However, investing in Italy without proper legal advice can lead to costly delays and tax issues. Hiring an experienced Italian real estate lawyer ensures compliance, legal protection, and tax coordination on both sides of the Atlantic.
5 Mistakes to Avoid When Buying a Home in Italy: attention to reciprocity; preliminary agreement; due diligence; taxes and cross-border implications; money transfers and anti-money laundering compliance
Mistake 1 — Ignoring the principle of reciprocity and legal prerequisites
Although U.S. citizens are allowed to purchase property in Italy, failing to verify reciprocity and gather essential documents (passport, Italian tax code) may render the power of attorney or the sale void.
How to avoid it
Confirm rights and reciprocity status through your lawyer before any payment.
Obtain your Codice Fiscale in advance.
- Check the official property values by area in Italy
Use a bilingual notarial deed or hire an interpreter if you don’t speak Italian.
Mistake 2 — Signing a preliminary agreement (compromesso) without understanding the deposit rules
The compromesso is binding and includes a confirmatory deposit. If the buyer or seller breaches the agreement, the deposit is either lost or returned in double. Contracts without protective clauses are risky.
How to avoid it
Include suspensive clauses (e.g., mortgage approval, due diligence outcome).
Have the contract drafted or reviewed by a bilingual Italian real estate lawyer.
Consider registering the compromesso for added legal security.
Mistake 3 — Skipping technical, urban planning, or mortgage due diligence
Skipping due diligence may lead to buying property with unpaid taxes, structural defects, zoning violations, or liens.
How to avoid it
Request updated land registry and mortgage reports (visure).
Verify urban compliance, floor plans, energy certificate (APE), and occupancy status.
Have a technical inspection done before signing.
Make the final deed conditional on the due diligence outcome.
Underestimating taxes and cross-border tax implications
Italian purchase taxes include:
Registration tax or VAT,
Mortgage and cadastral taxes,
Notary and agency fees.
Ongoing costs:
IMU (municipal tax) and TARI (waste tax)
Rental income (subject to tax in Italy and the U.S.)
How to avoid it
Ask your Italian real estate lawyer for a full financial breakdown.
Coordinate with your U.S. accountant for foreign asset reporting.
Consider acquiring Italian residency if eligible for “prima casa” (first-home) tax relief.
Failing to plan fund transfers and anti-money laundering compliance
The Italian notary must verify the source and traceability of funds. Transfers from U.S. banks require time and documentation.
How to avoid it
Open a non-resident bank account in Italy early in the process.
Prepare bank statements proving fund origin.
Avoid cash and ensure all transactions are traceable.
⚠️ Bonus Sections for U.S. Property Investors in Italy
📌 Short-Term Rentals & Local Registration
Many Italian regions require registration codes and declarations for short-let rentals (e.g., SCIA). Include this in your investment strategy.
📌 Power of Attorney, Interpreter, Apostille
If buying remotely, a notarial power of attorney is needed, signed in the U.S. with Apostille and sworn translation. Your lawyer must coordinate this.
📌 Historical Buildings, Landscape Restrictions
Properties in protected zones or historic buildings may have usage limitations. Always check condominium rules and renovation restrictions.
📌 Agricultural Land & Pre-emption Rights
Farmland may be subject to pre-emption by neighboring farmers. Verify before submitting binding offers.
📌 Mortgages for Non-Residents
Not all banks offer mortgages to non-residents. Loan-to-value ratios and documentation requirements may differ. Seek pre-approval before signing.
📄 Essential Document Checklist
✅ Passport + Italian Tax Code (Codice Fiscale)
✅ Italian IBAN + Proof of Funds
✅ Power of Attorney + Apostille + Sworn Translation
✅ Property Title, Registry Reports, Floor Plans, Energy Certificate
✅ Occupancy Certificate + Plant Compliance Documents
✅ Condominium Rules + Clearance of Fees
✅ Land Use Certificate (CDU) for rural properties
FAQ: Common Questions U.S. Buyers Ask About Italian Property Investment:
Do I need an Italian real estate lawyer to buy property in Italy?
👉 Not required by law, but highly recommended for due diligence, tax planning, and contract protection.Can I buy real estate in Italy remotely from the U.S.?
👉 Yes, through a notarial power of attorney and certified interpreter if needed.How can I avoid legal and tax pitfalls?
👉 By working with an Italian lawyer who coordinates with your U.S. tax advisor.Is it safe to buy property in Italy as a foreigner?
👉 Yes, especially when guided by a notary and an experienced legal team.Are there restrictions on Americans buying homes in Italy?
👉 No, reciprocity is confirmed. But compliance and preparation are essential.
Want to invest in Italy safely, from Miami or anywhere in the U.S.?
Contact an Italian real estate lawyer to handle legal checks, contracts, and international compliance—so you can invest with peace of mind.
