Can an American citizen buy a house in Italy?
There is no limit on US citizens buying or selling properties in Italy thanks to something called mutual agreements. These apply between Italy and foreign citizens meaning that you don't need any special documents or pay higher taxation on property when compared to citizens from within the EU.
The good news is that buying a house in Italy as an American is possible. If you're a US citizen you can buy property in Italy thanks to bilateral agreements between Italy and the US — often known as reciprocal agreements.
Long term multi-entry tourist visa for a person investing in Italian real estate. Anyone wishing to make a real estate investment in Italy who does not intend to transfer residence can obtain a long term Schengen visa (5 years), if the requirements of their stay in the country do not exceed 90 days every 6 months.
Although the ownership of a property in Italy does not entitle you to a residency permit, it can certainly help to obtain an Elective Residence Visa, which is rather popular.
Purchasing property in Italy is a good investment for a number of reasons. Firstly, Italy's transaction costs are lower compared to other European countries such as Spain or Portugal. Currently, the interest rate on properties is still at historic lows, which makes purchasing a property a very good investment.
In case you are an Italian citizen or you are applying for Italian citizenship, then you will be liable to pay Italian taxes on your public US pension. In this case your American pension will be counted as a foreign income, therefore you must declare it in your income tax return and pay tax on it.
Property tax ranges from 0.4% to 0.7% of fiscal value, depending on location and property type. There is no wealth tax in Italy. Individuals are exempt of capital gains tax five years after the purchase. If the property is sold within five years capital gains are taxed at 20%.
While a visa is unnecessary if you're merely visiting Italy from the U.S., you'll need to apply for one in order to gain permanent residency. You will also have to provide proof of sufficient retirement funds with which you can support yourself.
It is also useful to know that the conditions for those interested in retiring in Italy are relatively easy compared to other countries. As a matter of fact, Italy is among the top 10 best countries in the world to retire to.
Carta di Soggiorno: a permanent residence permit issued for an indefinite period. You can apply for it after 5 uninterrupted years of residing in Italy with a temporary residence permit. This type of permit grants you rights similar to Italian citizens.
Can I just go and live in Italy?
Understand the Legal Requirements on Moving to Italy
You are free to live and work there without a visa. However, a work visa is necessary for everyone else coming to Italy for non-tourism purposes. Expats need to organize more than just their work visas. The length of your stay determines the next step.
Italy imposes new residence permit filing fees.
|Permit Type||Filing Fee|
|Residence permits valid for three months to one year||€40|
|Residence permits valid for one to two years||€50|
|EC residence permit for long-term residents, ICT permits||€100|
A Answer: In order to complete an Italian property purchase it is not necessary to have an Italian bank account, even if you are not an Italian citizen nor an Italian resident.
- Atto di provenienza (ownership titles of the house)
- Floor plan of the house.
- Visura catastale (cadastral document of the house)
- Attestato di prestazione energetica (energy certificate)
- Building permits if the house was built after September 1967.
Italian Banks usually accept mortgage request for a sum amounting not less than 50,000 euro; A mortgage can not be grated for a sum that covers the 100% of the cost of the property (the maximum mortgage can cover the 70/80% of the purchase price);
Buying or renting depends on future plans
Does your job require you to change cities often? If the answer is yes, renting is the best option; buying a house, on the other hand, is a long-term commitment. A mortgage will tie you to a property, and even once purchased, a house you own is harder to give up for a new one.
For example, if you buy a residential property from a private person, the standard rate is 9% of value on the property tax record (some people call this “cadastral value“). A reduced 2% tax rate is applicable if you qualify forFirst Home Tax Reduction.
In December 2022 for residential properties for sale were asked on average € 1,943 per square meter, with an increase of 1.83% compared to December 2021 (1,908 €/m²). Over the past 2 years, the average price in Italy has reached its peak in March 2021, with a value of € 1,944 per square meter.
How Benefits Can Be Paid. If you have Social Security credits in both the United States and Italy, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country.
As a general rule, American pensions are taxed in Italy. However, there are few exemptions as explained by the double taxation treaty with US.
Is cost of living lower in Italy than US?
The United States is 34% more expensive to live in than Italy. The only areas where American prices are more affordable are clothing and gas.
The national health service in Italy, Servizio Sanitario Nazionale (SSN), provides residents with free or low-cost healthcare that includes access to general practitioners (GPs), treatment at public hospitals, subsidised medicines, lab services, ambulance services and certain specialist care.
The 2021 tax rates for residents and non-residents range from 23 percent to 43 percent plus an additional regional tax of between 0.8% ad 3.33% Furthermore, an additional municipal tax could be due; the tax rates range from 0 to 0.9 percent depending on the municipality.
In 2021, approximately 73.7 percent of Italians lived in an owner-occupied household.
US Expat Taxes - Italy. US citizens, as well as permanent residents, are required to file expatriate tax returns with the federal government every year regardless of where they reside.