How to buy a house in Italy as an Australian

How to Buy a House in Italy as an Australian: A dream that can become a reality. Have you ever caught yourself daydreaming about owning a little stone villa nestled among rolling vineyards or a rustic townhouse in a cobblestoned village where time seems to stand still?

For us — two Australians who fell head over heels for Vignale — that dream became a reality. And guess what? It is possible for Australians to buy property in Italy… but there are a few caveats.

Whether you're dreaming of your own Italian retreat, investing in a rental property, or simply indulging in la dolce vita, here's what you need to know to make that dream come true.

🚫 1. Forget the "€1 Home" Hype

You've seen the headlines — the €1 homes in forgotten Italian villages. Sounds irresistible, right? Sadly, the reality is far less romantic.

These towns are often nearly abandoned, with no amenities, infrastructure, or rental/resale markets. Properties are typically in extremely poor condition and legally require costly restorations within fixed deadlines.

Tradesmen are scarce, materials are expensive, and once you've spent €50,000–€100,000+ on restoration, you may have a property no one wants to buy or rent.

In short: there's no way out. Skip the €1 schemes — they're not the Italian dream you're after.

🏡 2. The Good News (mostly): Australians Can Legally Buy Property in Italy

Australia and Italy have a reciprocal agreement, meaning Australians can legally buy property in Italy.

However, there's a catch: because Italians can only buy new properties in Australia, some Italian notaries may refuse to finalise a purchase for Australians buying pre-owned homes — which most are.

✅ Tip: Check with your notary early. You may need to find one who's familiar with Australian buyers and 'friendly'.

When we bought il Ritiro, our notary resolved the issue by processing the sale under my British passport (I'm a dual national).

You don't need a visa or residency to buy, but you must have a Codice Fiscale (tax number).

🧾 3. Apply for Your Codice Fiscale Early

To buy property or even connect utilities, you'll need a Codice Fiscale — Italy's tax ID.

You can no longer apply via your local Italian consulate — it must now be done in person in Italy. The easiest solution is to have your notary apply on your behalf, using signed paperwork plus copies of your passport and birth certificate.

It usually arrives within a couple of weeks.

🏠 4. Can You Live in the Home You Buy?

Yes — but only part-time unless you hold an EU passport or have a residency visa.

Buying a property does not grant residency. Australians without residency can stay 90 days in every 180-day period.

Owning a property may help with a visa application (for example, retirement or digital nomad visas), but it's not automatic.

🔎 5. Finding Your Perfect Property

Italy's real estate market is vast — from derelict €1 ruins (best avoided) to stunning restored villas in the hills.

For us, it was love at first sight with il Ritiro, a charming early 1900s home in the Monferrato wine region.

• Which region draws you — beaches, mountains, or vineyards? north, centre or south ?
• Do you want to be in a city, a village or in the countryside ?
• Do you want a renovation project or something move-in ready?
• Distinguish between a cosmetic renovation (fixing up what exists), as opposed to a rebuild style renovation where you add to, or change the property. There is a vast difference in permits and time required for permissions.
• Will it be a permanent home, a rental, or a holiday retreat?
• And lastly how will you get around ? do you need to be close to public transport ? (see below re registering a vehicle)

Most listings appear online, but brace yourself: most local agents don't speak English and prefer WhatsApp messaging. Service standards vary widely, and agents charge commission to both buyer and seller (usually 3–5%). Translate all your enquiries to Italian before you send. Local Agents assume (not unreasonably) that most foreign buyers are tyre kickers and time wasters.

Be patient, persistent, and don't be afraid to make offers well below the asking price — there are still plenty of bargains to be found.

💶 6. Financing Your Italian Dream

Most Australians pay cash, since Italian banks are cautious about lending to foreign buyers. Some international banks offer non-resident mortgages for higher-end properties.

Allow for extra costs:

• Purchase taxes: 9% of assessed value as a non resident (AV normally significantly less that the purchase price, although in our case it was more)

• Notary fees: 1–2% (often a fixed fee for cheaper homes)

• Agency commission: 3–5% (split buyer/seller and as above often a fixed fee for cheaper homes )

• Translation/legal fees: €300–€800

For transfers, we recommend Wise — cheaper and easier than opening an Italian bank account (which will take hours and mountains of paperwork). Italian banks also offer low/no interest (to you) and high fees (to them).

✍️ 7. The Buying Process — Step by Step

Here's what to expect:

1. Find the Property you want - persistence here is the key ! start online 

2. Make an Offer (Proposta d'Acquisto) — usually by email; legally binding once accepted.

3. Preliminary Contract (Compromesso) — includes a 10% deposit. Be aware: The seller can withdraw although they must pay you double your deposit. 

4. Final Deed (Rogito Notarile) — signed before a notary, transferring ownership and registering the property.

Once the rogito is complete, you're officially the owner of your Italian home! 🇮🇹✨

🧾 8. Practicalities: Bank Accounts, Bills & Bureaucracy

Your Codice Fiscale is essential for utilities, taxes, and all legal transactions.

A local bank account helps with paying bills and taxes, but for regular transfers, Wise or similar platforms are far easier and cheaper.

🍷 9. Living the Dream

The real magic begins when the paperwork ends — when you open the shutters to morning light, hear the church bells ring, and realise: you're home in Italy.

For us, renovating il Ritiro was a journey filled with laughter, discovery, and the joy of breathing new life into a piece of Italian history.

It takes patience (and a bit of translation), but waking up surrounded by vineyards and history? Pure amore. ❤️

🚗 10. Getting Around

You'll almost certainly need a car, but note — non-residents cannot register a vehicle in their own name.

Options include:
🚘 Hiring — convenient but pricey long-term.
🚙 Leasing — short-term and legal for non-residents. Good if you want a new car.
🛵 Local workaround: Have an Italian friend purchase and "loan" you the vehicle while you're in Italy (you cover costs and insurance). Cheapest driveable cars are around 2,000 euro and most have 200,000+ k's on the clock. We grabbed an old Lancia.

Car insurance is compulsory and can be high — factor it into your budget.

💡 Final Tip: Fall in Love With the Lifestyle, Not Just the House

Buying in Italy isn't just a transaction — it's a lifestyle shift.

Slow mornings. Good wine. Fresh pasta. Friendly neighbours who greet you with a wave and a smile. It's a chance to rediscover life's simple pleasures and live at a gentler pace.

So, if your heart beats a little faster at the thought of owning a home in Italy, take that first step.

The Italian dream is closer than you think — we're living proof. 🇮🇹❤️