The prospect of moving to Italy is an exciting one and many are curious about how to buy or rent property in Italy. However, this process can differ whether you are a citizen of a European Union country or a non-EU citizen in regards to how long you are allowed to stay in Italy and the additional benefits that only citizens or residents can take advantage of.

This article will outline how EU citizens can relocate to Italy and establish their residence along with the process to either buy or rent real estate in Italy.

Non-EU Citizens Moving to Italy

First, we will briefly detail the relocation process, and any possible restrictions, for non-EU citizens moving to Italy. In fact, you don’t need to be an Italian citizen or even residing in Italy to buy property in the country. This is due to reciprocità, which states that foreign citizens can benefit from the civil rights that are normally granted to Italian citizens only if Italian citizens can benefit from the same rights in their counterparts’ countries. In other words, you can purchase property in Italy if there is an international treaty between Italy and your country of origin, such as the US, that allows this condition of reciprocity.

Furthermore, if you are from a visa-exempt country, like the US, you will not need a visa to enter Italy but are only allowed to stay in the country for a maximum of 90 days. In fact, if you are a US citizen, you can travel to the 26 EU countries in the Schengen Area for a maximum of 90 days without applying for a visa. It’s also important to remember that purchasing property in Italy does not automatically permit you to reside permanently in the country or longer than the 90 days permitted.

EU Citizens Moving to Italy

On the other hand, if you are a citizen of Italy or another EU country, either by birth or maybe you acquired Italian citizenship by descent, you are not limited to 90 days within the Schengen area. In fact, you can work, study, and live anywhere in the European Union without any restrictions. You are permitted to enter and visit other EU countries without needing a visa, but it is required to hold a valid national identity card or passport during your stay. However, if you are relocating to another EU country, like Italy, and stay longer than 3 months, you will need to register as a resident in the town where you are living. For this process, it will be necessary to provide proof of accommodation through a rental agreement or housing contract.

Renting a property

To find a rental property, online resources usually provide the most comprehensive listings of what is available, covering a variety of property types and locations. Typically, major cities like Rome, Florence and Milan are more expensive, ranging between €700 to €1,100 for a one-bedroom apartment, while in a small to medium-sized city, one could range between €500 and €900.

Rental contracts in Italy are divided into a few categories, from short-term tourist rentals to long-term contracts. Short-term contracts can vary from 1-18 months and are generally not renewable but ideal for those looking for temporary accommodation. Long-term contracts are generally either a 4+4 or 3+2, meaning the initial term of the contract is 4 years and then is renewable for 4 more years, the same with a 3-year contract that is renewable for 2 years. Long-term contracts are stable options for the tenants and landlords, allowing for some negotiation of the terms and conditions including rent adjustments and maintenance responsibilities.

In either case, landlords tend to be cautious when choosing a new tenant and require you to show evidence that you have the financial means to make the rental payments, such as an employment contract. They also require a security deposit to be paid, equal to up to 3 months rent, which is refunded at the end of the agreement provided that you leave the property in good condition. It’s important to remember that when terminating a long-term contract, it’s customary to provide a minimum of 6 months’ notice to the landlord, which can be subject to negotiation when the agreement is initially drafted.

Buying a property

Alternatively, if you are looking to buy a property, there are a few steps involved in the purchase process that are the same no matter if you are an Italian, EU or foreign citizen. First, is the purchase offer which is submitted by the buyer, and once accepted by the seller, the deal is binding for both parties. Then, the preliminary contract of sale is drafted, which outlines the essential details of the property and the terms and conditions of the sale. Lastly, the final agreement will be signed by both parties as well as the notary, and then property ownership will be transferred to the buyer.

It will also be necessary to have a codice fiscale, or Italian tax code, to complete the rental or purchase process. Despite its name, the tax code does not imply tax duty and is similar to a social security number in the US. A codice fiscale is used for many state and local agency purposes and can be requested by non-Italian citizens either abroad at an Italian consulate or in Italy at an Italian Revenue Agency Office (Agenzia delle Entrate). The tax code will also be necessary to open a bank account and to set up utilities at the property.

Establishing Residence

Having a residence that can be demonstrated with an agreement or contract will be necessary when establishing your legal residence. EU citizens staying longer than 3 months in Italy are required to establish residence, which will allow you to take advantage of the benefits being a resident brings, like access to the healthcare system. As an EU citizen, you can apply for residence along with your spouse and dependent family members, allowing them to access services available to residents. To do this, you will file an application for legal residency at the registry office (ufficio anagrafe) in the town where you are living. Along with submitting the evidence of your accommodation, you will need to provide details of your employment status or financial resources, showing that you have sufficient means to not become a burden to local social services. Within 45 days, the municipal police will verify that you are living in the property that you declared as your residence. Once this check is successful, you can apply for a photo ID card (carta di identita) as well as a health insurance card (tessera sanitaria).

Taxes in Italy

Many wonder how they will be taxed when residing in Italy. As a general rule, individuals who spend more than 183 days during the year in Italy are considered tax residents. Being a tax resident means that your worldwide income would be subject to taxation in Italy. For dual citizens who are concerned about double taxation, Italy has signed various tax treaties with other countries to avoid or prevent this issue. It’s important to reference the tax laws in your other country of citizenship as well as consult a specialist in international taxation to fully understand your tax implications. There is also tax liability if you own assets in Italy, for example property ownership, as you would be subject to annual property taxes. Additionally, any income generated in Italy, such as rental income, would be subject to taxation in Italy.

Conclusion

Moving to Italy can be a complex process and it’s important to understand the procedure in detail in order to make your dream a reality. In this article, we explained the process of moving to Italy for EU citizens and how to either buy or rent an Italian property.

If you would like further information about the Italian real estate market or how to relocate to Italy, don’t hesitate to contact us at [email protected].