ITALY
The population of Italyis about 60 million inhabitants
Italy covers a total land areaof 301,340 sq.km (116,350 sq. mi) and 294,140 sq.km (113,570 sq.mi)
Italian Real Estate Market
Italy's housing market is recovering gradually, despite the country's struggling economy. Demand is now rising. Residential construction activity is increasing. And the market outlook is improving. The nationwide house price index fell by 0.8% (-2.25% inflation-adjusted) during the year to Q3 2018, according to the European Central Bank (ECB). Quarter- on-quarter, house prices increased 0.6% in Q3 2018 but actually 1.4% when adjusted for inflation.
Prices of new houses increased 1.41% (-0.1% inflation-adjusted) y-o-y in Q3 2018 while existing house prices dropped 1.31% (-2.75% inflation-adjusted) over the same period, according to ISTAT
Total round-trip transaction costs in Italy range from 8.88% to 22.70% of the property value. Registration tax is 3% for main homes and 7% for second homes. Nonresident buyers pay a fixed registration tax of 7%. The real estate agent's commission is between 3% and 8% plus 22% VAT; typically split between buyer and seller.
International Investment in Italy
A foreigner can legally buy and operate real estate in Italy. Like France, Italy is always been a real estate option for an investor who wants to diversify his portfolio and enjoy a favourable economic trend.
The real estate market in Italy is favourable for transactions and investments for several reasons:
- A transparent and open system.
- The law is in favour of the owners and protects them.
- A foreigner can become owner in the United States.
- Taxation is favourable.
The European Union and other countries signed an agreement that avoids the double taxation on the rental income but also on the inheritances and the donations.
