REAL ESTATE IN ITALY

OWNING PROPERTY IN ITALY - COMMON PROBLEMS

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It’s not a problem until it becomes a problem: Owning property in Italy may seem straightforward at first, but complications can arise down the line. For example, Italian forced heirship rules may override your will, and cross-border estates often face delays and legal hurdles. 





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HOLIDAY HOMES - MANAGING PROPERTY FROM ABORAD

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Managing a holiday home in Italy from abroad can seem simple—until issues arise with maintenance, taxes, or local regulations. Without someone on the ground, small problems can escalate quickly. Setting up clear arrangements for local management, legal representation, and tax compliance can save time, money, and stress in the long run.


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TAXES, ADMINISTRATION AND LOCAL AUTHORITIES

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Owning real estate in Italy comes with ongoing tax and administrative obligations—annual property taxes, declarations, utility bills, and compliance with local regulations. Missing deadlines or overlooking requirements can lead to fines or legal issues. Planning ahead and appointing someone to handle these tasks locally can prevent unexpected complications and ensure peace of mind.

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PW JENNINGS AND PARTNERS

KEY LEGAL ISSUES

Foreign nationals with assets in Italy may face unexpected complications With proper planning, unexpected complications such as tax liabilities, legal hurdles, and administrative difficulties can be avoided. The following are a few key points to consider:

FORCED INHERITANCE AND ITALIAN ASSETS
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Foreign nationals owning real estate in Italy may be affected by forced heirship rules, which reserve fixed shares for certain relatives regardless of a will. These rules may conflict with foreign wills that distribute assets freely. Although the EU Succession Regulation allows individuals to elect their national law, how this interacts with Italian forced heirship remains unclear due to limited case law.
 
 
This uncertainty can lead to challenges, delays, or partial invalidation of the will. To avoid such outcomes, it is essential to structure ownership of Italian property carefully, ensuring that legal and administrative risks are minimised in advance.
 
 

HIDDEN COSTS
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Buying property in Italy involves several hidden costs beyond the purchase price. Notary fees typically range from 1% to 2.5% of the declared property value, depending on complexity. Legal fees for independent counsel usually add 1% to 2%. Buyers also face registration tax (2% for primary residences, 9% otherwise), cadastral and mortgage taxes (usually €50 each), and local taxes such as IMU and TARI, which vary by municipality and property type.
 
Additionally, translation, interpreter, and surveyor costs may arise, along with annual maintenance and condominium fees. These cumulative costs can add 10% or more to the purchase price, so buyers should budget accordingly.
 
 

ZONING AND PLANNING
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Foreigners often purchase homes in beautiful or historic areas of Italy, but such properties are frequently subject to strict zoning and planning regulations. Renovations, extensions, or even minor repairs may require permits from local or regional authorities, especially if the property lies within a heritage zone (vincolo storico) or protected landscape. Approval can be slow, and non-compliant works may trigger fines or demolition orders. In some cases, retrospective permission (sanatoria) can be obtained by demonstrating that the work meets planning rules, though this involves a formal application and penalties.
 
Buyers should seek professional advice before purchase to ensure any existing or planned works are legally permitted and all local regulations are properly followed.
 

NATIONAL AND LOCAL TAXES
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Foreigners who own real estate in Italy often underestimate the complexity and ongoing obligations involved. Annual taxes such as IMU (municipal property tax) and TARI (waste collection tax) must be paid, even if the property is not regularly used. While these taxes are not always considerable, they must not be overlooked.
 
Owners must also file annual tax declarations in Italy, often with the help of a local accountant. Condominium fees, utilities, and maintenance costs add further expense, and services may need to be managed remotely. Non-resident owners may need to appoint a fiscal representative. Delays in payment or incorrect filings can result in penalties. Understanding and budgeting for these obligations is essential to avoid financial and legal complications.
 

APPOINTING LOCAL PROFESSIONALS
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Managing property in Italy from abroad can be challenging, especially when it comes to handling technical, legal, or tax matters that require a local presence. A power of attorney (procura) allows a trusted person in Italy—often a lawyer or accountant—to act on your behalf for tasks such as dealing with the Agenzia delle Entrate (tax office), filing declarations, attending meetings, or handling urgent repairs.
 
However, powers of attorney made abroad are not always recognised in Italy without proper legalisation or apostille, and they may not comply with Italian formalities. In many cases, an Italian-formatted power of attorney, signed before an Italian notary or properly translated and legalised, is required to ensure it is accepted by local authorities and service providers.
 

PW JENNINGS LLP
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HOW TO FIND US

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Via dei Banchi Nuovi 56, Int 1
Rome, Italy, 00186

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+39 334 7436570
+44 7936287501

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HOW TO FIND US

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Via dei Banchi Nuovi 56, Int 1
Roma 00186


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