Italy Property Guide #008

One of the most fascinating parts of my job is hearing the dreams and visions of people wanting to buy property in Italy.

Some dream of opening a B&B in Tuscany. Others want a charming villa to enjoy with family part of the year — and rent out the rest. Some are laser-focused on minimizing tax exposure while enjoying la dolce vita.

All these scenarios are valid, but here’s the truth: when you buy property in Italy, the why matters as much as the where and what. Your purpose for the property has serious implications — legal, fiscal, and practical.

Here are 5 key considerations I always explore with my clients:

1. Buying for Business? There Are Licenses, Visas, and Taxes to Consider
If you’re thinking of running a hospitality business — whether it’s a boutique hotel, agriturismo, or B&B — remember: Italy treats this as commercial activity.
That means:

• You’ll need a business license to operate.

• You may need a business visa, depending on your nationality.

• You’ll want an immigration lawyer who understands how to align your real estate goals with visa eligibility and business registration in Italy.

I work closely with specialists who help my clients navigate this complex but rewarding path.

2. Renting for Income? Do the Math First
Your villa may be beautiful, but that doesn’t automatically make it a profitable rental. Here's why:

• Property management and cleaning fees can eat into margins.

• Utilities and local taxes vary by region.

• Income is seasonal — think €3,000/week in August… and zero in January.

• Airbnb and platform fees apply.

Most importantly, don’t expect your rental income to fully cover your mortgage. That’s possible — but only with a clear strategy and realistic financial planning.

3. Reciprocity Matters — You May Need a Legal Strategy First
Not all countries have real estate reciprocity agreements with Italy.
This means: if Italians cannot buy property in your country, you might face restrictions buying here.

In these cases, we have to get strategic. That’s why I’ve partnered with an international real estate lawyer to help clients structure deals that align with legal frameworks — even when things get complicated.

4. Primary Residence vs. Second Home: The Hidden Tax Trade-Off
Yes, buying a primary residence in Italy means a lower registration tax (2% vs 9%).
But here’s the catch: if it's your primary residence, Italy will also become your tax residence — and personal income tax here can be significant.

If you’re an entrepreneur living in a country with lower tax rates, this might not be the best move. Don’t fall into the trap of optimizing the purchase tax only to get hit with much higher income tax obligations.

5. Is It an Investment — or a Lifestyle Choice?
I often tell clients: Buying in Italy is a dream. Make sure you treat it like one.

If your goal is capital growth or pure ROI, there are better vehicles — or at least different geographies within Italy where year-round rental demand justifies the purchase.
But if what you want is a beautiful home in a place you love — where you can spend time, host family, or retire in peace — then that’s something else entirely.

And honestly? That kind of investment in your life and happiness is priceless.

Final Thought
Italy offers incredible opportunities, but making the right decision takes clarity. The clearer you are on your goals, the easier it is to find the right strategy. Whether you’re here for lifestyle, legacy, or leverage, I can help you make your Italian real estate dream a grounded, strategic reality.

Let’s Talk
If you’re ready to explore your options — whether buying for business, pleasure, or both — reply to this email or book a call with me here.

Warm wishes,
Matteo Bruschi
Your Trusted Italian Property Advisor