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Italian holiday homes: Which nationalities favour which coastal regions?

Which foreign nationals are looking to buy and rent homes on the Italian coast? And which areas do different nationalities prefer? New stats reveal some answers.

Published: 19 November 2020 12:57 CET
Updated: 21 November 2020 10:01 CET
Italian holiday homes: Which nationalities favour which coastal regions?
Which nationality is most enchanted by Italy's famed Lampedusa island? Photo: AFP

While there are many property bargains to be had in Italy, prices are notably higher in coastal areas. Not only do many Italians own a second home by the sea, but these areas are of course very popular with overseas holiday home buyers.

And different parts of the country are often popular with different nationalities.
 
Based on website visits from June-September, the real estate portal Idealista has reported the areas that are most popular among holidaymakers from different countries, whether they are looking to buy or rent.
 
READ ALSO: 
The Covid-19 crisis does not appear to have slowed down the international property market in Italy, with some property experts instead reporting increased demand in some areas – mainly thought to be speculative interest from foreign investors.
 
In fact, 16 percent of visits to the Idealista website in summer this year were from foreign locations – mainly the United States, the United Kingdom and Germany.
But with the international second-home market remaining relatively stable, the hoped-for bargains are few and far between.
 
“Coastal areas, mainly tourism-oriented, have suffered the impact of Covid more severely due to mobility restrictions, which prevented the arrival of millions of tourists this summer,” Idealista writes, “But even so, prices have not dropped substantially as many expected in early March.”
 
Still, from the number of searches, it seems that relatively high prices along the coast don't seem to be putting off would-be buyers looking for their place in the sun.
 
Here's a look at the nationalities showing the most interest in Italian property, and the areas they want to relocate to.
 
 
The map created by Idealista clearly shows the two nationalties most interested in buying a second home in Italy: Americans and Germans.
 
This may not come as a surprise, particularly if you know that German tourists make up by far the biggest percentage of visitors to Italy – in normal years at least – at around 13 percent.
 
US nationals account for around three percent of tourism to Italy, and British and French visitors one and two percent respectively.
 
The vast majority of foreigners searching for property in Tuscany were from Germany and the US; Idealista writes.
 
 
 
The particularly expensive area of Forte dei Marmi (6,884 euros/m2) came from the US, while Monte Argentario (4,336 euros/m2) was another American favourite.
 
Germans appear to prefer Castiglione della Pescaia (4,549 euros/m2), and also completely dominated searches for homes on the Tuscan islands of Giglio and Elba. 
 
On the islands of Sardinia and Sicily, German buyers again dominate the market in remote and coastal areas, while Americans appear to be more interested in the cities, Idealista writes.
 
 
Sardinia is particularly popular with German buyers, especially the provinces of Alghero and Stintino.
 
In Sicily, house hunters from the United States were most interested in Lampedusa, Taormina, San Vito Lo Capo and Favignana.
 
 
 
In Liguria in the north, things vary a little more.
 
While Germans and Americans still dominate the searches, Swiss residents prefer some areas including Finale Ligure (4,190 euro/m2) and the towns closest to the French border are the most popular with French citizens.
 
Germans meanwhile go for areas such as Alassio (5,413 euros/m2) and Americans search most often in Santa Margherita Ligure (4,890 euros/m2).
 
 
Americans usually make up the vast majority of visitors to the Amalfi coast, so it's not surprising to find that they also top the rankings for home searches in this area,
 
US buyers prefer Positano, Amalfi, Praiano,Sorrento and Capri. 
 
Meanwhile, most foreign buyers searching for property on the island of Ischia come from Germany.
 
 
Further south, the region of Puglia offers lower property prices.
 
The wild Gargano area is preferred by German visitors, who account for most searches in Peschici (€1,475/m2) and Vieste (€1,644/m2). 
 
Germans also cominate searches in some areas further south in the region: Gallipoli (€1,652/m2) and Ostuni (€1,527/m2). 
 
Most demand for homes in the “white city” of Otranto (1,965 euros/m2) comes from Switzerland, while the region's most famous tourist town, Polignano a Mare, (€2,173/m2) is particularly popular among Americans.
 
 
 

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PROPERTY

Five expensive mistakes to avoid when buying a house in Italy

Italy may be known for property bargains, but the purchase process itself isn't cheap - and certain mistakes can make it far more costly for buyers.

Published: 27 June 2024 11:05 CEST
Five expensive mistakes to avoid when buying a house in Italy

There’s always a lot to keep in mind when buying property, but the Italian purchase process may be quite different to what you’re used to in your home country.

As well as involving high taxes and fees, it’s likely to be more complex and formal in some ways – and this can lead to potentially costly pitfalls.

The Local spoke to three Italian property law experts at legal firm Mazzeschi to find out what foreign buyers should be aware of before they sign anything. 

1) Check your estate agent’s contract

If you use a real estate agency in your Italian home search, normally you’ll need to sign a contract with them. That contract should stipulate their fees, their duties, and their tax information.

There is one other thing in the contract which potential buyers must look out for: an exclusivity clause, meaning the potential buyer may use only that estate agent in their property search for a set period of time.

“Usually in Italy estate agents like using this exclusivity clause. It is normally the same for sellers as it is for buyers. It means you cannot have another estate agent and usually contracts say this, “says Caterina De Carolis, Lawyer at Mazzeschi.

READ ALSO: How to avoid hidden traps when buying old property in Italy

“If the time frame is not yet up, and the potential buyer uses another agency, they may still be liable to pay the agency fee for the initial estate agent they entered their contract with,” she adds.

Some contracts might not have an exclusivity clause. It’s always worth double-checking.

“If you use another agency to find a house, you’ll be liable to pay the agency with the exclusivity clause in the contract around 2-5 percent of the house’s sale price,” says De Carolis.

“The exact percentage is always in the contract.”

2) Make sure to agree on a price beforehand

This rule is universal, and may sound obvious. But there are costly consequences in Italy if the price is not formally agreed and written down.

Lawyers at consultancy firm Mazzeschi urge their clients to make sure the full price of the property is declared in the transfer deed (l’atto di trasferimento).

This is because if you resell at a market price higher than your purchase price, you are subject to pay a capital gains tax called plusvalenza. Plusvalenza is the difference between purchase and sale price.

Checking the price of the property beforehand will save you in the long run. Photo by Kirill KUDRYAVTSEV / AFP.

3) Don’t change your mind – it will cost you

If the potential buyer has signed a binding proposal (proposta vincolante) – the process before a preliminary contract is drawn up – it becomes less straightforward to withdraw from the purchase.

“This is because the binding proposal in Italy is a lot more formal,” says Mario Mazzeschi, Head of and Attorney at Law of Mazzeschi Consultancy. 

The binding proposal works similarly to an offer. When the potential buyer puts forth their offer, the potential seller decides whether or not to accept. The period of time for this part depends on the proposal drawn up.

READ MORE: Five things non-residents need to know about buying property in Italy

If, before the time is up, the potential buyer decides to withdraw their offer for any reason, they will likely lose their deposit.

“This deposit is usually around 5-10 percent in most cases, so the buyer will have to pay that,” says De Carolis.

“If the buyer decides to withdraw, they are usually liable to pay the seller twice the amount of the deposit.”

If the proposal is not accepted by the potential seller, the potential buyer pays nothing.

4) Don’t pay anything before the preliminary contract is signed

With the exception of the above, buyers are advised not to pay anything until the preliminary contract is signed. The preliminary contract allows both parties to set out clear guidelines.

“The buyer should check with a lawyer before signing the preliminary contract as it will save them in the long run,” says Mazzeschi.

A notary should be present at this signing, adds Giuditta De Ricco, Lawyer at Mazzeschi Consultancy.

“Notaries are public functionaries. They are never on the side of the buyer or the seller, but for sure a notary is needed.”

“They are completely neutral and often it is wiser and safer for the potential buyer to put their deposit into the notary’s escrow account so the notary can transfer the money to the potential buyer.” 

5) Have the property checked beforehand

While the notary will normally check the paperwork before the sale goes through, you’ll need a different professional to check the property itself.

It may then be in the buyer’s best interest to hire a contractor themselves (this will normally be a qualified geometra, or surveyor) to get the structure of the building checked out and detail any faults or repair work needed.

This should be done before the negotiation stage, as unless there is something specific in the preliminary contract you may lose anything you have paid by pulling out of the purchase at this stage.

“The only way out of this after signing a contract is if you can prove the seller acted maliciously,” says Mazzeschi.

Key vocabulary

Transfer deed – l’atto di trasferimento

Binding proposal – proposta vincolante

Notary – notaio

Preliminary contract – contratto preliminare di vendita

Final contract – atto di vendita or rogito notarile

Deposit – caparra

Surveyor – geometra

Estate agent – agente immobiliare 

Please note that The Local cannot advise on individual cases. For more information about how you can buy property in Italy, contact a qualified professional. 

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