Read news from:
Austria
SHARE
COPY LINK

PROPERTY

Five clever ways to find a cheap home in Italy

Italian property isn’t always as cheap as you might hope, but there are still a few ways to bag a bargain when buying a house.

Published: 28 July 2023 17:18 CEST
Updated: 22 November 2023 12:19 CET
Five clever ways to find a cheap home in Italy
Affordable Italian properties are often hidden in plain sight. Photo by Federico Burgalassi on Unsplash

Let’s face it, life in Italy is getting more expensive. As elsewhere, rising inflation on the peninsula is pushing up rent, food prices, and also the cost of buying a home – which is 1.1 percent higher than last year, according to national statistics bureau Istat.

EXPLAINED: How much are house prices rising in Italy?

The average property price per square metre in Italy overall has meanwhile risen by 30 percent since 2019. And it’s commonplace to put down a deposit of 10-20 percent. This of course doesn’t include taxes, or registry and notary fees, all of which add up to the thousands.

But it’s not all doom and gloom. There are still ways to bypass inflation and find bargain properties (that are not one euro homes).

  • Be location savvy

This one is no secret. If you’re on a shoestring budget, there’s no chance of you getting a lakeside villa on Como or a chalet in the Dolomites. Scrap those ideas, but look at alternatives. There are plenty of lesser-known options. 

Can’t afford Garda? Try Abruzzo’s heart-shaped Lago di Scanno. Is the Amalfi coast too expensive for you? Try the coastline of Ancona. Want a major city without the prices? Live in a nearby town with good transportation links. Think Frascati or Tivoli for Rome or Bergamo or Pavia for Milan, to name just some examples.

READ ALSO: The Italian village where foreign buyers pay no property tax

There’s plenty of information out there. Estate agency website Idealista recently published a list of the cheapest city neighbourhoods to buy in: it names San Cristoforo in Catania and Villagrazia in Palermo the cheapest of all, at 668 euros and 702 euros per square metre respectively. 

  • Know your websites

Of course, high-end sites such as Engel & Völkers or Casa and Country won’t be of much practical use if you’re looking for a cheap home (though you might look at them just for fun). More helpful places to look include Renovita, Gate-away, and Casa.it.

Some of the houses listed on such sites are in need of major renovation, especially those found on Renovita, but not all are.

The usual property websites such as Idealista.it and Immobiliare.it also have stacks of options in their listings, especially when you type in ‘case economiche’.

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

Other sites include Subito and Bakeca where you may be able to negotiate a sale directly with the property owner, bypassing high estate agent fees (charged to both buyer and seller in Italy).

If you go down this route, be sure to get paperwork thoroughly checked by a professional and don’t pay anything until you’ve done so, as there are property-related scams to look out for in Italy.  

Milan remains by far the most expensive major Italian city for a property purchase. Photo by Ron Dylewski on Unsplash
  • Find out about ‘bare ownership’

It’s not for everyone, but there’s a type of property ownership in Italy that allows buyers to pay much less than the market value.

The concept, known as Nuda Proprietà or ‘bare ownership’ in Italian, works on the basis that you buy a house with the previous owner still living in it and wait for them to pass on. 

It sounds morbid, but many say this type of purchase helps the previous owner, usually a very elderly person, with their living costs.

This could mean the buyer saves as much as 30 percent of the market value. Here’s a detailed look at how nuda proprietà works.

  • All about auctions

Auctions, or aste in Italian, are known to knock the current value of houses right down – often repeatedly and by a large amount. You can find auctions listed in online and brick-and-mortar estate agencies, and there are plenty of specialist agents out there who can help you place your bid. 

Property auctions are ubiquitous and you can find them for all housing types, from apartments to country homes. According to Idealista, how much you can save tends to vary from 10 percent to 60 percent. 

Be aware that, if you’re the winning bidder, a deposit of ten percent of the purchase price is generally payable immediately at the end of the auction.

  • Check the averages

There’s a really good trick for finding this out. While no app has yet been developed (app developers, there’s a hint here) some websites already have a calculator built into them which shows average house prices in each area based on their data.

On Idealista’s site, the price per average square metre is calculated automatically for the zone and this is shown on each property listing.

IN MAPS: How Italy’s property prices vary by region

Even if you don’t like that particular property, it’s useful to have a zone average to back you up when going through negotiations on a nearby home.

It’s somewhat less user-friendly, but you can also access official house price data for your chosen neighbourhood, based on property purchases in past years, from the Italian tax agency website here.

See more in The Local’s Italian property section.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

TAXES

How much should you pay your Italian accountant to do your taxes?

Italian taxes are notoriously difficult to navigate and even trickier to deal with yourself, meaning you may want to turn to a 'commercialista' for help. But how much should you pay for their services?

Published: 18 September 2024 12:42 CEST
How much should you pay your Italian accountant to do your taxes?

If you ask someone in Italy who a commercialista is, you may get several different answers: accountant, consultant, financial advisor or administrator.

In fact, they can be all of these at once as, along with the patronati, they’re residents’ first port of call when dealing with the complex bureaucratic processes surrounding almost anything official in the country.

Commercialisti are also the people who can file and submit your yearly tax returns for you. 

If you live in Italy or generate income in the country, you’ll likely need to file your taxes once a year during the so-called dichiarazione dei redditi (‘income declaration’). 

Unlike in other European countries, where it’s fairly easy for taxpayers to file tax returns independently, doing this can be very tricky in Italy, not least because of the complicated language being used. 

And mistakes can cost you dearly as the Italian taxman could charge you hundreds or even thousands of euros if you submit late, forget some details or enter the wrong information.

That’s why many around Italy choose to hire a commercialista. But how much should you pay for their services?

Overview

Commercialista fees can vary greatly depending on the type of services you need and the complexity of your financial situation.

If you’re an employee with a single source of income and are seeking help with filing taxes, or claiming tax deductions or incentives, fees will be on the low end of the spectrum. 

But if you have multiple sources of income, or have foreign income or assets and are subject to taxation in multiple countries, the commercialista will need expertise in international tax law, which may significantly raise costs.

READ ALSO: The Italian tax calendar for 2024: Which taxes are due when?

If you are a freelancer or the owner of a small business, you may need monthly consulting and regular services such as bookkeeping and VAT reporting. In this case, services may be bundled in an annual package. 

Finally, if you own a large business or corporation, you may need to hire more than one commercialista to deal with payroll management, VAT declarations, and corporate tax filings. 

Please note that the cost of a commercialista can also vary by region as prices tend to be higher in large metropolitan areas such as Milan or Rome, while you may find particularly advantageous rates in small towns and less populated areas around the country. 

Annual tax returns

According to financial advice platform Fiscozen, income tax filing services generally start at €120 but can rise to over €700 depending on your personal situation.

Generally speaking, tax filing fees are higher if you’re a VAT number holder (or partita Iva) as this entails more work on the part of the commercialista (think of all the invoices issued and claimable VAT detractions) compared to an employed individual or pensioner.

Paying taxes

Most types of taxes in Italy (from income to property taxes to waste collection charges) must be paid by completing and submitting form F24 (modello F24) with Italy’s tax office.  

A commercialista can do this for you, with services costing between €15 and €30 per form, according to online investment advisor Moneyfarm. 

Registering a new business

Freelancers and business owners in Italy are required to register with Italy’s tax office by getting a VAT number (known as partita Iva). 

If you’re starting out as a freelancer, hiring a commercialista to get your personal VAT number and set up an electronic invoicing system on your behalf will cost you €150 on average, according to Fiscozen.

Fees will be higher if you’re starting a new business as this generally involves more paperwork and compliance with a number of tax requirements. 

In this case, a commercialista’s services may cost anything between €300 and €500, though you’ll also have to factor in the payment of a number of taxes (including up to €200 for the Certified Start of Business Report, or SCIA). 

‘Year-long administration’

As mentioned earlier, if you are a freelancer or a business owner, you may need monthly consulting services, as well as regular bookkeeping, VAT reporting and – if you have employees – payroll management. 

In this case, commercialista services may be bundled in a gestione annuale (‘year-long administration’) package. 

According to Fiscozen, a 12-month package for freelancers operating under Italy’s flat tax scheme costs €60 a month on average (€720 a year). 

But costs can be much higher for freelancers working under the so-called regime ordinario (‘ordinary regime’) and business owners. 

In this case, you may pay anything from €2,000 to €4,000 a year depending on: number of clients, business size and number of employees (if applicable).

How can I find a commercialista?

All commercialisti in Italy must be registered with national association CNCDEC (Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili). 

The association’s website gives you the option to look for registered professionals in your area (see an example via the screen grab below).

A screen grab of the search tool on Italy's national 'commercialisti' association's website

A screen grab of the search tool on Italy’s national ‘commercialisti’ association’s website. Source: Consiglio Nazionale dei Commercialisti

As with most things in Italy however, word of mouth is key, so make sure to ask friends and family for recommendations if you can.

Alternatively, online forums and message boards for foreign nationals in Italy often share names of professionals that are particularly experienced in international tax law.

Finally, you can also find a list of commercialisti working in your area in Italy’s pagine gialle (Yellow Pages). 

SHOW COMMENTS