You should be aware of all the expenditures when searching for a home. Knowing the cost can help you decide whether living in Italy is wise, particularly if you intend to make investments there. The Italian real estate market offers a wide range of possibilities at reasonable pricing.
You can search for some experienced real estate agencies online if you want to buy a house in Italy. Alternatively you can visit popular real estate portals, like Idealista and Immobiliare, or browse some minor websites like this one to find cheap italian houses available for sale. However, the nation’s housing demand is steadily increasing, so act quickly. Learn more about Italian house costs by reading this article.
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Italy’s Estimated Home Price In 2022
When using 108 m² as the standard size for an Italian single-family home, the average cost of housing in the country is approximately 208,332 EUR. The average price of a home in the Italian capital ranges from 3,993 to 7,278 euros per square meter or from 431,244 to 786,024 euros overall.
The main cities in Italy, particularly Milan and Rome, have higher average home prices than the rest of the country. People are migrating from the South to the North, increasing demand and driving up real estate prices. In March 2022, the average cost of a residential home in Milan was 3,994 EUR per square meter. Italian mean is 1,929 EUR/m2, in contrast.
Over the past two years, the price of a house in Italy has increased gradually, reaching a peak in March 2022 at 1,140 EUR per square meter. May 2020 had the lowest monthly estimated amount per square meter at an average of 1,060 EUR.
Italian Rental Rates
In different areas, the average monthly rent for rental housing in August 2021 ranged from 5,7 to 15,2 euros per square meter. Therefore, the rent for a typical 80 m² apartment ranges from 456 EUR in Lombardy’s more expensive region to 1,216 EUR in Molise’s more affordable region.
What Is The Price Of A Property In Italy?
It will cost more to buy a home in Italy than anywhere. Depending on the area, the following extra expenses could account for 9–12% of the cost of the house:
- Housing Brokers
You have to pay a premium when you buy a home through a residential agency. Hence, if you speak with the proprietor directly, you can avoid this. Depending on the agent, you could pay as much as 9% of the house’s price. Most housing brokers include their commissions in the cost of the home; they will be paid when you buy it.
- Notary Charges
To ensure a seamless handover of the properties, you must submit notary costs. All parties benefit from notary fees, which could account for about 3% of the total cost. Once you sign the contract agreement, you submit the notary charge.
- Tax On Registration
The Italian registration tax varies according to the type of home you buy. When purchasing an older home as your primary residence, there is a registration charge of 3%—the registration tax increases to 7% for second properties and non-residents. The actual cost of the home, not the purchase cost, is used to determine the residential tax.
- Property Taxes
All real estate transactions are subject to the land registry tax. 168 EUR is the usual monthly charge for residents, irrespective of the kind of property. One percent of the reported home price is charged to non-residents and vacation homes.
- VAT
Instead of paying registration tax when purchasing a brand-new home, you must pay VAT, ranging from 5% to 22%. It is considered new if a house was built or renovated during the last five years. First-time citizens must pay 4% in VAT, 10% for repeat purchasers and non-residents, and 22% for luxury properties.
Wrapping Up!
Naturally, housing expenses are higher in cities; settling in a small town will save a lot on real estate, which is your main expense. Nevertheless, this does not entail losing the quality of life because truly Italian culture, historical landmarks, and events can get found even in small towns.
