Why 2016 is the Perfect Time to Invest in Italian Property

| February 26, 2016

Vernazza

Still wondering whether the Italian housing market represents a safe investment for you? There are so many signals indicating this is the best moment to buy a home in Italy. Seize the day!

News and predictions on Italy’s property market

House prices in Italy are stabilising, with 2014 showing the first indicators of recovery since the economic crash in 2008. While they are increasing in many countries in the continent, in the peninsula prices are still falling even if at a slower rate with respect to recent years. In fact the country can offer some of the best deals in Europe at the moment.

This has made Italian housing market very affordable and accessible nowadays for both Italians and overseas investors looking to buy a property in Italy who are more and more interested in relocating to ‘the boot-shaped country’. So while prices are dropping, sales are increasing (+10% with respect to 2013) also thanks to more affordable mortgage tax rates and banks which are more keen to grant loans.

There are numerous good value real estate for sale in Italy available at the moment, particularly in the areas traditionally popular with worldwide investors, such as Puglia, Lake Como and Tuscany – as well as some ‘newly discovered’ spots like the Dolomites and Le Marche, where properties can be up to 1/3 cheaper than in Tuscany. Here you will find a wide choice of dwelling at very reasonable prices – and you may even still be able to barter prices down in some areas.

For bargain hunters, there was a growing market for solutions under €150,000, and this is expected to continue also throughout 2016. These investments gives them something they can use, and even generate further income from by renting it out.

The recovery has been evident especially in the large cities where prices fell by 30% if compared to ten year ago, and this wave is going to invest the entire peninsula very soon.

Of course, nothing is certain in currency markets making it important to be constantly aware of market movements and the factors that cause these.

Carpe diem, since in the bel paese house prices are forecast to rise by the end of this year.

Italian property

Tax relief on you home in Italy for this 2016

Whatever the reason for investing in Italian property, it’s important to remember that buyers need around 10% of the purchase price to cover fees such as stamp duty, legal costs, agents fees, etc. However, the cost of ownership in the country is low, especially if compared to other countries, as there is no capital gains tax after five years and no inheritance tax. The country has also been feted in recent times for making the purchase process less bureaucratic and less complicated for overseas investors.

And what is more the Government has also reduced the fiscal burden on property taxes with the Finanziaria 2016. This means that owners of primary homes, unless they are luxury abodes, in 2016 won’t pay Tasi, which is the tax on municipal services, such as road maintenance or street lighting and cleaning, etc.

In case you buy a house in Italy and you decide to rent it out with a ‘regulated contract’ (locazione a canone concordato), you will benefit of a 25% discount on both Tasi and Imu. It is a renting contract with fixed duration that is regulated by the local authorities.

Now’s the time to find your dream retreat in the sun with Gate-Away.com:

7 thoughts on “Why 2016 is the Perfect Time to Invest in Italian Property

  1. Marchais Sylvie

    We wish to buy a house in Tuscany around Montescudaio. The problem is there are not many Houses in that area.. A big apartment would also be nice.
    Thank you for sending as many possibilities as you can.

    Reply
  2. Mohannad

    What about regions in Lombardy , such as Berscia or veneto like Verono ? Any insights on whether to consider these as hot spots for real estate investment or not ?

    Reply
    1. Gate-away.com

      Hi!

      Nowadays invest in any region of Italy is very advantageous for any would-be buyer as property prices are still very favourable. They decreased by about 20-25% since 2008. So now it is possible to find real bargains as never before. The same applies to the areas of Brescia and Verona.

      The two zones you are interested in can be very good choices for anyone looking for a second home in Italy to live or as an investment, as they are two very rich areas from many points of view. They are rich in history and traditions, and services are very efficient. What is more they are well connected to the rest of the peninsula and the continent through motorways and airports. At the same time here you can enjoy a slow-paced life without renouncing to every comfort. As a matter of fact they are two big towns yet very liveable and situated at a very short distance from the main and more chaotic cities of Milan and Venice respectively and to other important tourist destinations, such as lake Iseo and lake Garda.

      You can also consider renting out your property while you’re not there. Brescia and Verona boasts two important universities, so many chances are to rent it out to students for example.

      This is just a brief outline of the situation, but hope it can help.

      For any other doubts or questions, do not hesitate to drop us a line again.

      All the best,

      The Gate-away.com team

      Reply
  3. john scaramella

    interested in 2 bedroom house or condo, pref new construction, near sea in Liguria

    Reply
  4. Brigitte Ingravalle

    Hello to those who want to live in Italy…my husband and I were born in the region of Puglia, (I was 3 mos. old) and now that we have retired our wish is to go back and live a more wholesome life. We missed the real estate boom in Toronto and can’t afford to purchase anything there. We chuckle when we hear that ‘everyone wants Tuscany’… The new ‘Tuscany’ is Puglia. With crystal clear waters, vineyards, and olive groves. The EU will even give you a bonus to up-keep and maintain the olive groves, so people won’t over-develop the areas. Every year you can sell your olives, or fruit from fruit trees, and pay for your low taxes, or have your olives pressed for your own olive oil that is so sweet..nothing else will do after you taste it. For first time home buyers there’s a no tax system for 2017 (not sure for next year). So, today is the 29th of March and the weather in Puglia is 70 degrees (daytime) Fahrenheit, or 19 degrees Celsius, and its not a fluke. The leaves are out, the apple blossoms…etc. all there now. So, if you want some seaside advice..don’t buy that close to the beach. Yes it’s nice..but if you plan to live in Italy permanently, at the end of the summer lots of homes get closed for the winter and you won’t have neighbours, and there’s the risk of being robbed when you’re out. Like ‘San Pietro in Bevagna’ beach…..great place, and you find too many good deals. A 2 bedroom villa, living room, bathroom, and postage stamp lot will cost between 60-70,000 euros. The same size, but with 1/2 acre, and in towns not on the beach will be the same price. The up side to buying away from the beach is that all real amenities are in those towns. So, I wish you all the luck, and enjoyment – we’re moving to Manduria, Taranto, Puglia. Bye for now…Brigitte

    Reply

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