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EMPLOYMENT

Remote workers wanted as investors target Italy’s ‘smart working’ villages

The Italian villages hoping to entice remote workers with financial incentives are set to receive a boost as international business has its sights set on Italy for startups and sustainable development. Will there soon be more opportunity to work in Italy with just a laptop and an internet connection?

Published: 18 August 2021 17:37 CEST

The pandemic has seen Italy jumping on the remote working trend, known as lavoro agile or ‘smart working‘ in Italian.

Remote work was rare in Italy before lockdown restrictions forced many companies to change how they do business, with just a few thousand people working from home at the end of 2019.

Since this mode of working has “exploded”, according to a recent study, thousands of villages across Italy have taken it as an opportunity to attract remote workers and reverse the trend of declining populations.

READ ALSO: Will Italy really pay you to move to its ‘smart working’ villages?

This shift in Italian working culture hasn’t gone unnoticed.

A new initiative called Startup Villages has been launched to promote villages in Italy as an ideal destination for startups and encourage “reverse migration”.

Noting that the “pandemic has proved remote work is possible” and that “villages across the globe are struggling to retain residents”, some entrepreneurs have gathered to take advantage of the possibility to relocate to Italy’s depopulated villages.

The organisation’s founder, Dr. Tausuf Malik, noted that some of the financial incentives worked – but didn’t boost the towns’ economies as hoped.

“Many people bought and refurbished the homes they purchased in these Italian villages, but guess what, the majority of them were holidays homes and this didn’t trigger economic activity,” he said.

Seeing an opportunity, Malik worked with business partners to pitch the idea to mayors of towns across Italy, focusing on startup development instead of attracting holidaymakers with the €1 house deals.

Malik’s Italian colleague Dr. Stefan Valente said, “Our villages are our heritage and pride, and through this programme, we would take our villages into the future with sustainable & holistic development.”

READ ALSO:

One issue in these locations is often internet connection. Before the pandemic, Italy wasn’t well known for its digital agility, and many people who move to the country noted the widespread internet connectivity problems.

However, some Italian towns are seeking to improve that and are also offering financial help to those willing to move in and set up as remote workers.

This latest initiative plans to take it one step further by creating “a sustainable ecosystem and environment for the economic development of the villages in Italy”.

The aim is to “create unique startups and take Italy to the next level – and achieve what Silicon Valley did to the American Startup ecosystem,” the organisation stated.

For now, agreements are being reached with towns, with a summit scheduled next year.

Meanwhile, thousands of individual Italian villages are already making their own plans to increase wifi provision and enable people to move there for work.

Here are some of them.

Photo by Viviana Rishe on Unsplash

READ ALSO: Could Italy’s abandoned villages be revived after the coronavirus outbreak?

Calabria

The southern region of Calabria has an increasing amount of emptying villages that the authorities want to revitalise, offering up to a substantial €28,000 to those willing to move there.

There are nine villages on the list in total – four are located in the north of the province of Cosenza. They include Aieta, Albidona, Civita and San Donato di Ninea.

Three further villages are in the province of Reggio Calabria: Bova, Samo and Sant’Agata del Bianco, with the final two municipalities in the province of Crotone – Caccuri and Santa Severina.

Naturally, there are terms and conditions to the deal – which varies among the villages participating in these schemes across Italy.

READ ALSO: Community cooperatives: the small Italian towns taking charge of their own future

A village in Calabria. Photo: David Alfons on Unsplash

In the case of these nine villages in Calabria, the small print is that you must be under 40 years old and willing to start a small business there.

There’s also a timeline – if your application is approved, you must be willing to move there within 90 days.

Gianluca Gallo, Calabria’s councillor for agriculture, said in an interview that the funds could either be given in the form of a monthly salary or as a lump sum if the business required it.

“So far we’ve had great interest and hopefully, if this first plan works, more villages will follow in the next few years,” he stated.

Tuscany

Santa Fiora in the Maremma area, is often described as the first ‘smart working village’ by Italian media.

It currently has around 2,500 residents and is still offering up to €200 or 50% of the average monthly rent for long-term stays, in a bid to counter its declining population.

The town council has launched a website to help would-be residents find their ideal home and you’ll have to prove that you’re actually going to work there, not just use it as a holiday base.

The village says it’s ready to accept newcomers to carry out their jobs remotely, with newly installed high-speed fibre. Details on how to apply can be found here.

READ ALSO: Digital divide: The parts of Italy still waiting for fast wifi

Montepulciano, Tuscany. Not a bad view from the office. Photo by nine koepfer on Unsplash

And this entry is likely to raise a few eyebrows in interest – Montepulciano, in the province of Siena, known for its breathtaking views and superb wine, is also a smart working hub.

It was the founding location of a startup called Smartway, which was set up to help remote workers find an Italian town to base themselves and live out the ‘dolce vita‘ remote working dream.

Basilicata

Latronico in the province of Potenza is nicknamed ‘the city of well-being’ thanks to its clean air and many green areas.

Mayor Fausto De Maria’s offer to smart workers exploits exactly that advantage.

“Do you live in a city and will you be doing smart work? Then why don’t you come and live in our Latronico during these months!” he wrote on Facebook.

“Lots of greenery, clean air, and lots of good things. Houses for rent and/or sale can also be found on our municipality’s website,” he added.

READ ALSO: ‘This is where I want to be’: The growing number of young Italians choosing life on the farm

Molise

The town of Castropignano is one of thousands taking part in the €1 house scheme, on offer to smart workers and foreign tourists.

Abandoned houses in the historic centre are on sale for the symbolic price of €1, as long as you commit to renovate the property.

Although the municipality may be using the ‘smart working’ keyword to help sell these old properties, as no further details are given to help those who specifically move there to work remotely.

You can find out more about the scheme here.

READ ALSO:

A surrounding village of Rieti. Photo by Gabriella Clare Marino on Unsplash

Lazio

Rieti near Rome offers a smart working village much less remote than thousands of other options.

It currently has around 50,000 inhabitants, but the population has stopped growing and the council wants to reinvigorate its prospects.

The municipality is offering people help with property rent and can be extended beyond the initial six months offer.

If you’re a freelancer, you simply need to describe your work. Or if you have an employer willing to let you relocate and move to Italy to do your work from there, you’ll need a letter to prove it.

You can find out more and how to apply here.

As more and more towns are offering schemes to attract remote workers – and with international investors now setting their sights on Italy for smart working development – will Italy be ready?

Although infrastructure still needs to be put in place, the government has made plans to increase the amount of high speed fibre throughout the country, in line with the European Union’s goal to rollout fast internet to some 202 million homes across the bloc.

Find out all the latest property news in our weekly property roundup.

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PROPERTY

Five pitfalls to watch out for when buying an old house in Italy

Tempted to snap up a little slice of Italy at a bargain price? The older the house, the more potential issues you'll need to be aware of.

Published: 29 March 2024 10:17 CET
Updated: 29 March 2024 12:03 CET
Five pitfalls to watch out for when buying an old house in Italy

Italians themselves may have very little interest in buying or fixing up Italy’s many unwanted old houses, but international visitors are often swept away by the charm of these rustic buildings in romantic settings.

It’s easy to see why. The quirky structures, period details, and picturesque surroundings – not to mention low asking prices – inspire countless people worldwide every year to investigate buying an Italian home of their own, often as an investment or retirement property.

MAP: Where in Italy can you buy homes for one euro?

International interest in cheap Italian property has only intensified in recent years, with dozens of idyllic villages advertising ‘one euro’ homes and other low-cost property offers aimed specifically at foreigners.

Savvy buyers are aware that non è tutto oro quel che luccica (all that glitters is not gold), and quickly realise that these long-neglected buildings really cost somewhat more than one euro to buy and renovate. Still, some of The Local’s readers tell us these offers are worth taking advantage of.

But whether you’re looking at spending a couple of thousand euros or much more on your dream Italian property, there’s always a lot to consider – including some issues that you’re unlikely to experience when buying a home in your home country.

These unexpected issues can turn the Italian dream into a bit of a nightmare, and sometimes lead to buyers having to abandon a purchase, losing money in the process.

But if you’re aware of potential pitfalls in advance, you’re far more likely to be able to complete the purchase process with no major problems at all.

Property taxes and fees

Of course you’ll be expecting tax as part of the property purchase process, but Italian property taxes are particularly steep.

Experts say the total cost of buying in Italy will add approximately ten percent to the purchase price, and advise prospective buyers to budget accordingly.

There’s stamp duty, which is between two and nine percent of the cadastral value (valore catastale) of the property, with a minimum threshold of €1,000 even on the cheapest homes. Plus VAT at four or ten percent, land registry tax, and, if applicable, mortgage tax.

You can also expect to pay between one and five percent of the purchase price as a fee to the estate agent. In Italy agents work for both the buyer and seller – and collect compensation from both parties once the deal is done.

Then you’ll likely need a couple of thousand euros for the notary, plus a similar fee for any other agents you use, such as a mortgage broker, plus legal fees if a lawyer is involved.

See more about the ‘hidden’ costs of buying property as a foreigner in Italy.

Bickering relatives

It may sound unbelievable to non-Italians, but it’s not unusual to find that even the smallest old properties, or parts of them, are legally divided up between dozens of family members due to Italy’s inheritance rules.

One buyer The Local spoke to found herself having to deal with 22 people, all relatives, who each turned out to own a share of a small property she was buying in Mussomeli, Sicily; one of the first places in the country to sell off old properties for a euro.

Toti Nigrelli, the mayor of Mussomeli, said “having to negotiate the sale with multiple owners” was normal.

While this buyer impressively managed to negotiate the deal with all 22 parties, in many cases similar sales fall through because relatives – distant cousins, great-aunts, long-lost nephews – are often not on good terms, disagree over the sale, or can’t be traced.

At the very least, you will need to check the property’s records carefully to make sure there are no surprises in store – such as long-lost relatives who might turn up to claim the property back after you’ve bought it.

A trullo house before renovation in Cisternino, Puglia. AFP PHOTO / GIUSEPPE CACACE

Illegal builds

Another thing that often astounds foreigners who buy property in Italy is the enormous number of illegal builds – homes that were built entirely without permits – on the market as well as the even greater number of houses featuring modifications which were never officially approved or recorded.

Illegal housebuilding in Italy is often thought of as a decades-old issue, but recent data shows that, in 2021, 15 houses were built illegally for ever 100 authorised. Illegal building is twice as common in the south of the country as in the north, and thousands of cases are detected every year – though few people are ever prosecuted.

If you buy a house with undeclared modifications, the buyer is usually held responsible for paying to regularise the paperwork with the town hall. If you catch this issue early enough – and not all sellers or estate agents will inform you about them – you may be able to negotiate for the seller to cover these costs before you make an agreement.

If however you end up unknowingly buying a house built without the correct permissions, or if you never regularise any unauthorised changes, the property will likely prove very difficult to sell on.

This is one of many reasons why buyers need to carefully check the catasto (land registry or cadastral records) of a property themselves, and have a notary check everything is in order.

Conservation rules

When you initially view and fall in love with that charming stone house in the historic centre of a gorgeous Italian hilltop town, rules and regulations are probably not the first thing on your mind.

But it pays to know that old homes featuring frescoes, loggias or ancient stone cellars, as appealing as they are, are often protected by Italy’s cultural heritage authority – meaning more red tape for their owners.

One reader was forced to give up her dream of buying a portion of a two-floor 1700s building in the village of Civita Castellana, Lazio, because it needed renovation work to make it livable – but the frescoed walls, decorated fireplaces and elegant stonework entrance were vincolati (under restrictions) due to Italy’s historic conservation rules.

READ ALSO: Tuscany or Basilicata? How Italy’s international property market is changing

In many cases, this means renovation work can’t be carried out at all, or will be subject to reams of paperwork and close monitoring from authorities known as the sovraintendenza belle arti. To make things trickier, rules can also vary by local authority.

If you think a property you’re interested in might be subject to these rules, it’s always wise to consult the local sovraintendenza at an early stage. And of course, you’ll want to get hold of the records of the property from the catasto (land registry).

Resale prices

The high taxes and costs involved in buying and selling a property in Italy are often said to be one reason why, for most Italians, the concept of climbing the property ladder doesn’t really exist in the way it does in some countries.

Italy’s property market is unusual in Europe in that house prices on average are relatively stagnant. With the exception of some types of property – such as new-build apartments and luxury homes – overall prices have risen little over the past decade.

This is partly because the Italian market is weighed down by a large volume of old, neglected properties in need of major work – hence schemes like the one-euro sales and the (formerly popular but now-unavailable) 110 percent ‘superbonus’ for renovations.

But overall, if your main motivation for buying an old Italian home and renovating it is profit, you’ll need to consider that the resale potential may not be what you’d hope. The exceptions to this are at the pricier end of the market, in most major city centres, and in tourist hotspots.

See more in The Local’s Italian property section.

Do you have any more tips on buying a property in Italy? We’d love to hear from you in the comments section below.

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