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Palazzi, a convent and a lighthouse: The state properties Italy is auctioning off

Fancy buying a villa in Florence or a palazzo in Piacenza? Now's your chance. The Italian government is auctioning off dozens of historic buildings across the country, starting from this month.

Published: 3 October 2019 10:44 CEST
Palazzi, a convent and a lighthouse: The state properties Italy is auctioning off
All photos courtesy of Agenzia del Demanio.

The Italian government announced this summer that it would be auctioning off dozens of state-owned properties in the hopes of raising up to a billion euros, ranging from an ex-convent in Venice to army barracks, half a golf course, and a lighthouse.

The details of the 93 properties for sale are now online ahead of the auctions, the first of which are to be held on October 16-17.

Italy owns a large number of buildings, donated to or confiscated by the state over the years, which stand unused and are costly for authorities to maintain.

The government hopes the auctions will raise around €950 million. But even if the properties only go for their starting prices, €145 million will be raised, which the government has saiid will help fund its expensive vote-winning policies such as those on pensions and welfare.

After months of tussling with Brussels over plans for even more public spending, the Italian government hopes the money raised from the sale of property will give it some leeway.

Italy is weighed down by €2.4 trillion in public debt – the highest in Europe after Greece.

But whether or not this property sale will help Italy dig itself out of this deep financial hole, there's no doubt it's good news for anyone interested in buying and restoring a unique piece of Italian history. 

The Agenzia del Demanio (Italy's state property agency) has listed the properties online ahead of the auctions, complete with photos, drone videos and virtual tours of the properties. While many are priced in the millions of euros, there are also some more modestly-priced properties going under the hammer. 

From grand palazzi and a convent in Venice to a lighthouse in Calabria, here are some of the properties you could bid on.

Villa Camerata, Florence

A former noble residence set in parkland on the slopes of the Fiesole hill, to the north-east of Florence. Starting price: €7.4 million.

Palazzina Magnani, Bologna

This once grand two-story villa in Marconi, central Bologna, is complete with a typical Bolognese arcaded gallery overlooking a garden. Starting price: €1.9 million

Palazzo Costa Ferrari, Piacenza

A historic palazzo in central Piacenza, a short distance from central Piazza Cavalli. This vast renaissance-style building has three internal counrtyards. Starting price: €3.1 million

Ex-convent of San Salvador, Venice

By far the most expensive property up for auction is this former convent in central Venice. No doubt this large, prestigious property will be snapped up by a hotel developer with its central location, large courtyard and frescoed halls. Starting price: €28 million

Lighthouse, Calabria

Built in 1923, this lighthouse is the last on the Ionian coast of Calabria, about 100 metres from the sea. Sold as part of a small complex of buildings, it's immersed in unspoilt nature. Starting price: €309,000

Fort Barbarigo, Venice

This very unique plot of land comes with its own ruined fort, dating back to 1800 and currently belonging to the italian navy. It's in Ca Roman, on the southern edge of the coastline that separates the Venice lagoon from the sea, and forms part of the UNESCO-listed area of central Venice and its lagoon. Starting price: €690,000

Army outpost, Cuneo

This mountain hut at 1,900km above sea level, once a remote army base, is at the beginning of hiking trails through the Valle Varaita. Starting price: €130.000.

See mall 93 listings and find further information on the official Agenzia del Demanio website.

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

With taxes, bureaucracy and sometimes distance to consider, buying a house in Italy can be a long-winded process - especially for foreign citizens living elsewhere.

Published: 23 May 2024 16:53 CEST
Five things non-residents need to know about buying property in Italy

Contrary to popular belief, there are few legal restrictions for non-residents when it comes to buying property in Italy.

There is a wealth of options in Italy making buying cheaper, and sometimes easier, such as the one-euro homes offers or the nuda proprieta system.

READ ALSO: Can you still buy Italy’s one-euro homes in 2024?

While there is a lot to consider, such as additional costs and a language barrier if you are not fluent in Italian, buying a property in Italy allows many non-residents to escape – at least occasionally – to a Mediterranean climate and immerse themselves in the culture. 

So how do prospective buyers go about finding their ideal properties in Italy, and what are the necessary factors to consider before you start?

Find out if you have the right to buy in Italy

Most countries allow their citizens to buy property in Italy and vice versa. However, you might still want to check if your country has a reciprocal agreement with Italy on purchasing property.

If not, there’s a chance you might not be able to buy, as per article 16 of the Decreto Regio which states that foreign nationals have the same civil rights as Italian citizens on condition of reciprocity.

For example, Canada recently passed the Prohibition on the Purchase of Residential Property by Non-Canadians Act, which says foreigners cannot buy in Canada unless in special circumstances. This appears to go against Italy’s reciprocal agreement, so if you are planning to buy in Italy from Canada, you may need to get advice from a lawyer.

This does not apply if you are from a European Union country or a European Economic Area country, in which case you have the same rights in this situation as an Italian citizen.

Start the property search

Once you’re sure you can buy, the exciting process of finding your Italian home can begin, although if you’re not physically in Italy this can be trickier.

Popular Italian property search sites include immobiliare.it or idealista.it. There are also numerous agencies around Italy specialising in serving the international property market, which you should be able to find online once you’ve narrowed down your search area.

READ ALSO: Five clever ways to find a cheap home in Italy

As with any property search in your home country, important factors to consider when looking at listings include the state of the property, the extent of any renovations needed, the purchasing deposit (which is usually around 10 to 20 percent of the sale price), and the size of repayments on a mortgage, should you need one.

The type of property you buy will also impact the amount of tax you’re liable to pay, though tax is always higher on second homes in Italy than on primary residences. See a guide to the taxes you’ll need to pay here.

Get your paperwork in order

Even as a non-resident, you will need to get an Italian tax code (codice fiscale) in order to pay your housing deposit, plus any other taxes due after the property purchase (more on that below).

To get an Italian tax code, you can apply at the Italian tax office (Agenzia della Entrata) in Italy, or at your nearest Italian consulate in your home country.

READ ALSO: Everything you need to know about having a second home in Italy

A word of caution: the first option may be tricky if you are not well-versed in Italian, and you may need to make an appointment first.

Be aware of the lengthy mortgage process

Yes, as a non-resident without Italian citizenship you are eligible to get an Italian mortgage via an Italian bank. But you’ll have to open an Italian bank account to do so, and your tax code (as mentioned above) will be necessary for this too.

According to Studio Legale Metta, a non-resident is able to apply for a mortgage of 50 to 60 percent of the overall property value. The application process should take around ten weeks.

The steps include: a personal solvency check to review your financial information, a pre-approval mortgage application, a property compliance check where a surveyor inspects the property for an evaluation report, a title check where a notary reviews the property title, a final mortgage approval and, a funds release. 

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

Before the process even starts, you will more than likely have to provide documentation such as bank statements, tax returns, passport copies, credit reports and criminal records, all of which may have to be translated into Italian.

A lot of banks also ask for the borrower to be present at the final signing, so take into consideration travel costs and times when applying.

A notary is always needed

Whether you’re Italian, a foreign national residing in Italy, or a non-resident, the services of a notary are always necessary in any property purchase.

Notaries in Italy cost a lot, but they are crucial to you getting your keys, and even more crucial if you need a mortgage.

Without their sign-off on any of the documents, the sale may fall through. But they do a lot more than simply signing: they conduct the legal transfer, prepare the deed of sale and check the title if you go down the mortgage route. It’s also possible to transfer money for the sale through the notary’s escrow account.

Please note that The Local is unable to advise on individual cases. For more information on applying for a mortgage in Italy as a non-resident, consult a qualified financial advisor.

Planning to buy a property in Italy? Read more in The Local’s Italian property section.

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