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PROPERTY: How Italy’s building bonuses are delaying the restyle of one-euro homes

Facing long delays and cost increases amid a renovation boom, some foreign buyers of Italy’s cheapest homes are now giving up on their dream renovation plans.

PROPERTY: How Italy’s building bonuses are delaying the restyle of one-euro homes
Cheap one euro homes continue to go on the market in Italy. Photo by Alex Vasey on Unsplash

Finding builders these days is proving challenging for many buyers of Italy’s one euro homes and other cheap properties in need of major renovation.

While the wide array of building bonuses introduced by the government offering homeowners up to 110 percent deductions on expenses related to energy upgrades and reducing seismic risk, or to simple fixes, has breathed new life into the economy, it has been so much in demand that it has delayed the restyle plans of many foreign buyers.

READ ALSO: How Italy’s building ‘superbonus’ has changed in 2022

Patrick Brown, from the US, last year bought an old rural farm in Bergamo’s countryside for €30.000 but is still looking for a building company to take on the repairs needed, including fixes to a partially collapsed roof, a new garage, and modern bathrooms.

“I knocked at the door of at least eight firms in the area and they all told me I would have to wait some 7-8 months,” he says.

“They were too busy with other pending renovations and were facing a lack of builders and other professionals, including architects, engineers, and contractors,” he explains. “I found out quite unpleasantly that Lombardy is among the regions with the highest number of building bonus-related delays.”

READ ALSO: Italy’s building bonus: Can you really claim back the cost of renovating property?

Brown complains that the extension of building bonus schemes into this year by the government means he’ll have to look for builders in other nearby regions where demand might be lower, but at a higher cost to him.

Superbonus delays are causing buyers of cheap Italian properties to abandon their renovation plans. Photo by Cristina Gottardi on Unsplash

“I was hoping the building delays would end when the pandemic abated, but now I face these new obstacles. In the meantime, as the months drag on, more parts of the roof are collapsing and the living room walls are starting to crack”.

Brown is feeling so downbeat he’s even considering getting rid of the farm before starting the renovation by selling it to the highest bidder – or to the neighbours.

READ ALSO: Italy’s ‘superbonus’ renovations delayed by builder shortages and bureaucracy

He says this bad experience is killing the “adventurous thrill of bringing back to life an old home”, and that friends of his who have bought a cheap dwelling in the surroundings are also facing the same problems. 

The shortage of builders is occurring all over Italy, particularly in Lombardy and Liguria. Rural areas, where there are many dilapidated homes and fewer building companies, are the most vulnerable. 

It’s also happening in deepest Sicily, where many towns have launched one-euro home schemes to lure new buyers.

In the town of Mussomeli, Australian chef Danny McCubbin, who runs a social kitchen for the poor, bought a house for one euro and was then forced to sell it back to a real estate agency for the same price.

READ ALSO:

He says it was very difficult to find a builder, and over time the house deteriorated. By the time he did find someone, high demand and the spike in inflation had doubled the cost to renovate it, so he thought it was not worth it anymore. 

Danny eventually bought a slightly more expensive property in better shape in Mussomeli, and says other foreign buyers who have faced the same delays are now renovating their one-euro homes themselves. 

Mussomeli mayor Giuseppe Catania explains that the high demand for all building bonuses from villagers meant that nearly everyone in the area was exploiting the tax breaks in order to redo their homes, with the town’s handful of building firms facing overwork and a shortage of builders.

Local architects in Mussomeli assisting buyers of one-euro homes say there could now be delays of up to five months, but it largely depends on the degree of renovation work required.

READ ALSO: My Italian Home: ‘We bought the cheapest house in Piedmont and live mortgage free’

Firms are willing to squeeze in massive restyle projects that involve the entire restructure of a house, and are more profitable – rather than taking on minor fixes like redoing a kitchen. 

Some buyers have resold their cheap Italian properties as they can no longer go through with renovations. Photo by Ehud Neuhaus on Unsplash

Also, if the buyer is willing to invest significant sums of money at once instead of doing the restyle project in phases, it is easier to find builders.

Catania is however confident that the situation will improve as measures have been taken by the town hall to boost supply: “Most of these bonuses are expected to expire by year-end, so the pace of new renovations will decrease, and in the next few weeks there will be an influx of new builders from other Italian towns to help out, perhaps even from abroad”. 

Given that many towns in Sicily have either been rocked in the past by terrible earthquakes or mass emigration which has caused abandoned buildings to deteriorate, says Catania, most families and condominiums are now rushing to benefit from the tax credits to give their homes a makeover or turn them into B&Bs. 

OPINION: Why Italy must put its forgotten ‘ghost towns’ up for sale – or risk losing them forever

But the delayed renovations are still pushing foreign buyers to have second thoughts. 

Anna Müller, from Switzerland, also had to give up her dream of living in a renovated cheap home in Genoa’s countryside. 

She says it took her contractor eight months to find an available builder and by the time he did, Susanna and her partner had decided that the house, for which they paid just €4.000, required too much work. Like Danny, they sold it back to a local agency, luckily for the same price they paid.

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

A lot has changed since Italy's 'one-euro' home offers first made international headlines, so are they still available - or worth considering?

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

The prospect of buying a house in Italy for less than the price of a caffè normale at the local bar caused a sensation back in 2019, when news of one-euro home schemes hit the international headlines.

There was a property stampede in Sicilian towns in particular, with local mayors reporting being overwhelmed with enquiries in English and other languages.

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

Even sceptics couldn’t contain their curiosity: Was it a joke? What condition were these houses in? And how much was this really going to cost?

Several years later, we know that these schemes are legitimate attempts to breathe new life into depopulated areas and unburden local authorities of old, unwanted properties that would otherwise be left to fall apart. And in some cases, at least, it has worked – and proved very lucrative for the towns involved.

We know most of these houses are in a very poor state of repair, requiring major investments from their new owners. And we know the costs can be high, with reports of some international buyers spending hundreds of thousands of euros on renovations – many times more than the property’s potential market value.

READ ALSO: Six things to know about Italy’s one-euro homes

But we’ve also heard from some readers who tell us that, while these homes do of course cost more than one euro, for a sensible buyer they can be a worthwhile investment.

Not only are Italy’s one-euro home offers still going strong in 2024, but new towns are joining the scheme, while others continue to announce similar ‘cheap home’ projects such as the rental programme in Ollolai, Sardinia aimed at remote workers – one scheme that’s expected to take off following the introduction of Italy’s new digital nomad visa in 2024.

So what do you need to know if you’re curious about these Italian property bargains?

As ever, if you’re interested in buying a one-euro home you’ll need to meet certain requirements which vary depending on the local authority. After all, this is not a nationwide scheme but a series of small initiatives run by local councils in each town or village, so you’ll need to carefully check the terms and conditions of every offer you consider.

Generally though, the following will apply:

  • Foreign nationals can buy one-euro houses, whether they’re EU or non-EU citizens – but remember owning one will not give you any residency rights in Italy, and visa rules will still apply to non-EU nationals.
  • The prospective buyer can’t just make vague promises about doing the place up: you’ll need to present a renovation plan within 2, 3 or 6 months depending on the village.
  • Buying a one-euro home to turn into a tourist rental business is generally allowed, but you’ll need to let the local authority know your plans when you apply.
  • The cost of the house, all renovation costs, and all notary, legal, transfer and other fees are the responsibility of the buyer.

Some things have however changed in the past few years which make buying and renovating a one-euro home less affordable than it once was.

Many buyers in recent years were further tempted by generous state subsidies available to cover the cost of renovation work – most famously the ‘superbonus 110’ which covered up to 110 per cent of qualifying expenditures.

READ ALSO: What taxes do you need to pay if you own a second home in Italy?

Though the superbonus is now winding down and is no longer open to new applications, it has had a knock-on effect which means renovations in Italy generally take longer and cost more than they used to.

The superbonus scheme’s enormous popularity led to an ongoing shortage of building contractors in Italy, who were booked up months, or even years, in advance.

And as the popularity of these offers has exploded, the most viable properties in some areas now often become the subject of a bidding war, with the sale price rising from one euro to tens of thousands.

Find a map of the towns currently offering one-euro homes in Italy here.

Have you bought a property through a one-euro home scheme in Italy? We’d love to hear from you. Please get in touch by email or in the comments section below to let us know about your experience.

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