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‘Italy’s one-euro homes cost a lot more than one euro – but can be worth it’

While offers of one-euro homes might sound like a simple route to that dream Italian property, reader John Ware warns the real cost will be higher and that there are no shortcuts for anyone hoping to buy a cheap home.

Published: 6 September 2023 17:27 CEST
Updated: 10 September 2023 08:11 CEST
'Italy's one-euro homes cost a lot more than one euro - but can be worth it'
'One-euro' homes in Italy will definitely cost a lot more than that, but they can still be worth it says reader John Ware. Photo: David Tip on Unsplash

Over the years I have bought several properties across various parts of Italy including in Campania, Basilicata, Puglia and Le Marche.

The reality is that all the fees and add-ons mean the real cost of buying these properties is much higher than one euro.

However, here’s my bottom line: I paid an average of just over €1,000 for each property, save for one.

One property near Matera was an estate and the previous owner went bankrupt. Since the property was paid for, I only have to pay taxes, insurance and upkeep on it. It was a great find to turn into a bed and breakfast.

If you are looking to buy then your best bet is to go to the region you want to buy in.

Meet the locals and get to know them. Develop relationships. Get to know the area. And I don’t mean like a tourist, or even someone who wants to spend some extended time there. No, I mean get to know the area like you’ve lived there for 30 years. This takes time and effort.

Then you need to find an avvocato (lawyer) who is well-versed in local real estate.

There are no shortcuts to buying property in Italy. I like to outwork everyone. And trying to wing it with regards to the property laws and regulations is a fool’s errand.

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Your banking situation must be cleared up (get an Italian bank account first) and ensure that whatever the cost of your purchase is — whether it was cheap like mine or you’re buying from a realtor and are loaded — you have extra money on top of the cost of the property.

If you plan to buy a property in Italy, on average whether it’s a one-euro home or anything else, you can expect to pay a premium of 10 to 20 percent to fix it up, renovate it, change it around, cover the ‘hidden fees’, etc.

Sure, sometimes it could be a lot more and sometimes these costs might add up to hardly anything, but people should know that ‘one euro’ properties in Italy are not ‘one euro’ properties, in reality.

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

Failure to do this leads to delays, and someone swooping in to take your prize away from you.

My total outlay for the properties I mentioned was just shy of €70,000. All seven properties have since been valued at around €2.3million.

Get to know the locals, the language (at least, intermediate level), the local culture and above all, be patient.

Buying a property in Italy takes time and effort, but also analysis, people skills, and the love of the culture and customs of any area, region or country you’re considering.

John Ware, who was born in the US, but has lived in various parts of Italy over the years.

Do you agree with our reader? Share your own opinions in the comments section below, or if you have any tips, insights or views about an aspect of life in Italy that you want to share with other readers then email us at [email protected]

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PROPERTY

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?

Published: 14 May 2024 10:27 CEST
Updated: 18 May 2024 07:39 CEST
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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