Starting a new life in Italy can be an intimidating prospect, and the decision to buy or to rent is often a dilemma newcomers face.

On one hand, the growth in rental prices seems unstoppable in Italy. According to a report released last month by online housing portal Immobiliare.it, average rents across Italy increased by 8.5 percent this year compared to last.

The cities of Milan, Florence, and Bologna once again topped the list of the most expensive places to rent.

Meanwhile, those looking to buy a property may see this as a tempting option due to recently falling mortgage interest rates and near-stagnant property prices in many areas.

As well as financial considerations, there are a few important factors to consider before deciding between the two.

Advantages of renting

1) Flexibility

If you’re new to Italy and have an interest in seeing and experiencing as much as you possibly can, renting may be a good option as it gives room for flexibility.

Say one year you want to try life in Rome and the next in Naples. This is a lot harder to do if you buy a property, as you may have to sell and buy again (which is a long and costly process) or find a suitable tenant.

READ ALSO: What you need to know about navigating Italian rental contracts

If you want to move to Italy long-term, renting also gives you the option of deciding where you think is best for you depending on your needs, be it work, life, school or public services.

There is a certain type of rental contract in Italy which enables you to do this. It is called a Contratto di locazione transitorio (more commonly known as a contratto transitorio).

This ‘transitory’ rental contract allows tenants to live in their rented accommodation for a minimum of 30 days and a maximum of 18 months, all while having tenant rights. This is legally a much better and sometimes cheaper option than renting an Airbnb for a long time.

One caveat however is that it cannot be renewed, which may be a positive if you’re unsure about where to settle in Italy

2) Strong tenants’ rights

In Italy, tenants’ rights are robust. They’re governed and protected by Civil Code No. 392 of 1978. The aim of this piece of legislation is to protect the tenant, and it covers what should be stipulated in the rental contract. 

This is particularly helpful if you have a long-term contract.

READ ALSO: Can my landlord legally increase my rent in Italy?

Rights of the tenant include (but are not limited to): giving six months’ notice to the owner, having the right to live in a safe environment, and the landlord not being able to enter the property without the tenant’s permission.

In most cases, your rent cannot be increased during the time set in the contract.

Disadvantages of renting 

1) Rising costs

As mentioned above, rental prices are on the up in Italy and are showing no sign of slowing down, with prices rising fastest in major cities including Milan, Florence, Bologna, Rome and Venice.

The most expensive neighbourhood for renting in the whole of Italy is Milan’s central Duomo-Castello zone. The average monthly rent there is €3,733, according to housing portal Idealista.it.

A report from Idealista released in mid-August shows the average rent in the country has gone up by €108 a year. For Milan the rate has increased by €240 a year, and for Venice €180 a year.

2) Rental scams

Though tenants are protected by robust rental laws, it is advisable to beware of the many rental scams that can and do occur in Italy.

This is crucial to know if you have not yet arrived in the country.  A few red flags include not being able to view the property beforehand, being asked for a downpayment immediately, and no pricing in the listing.

READ ALSO: Italian rental scams: ‘As soon as we handed over the money, we kissed it goodbye’

Ways to avoid this are to look at reputable websites such as Idealista.it and Immobiliare.it, search listings on estate agencies such as Technocasa and most importantly avoid online forums and groups.

Advantages of buying

1) House prices are low in some areas

While rents have gone up significantly, housing prices have not shot up as much. They increased by 0.6 percent between January and April this year and by 3.79 percent from July 2023 to July 2024

The financial capital Milan again leads the table of the most expensive cities to buy a house. Here, the average asking price is €4,988 per square metre.

However, it is still possible to buy cheaply outside of major cities.

Take Ragusa in Sicily for instance, where property costs €750 per square metre on average.

Further, a recent report from Idealista.it outlined that 48 percent of their listings at the end of last year were for properties priced below €150,000.

2) Ease when relocating

For some people, having somewhere to live before moving gives peace of mind for several reasons such as sending personal belongings overseas.

Fortunately, you do not need to be an Italian resident to buy a house here, so you can even start the process before you intend on moving. This is more difficult with renting.

READ ALSO: Top 10 sought-after city neighbourhoods to buy property in Italy

However, remember that, when applying for certain visa types, your housing must be sorted out beforehand. This is the case for the elective residency visa, for example.

To be eligible you must have a property in Italy or a rental lease agreement, which may be more difficult to obtain if you have not yet been given permission to live in the country.

Disadvantages of buying

1) Hidden costs

Unlike in most other countries, you can not only expect to pay the deposit when buying a house in Italy.

Stamp duty is between two and nine percent of the cadastral value (which is the tax value of a property), VAT (known as IVA in Italy) is four percent of the purchase price if it is your primary residence, land registry tax and mortgage tax are both €200 if you buy from a registered company, and notary fees tend to be in the thousands.

That’s not including the agency fees or surveyor (geometra) fees either. 

READ ALSO: Five expensive mistakes to avoid when buying a house in Italy

As expenses add up, costs can be prohibitive.

2) Difficulties in getting a mortgage

Taking out a mortgage in Italy can be far from straightforward for foreign nationals.

This is especially true for non-EU nationals as they’re considered a greater risk by lenders and are consequently subjected to more paperwork requirements and background checks compared to other applicants.

This can lead to significant delays in the mortgage application process, which in turn may make it impossible for potential buyers to sign a purchase agreement by the relevant deadline.

Further, Italian banks rarely advertise non-resident mortgage products, meaning rates are not readily available for comparison. You are almost certain to require the services of a specialist mortgage broker in order to access this information.

READ ALSO: Can I get a mortgage in Italy as a foreigner?

Ultimately, the decision to buy or rent a house when you first move to Italy depends on you. Are you a student with a fixed end point in sight? Renting is probably your best option. Or are you someone looking to relocate on an elective residency visa? In that case, buying might be the right fit. 

In the end, the decision comes down to your needs and plans.

Do you have a story on deciding whether to buy or rent in Italy? Let us know in the comments below.