Market Intelligence

Italy is one of the world's most desirable destinations for purchasing a second home or making a real estate investment. However, many international buyers are unaware of one of the biggest risks involved in the Italian property market: illegal building works (abusi edilizi).

The rendita catastale is a foundational yet often misunderstood element of Italy's property taxation system, representing the theoretical rental income homeowners effectively pay themselves. This imputed value plays a surprisingly significant role in Italy's GDP and explains why successive governments handle property taxation with such political sensitivity. Understanding this concept is essential for anyone navigating property ownership, inheritance planning, or financial decisions in Italy.

I admit it. I have been confused for years about the rendita catastale. I have never been entirely sure about its role in the Italian economy or how it benefits the individual or the system as a whole. Until now. A recent deep dive into some economic analysis finally made the penny drop.

If you are buying a house in Italy and are intending on benefitting from the system of detractions and deductions for the costs of building and renovating your property, then here are 5 things which we learned in our home restoration.

Yes. Buying property in Italy as a foreigner is fully legal, with no restrictions for non-residents. Most foreign buyers can purchase Italian real estate under the principle of reciprocity.

On 18 December 2025, Law No. 182 of 2 December 2025, entitled the Law on Simplification and Digitalisation of Proceedings, entered into force, introducing significant changes concerning the transferability of real estate...