Is it better to buy or rent a home in Italy?
For most people moving to Italy the answer hinges on how long you will stay. Buying costs roughly 8–10% of the price in one-time taxes and fees, so short stays — typically under 6–8 years — usually favour renting and investing your down payment.
Stay longer and the maths flips: prima casa buyers pay only 2% registration tax and no IMU, a fixed-rate mortgage locks your housing cost for 25 years, and rents in the big cities have outpaced prices. The calculator below runs the numbers for your city with official price data.
The default case, year by year
An 80 m² semi-central flat in Milan at €250,000 with 20% down, a 3.4% fixed mortgage over 25 years, against renting the same flat at €1,100 a month and investing the €72,275 you didn't spend on the purchase at 5% a year.
The renter starts ahead because purchase costs are sunk on day one. The buyer catches up as the mortgage is repaid and the home appreciates, and pulls ahead around year 9.
| Year | Buying | Renting & investing |
|---|---|---|
| Year 1 | €52,517 | €79,029 |
| Year 5 | €95,420 | €107,977 |
| Year 10 | €156,088 | €149,289 |
| Year 15 | €225,726 | €197,746 |
| Year 20 | €305,757 | €255,294 |
What it really costs to buy
Italy taxes the purchase, not the ownership — unless it's a second home. The prima casa relief is worth about 7% of the price, but it requires you to become resident in the municipality within 18 months.
| Primary residence / Italian resident | Second home / non-resident | |
|---|---|---|
| Registration taxon cadastral value, resale purchases | 2% | 9% |
| VATinstead of registration tax, new builds from a developer | 4% | 10% |
| Agency fee | ~3% + VAT | ~3% + VAT |
| Notary | €2–4k | €2–4k |
| IMUannual property tax, on cadastral value | Exempt | 0.76–1.06%per year |
Rent and invest the down payment
Renting only wins if the money you don't put into a home actually works. Pick the return that matches how you would really invest it.
Tax note: Italy taxes investment gains at 26% (12.5% on government bonds) and charges a 0.2% yearly stamp duty on holdings. The calculator applies these to Italian residents; non-residents pay no Italian capital-gains tax.
Moving to Italy? The rules that change the answer
The 183-day rule
Spend fewer than 183 days a year in Italy and you are a non-resident: no Italian capital-gains tax on your investments, but no prima casa benefits either — 9% registration tax and annual IMU on the home.
Non-resident mortgages
Italian banks lend non-residents 50–60% of the price, against 80% for residents. A bigger down payment means more cash tied up in the home, and more to invest if you rent instead.
Currency risk
If your savings and income are in dollars or pounds, a euro home is an unhedged currency position. A 10% move in the exchange rate changes your equity by more than a typical year of appreciation.
Impatriati regime
Become resident under the impatriati regime and 50% of your employment income is tax-free for 5 years. Residency also unlocks prima casa — a strong nudge toward buying if you plan to stay.
What homes cost in 20 Italian cities
Central-area averages. A gross yield under 4% means rents are cheap relative to prices, which tilts the answer toward renting.
| # | City | Buy €/m² | Rent €/m²·mo | Gross yield |
|---|---|---|---|---|
| 1 | Milan | €7,750 | €23.0 | 3.6% |
| 2 | Rome | €5,750 | €19.9 | 4.2% |
| 3 | Venice | €3,875 | €10.8 | 3.3% |
| 4 | Florence | €3,850 | €12.0 | 3.7% |
| 5 | Naples | €3,550 | €10.7 | 3.6% |
| 6 | Bologna | €3,525 | €12.7 | 4.3% |
| 7 | Verona | €2,975 | €10.8 | 4.3% |
| 8 | Padua | €2,775 | €9.48 | 4.1% |
| 9 | Turin | €2,600 | €9.40 | 4.3% |
| 10 | Genoa | €2,563 | €10.2 | 4.8% |
| 11 | Modena | €2,525 | €12.8 | 6.1% |
| 12 | Bergamo | €2,325 | €11.0 | 5.7% |
| 13 | Pisa | €2,300 | €9.15 | 4.8% |
| 14 | Trieste | €2,275 | €8.50 | 4.5% |
| 15 | Cagliari | €2,225 | €8.53 | 4.6% |
| 16 | Brescia | €2,200 | €9.95 | 5.4% |
| 17 | Parma | €2,000 | €10.9 | 6.5% |
| 18 | Bari | €1,888 | €7.33 | 4.7% |
| 19 | Palermo | €1,538 | €4.43 | 3.5% |
| 20 | Catania | €1,413 | €4.98 | 4.2% |
Buying and renting in Italy as a foreigner
Yes. EU citizens buy with no restrictions; non-EU citizens can buy if their country grants Italians the same right, which the US, UK, Canada, Australia and Switzerland all do. You need an Italian tax code (codice fiscale) and, in practice, an Italian bank account.
Methodology. Net wealth for buying is the home's value net of a 3% selling fee, minus the outstanding mortgage, plus any cash-flow savings invested. Net wealth for renting is the down payment and purchase costs invested at the chosen return, plus yearly savings versus the owner's costs, net of 26% capital-gains tax (Italian residents only) and 0.2% stamp duty. Purchase costs: registration tax on the price (2% prima casa, 9% otherwise), agency 3% + VAT, notary €2–4k, mortgage fees 0.65% of the loan plus 0.25% substitute tax and duties. IMU on second homes is approximated at 0.35% of market value. Price and rent data: Agenzia delle Entrate – OMI, H2 2025.
Disclaimer. This tool is for information only and is not tax, legal or investment advice. Figures are estimates based on your inputs; actual taxes depend on cadastral values, your residency status and the notary's assessment. Consult a professional before buying.
Reviewed by the Moving2Italy tax team · Italian tax & relocation advisers, Milan · Last updated September 2026