A Guide to Buying a Home in Florence for Foreigners

Florence is one of the Italian cities that international buyers view with the greatest interest, and the reasons are easy to see. There is the artistic heritage, of course, but above all, there is the perception of a solid market: a city that does not depend on a single economic sector, where demand for homes never completely dries up because it is driven by residents, college students, relocating professionals, and visitors from all over the world. Those who buy here aren’t betting on a future promise, but on a value that the city has built up over the centuries.

This market attracts a wide variety of buyers: those looking for a second home in the historic center to use for a few weeks a year; those who view the property as an investment to generate income; those who have worked or studied in Florence in the past and want to return; and those planning to move there permanently. These are very different needs, yet they all share the same initial hurdle.

Because buying a home in Italy involves going through certain steps that simply don’t exist in other legal systems— and that first-time buyers in our country almost always tend to underestimate. These aren’t insurmountable difficulties (in fact, the Italian system offers safeguards that aren’t available elsewhere), but rather a process you need to understand in advance, because discovering it once negotiations have begun costs time and, in some cases, money.

The most obvious difference concerns the notary. In Italy, a notary is not a consultant whom you can choose whether or not to involve: he or she is a public official whose presence is required by law for ownership to transfer from one person to another. Those coming from Anglo-Saxon legal systems, accustomed to closing procedures handled by the parties’ attorneys, often discover only after negotiations have begun that without a notarial deed, there is no valid transfer of ownership.

Then there is the tax issue, which is where most of the misunderstandings arise. The widespread belief that “foreigners pay more” is false: taxes are the same for everyone. What differs is access to tax breaks, which depends on where you establish residency and on certain personal circumstances. And that’s precisely where a miscalculation can cost tens of thousands of euros.

This guide provides step-by-step instructions for those who are not Italian citizens—or who are Italian citizens but live permanently abroad—from the start of the search through to signing the contract before a notary: the types of buyers recognized by law and the conditions that apply to each, the tax identification number, the offer and the preliminary agreement, taxes and tax breaks, and mortgages for those who do not reside in Italy. It includes a chapter dedicated to what makes Florence a special case—namely, the restrictions placed on properties in the historic center and what they truly entail for buyers.

The information contained in this guide is for informational purposes only and reflects the laws in effect as of the date of publication. Tax regulations regarding primary residences and buyers residing abroad have undergone significant changes in recent years: before proceeding, it is always necessary to have your specific situation reviewed by a notary or an accountant.

Who Can Buy a Home in Florence: Buyer Profiles

First of all, the general term “foreigner” encompasses a wide range of very different legal situations. Distinguishing between them is the first step, because both the right to purchase and the tax treatment of the transaction depend on this distinction.

Citizens of the European Union

A citizen of the European Union (EU) or the European Economic Area (EEA) purchases real estate in Italy exactly as an Italian citizen would. There is no preliminary review, no authorization to apply for, and no restrictions on the type of property or the location. In fact, the free movement of capital within the Union eliminates any barriers related to nationality.

For a German, French, or Dutch buyer, therefore, the only practical differences compared to an Italian buyer concern the language of the deed and, possibly, the physical distance from the place of signing. Both of these issues can be resolved, as we will see later.

Non-EU Citizens: Residence Permit and the Principle of Reciprocity.

For those who are not citizens of an EU country, everything hinges on a single question: Do you already live in Italy with a residence permit, or not? The two situations follow completely different paths.

• If you already have a residence permit, Italian law treats you the same as an Italian citizen when it comes to buying a home. No preliminary checks, no authorizations, no additional restrictions. A non-EU citizen who has been working in Italy for years with a valid work permit can buy an apartment in Florence exactly as an Italian colleague would: same documents, same taxes, same benefits.
• If you do not have a residence permit (because you live abroad or because you are in Italy for a short stay), a principle comes into play that surprises many buyers: the principle of reciprocity.

IN-DEPTH ANALYSIS: What Is the Condition of Reciprocity?

It is a rule contained in Article 16 of the Preliminary Provisions to the Civil Code, explained by the Ministry of Foreign Affairs in the section dedicated to the condition of reciprocity, and the way it works is simpler than the name suggests: Italy grants foreign nationals the same rights that their home country grants to Italians. If an Italian can buy real estate in that country, then a citizen of that country can buy it in Italy. If they cannot, the door remains closed in the opposite direction as well.

To get a preliminary idea, there is a public resource: the Italian Ministry of Foreign Affairs publishes a list of countries and territories containing information gathered by Italian embassies, organized alphabetically. It’s a useful starting point, but the Ministry itself warns that these fact sheets have no legal standing and should be read as general guidance.

It is the notary’s responsibility to verify this; the notary does so prior to drawing up the deed by reviewing the legislation of the country in question, any bilateral agreements, and the practices actually followed. When the situation is unclear, the notary may contact the Ministry of Foreign Affairs for clarification.

If the condition is not met, the notary cannot accept the deed: the purchase simply does not go through.

Hence the most useful recommendation in this entire guide: request a reciprocity check as your very first step, before signing anything. It’s a verification process that takes just a few days and doesn’t involve significant costs. Discovering the problem after you’ve signed a proposal and paid a deposit is a whole different story.

Who Does Not Need to Undergo Reciprocity Verification

The reciprocity requirement does not apply to individuals who already hold a residence permit for employment (either as an employee or self-employed), for family reasons, for humanitarian reasons, or for study purposes, nor to those who hold an EU long-term resident permit. The same applies, after three years of lawful residence, to those with refugee status or stateless persons.

In summary: if you are already living legally in Italy, this does not apply to you. It applies to those who purchase property while remaining residents abroad.

Those who have moved abroad: a separate set of rules

The fourth profile is the one that causes the most confusion, because the rule governing it has been repealed and replaced, and there is still a great deal of information circulating online that refers to the previous version. It’s worth retracing the story from the beginning, because understanding what has changed is the quickest way to get your bearings.

What Is AIRE?

TheAIRE is the Registry of Italians Residing Abroad: the registry in which Italian citizens who move their residence outside of Italy for a period exceeding twelve months must register. Registration is requested at the Italian Consulate with jurisdiction over the place where you will be living, and it allows you, among other things, to vote from abroad, renew your documents, and access consular services.

In everyday language, “being registered with AIRE” has become synonymous with “an Italian living permanently abroad.”

How it worked until June 13, 2023

The old version of the law granted preferential treatment to Italian citizens who had emigrated abroad. Those who fell into this category could purchase a property located anywhere in Italy under the first-home tax benefits, without any obligation to transfer their residence there. The general conditions still had to be met (not already owning another home in the same municipality, not having already used the benefit elsewhere), but nothing else.

No geographic restrictions, no requirement for prior residence in Italy. The only—and decisive—limitation was citizenship: one had to be Italian.

Why was it changed?

That very restriction was the problem. A French or Spanish citizen who had lived and worked in Italy for twenty years and then moved abroad could not access a benefit that an Italian citizen in the same situation could obtain without difficulty. This disparity in treatment based on nationality was incompatible with the principles of the European Union.

To remove it, the Decree-Law No. 69 of June 13, 2023, known as the “Salva-infrazioni Decree” precisely because it was enacted to resolve a series of European complaints against Italy. The new regulations apply to agreements entered into on or after June 14, 2023.

How it works today

The current law mentions neither citizenship nor registration with AIRE. It applies to anyone (Italian, European, or non-European) who has moved abroad for work-related reasons.

The change moves in two opposite directions, and it is helpful to consider them together:

• The eligibility criteria have been expanded. You no longer need to be an Italian citizen: the benefit is open to everyone, regardless of passport.
• The eligibility requirements have become more restrictive. You can no longer purchase property anywhere in Italy, and simply living abroad is not enough: you must have at least five years of residence or work history in Italy, the move must have been for work-related reasons, and the property must be located in a specific municipality.

The result is that some people who were previously eligible are no longer so, while others who were previously excluded are now eligible. If you’ve heard about the AIRE benefit from someone who used it a few years ago, it’s very likely that the conditions that applied to their case no longer apply to yours.

We’ll go over the current requirements in detail in the section on taxation, because that’s where they have their most tangible impact.

The First Step: The Italian Tax ID

Regardless of your situation, the first essential document is the Italian tax ID number. Without it, you cannot sign a purchase offer, open a bank account, or register utilities in your name.

It is an alphanumeric code that identifies an individual in dealings with the Italian government. It does not entail any tax obligations in and of itself; it simply serves to identify the individual within the system.

It can be obtained in three ways:

• At a Revenue Agency office in Italy, if you are already in the country. This is the fastest way.
• At the Italian Consulate with jurisdiction over your country of residence, before you leave.
• Through a representative with power of attorney, if you are unable to go in person to either Italy or the Consulate.

A practical tip is to start the process well in advance. You’ll need your tax ID number as early as the purchase offer stage—not just on the day of the closing—and processing times at consulates can be significantly longer during peak periods. If you have a purchase offer ready but haven’t yet obtained your tax ID number, you risk losing the property.

The Purchase Offer and the Preliminary Contract (Compromesso)

The process of purchasing a property involves three distinct documents, and understanding what each one entails helps you avoid costly surprises.

• The purchase offer is the first formal step: the buyer declares in writing that they wish to buy at a certain price and under certain conditions. Until the seller accepts it, it is binding only on the person who signs it. Once it is accepted, however, it becomes binding on both parties.
• The preliminary contract—which everyone in Italy calls a “compromesso”—is the second document in the home-buying process, in which the price, timeline, and terms of the sale are set out in detail, pending the final deed of sale. This is where the real battle takes place, because it is at this stage that the rules of the game are established.

The agreement almost always requires the payment of a good-faith deposit, which serves as a mutual guarantee: if the buyer backs out, they forfeit it; if the seller backs out, they must return double the amount. It is a symmetrical mechanism designed to discourage second thoughts on both sides.

Two recommendations are particularly important for buyers from abroad.

The first concerns conditions precedent. If the purchase depends on obtaining a mortgage, the preliminary agreement must explicitly state this, specifying the deadline and what happens if the financing is not approved. Without this clause, a rejection by the bank results in the loss of the deposit.

The second point concerns language. When the buyer is not fluent in legal Italian, it is good practice to have an interpreter present at this stage, not just in front of the notary. Signing a preliminary agreement without fully understanding every clause exposes you to risks that, in an international real estate transaction, are much more difficult to correct down the line.

The Deed of Sale: The Day of Signing

Finally, the third document in the home-buying process is the deed of sale. In Italy, the transfer of property ownership requires the involvement of a notary public. This is not a mere formality, nor is it an avoidable expense: it is the cornerstone of the system.

The notary does not represent either the seller or the buyer. He or she is an impartial public official who verifies the validity of the deed, ensures that the property is free of undisclosed mortgages and encumbrances, checks that the property being sold matches the records, and finally records the transfer of ownership, making it enforceable against anyone.

For an international buyer, this offers peace of mind: the verification of legality does not depend on the diligence of their own attorney; it is built into the system.

Two situations frequently arise in this type of transaction:

• Unable to be present. Anyone who cannot be physically present in Italy on the day of the closing may grant a special power of attorney to a trusted representative, who will sign on their behalf. This is a solution frequently used by those purchasing property in Florence while remaining abroad until the transaction is finalized. The power of attorney must be prepared in advance and, if issued abroad, requires specific legalization or apostille procedures.
• I do not understand Italian. In this case, the deed is read and translated with the assistance of an interpreter, whose participation is formally recorded in the deed itself. This is a mandatory step, not an optional one, and must be arranged well in advance: looking for an interpreter the week before the signing is the most common reason for delaying a deed.

Tax Considerations: Where the Amount You Pay Is Determined

Now we come to the part that has the greatest impact on the overall cost of the transaction, and where the differences between buyer profiles become apparent.

The main tax on the purchase of a property from a private individual is theregistration tax. The standard rate is 9% of the cadastral value, which drops to 2% for those eligible for first-home tax breaks, with fixed mortgage and cadastral taxes (both amounting to €50.00). If, on the other hand, you purchase directly from a homebuilder, the transaction is subject to VAT: 10% at the standard rate, reduced to 4% with first-home tax breaks.

The difference between the standard rate and the preferential rate is substantial. It’s worth understanding exactly how it works.

Eligibility Requirements for the First-Time Homebuyer Tax Relief

The requirements are set forth in the so-called Note II-bis of the Consolidated Law on Registration Tax, summarized by the Italian Revenue Agency in the section dedicated to the purchase of a first home. To qualify for the reduced rate, all of the following conditions must be met simultaneously:

• You must not own any other real estate in the same municipality, either alone or jointly with your spouse.
• You must not own, anywhere in Italy, another property that was itself purchased under first-home tax benefits, unless you resell it within the time limits set by law.
• You must transfer your residence to the municipality where the property is located within 18 months of the deed of sale, unless you already reside there. This is the key requirement for buyers from abroad.
• The property must not fall under the following high-value cadastral categories: A/1 (luxury residences), A/8 (villas), or A/9 (castles and palaces of outstanding artistic or historical value).

This last point deserves special attention in Florence, where many of the most sought-after properties in the historic center fall precisely into these categories. This is not an uncommon occurrence: it’s why it’s a good idea to have the cadastral category verified before calculating your overall budget.

What Happens If You Fail to Transfer Your Residence

Losing eligibility for the tax break is not without consequences. The Italian Revenue Agency recovers the unpaid tax difference, applying penalties and interest. Furthermore, from the moment eligibility is lost, the property is once again considered a second home for IMU purposes, with the resulting annual tax.

Anyone who buys property in Florence as an investment or as a second home, with no intention of moving there, should therefore not count on this tax break: they should simply assume it does not apply and calculate the 9% rate from the outset.

The rules for those who have moved abroad for work

As we saw when discussing buyer profiles, a special program has been in place since June 14, 2023, for those who have moved abroad for work-related reasons; it is open to anyone, regardless of citizenship. The details of the new regulations were clarified by the Italian Revenue Agency in Circular 3/E of February 16, 2024, which is also the document in which the administration confirms that eligibility for the benefit is no longer tied to citizenship. Let’s take a look at exactly what it requires.

All of the following conditions must be met simultaneously:

• Moving abroad for work-related reasons. This applies to any type of employment relationship, not just salaried employment. However, the move must have taken place before the purchase: anyone who moves after making the purchase is not eligible for the benefit.
• Have resided in or conducted business in Italy for at least five years prior to the purchase. According to the response to tax ruling No. 312 of December 15, 2025 , the Italian Revenue Agency clarified that the concept of “activity” is broad and includes study, volunteer work, and sports, not just paid employment.
• Purchase a property located in the municipality of birth, or in the municipality where the individual resided or carried out their activities prior to the move.

The benefit is substantial: in these cases, the tax break applies without the requirement to transfer one’s residence to Italy, and the property does not necessarily have to become one’s primary residence.

In practical terms: anyone who has studied or worked in Florence for at least five years, then moved abroad for work, and now wants to buy a home in the city can qualify for the preferential 2% tax rate while continuing to live abroad. It’s an option that many people don’t realize they have.

Mortgages for Non-Residents of Italy

It is possible to obtain a loan to purchase a home, but the terms are more restrictive than those offered to permanent residents of Italy.

The factor that changes the most is the loan-to-value ratio—what banks call LTV. For non-residents, it generally ranges between 60% and 80%, compared to higher percentages granted to residents. In practical terms, this means you’ll need to have a larger amount of equity: for a property worth 400,000 euros, a 60% LTV requires 160,000 euros in equity, in addition to taxes and closing costs.

The required documentation is also more extensive than usual: employment contracts and pay stubs, or financial statements for business owners, bank statements, proof of overall net worth, and tax returns filed in the country of residence. These documents often need to be translated and, in some cases, legalized.

It is also common for the lender to require the opening of an Italian checking account—often at the bank itself—both for the debiting of loan payments and for ongoing expenses related to the property: utilities, condominium fees, and IMU.

Finally, the processing time tends to be longer than for a standard mortgage. This is something to consider early in the planning process, even before identifying a property: an offer to purchase with a 90-day condition precedent may prove to be too tight.

Buying in Florence’s Historic Center: UNESCO and the Superintendency’s Restrictions

There is a paradox that affects nearly all international buyers in Florence: what makes the city desirable is precisely what subjects it to restrictions.

Florence’s historic center has been inscribed on the UNESCO World Heritage List since 1982. Many historic palaces and buildings are also designated by the Superintendency as properties of historical and artistic interest, which entails a specific and more stringent protection regime.

For buyers, this has very concrete implications:

• Restrictions on interior renovations, which may not alter elements considered to be of historical or architectural significance, even when they are not immediately visible from the outside.
• Restrictions on facades, which prohibit changes to color, openings, or decorative elements without authorization.
• Restrictions on the replacement of windows and doors, which often must conform to original shapes and materials, affecting both costs and achievable energy efficiency.
• Longer approval processes, which must be factored into the construction schedule and not discovered once the project is underway.

Those coming from real estate markets with more flexible rules tend to discover these limitations once work has already begun, when it costs much more to correct the course. Checking before making an offer whether the property is subject to any notifications—and under what conditions—is a verification process that takes just a few weeks and can save months of time.

For more information on this topic, please see our section dedicated to historic properties for sale in Florence and our guide toenergy efficiency in historic buildings in Florence, which specifically addresses the issue of possible renovations on historically protected buildings.

Technical Checks Before Signing: Cadastral Survey, Legal Status, APE

Certain checks are essential in any real estate transaction, but they become even more important for those unfamiliar with the Italian real estate system, who risk basing their decision solely on photographs.

• The cadastral extract confirms who the actual owner of the property is and lists the property’s identifying information, including the cadastral category, which, as we have seen, affects eligibility for tax breaks.
• The verification of legal compliance ensures that the actual condition of the property matches the information on file with the municipality: floor plans, square footage, and intended uses. This inspection reveals any building nonconformities—that is, modifications made over time without proper authorization. In Florence, with its building stock that has evolved over centuries, such discrepancies are by no means rare. A discrepancy discovered after the deed of sale becomes the buyer’s problem, not the seller’s.
• The Energy Performance Certificate (APE) is required by law and indicates the property’s energy efficiency class. This information is expected to have an increasingly significant impact on both operating costs and the property’s future value.

On the topic of legal status—which is the most sensitive aspect of all—please refer to our dedicated guide: Legal Status of a Property: What It Means and Why It Is the Heart of the Sale.

Living in Florence After the Purchase: Elective Residency Visa and Relocation

For those who aren’t just investing but are considering actually moving to Florence, there is a specific option available.

Non-EU citizens with a stable independent income (pensions, annuities, real estate or investment income, but not from employment or self-employment in Italy) may considerthe elective residency visa.

This visa is intended for individuals who can support themselves with their own funds without working in Italy. It requires proof of a stable and continuous income and the availability of housing in Italy, whether owned or rented.

Since this involves immigration matters, which fall outside the scope of a real estate agency, we recommend consulting a specialized advisor and verifying the current requirements with the Italian Consulate responsible for your country.

On the more practical side of choosing a place to live, to help you navigate Florence’s neighborhoods based on your daily needs, we recommend reading “How to Choose the Ideal Neighborhood to Live in Florence”, along with our updated overview of the the real estate market in Florence in 2026.

Are you looking to buy a home in Florence from another country?

Buying a home in Florence from abroad means navigating ever-changing tax regulations, historical restrictions that must be verified on a case-by-case basis, and notary procedures that require advance preparation. None of these obstacles is insurmountable, but each must be addressed in the right order and well in advance.

The Idee & Immobili team guides international buyers through every step of the process: from the preliminary verification of reciprocity requirements to the selection of a property, and from coordinating with the notary and interpreter to the signing of the deed.

If you’re thinking about buying a home in Florence, find out how to choose the right real estate agency and contact us for personalized advice for international buyers.

Frequently Asked Questions