La Dolce Vita: Buying a Vacation Rental Home in Italy

Ideal Vacation Rental Investments in Italy

Where do people stay when they travel to Italy? 

One of the best ways to figure out where to invest in an Italian vacation home is to know which areas are most popular with tourists.

Nikki Taylor of Italy Property Consulting is a fountain of knowledge on the subject. She routinely works with buyers outside of Italy to help them find their dream STR investments or a place to call home.

I requested an interview with her and learned troppo informazione (mille grazie!), including where the newest vacation hotspots are for North Americans traveling to Italy and for those looking to invest in short-term rentals there. 

According to Nikki, “Italy is increasing in demand annually for North Americans to invest in second homes here to utilize as holiday rentals. It is a place where they can vacation and detach from their day-to-day busy lives in North America, and also generate an ROI on the holiday rental market when they are not utilizing the property.”

When most of us think of getting away, it’s usually to the Italian countryside in Tuscany, with its vineyards, willowy Italian Cypresses, and lush valleys, thanks to its idyllic landscape and Hollywood films that draw our attention to the region.

That said, Nikki confirms that while Tuscany was on the forefront of everyone’s minds for some years now, it has long become surpassed by Puglia, which she describes as a stunning region famous for its coastline on both the Adriatic and Ionian sides.

Point of fact, she shares that, “Puglia saw an increase in 228% of foreign visitors to the region in 2024.”

Sounds like an ideal investment opportunity!

Let’s dive in to learn a bit more about this exciting region and some general tips for what you should be on the lookout for when investing in a property in Puglia or any other part of Italy.

Italian Vacation Rental Market Oversaturation

Some markets are harder to compete in than others.

Just think of investing in a Roman villa or an apartment in Florence. There’s a lot of tourism, but a great deal of competition!

When I asked Nikki about saturation in the Italian market that is best avoided for foreign real estate investors, she replied, “Regions like Tuscany has been a firm favourite amongst foreign real estate investors but with that being said, there are still a lot of properties being sold to foreign buyers there with the view to renting them out on the Italian vacation rental market.

“However, properties that are located in the countryside that can offer special facilities such as cooking classes, olive harvest, events, and that stand out from the crowd are very much still in demand. The higher competition are properties located in the old towns where there is so much to offer.”

If you’re looking to stand out from the crowd and offer a truly experiential stay, hitting the countryside for your property investment may be the way to go. 

Buying Property in Italy for Foreign Investors

Depending on where you hail from, purchasing a property in Italy may be a piece of cake or slightly more challenging. As with anything, be aware of fees, contracts, and little extras you may not have anticipated.

Nikki offers, “It is easy for foreigners to purchase property in Italy with the exception of countries like Canada, Australia, and Switzerland, which do not have the reciprocity agreement in place.

“There are fees when purchasing a property in the sense that both the buyer and the seller pay an estate agent’s brokerage fees, plus it is recommended to instruct a ‘geometra,’ which is a surveyor to ensure the property is structurally sound.

“It is also advisable to instruct a property lawyer to check the property deed to ensure that there is a clean title, but that is not always necessary, as the notary who acts in the final closing will also do these checks to ensure the property can be sold.

“For those wanting to utilise the property as a holiday rental, the owner must obtain a ‘National Identification Code’ (CIN) which is applicable for all holiday rentals, including ones for short rents up to 30 days.”

Nuda Proprietà: Buy Now, Enjoy Later

In one of Nikki’s videos online, she explores the Italian concept of ‘nuda proprietà, that a property may be sold to a buyer, but the owner has the right to use the property until certain conditions are met.

Nuda proprietà translates to ‘bare ownership.’ 

This could be a time of their choosing, as stated in the contract, or most frequently upon the owner’s death, at which point property rights are granted to the buyer in full.

In this situation, the purchaser would own the deed to the property, but not be able to enjoy the property, live there, renovate, or rent the property out until a date in the future, whether clearly defined or reasonably anticipated.

The trade-off?

In exchange for delayed gratification, nuda proprietà properties can be purchased at a lower price. This might be well worth it if you are trying to build a portfolio of homes in Italy for vacation rentals, and are willing to play the long game.

She cautions that if you see this line ‘nuda proprietà’ in the description of a property sale, and you want to move ahead with the deal, you need to be fully aware of the clause and okay with not possessing or benefiting from the property until the agreed upon time, be it a defined date in the future, or upon the death of the previous owner.

Another term Nikki stresses to be aware of when looking at property in Italy is piena proprietà (full ownership), and of course, to lean on expert advice before getting into any deals!

The €1 Home Scheme

We’ve all heard about the “buy this old home and restore it for next to nothing” stories in villages in Italy, Greece, Spain, and so on.

These opportunities often require you to live in the city, restore a home to its former glory, and contribute in some way to the local economy. That’s what we have heard, but how does it really work?

Does investing in a fixer-upper pay off, and what kind of long-term commitment needs to be made to qualify successfully?

Nikki grants, “The €1 home scheme is a great marketing tactic, but with a lot of red tape and hidden costs.

“Most of these properties are being auctioned off for a low price in order to repopulate towns and villages. However, most come with a lot of restrictions as to the time frame in order to restore the property, and also the requirement of setting up permanent residence in the property.

“The costs in which that are involved can really stack up, and if someone is looking to purchase a property in Italy, I would highly recommend avoiding these €1 homes as there are so many other properties for sale in Italy, in areas with higher demand for tourism and turn key, spending less in total than if you were to restore a property from scratch.

“Also, it’s very important to think about the potential re-sale of the property. If you are restoring a €1 home and investing between €50,000-,€100,000 on building costs, would you recoup that if you had to sell the property? Highly unlikely given the lack of services in the towns and appeal from a tourism factor.

“Investing in an area with no restrictions on a turn-key property is a much better investment in the longer term.”

Does Italian Ancestry Make it Easier to Buy Realty?

Italy has a road to citizenship for anyone living abroad whose grandparents were born in Italy. Using that logic, one would think that having a claim to Italian ancestry would make it easier to get your foot in the door or close a deal.

Not so, Nikki says.

“Having dual citizenship does not make it easy for foreigners to buy property unless they have the intention of setting up a permanent residence there and not having to do the Schengen shuffle.

“Italian sellers, from my experience, do not give preference to someone with dual citizenship. If someone is looking to purchase their property and a price can be agreed upon, it does not make a difference if the buyer has citizenship.”

This is good news for anyone who is not of Italian heritage but wants to buy an Italian property. Learn more about the Schengen Shuffle in Italy, with links to calculators for your stays.

Unique Quirks of Italian Vacation Homes

For anyone who has ever been confused at the sight of a bidet, that’s just scratching the surface of what North Americans should know about Italian vacation homes before investing. I suppose you could argue any European vacation home.

Quirks and quarks abound, be it in the way that business is done when selling the property, or the furnishings therein.

Nikki shares, “One very important thing that North Americans should know about buying a property in Italy is to be aware that a lot of the time, the kitchen (appliances and other elements) are not included in the property.

“It is super important that when making an offer, the buyer is very specific about what they would like to remain, otherwise, upon obtaining the keys, they could be in for a nasty surprise if most of the kitchen has been removed!”

If you fell in love with property photos depicting old-world Italian elegance, note what you loved in the space and include those fixtures or features in writing!

Maybe it’s copper pots and pans hanging on the walls, a mosaic, or a chandelier that you assume is part of the home because it is screwed into the ceiling.

Whatever it is, if you want to keep it on the premises, bring it up before the deal is struck.

Nikki notes, “For those looking to purchase properties that are furnished, it can be negotiated in the sale what can be taken away and what can remain.

“Older homes might need re-furnishing with more modern type furniture in order to be more attractive for the rental market.”

And that porcelain sink level with the toilet?

“The famous bidet!” Nikki laughs, relating that while a concept foreign to non-Italians, bidets can be quite helpful in the summer months.

How Much Money Does a Desirable Vacation Rental Cost?

Now that we have a better idea of where to look, what to look for, and how to go about closing the deal, it’s time to consider the cost of the property.

How much money, on average, would an investor need to purchase a desirable family home in Italy near the water?

We’re talking a beautiful family home overlooking the lake or the coast that sleeps 6-8 people, has at least two bathrooms, and a pool.

Nikki advises, “If we are looking at Lake Como, it really depends on what part of the lake you are situated in that can have a huge difference in price points. Average lakefront properties with pools are well over the €2M mark.

“Coastal properties in Puglia, depending on where you are located and the vicinity of certain popular tourist towns, you are looking at well over the €1.5M mark and above.”

The Biggest Challenge of Buying an Italian Property

When buying a property in Italy, foreigners can face many challenges, but the primary obstacle is that you don’t know what you don’t know.

Nikki confides, “The biggest challenge to purchasing a home in Italy is ensuring you have the right team backing you. It is so easy to come across an unethical estate agent, that is not thinking about the client’s best interest but the sale.

“Also, it is key to know the right areas to invest in. You can have various towns in Italy near the coast at affordable prices, but they are not the best communities, and they can come with a lot of socioeconomic problems.

“Having the right guidance is key, and someone being super clear about the property, its defects, where it needs any structural work, and the location is super important. And above all, knowing where to invest to gain an optimum return on the holiday rental market.”

A Must-Have: Codice Fiscale

Love the place and off to the next steps?

“It is important to know that when you are looking to purchase a property, you need to obtain a Codice Fiscale, which is a tax fiscal code,” Nikki remarks. “This is mandatory for anyone looking to purchase a property here.”

“They are free to obtain, and you can either apply for one at the Italian Consulate in the town they live in, or alternatively, in person in Italy, in the town where you are looking to purchase from the ‘Agenzia delle Entrate’ (tax office).”

Parting Words: Embrace Italian Culture

Want more advice from Nikki? To sum it up:

• Learn to embrace the Italian culture with all its quirks and bureaucracy, as there is that in abundance.
• Don’t try and imagine that buying a home in Italy is the same format as buying a home in North America. It is the quickest way to frustration and disappointment.
• Go with the flow of accepting that a lot of procedures work very differently, and the process will be much more enjoyable.

About Nikki Taylor:

Nikki Taylor is an Australian expat, author, TV personality, and real estate expert who, over the last decade, has advised thousands of overseas clients on how to realize their dreams of owning property in Italy. Nikki combined her love of all things Italy with her years of experience in the real estate, finance, and the holiday rental industry and launched Italy Property Consulting. Her expertise has landed her spots on HGTV’s House Hunters International and HGTV’s Mediterranean Life.