Buying a second home in Italy remains a fascinating goal for many foreign buyers. From the Alps to the islands, medieval villages and art cities offer properties that combine the Mediterranean lifestyle, cultural heritage and potential income from short-term rentals.
In 2025, the economic context presents more stable interest rates compared to the peaks of the previous two years, while tax policies in favor of non-residents maintain the appeal of the most sought-after locations. Before paying the deposit, it is important to analyze the factors that make the purchase worthwhile.
The italian real estate market
But what is the current picture of italian houses? Data from the Revenue Agency indicates moderate price growth, with an average annual increase of +2.3% in the first half of 2025. Milan and Florence still lead the ranking for price per square meter, but Venice and Rome are showing signs of stabilization after years of increases.
Conversely, in regions like Abruzzo, Molise and some inland areas of Sicily, the recovery is progressing slowly, offering substantial room for negotiation. This situation allows investors to choose between higher gross returns in art cities, thanks to the demand for short-term rentals and potential capital gains in less explored areas where international tourism is just beginning to develop.
Tax advantages for non-residents
Italy applies a registration tax of 2% on the cadastral value if the buyer transfers their residence within 18 months; otherwise, the rate rises to 9%. For those who maintain their residence abroad, the flat tax rate of 21% on rental income remains available, a scheme that simplifies income tax reporting.
Moreover, some regions offer a 50% reduction on the IMU (property tax) for buildings of historical interest or properties located in municipalities with fewer than 3,000 inhabitants: a detail that significantly lowers ownership costs. Before signing, it is advisable to check the tax agreements between Italy and your home country to avoid double taxation.
High-potential areas for appreciation
There are some areas in Italy that can be considered high-potential for appreciation. For example, Brescia and Lake Iseo benefit from the upcoming Milan-Cortina 2026 Winter Olympics, with new infrastructure and mobility services making the area more accessible.
Umbria, with its lower tourist density compared to Tuscany, offers prices 25–30% lower while still boasting similar artistic heritage and top-tier cuisine.
The Adriatic coast of Puglia, between Monopoli and Otranto, is seeing an increase in demand from Northern European professionals working remotely. Villages in Calabria overlooking the Tyrrhenian Sea still have low property values (starting at €900 per square meter) and simplified building permits for restoring historic buildings.
What to do to buy a home in Italy
First, make sure the property is not encumbered by previous mortgages, by obtaining an updated cadastral report. An Italian bank account, in addition to facilitating utility payments, allows automatic debits for IMU and registration taxes.
For property management, it can be useful to install temperature sensors, humidity control technologies and water leak detectors that send real-time notifications—thus avoiding unexpected costs related to water damage when you’re not present at the property.
Is it worth investing today?
Investing in a second home in Italy today remains an interesting opportunity, especially for those aiming at tourist profitability and quality of life. Property prices, although slightly rising in the more tourist-frequented areas, still offer substantial negotiation margins in many regions of the peninsula.
With support from industry professionals, buyers can identify opportunities capable of generating sustainable profits while also enjoying a Mediterranean retreat during the milder seasons.
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