Italy Golden Visa Real Estate: Can You Get Residency by Buying Property?

Option 2: Invest EUR 500K in an Italian company

This option allows investment in established Italian limited companies.

The company does not need to be innovative or newly founded. It can be any Italian business with solid fundamentals and growth potential.

This route is popular among investors who prefer more stable, proven businesses over startups.

It also works well for investors who want to acquire or invest in existing family businesses or medium sized enterprises.

Option 3: Invest EUR 2.0M in government bonds

For investors seeking the lowest risk option, Italian government bonds provide a secure path to residency.

This option requires no active management and offers predictable returns, though the capital requirement is significantly higher.

The bonds must be held for the duration of the visa period.

This option appeals primarily to ultra high net worth individuals who prioritize capital preservation and minimal involvement.

Option 4: Donate EUR 1.0M to a philanthropic project

This option involves donating to projects of significant public interest in areas such as culture, education, immigration management, scientific research, or restoration of cultural heritage.

Unlike the other options, this is a donation rather than an investment, meaning the capital is not returned.

It appeals to philanthropically minded individuals who want to contribute to Italian society while obtaining residency.

Can you combine real estate purchase with an Investor Visa

While real estate does not qualify for the Investor Visa, nothing prevents you from purchasing property in Italy while also making a qualifying investment.

In fact, many Investor Visa holders choose to buy property in Italy after obtaining their visa.

This approach allows you to enjoy the benefits of property ownership, such as a stable residence and potential rental income, while meeting the visa requirements through one of the four qualifying investments.

You could, for example, invest EUR 500K in an Italian company and separately purchase a home in Milan, Rome, or Florence.

Owning property also provides stability and demonstrates your commitment to residing in the country.

This can be beneficial when renewing your visa or eventually applying for permanent residency or citizenship.

The Elective Residency Visa: An alternative for property buyers

If your primary goal is to live in Italy and you have purchased or plan to purchase property, the Elective Residency Visa may be a better fit.

The Elective Residency Visa is designed for individuals with stable passive income who want to retire or live in Italy without working.

This visa is especially popular among retirees, remote investors, and individuals with rental income or investment portfolios.

Requirements for the Elective Residency Visa

The key requirements include:

• Minimum passive income of approximately EUR 32K per year for one person, or EUR 38K for couples, with an additional 20% required for each family member
• Proof of accommodation in Italy, either through property ownership with deed and registration or a long term rental agreement of at least 12 months
• Comprehensive private health insurance with minimum coverage of EUR 30K valid throughout the Schengen Area
• Clean criminal record

Passive income can come from pensions, investment dividends, rental income from properties outside Italy, or other asset based sources. Employment income does not qualify, and visa holders are not permitted to work in Italy, including remote work for foreign employers.

Residency requirements

Holders of the Elective Residency Visa must reside in Italy for at least 183 days per year. The visa is valid for one year and must be renewed annually. After ten years of legal residency, you can apply for Italian citizenship.

This visa is ideal if you have already purchased property in Italy or plan to do so, and you have sufficient passive income to support yourself without working. It provides a legal pathway to Italian residency without the need for a large business investment.

Tax benefits of owning property in Italy

Even if property ownership does not grant you residency through the Investor Visa, there are significant tax advantages to consider, especially if you establish Italian tax residency.

IMU property tax and the primary residence exemption

Italy's municipal property tax, known as IMU, applies to most property owners. However, if you own a property and use it as your primary residence, you may be exempt from IMU, provided the property is not classified as a luxury property.

Since 2014, the main residence of a non luxury property has been entirely exempt from IMU. To qualify for this exemption, you must have both your registered residence and your habitual abode in the property for more than six months per year.

Non residents typically cannot claim this exemption, meaning foreign owners who do not establish Italian tax residency pay higher IMU rates. However, if you relocate to Italy and register your residency with the municipality where the property is located within 18 months of purchase, you can qualify for the exemption.

Luxury properties, classified under cadastral categories A/1 (stately homes), A/8 (villas), or A/9 (castles and historic palaces), are liable for IMU even if used as a primary residence.

The flat tax regime for new residents

Italy offers a highly attractive flat tax regime for high net worth individuals who relocate to Italy and establish tax residency. As of 2026, this regime allows new residents to pay a flat tax of EUR 300K per year on all foreign sourced income, regardless of the amount.

This regime is available to individuals who have not been tax resident in Italy for at least nine of the ten years preceding their relocation. It applies to all types of foreign income, including employment, self employment, business income, capital gains, rental income, and pensions.

The regime lasts for up to 15 years starting from the tax year in which you become an Italian tax resident. Family members can also opt in for an additional EUR 50K per year.

Additional benefits include exemption from Italian inheritance and gift tax on foreign assets, as well as exemption from foreign asset reporting obligations in Italy.

This regime is particularly attractive for property buyers who also have substantial foreign income or assets. By combining property ownership in Italy with the flat tax regime, you can enjoy a high quality of life in one of Europe's most desirable countries while minimizing your overall tax burden.

Practical guide: Buying property in Italy as a foreigner

If you decide to purchase property in Italy, whether or not you pursue residency, the process is straightforward for foreign buyers.

Legal requirements

Foreigners from EU countries, the United States, Canada, Australia, and many other nations can freely purchase property in Italy without restrictions. Non EU citizens should verify whether their country has a reciprocity agreement with Italy, which allows property purchases on equal terms.

To complete a purchase, you will need an Italian tax code, known as a codice fiscale, which you can obtain from the Italian consulate in your home country or from the Agenzia delle Entrate in Italy.

The purchase process

The typical process involves several steps:

• Identify the property and negotiate the price with the seller or agent
• Sign a preliminary contract, known as a compromesso, and pay a deposit, usually 10% to 20% of the purchase price
• Conduct due diligence, including verification of property title, cadastral registration, and any outstanding debts or liens
• Arrange financing if necessary, though many foreign buyers purchase property outright
• Sign the final deed of sale, known as a rogito, in the presence of a notary, who will register the property in your name

Legal fees, notary fees, and registration taxes typically add 10% to 15% to the purchase price for residential properties.

Ongoing costs

After purchasing property, you will be responsible for annual property taxes (IMU if applicable), municipal service taxes (TARI for waste collection), and condominium fees if the property is part of a building with shared facilities.

If you plan to rent out the property, rental income is subject to Italian tax, though non residents can opt for a flat tax rate of 21% on rental income as an alternative to progressive income tax rates.

Comparing Italy with other EU golden visa programs

Understanding how Italy's program compares with other EU options helps clarify why Italy structured its Investor Visa the way it did.

Greece

Greece continues to accept real estate investments for golden visa purposes. The minimum investment is EUR 800K in high demand areas or EUR 400K in mid tier zones. Visa holders gain the right to travel visa free within the Schengen Area and can apply for permanent residency after five years and citizenship after seven years.

Greece's program is more accessible for real estate focused investors but offers fewer business and innovation incentives compared to Italy.

Portugal

Portugal eliminated real estate as a qualifying investment in October 2023. The program now requires a minimum of EUR 500K in venture capital, private equity, or investment funds, with at least 60% of capital invested in Portuguese companies.

Portugal's golden visa allows holders to live in Portugal, travel within the Schengen Area, and apply for citizenship after five years with minimal physical presence requirements of just seven days per year.

Spain

Spain historically offered a golden visa for property purchases of EUR 500K or more. The program required minimal physical presence, just one day per year, and provided access to the Schengen Area.

Like Portugal, Spain has moved away from real estate focused golden visa programs due to concerns about housing affordability and market distortion.

Key takeaways

Real estate investment does not qualify for Italy's Investor Visa. The program requires investment in startups, Italian companies, government bonds, or philanthropic projects. However, property ownership in Italy remains an attractive option for those who combine it with a qualifying investment or pursue the Elective Residency Visa.

Italy's approach reflects a strategic decision to prioritize economic growth, innovation, and public benefit over property market speculation. For investors willing to commit to one of the four qualifying investments, the Italy Investor Visa offers a two year visa renewable for three more years, with the possibility of applying for citizenship after ten years of legal residency.

For property buyers with passive income, the Elective Residency Visa provides a straightforward path to Italian residency without the need for a large business investment. Combined with Italy's generous flat tax regime for new residents, this creates compelling opportunities for high net worth individuals seeking a European base.