Since the financial crisis hit Italy, property market values have dropped significantly: the volume of the transactions decreased as well as the prices while the time to complete a sale increased. On the other hand the recent European financial recover (2015-2017) has also involved the Italian economy, so the real estate market.
House prices show important signals of stability and the volume of the transactions raised about 60% in the last 2 years.
This means a more dynamic market with a stronger an more heterogeneous demand, also including a visible part of foreigners looking to invest in the Italian property market (almost doubled in the last 3 years).
What led to this change:
Local banks restarted lending money to the residents at very affordable rates, and the Government has approved new legal measures to make the transactions more transparent and safe.
Taxation of the Real Estate is also lighter now (transfer tax, rental tax, air bnb tax) making the investment more convenient in the short, medium and long-term view; 20% CGT appears to be reasonable.
(Return on Investment)
Year yields have become extremely attractive for both the long-term rent and those very frequent cases of farmhouses or vine estates converted into charming B&B.
This scenario reflects a situation where the cuts of the crises are still evident in the most vulnerable areas of the country, but also a new market renaissance in the main financial and tourist Italian spots (Milan, Florence, Venice, Rome, etc.).
“Ad hoc” buying programs went approved (Rent-to-Buy) or raised in popularity (Property Auction, NPLs), opening the doors to alternative options to buy real estate in Italy. We are happy to say there’s finally an appropriate legal solution for each investor need.
Whether you are looking to invest in the Italian real estate market for personal purpose, investment or mixed use (living+rental) Clemente Law Firm has the in-depth knowledge to guide you through the entire buying process tailoring the most appropriate legal solution on your needs.
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