What are closing costs in Italy?

Typically 6.5–12.5% of the price on a $300,000 purchase.

Buying property in Italy as an American

Q: How is rental income taxed in Italy?

Cedolare secca (flat tax on rent): Optional flat tax (cedolare secca) on gross rent instead of progressive IRPEF: 21% on free-market leases (10% on canone concordato). Short lets: 21% on one chosen unit and 26% on the second. From 2026, short-letting three or more units is presumed to be a business (VAT number, ordinary rates, no flat tax). US–Italy tax treaty in force; Italian tax is generally creditable in the US.

Italy offers a simple flat tax on rent (cedolare secca) and low entry prices outside Milan, Rome and Florence. Buyers usually pay part of the agent fee, mortgages for non-residents are harder, and resale can be slow.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Key numbers

Gross rental yield

4.0–7.0%

Closing costs

6.5–12.5%

On a $300,000 purchase

Tax on rent (gross basis)

21%

Cedolare secca (flat tax on rent)

Entry prices from

$90,000

8–16 weeks to close

Can Americans buy?

Allowed

US citizens can buy under the reciprocity principle. The notary handles title checks and registration.

The elective residence visa suits retirees with passive income. Buying property does not grant residency.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Sources: Agenzia delle Entrate (Italy); US Department of State – country information

How rent is taxed

Optional flat tax (cedolare secca) on gross rent instead of progressive IRPEF: 21% on free-market leases (10% on canone concordato). Short lets: 21% on one chosen unit and 26% on the second. From 2026, short-letting three or more units is presumed to be a business (VAT number, ordinary rates, no flat tax).

US–Italy tax treaty in force; Italian tax is generally creditable in the US.

As a US taxpayer you also report the rent on Schedule E. Your free ranking estimates the combined effect for your state and income.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Sources: Agenzia delle Entrate (Italy); PwC Worldwide Tax Summaries; IRS – United States income tax treaties

Main risk

Resale can take a long time outside major cities.

A national identification code (CIN) is required for short-term rentals; Florence and Venice restrict new tourist rentals in their historic centres.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Sources: US Department of State – country information; Global Property Guide (yields, transaction costs)

Cities we cover

Milan$5,936/m² · gross 5.2%
Rome$4,256/m² · gross 5.9%
Florence$4,928/m² · gross 5.5%
Bologna$4,032/m² · gross 6.0%
Lecce & Puglia$1,792/m² · gross 5.8%
Palermo & Sicily$1,680/m² · gross 7.3%

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