Milano has a wide range of accommodation options and where you end up living depends on your style and budget. The city center has a large stock of apartments, including luxury lofts with price tags to match. Apartments are less expensive in the peripheral districts of the city. But not being close to downtown is not a disadvantage, thanks to the city's very interconnected public transportation system. 

RENT

Navigating the process of renting an apartment/a room in Milano involves understanding the various types of rental contracts prevalent in Italy. Whether you are planning a temporary stay or looking for a more extended commitment, being aware of the available options is crucial. 

Types of Rental Contracts 

a) Transitory Tenancy Agreement (Contratto ad Uso Transitorio): Tailored for students, this contract allows for a stay of up to 36 months. 

b) 3+2: A minimum 3-year lease that can be renewed for an additional 2 years. 

c) 4+4: A 4-year contract with the possibility of renewal for an additional 4 years. 

Paperwork and Caution 

Renting in Italy involves a considerable amount of paperwork. Landlords, keen on safeguarding their interests, often request substantial advances and deposits. Carefully reviewing the lease agreement is essential before signing. Seeking advice from a tenants' union (sindacato inquilini) or a real estate broker can help protect your rights and ensure a fair deal. 

Registration Process 

After signing the lease, either the landlord or the tenant must register the contract with the Italian Revenue Agency (Agenzia delle Entrate) within 30 days. This registration is mandatory by law and is a prerequisite for obtaining residency in Milano, establishing your official place of residence. The registration tax, amounting to 2% of the annual rent, is shared equally between the landlord and the tenant. 

Utilities and Additional Costs

Rent contracts may include heating and utilities. If so, it is advisable to request an itemized breakdown of each utility bill at the end of the year. This ensures transparency, allowing you to understand and verify the actual expenses associated with your residence. 

In Milano's rental landscape, being informed, cautious, and attentive to the details can contribute significantly to a smooth and secure renting experience. 

 

We set up a whole section of our website to give you the basic tips about rents 

BUY A HOUSE

To purchase a property, any foreigner must then be in possession of an Italian tax code, which is issued on request by the Revenue Agency

 

Who can buy a property in Italy? 

  • Citizens of European Union or EFTA countries and stateless persons who have been resident in Italy for more than three years have no limit on their purchase. 

  • Other foreigners, if legally residing with their family members or stateless persons for less than three years, are required to have a valid residence permit or residence card. 

  • For non-legally resident foreigners, the acquisition of property hinges on the presence of an international agreement allowing such transactions or the principle of reciprocity. Reciprocity implies that Italian citizens are granted the same property purchasing rights in the foreigner's home country. 

 

After a thorough check of the conditions that allow the foreigner to proceed, one must understand what kind of property one is going to buy (whether it is a first or second home, whether it is a luxury property, a condominium, whether it is bought from private individuals, etc.). 

The procedure for the actual purchase: the role of the Notary 

Buying a house in Italy as a foreigner involves three main phases: 

  1. the purchase proposal 

  1. the preliminary sales contract (or compromise) 

  1. the final contract. 

 

Both in the intermediate and final phases, the presence of the Notary, officially capable of giving legal validity to the agreement between the parties. While the Notary's actual intervention might not be obligatory during the preliminary sales contract phase, although strongly recommended, in the case of the final contract, the notarization by the Notary is essential not only for the guarantees that the parties have undertaken to fulfill (including the most important ones such as payment of the price and transfer of ownership to the buyer), which the Notary seals, but also for a series of post-stipulation formalities. Indeed, as a public official, the Notary must transcribe the sale and transfer all related documentation to the Land Registry and the Real Estate Registers for transcription. Only in this way is it truly acknowledged that the property transfer has occurred from A to B in relation to third parties. 

 

If the foreign individual wishing to buy a house in Italy already has a bank account with an Italian bank where the funds needed to purchase the property are deposited, there are no issues. 

 

However, when the foreign buyer does not have a current account in Italy, there are two possible alternatives: 

  • They can open a current account directly in Italy and transfer the required funds. 

  • They can grant a trust mandate to the chosen notary, who will be entrusted with receiving the necessary funds in trust deposit. The notary will make the payment to the sellers only after completing the transcription of the deed of sale. 

Language barrier: what to do when the buyer doesn't know Italian well? 

If the buyer does not know the Italian language, it is obviously necessary to take this into account and have, in the presence of the Notary and witnesses (if no one speaks the foreign language), an interpreter/translator designated in accordance with the notarial law. Additionally, the Italian notarial deed must be followed by a certified translation into the foreign language by an official translator (which could also be the same Notary, if they know the language), consistent with the Italian text. 

 

Who appoints the interpreter? 

The notarial law is very precise in establishing that in the case of a foreigner, it is necessary to verify whether the parties and the notary speaking the foreign language. If the Notary does not know the foreign language spoken by the party, the parties themselves of the contract decide who will be the interpreter. The interpreter must then take care of translating the notarial deed and must also sign the deed of sale, together with the two witnesses, the parties, and the Notary. 

They must be of legal age, Italian citizens, and must not have any interest in the act. A foreigner can also serve as an interpreter but must have residency in Italy. The blind, deaf, mute, relatives, and affiliates of the Notary and the parties to the degrees indicated in article 28, the spouse of one or the other, and those who cannot sign are not eligible. It is important that the Notary checks the requirements provided by notarial law. 

It is necessary for only one of the witnesses to know the foreign language if all the parties can sign with their full names. If the parties cannot sign, both witnesses must know the foreign language. Obviously, the witnesses must always know the Italian language. 

 

The foreigner is currently not in Italy to conclude the agreement: what happens? 

It may happen that the person interested in concluding the agreement for the purchase cannot actually participate in the signing. In this case, the impediment can be overcome by resorting to a power of attorney, a document by which others are given the power to perform a legal or material act on behalf of the impeded person. 

Consider the case where a French foreign citizen cannot be present in person at the time of the notarial deed in Italy: they can grant power of attorney, for example, to their spouse for the conclusion of the sales contract. Thanks to the power of attorney, they can still buy the property. 

What taxes does a foreign buyer have to pay? 

The taxes to be paid in Italy depend on the purchased property, the assets, and the selling subject. 

The taxes related to the purchase are registration, mortgage, and cadastral taxes. Those related to property taxation are IMU and TASI. 

If a private individual is selling, the Consolidated Law on Registration Tax provides for payment, by the buyer, of registration, cadastral, and mortgage taxes. They apply at a fixed rate if the transactions are subject to VAT or proportionate at 9% if exempt from VAT. A reduced rate (proportional to 2%) will apply if the purchase falls under the so-called "first home benefits." 

Otherwise, if the seller is a company (e.g., the builder) the sale will be subject to VAT, as established by Presidential Decree 633/1972. 

 

Tax advantages for the “first home” 

Italian law wants to facilitate and encourage the purchase of one's main home (so-called first home – prima casa) In the event that the foreign citizen does not own any other property, he will be able to benefit from tax advantages for his first home lowering taxes for those who buy it in various ways. In particular, at the time of purchase, homebuyers pay 3% registration tax if they buy from a private individual, or 4% VAT if they buy from a company or corporation (except for a few special cases), plus mortgage and cadastral taxes in a fixed amount, which are very low.  

Foreigners are eligible for 'prima casa' benefits if they meet the requirements, just like Italian citizens.  
To calculate the registration tax, the purchaser may request the application of the 'price-value' regime. In this way, the tax will be calculated not on the commercial price of the property, but on the cadastral value (usually lower, in some cases where the property has not been subject to cadastral revision for a long time, even to a very significant extent). 

 

If you resell your “prima casa” within five years and don’t buy another first home in Italy by one year, the revenue agency will ask you to pay the difference between normal taxation on house purchases and the reduced one, plus 30% fine and legal interests.