Americans represent 30% of all international property enquiries in Italy. The largest single nationality. But the process is built for Italians, and the assumptions are Italian. This guide covers the specific things that are different when you're buying from the US.
The good news: there are no restrictions on Americans buying property in Italy. You don't need residency, a visa, or Italian citizenship. You need a codice fiscale, some patience, and a good professional team.
The codice fiscale
Your Italian tax identification number. Required before you can sign any contract, open a bank account, or connect utilities. It's a 16-character alphanumeric code derived from your name, date of birth, and place of birth.
How to get one from the US
- At an Italian consulate. Walk in or book an appointment. Bring your passport. They issue the codice fiscale on the spot or within a few days. Free.
- Through a lawyer or tax representative in Italy. They can apply on your behalf at the Agenzia delle Entrate. Takes a few days. Costs whatever the lawyer charges for the service (€100-€300).
- In person in Italy. Walk into any Agenzia delle Entrate office with your passport. They issue it immediately. Free.
The consulate route is the easiest if you haven't booked flights yet. Keep the physical card — some offices ask for it, though the number is what matters.
Italian bank account
Not strictly required but practically necessary.
Why you want one:
- The deposit at the compromesso is usually by assegno circolare (banker's draft) — issued by an Italian bank
- The balance at the rogito can be by international transfer, but an Italian account makes it simpler and avoids exchange rate timing risk
- Utility bills, IMU tax, and condominium fees are paid by Italian bank direct debit (RID/SEPA)
- If you plan to rent the property, rental income is paid into an Italian account
Which banks work with Americans:
This is the difficult part. FATCA (Foreign Account Tax Compliance Act) means Italian banks must report American account holders to the IRS. Many Italian banks — especially smaller regional ones — refuse to open accounts for US citizens because the compliance cost isn't worth it.
Banks that generally accept Americans:
- UniCredit — the largest Italian bank, has a US-facing compliance process
- Intesa Sanpaolo — Italy's other major bank, varies by branch
- Banca d'Italia branches of international banks — HSBC, Deutsche Bank Italia
Smaller regional banks (Banca del Foggia, Monte dei Paschi branches in the Gargano) may refuse. Don't take it personally — it's FATCA, not you.
What you need to open an account:
- Codice fiscale
- Passport
- Proof of address (US driver's licence or utility bill)
- Evidence of the reason for the account (proposta d'acquisto or property listing)
Some branches require an in-person visit. Others allow a lawyer to act with power of attorney. Call ahead — don't fly to Italy and discover the branch won't serve you.
The Wise/Revolut alternative
For the initial stages (small deposits, agent fees), a Wise or Revolut multi-currency account with a EUR balance works fine. You can send EUR via SEPA transfer. But for the compromesso and rogito, the notaio and agent typically require an Italian-issued assegno circolare. That requires an Italian bank.
Taxes — the US side
You still file US taxes
Americans are taxed on worldwide income. Owning property in Italy creates US tax obligations even if you never live there.
If you don't rent it out: You still report the foreign bank account (FBAR if the account balance exceeds $10,000 at any point during the year). The property itself doesn't generate reportable income if you're using it personally.
If you rent it out: Rental income is taxable in both Italy and the US. Italy takes its share first (21% cedolare secca flat tax for short-term rentals, or progressive rates). You then report the same income on your US return and claim a foreign tax credit (Form 1116) for the Italian tax paid. The US-Italy tax treaty prevents double taxation — you won't pay tax twice on the same income, but you will pay the higher of the two rates.
Capital gains: If you sell at a profit within 5 years of purchase, Italy taxes the gain. After 5 years of ownership, no Italian capital gains tax. The US taxes capital gains regardless of timing — but you claim a foreign tax credit for any Italian tax paid.
FATCA
Your Italian bank reports your account to the IRS annually. This is automatic. You don't need to do anything except ensure your bank has your US tax ID (SSN or ITIN). If you fail to report the account on your FBAR, penalties are severe — $10,000 per account per year for non-willful violations.
FBAR (FinCEN Form 114)
If the aggregate value of all your foreign financial accounts exceeds $10,000 at any point during the calendar year, you must file FBAR electronically by April 15 (automatic extension to October 15). This includes your Italian bank account. The threshold is aggregate — if you have €6,000 in Italy and €5,000 in a UK account, you file.
Form 8938 (FATCA reporting)
If your foreign financial assets exceed $50,000 on the last day of the year ($200,000 if living abroad), you file Form 8938 with your tax return. This overlaps with FBAR but is a separate requirement filed to the IRS, not FinCEN.
Taxes — the Italian side
Covered in detail in the total cost guide. The key points for Americans:
- Seconda casa (second home, which your Italian property will be unless you transfer residency): 9% imposta di registro on the cadastral value, not the purchase price. In Southern Italy, this is often dramatically lower than market value.
- Prima casa (primary residence): 2% on cadastral value. But you must transfer residency within 18 months and actually live there. For most Americans buying a holiday home, this doesn't apply.
- No annual property tax on prima casa. Seconda casa pays IMU (0.76-1.06% of cadastral value per year).
Can Americans get Italian mortgages?
Yes, but it's harder and usually not worth it for the typical Gargano purchase.
The reality:
- Italian banks lend to non-residents at 60-70% LTV (loan-to-value), compared to 80% for residents
- Interest rates are higher for non-residents — currently 3.5-5.5% variable, 4-6% fixed
- The application process takes 2-4 months and requires extensive documentation: US tax returns (3 years), bank statements (6 months), proof of income, property valuation
- Many branches won't process mortgage applications for FATCA-reporting clients — the compliance overhead makes small loans unprofitable
- Minimum loan amounts: €50,000-€100,000 at most banks
When it makes sense: If you're buying a €200,000+ property and want to keep cash invested in the US (earning more than the mortgage rate), a partial mortgage can be rational.
When it doesn't: For a €50,000-€100,000 property — which is most of the Gargano market — the mortgage costs (application fees, valuation, notaio charges for the mortgage deed) add €3,000-€5,000 on top. At that price point, paying cash is simpler if you can.
Power of attorney (procura)
If you can't be in Italy for every step, you can grant power of attorney to your lawyer or a trusted person to act on your behalf. Two types:
Procura speciale: Limited to a specific act (e.g., signing the rogito for this specific property). This is the standard approach.
Procura generale: Broad authority to act on your behalf in all matters. Overkill for a property purchase. Use procura speciale.
The procura must be either:
- Executed at an Italian consulate in the US (cheapest, ~€50-€100)
- Executed before a US notary public and then apostilled and translated — more complex, €200-€400
If you can be in Italy for the rogito, you don't need a procura. Most buyers fly in for the completion.
The process — how it differs for Americans
The legal process is identical to any other buyer. The practical differences:
1. You can't do everything in one trip.
The typical timeline — offer, due diligence, compromesso, completion — spans 3-6 months. Most Americans make 2-3 trips: one to view and offer, one for the compromesso, one for the rogito. Or they grant procura and attend only the rogito.
2. Money transfers take planning.
Sending €50,000-€150,000 from a US bank to Italy isn't instant. Wire transfers take 2-5 business days and incur fees ($25-$50 per wire). Exchange rates fluctuate — a 2% swing on €100,000 is €2,000. Options:
- Bank wire (SWIFT): Most secure, highest fees, not the best rate
- Wise: Good rates, lower fees, but has transfer limits (check current limits for your account tier)
- OFX or similar FX broker: Best rates for large transfers, requires account setup in advance
Plan your transfers at least 2 weeks before you need the money in Italy. Don't leave it to the last day.
3. The notaio needs advance notice.
If you need a bilingual deed (recommended) or a sworn interpreter, tell the notaio at least 2 weeks before the rogito. Interpreters in the Gargano aren't standing by — they come from Foggia or Bari and need to be booked.
What most Americans get wrong
Assuming the agent works for them. Italian agents are intermediaries who work for both sides. They're not buyer's agents in the US sense. See who works for whom for the full explanation.
Expecting a home inspection like in the US. Italy doesn't have a standard home inspection process. The geometra fills this role but checks different things — cadastral conformity, planning compliance, title. They also check the building physically, but the scope is different from a US home inspection. If you want something closer to a US-style inspection, ask the geometra to include a structural assessment and systems check.
Thinking the closing is like a US closing. The rogito is a formal public act. The notaio reads the entire deed aloud in Italian. Everyone signs. There's no escrow, no title insurance, no separate closing agent. The notaio IS the closing agent, the title checker, and the tax collector in one.
Not hiring their own geometra. The seller's agent may recommend a geometra. That geometra may be good. But their relationship is with the agent, not with you. Hire your own — someone whose only job is to tell you the truth about the building, even if it kills the deal.
The property buying guide covers the full process in detail. If you're comparing areas, Gargano vs Valle d'Itria lays out the trade-offs. Or start the property journey and we'll match you with a professional in the Gargano.