Investing in Italy as a foreigner: a civil-law guide to homes, companies, visas and inheritance

Author: Renato Giuseppe Fiorentino, attorney (Naples Bar). Updated on 27 October 2026.

Contents

1. Buying a home: checks before the preliminary contract

2. Paying and signing from abroad: power of attorney and apostille

3. Companies in Italy: S.r.l. and tax code

4. New residents and the substitute tax: what the official sources say

5. Investor visa

6. Inheritance and applicable law: the will of those who invest

7. If a dispute arises: contracts, claims and foreign judgments

8. Frequently asked questions

1. Buying a home: checks before the preliminary contract

Before paying a deposit, the following are checked against documents, not on someone’s word: chain of title and mortgages (mortgage search), planning and cadastral compliance, condominium regulations and extraordinary expenses already approved, energy certification. The preliminary contract (compromesso) must have the same form as the final contract, otherwise it is void (Art. 1351 of the Civil Code), and it already binds the parties: anyone who signs it without clauses on conditions and deadlines risks losing the deposit. The deed of sale (rogito) is executed before a notary, whom the client chooses freely; the firm is not a notary’s office. If the party who paid the deposit defaults, the other party may withdraw and keep it; if the party who received it defaults, that party may be required to return double the amount (Art. 1385 of the Civil Code). Contracts concerning real estate are registered in the land registers (Art. 2643 of the Civil Code): whoever registers first prevails over third parties (Art. 2644 of the Civil Code).

Common case, described in general terms: names, places and details do not refer to real people or files. A foreign buyer pays a deposit on a villa; only afterwards does he discover an unregularized veranda. Had the planning check been a condition of the preliminary contract, he could have withdrawn from the agreement. The solution that is usually most advantageous: document checks first, a proportionate deposit, conditions in writing.

2. Paying and signing from abroad: power of attorney and apostille

Anyone who cannot be in Italy for the deed of sale can sign a power of attorney before a notary or a consular authority of their country; for use in Italy an apostille (Hague Convention of 1961) or legalization is normally required, with a translation if the document is not in Italian. A general power of attorney is not enough if the deed requires specific powers (price, mortgage, planning declarations). For foreign documents, the Ministry of Foreign Affairs indicates consular legalization or, in the countries party to the Hague Convention of 5 October 1961, the apostille, plus a translation into Italian. The price is paid by traceable means.

3. Companies in Italy: S.r.l. and tax code

To incorporate an S.r.l. (limited liability company), each foreign shareholder needs an Italian tax code. By law the articles of incorporation must be drawn up as a public deed, that is, before a notary; the share capital may not as a rule be less than 10,000 euros, but it may start from 1 euro with payment in cash (Art. 2463 of the Civil Code). From the civil-law side, what is needed is: articles of association suited to the shareholders (agreements on the transfer of shares, exit clauses), a director with clearly defined powers, and rules on liability: in an S.r.l., as a rule only the company is liable, with its own assets (Art. 2462 of the Civil Code); the sole shareholder is instead liable if the contributions have not been paid in or the required publicity has not been carried out.

4. New residents and the substitute tax: what the official sources say

For those who transfer their tax residence to Italy there is a flat-rate substitute tax on foreign income (Art. 24-bis TUIR). According to the text on Normattiva (consulted on 27 October 2026) and the Revenue Agency (Agenzia delle Entrate) information sheet:

• the tax is 300,000 euros for each year the option is valid, reduced to 50,000 euros for each family member to whom the option is extended; the 2026 budget law raised the amounts to these figures for those who transfer their residence from 1 January 2026 (some older pages still mention 200,000 and 25,000 euros: these are outdated);
• the person must not have been resident in Italy for at least nine of the ten preceding years;
• the option lasts at most fifteen years and ends if the tax is not paid; payment is made in a single instalment by the deadline for the balance of income taxes.

Please note: from 1 January 2027 the TUIR is repealed by Legislative Decree 117/2026 and the new text of the article has yet to be verified. The text currently in force speaks of an option following a favorable reply to a ruling request (interpello), while the Agency’s information sheet presents it as optional: before choosing, both sources are checked. The firm does not provide tax advice: choosing the regime requires an accountant. The firm can assist with the resulting civil-law aspects: purchase contracts, companies, wills, family relationships. Sources: normattiva.it (Art. 24-bis TUIR) and agenziaentrate.gov.it (“Opzione per i neo-residenti”).

5. Investor visa

The investor visa allows entry and stay in Italy, outside the quotas, for those who make, in their own name or for a company they represent, one of these investments (Art. 26-bis of Legislative Decree 286/1998, text from Normattiva consulted on 27 October 2026): at least 2,000,000 euros in government bonds held for two years; at least 500,000 euros in the capital of an Italian company or venture capital fund, held for two years (250,000 euros if it is a registered innovative start-up); a philanthropic donation of at least 1,000,000 euros for projects of public interest. The applicant must show the availability and lawful origin of the funds. The holder is issued a two-year investor residence permit, renewable for periods of three years; family members may enter with the holder. The application goes through the ministerial portal and the competent authorities, not through the firm. Source: normattiva.it. For forms and updated thresholds, consult the ministerial portal Investor Visa for Italy.

6. Inheritance and applicable law: the will of those who invest

For the estates of persons who die on or after 17 August 2015, the law that applies, even if it is not the law of an EU State (Denmark and Ireland do not apply the Regulation), is as a rule the law of the State in which the deceased had their last habitual residence; alternatively, the law of one’s own nationality can be chosen in a will (professio iuris), under Arts. 20-22 of EU Reg. 650/2012. The applicable law governs the entire succession, including the share reserved for family members and the division (Art. 23). Those who buy a home in Italy and move there often change the law applicable to their inheritance without realizing it. In Italy the law reserves a share for close family members (forced heirship, Arts. 536 ff. of the Civil Code: to children, for example, half of the estate if there is only one, two thirds if there are more). To avoid surprises: consider a will with a choice of law, and update any will made abroad. The European Certificate of Succession helps heirs prove their status in other EU States. The certificate is not mandatory (Arts. 62-63).

7. If a dispute arises

• Unpaid claim against a foreign business: one starts with a formal demand letter, then an order for payment (decreto ingiuntivo); for cross-border claims in the EU there is the European order for payment (Reg. EC 1896/2006), for a claim of a specified amount that is already due.
• Contract with clauses on forum and law: under EU Reg. 1215/2012 the parties may choose in writing the courts of a Member State (Art. 25); in contractual matters a party may be sued before the court of the place of performance (Art. 7).
• Foreign judgment to be enforced in Italy: Law 218/1995 recognizes it without any proceedings if the conditions of Art. 64 are met (jurisdiction of the foreign court, right of defense, finality, no conflict with Italian judgments and with public policy); Arts. 65 and 66 concern decisions on persons, family and non-contentious matters. If it is contested, court proceedings are needed.

The solution that is usually most advantageous: first try the out-of-court route and mediation, where provided for, keeping the evidence ready.

8. Frequently asked questions

Can a foreigner buy a home in Italy? As a rule yes: foreigners enjoy civil rights on condition of reciprocity and subject to special laws (Art. 16 of the Preliminary Provisions to the Civil Code).

Do I need to live in Italy to buy? No, but you need a tax code and a way to sign (in person or by power of attorney).

Is a will made abroad valid in Italy? Often yes as to form (Hague Convention of 1961), but it may not stand up as regards the share of family members.

Can I choose the law governing my inheritance? Within the limits of EU Reg. 650/2012, yes, by a declaration in the will.

Does the firm provide tax advice? No: the tax part goes to the accountant; the firm assists with the civil-law aspects.

How Attorney Fiorentino can assist you

• Document check of the home or the company before any money is paid.
• Drafting and review of preliminary contracts, powers of attorney and wills, with attention to the applicable law.
• Assistance in disputes and in recovering claims, in Italy and with foreign elements.

Book a consultationWhatsAppCall +39 347 5264190

Further reading

• Guides for those who live abroad or own a home in Italy (in Italian)
• International successions (in Italian)
• First- and second-generation emigrants: inheritance, real estate and citizenship

Note on the use of AI: the texts are prepared with artificial intelligence tools and reviewed by the attorney; they do not replace advice on the specific case.