How much does it cost to build a house in Italy?

Love the idea of building a house in Italy? Many Brits dream of creating their dream home in the beautiful Italian countryside or even in one of the country’s stunning cities.

But turning your dream into reality will often come down to money. In this guide, we’ll cover everything you need to know about the cost of building a house in Italy as a UK national.

This includes essential info on the process, including building costs in Italy and the different fees and taxes you’ll need to budget for.

We’ll also look at the best way to pay for overseas building work in EUR, using low-cost solutions such as the Wise account.

Why build in Italy?

There are many reasons why you might want to build a house in Italy.

For starters, it offers a chance to build your dream house, to your exact specifications, in the perfect location.

It could also be cheaper to build your perfect home rather than buy a property abroad, especially in expensive areas.

Can a UK citizen buy or build a house in Italy?

Yes, you can buy property or land in Italy as a UK citizen. You don’t even have to be living there as a legal resident.¹

You should also be entitled to build a property on the land you buy. But crucially, only as long as the plot is designated for building purposes - and not earmarked for anything else. We’ll look at that in more detail later in this guide.

Can you build your own house in Italy?

Love the idea of tackling a self-build project and managing it all yourself? You can do this in Italy, but it will be necessary to appoint some professionals along the way. For example, your house plans will need to be drawn up by a fully qualified architect or other professional in order to get a building permit.²

When building a house abroad, it’s also strongly recommended to seek as much professional advice as you can throughout the building process.

Buying land in Italy

First things first - you need to find a plot of land to build on. In urban areas of the country, a building plot is known as a lotti. When you’re searching online for lotti to buy, the words to look for are terreno edificabile - this means building land. What you don’t want is terreno agricolo, as this means agricultural land.³

You might want to use a local agent or one specialising in overseas property and land sales. Or you can start your search online, using sites such as:

• Idealista.it
• Kyero.com
• Properstar.com

An important thing to check when searching for plots of land is whether it is considered suitable for building by the local council (Comune). You’ll need to consult the Municipal Regulatory Plan (Piano Regolatore Comunale), which outlines the development plan for the area.³

How to buy land in Italy

The process of purchasing land in Italy usually looks something like this:⁴

1. Find a plot of land to purchase.
2. Check its suitability for building with the local Comune and its Piano Regolatore Comunale.
3. Arrange your funding and get your documentation together, including your identification. You might also need to get a tax identification number (codice fiscale) as a foreign citizen. You should be able to apply for this from the Italian Embassy or Consulate here in the UK.
4. Make an offer, and negotiate and agree the price with the seller.
5. Sign the preliminary agreement (compromesso).
6. Appoint a notary to draw up a public sales act - this agreement is proof of the intention to purchase.
7. Once the legal work has been carried out, sign the final contract (rogito) and transfer the funds to the seller.

Can you build on your own land in Italy?

You can build on your own land in Italy, but only if the following conditions are met:²

• The land you own is part of the ‘residential zone’ in the Comune zoning plan (Piano Regolatore Comunale).
• The plot isn’t designated for any public works such as car parks or public squares - you can check this in the Detailed Plan (Piano Particolareggiato).
• You have a building permit.

An additional thing to check is the Building Index for the municipality in which the plot is located. This will set out the specific size of property you’re permitted to build there, along with any other restrictions and conditions.

Can you build on undeveloped land?

You may find it difficult to get permission to build on undeveloped land, if it isn’t already designated for building on. Some land is designated as terreno agricolo (agricultural land) and you won’t be able to build on it.

For other plots, you may be able to contact the local planning department to find out about the potential for building on it.

Bear in mind though that rural plots can be difficult to build on, as the terrain may not be suitable and the land may not be connected to mains power, water and sewage systems. Access for construction vehicles may also be a problem.

Do you need planning permission to build in Italy?

In order to build a house in Italy, you’ll need to apply for a building permit. You’ll need to apply for this at the Sportello Unico dell'Edilizia within the municipality your plot of land is located in.

When submitting the application, you’ll need to provide the following supporting documents (among others):²

• Stamped application
• Blueprints and plans drawn up by a fully qualified architect or geometra. This is a professional who is essentially a cross between a land surveyor and a junior architect. You might choose a geometra rather than an architect for smaller projects, such as renovating a property in Italy.
• Proof of ownership of the land.

It’s important to check with the local planning authority what exact documents you’ll need, to avoid any delays.

How long does it take to get planning permission in Italy?

It can vary considerably depending on the scope and complexity of the project, and the efficiency of the planning department in the municipality.

But generally, you can expect planning permission for a new house build to take anywhere between 2 to 6 months to come through.⁵

How much does it cost to build a house in Italy?

Now we come to the crucial issue of how much it will actually cost you to build your dream home in Italy.

There are many different fees and taxes to factor in, and lots of people to pay including your architect and building contractors.

How much does an architect cost in Italy?

Architect’s fees in Italy will vary depending on the specific project. Some architects may charge a fixed fee, an hourly/daily rate or a percentage of the overall construction costs.

As a rough guide, you can expect architect’s fees to be between 10% to 15% for a residential project.⁶

Is building work expensive in Italy?

Building work in Italy costs broadly the same as in the UK, although it depends what you’re building and where in the country you are.

The cost of labour and materials did spike by 25% in 2022,⁷ while in the UK they rose 15% in the same year.⁸

How much do builders get paid in Italy?

The average salary for a builder in Italy is €16 EUR (£13.48 GBP) an hour, or €34,300 EUR (£28,892 GBP) a year.⁹

How much is a building permit in Italy?

You can expect to pay around €1,250 to €3,000 EUR (£1,052 to £2,527 GBP) in building permit application fees, based on a planned property of around 100 square metres.²

What is the tax on a new house in Italy?

When you buy land to build on in Italy, you’ll need to pay the following taxes:²

• Registration tax - 9% of the price paid for the land
• Mortgage tax - €50 EUR (£42 GBP) fixed fee
• Cadastral tax - €50 EUR (£42 GBP) fixed fee.

Italian building challenges and restrictions

Now, let’s take a look at some of the challenges you may need to overcome when building a house in Italy.

Building permits

A building permit is essential before you can legally build on a plot of land you own.

Different types of permits

In Italy, the main permit you will need to build a new house is the concessione dell’edificabilità.

This gives you permission to build a property in line with the region’s zoning plan and conditions.

You may also need:¹⁰

• A demolition permit if any existing structures need to be knocked down
• A felling permit if there are any trees in the way of the building site.

Documents needed for applying for your permit

To apply for your building permit, you’ll usually be asked to submit the following:²

• Stamped application
• Blueprints and plans drawn up by a fully qualified architect or geometra.
• Proof of ownership of the land
• Volume calculations and technical reports
• Reports on architectural obstructions, and of the conformity of the proposed installation
• Evidence that secretarial fees have been paid.

Environmental restrictions

Before starting any construction work, it’s important to check that the terrain is stable enough for excavation and building. You may be required to commission a geological report. You may also need to conduct surveys to assess any seismic or hydrogeological risks or constraints.²

Historic and artistic restrictions

It’s important to check whether there are any restrictions or laws in the local municipality governing how your new building should look.

For example, you may be limited to certain paint colours for the facade of your new building. This is the case in Rome, where authorities aim to maintain the ancient appearance of the city by mandating that properties must be painted according to a set and limited palette of colours.¹¹

Language barriers

If you’re not fluent in Italian, it’s a smart idea to appoint a multilingual project manager - or hire a translator. You should also aim to get any agreements in writing, and have those agreements translated into English. Otherwise, the risk of miscommunication and misunderstandings is high - and this could derail your project.

Paying your builders, contractors and architects

You’ll also need to think about how you’ll pay your contractors, builders, tradespeople and architects in euros. You’ll need to make sure you’re not losing out to currency conversion, so opening a local bank account could be a good idea.

Alternatively, open a Wise account online and you can make fast payments in EUR for low fees* and mid-market exchange rates. It’s a low cost option that could save you money throughout the project.

You’ll need to speak to your building contractor about available payment methods, but bank transfer is likely to be the most commonly accepted.

Paying for materials and construction costs

It’s recommended to do some research on the cost of construction materials while putting together your budget.

You’ll also need to speak to your building contractor about available payment methods, but bank transfer or cash are likely to be the most commonly accepted.

How much money do you need to build a house in Italy?

The amount you’ll need to build a house in Italy varies considerably depending on where you’re building, what size property and the specifications of the project.

As a ballpark figure, you can expect to pay roughly €2,500 EUR (approx. £2,105.90 GBP) a square metre to build a house in Italy.¹²

So to calculate your construction costs, you’ll need to multiply this by the square metre size of your planned property.

You’ll also need to factor in architect fees, building permit application fees, taxes and other associated costs.

Do you need an Italian bank account to build a house in Italy?

It isn’t mandatory to have an Italian bank account in order to build a house in the country. However, you could find it difficult to cover your costs and pay international bills without one.

Ways to purchase land and pay for building work abroad

There are a few different ways you can pay expenses in Italy, while still based in the UK.

You can use your bank, but bear in mind that there may be relatively high fees related to sending money overseas. You may also lose out to currency conversion, as banks often add a margin to the mid-market exchange rate.

Another option is to use a specialist money transfer service like Wise. Open a Wise account and you can use the dedicated service for large amount transfers to send money safely and securely overseas.

Wise - the easy, low-cost way to pay for overseas projects

Open a Wise account at the start of your project and you’ll be able to quickly and easily send money between the UK and Italy. This is a good way to keep currency exchange costs down, and make sure everyone gets paid on time.

There’s even dedicated support for large amount transfers, essential when you’re buying land or property, or paying large bills.

It’s fast, low cost and guarantees you mid-market exchange rates with no margin on top*.

Send large amounts with Wise

FAQs

How long does it take to build a house in Italy?

It all depends on the complexity and size of the house you’re building, but you should plan for at least 12-15 months of construction work. You also need to factor in time to find and buy your plot, and to complete the admin to get your building permit.

What size property can I build in Italy?

The size of property you’ll be permitted to build will be set by the local authority, according to its zoning plan. There may also be height limits, as well as rules on proximity to other houses.

Do Brits with homes in Italy pay tax?

There aren’t any specific taxes which apply to foreign nationals owning property in Italy. However, if you own a house there, you may have to pay property taxes like a local. For example, an annual property tax known as IMU (Imposta Municipale Unica).¹³

📚 Read: Overseas property and tax

How long can I live in Italy if I own a house there?

While foreign nationals are free to buy property in Italy, owning a home doesn’t entitle you to a visa or allow you to reside in the country permanently.

If you’re interested in moving to Italy, you’ll need to look into the different visa options to find the right one for you, and apply for permanent residency through the usual routes.

How much does an average house in Italy cost?

While it depends where and what you buy, the average house price in Italy is around €380,000 EUR (£319,530 GBP) for a 2,000 square-foot-home.¹⁴

Is Italy a good investment for property?

It all depends on the area you buy, as well as how much you pay to buy or build a property. But generally speaking, the Italian real estate market is considered stable, with lower property prices than some other European countries - along with attractive rental yields.¹⁵

However, you’ll need to do careful research before investing there.

How much does a prefabricated house cost in Italy?

Prefab homes in Italy can be more affordable than other kinds of property. To buy one will cost around €1,500 to €2,000 EUR per square metre.¹⁶

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Sources used:

1. GOV.UK - living in Italy and buying property as a UK citizen
2. Idealista - what you need plus conditions to build on land in italy
3. Property Guides - buying land to build on in Italy
4. LawyersItaly - buying land in Italy
5. Just Landed - planning permission in Italy
6. Property Organiser - estimate of Italian architect fees
7. Global Wood - construction costs in Italy
8. Build Partner - latest UK construction material costs
9. Economic Research Institute - average house builder salary in Italy
10. DLA Piper - Italy licences and permits
11. Steemit - limits on paint colours in Rome
12. Property in Sicily - estimate of building costs in Italy (Sicily) per sq m
13. Giambrone - Italian property taxes
14. Property Guides - average house price in Italy cheaper than Spain and Portugal
15. Italy Magazine - state of Italian real estate market
16. Idealista - prefab house costs in Italy

Sources last checked on date: 30-Aug-2024