What taxes do I pay when selling property in Italy?

When selling property in Italy, your primary tax obligation is capital gains tax at 26% on profits if you sell within 5 years of purchase. If you hold the property for 5 full years or more, the capital gain is completely tax-free. Our team at Trevi Elite structures sales timing strategically to optimize tax outcomes for international sellers across Rome's luxury...

What is the process for buying property in Italy as a foreigner?

Foreigners can buy property in Italy with minimal restrictions, though the process differs based on citizenship. EU citizens enjoy the same property rights as Italian nationals and face no limitations. Non-EU citizens can purchase property if their country has a reciprocity agreement with Italy, which includes most major markets including the United States, Canada, and the UK, and other countries. The...

How much can you earn from short-term rentals in Rome?

Short-term rentals in Rome typically generate between €37,000 and €72,000 annually depending on property type and location, with most Airbnb hosts earning around €2,300 monthly net income after expenses. Recent data shows median revenue of €42,000 for a typical rental with occupancy rates near 77%, though earnings vary significantly based on property positioning and management approach. Income is...

What is the state of the hotel and hospitality property market in Italy?

Italy's hotel and hospitality property market is experiencing strong momentum, with the city segment alone valued at €36 billion and luxury operators forecasting annual revenue growth of 6–10% (52% of operators surveyed). Investment conditions remain favorable as inflation and interest rates have eased, debt markets are performing well, and the boundaries between prime residential and elite hospitality...

How has the Italian luxury real estate market performed recently?

The Italian luxury real estate market has demonstrated strong performance in recent years, with the luxury segment showing significant price growth and robust expansion driven by international demand. International buyers now account for 55% of total luxury investments, with a notably younger buyer profile emerging across prime markets. The market outlook for 2026 reflects increased maturity and...

Is 2026 a good time to buy property in Italy?

2026 presents a favorable window to buy property in Italy as the market enters a normalization phase after recent volatility. Prices continue rising in major cities—Rome averages €2,986 per square meter in February 2026, while luxury market growth remains solid at 5.5%—but falling interest rates and stabilizing inventory create better conditions than delaying into a tighter market. According to...

What are the forecasts for the Italian real estate market in 2026?

Forecasts for the Italian real estate market in 2026 point to strong growth, with transaction volume expected to exceed 800,000 residential sales and turnover rising to over €170 billion, representing an 8.4% increase (Scenari Immobiliari). Commercial real estate outlook remains positive following record investment levels in 2025, while prime residential rents in Milan and Rome will continue to rise at a...

What is the average price per sqm in Rome?

The average price per square meter in Rome ranges between €2,986 and €3,759 as of early 2026, depending on the district and property type. The most recent data from March 2026 shows residential properties averaging €3,759 per square meter, representing a 6.28% increase year-over-year, while broader city averages sit closer to €3,300 per square meter. Prime central locations command significantly...

Will property prices in Rome fall in 2026?

Property prices in Rome are not expected to fall in 2026, but rather plateau in the first quarter with modest fluctuations between -1% to +2%, followed by resumed growth of 3-4% by year-end. Average prices reached €3,306 per square meter by late 2025, with the final quarter showing 2.4% growth, and major cities including Rome are anticipated to see continued price peaks rather than declines throughout...

What is happening to property prices in Rome in 2026?

Property prices in Rome are continuing to rise through 2026, with the average reaching €3,306 per square metre and a 2.4% increase recorded in the final quarter alone. Forecasts indicate further growth of 2% to 4% across the year, supported by shrinking supply in desirable areas and sustained buyer demand following the Jubilee year momentum. Our buyers at Trevi Elite are seeing stabilization in prime...