5 Reasons to Buy a Holiday Apartment in Italy
A holiday home and an investment in one: Owning a holiday apartment in Italy gives you a place to escape to, the opportunity to earn rental income, and the potential to benefit from the long-term growth in value of Italian property while prices are still affordable. Here are five reasons to buy.
1. Attractive prices in popular holiday regions
Even in highly desirable areas such as Lake Maggiore and Lake Como, you can find attractive, affordable holiday apartments and houses. Two- to three-room apartments with lake views and in good condition are available for under €150,000. Prices of around €1,500 per square metre are common.
For an initial regional comparison, explore our European property price maps.
2. A holiday home for family and friends
Take a spontaneous trip to the sea or the lake and arrive at your own home: your belongings are already there, and everything is furnished just as you like it. Whether it is a weekend, a summer holiday or time with friends, you decide when and how to use your apartment.
Every time you stay, you save on hotel bills. You also create a familiar place you will enjoy returning to again and again.
3. Financing for buyers in Germany or Switzerland
Italian banks also finance holiday properties for buyers who live and earn their income in Germany or Switzerland. You will need to contribute your own funds; the amount can be agreed individually, depending on the bank, the property and your creditworthiness.
4. Rent it out easily and earn income
Reserve your own holiday dates and offer the remaining dates on platforms such as Airbnb or Booking.com. This combines your own holidays with additional rental income.
For day-to-day hosting, a key lockbox and a local cleaner are often all you need. This makes it easy to manage your holiday rental from Germany or Switzerland.
When preparing to let, check your property liability insurance in Italy. Our guide to obtaining an Italian digital identity explains access to online public services.
5. Make use of tax benefits
As a general rule, property in Italy is taxed in Italy, even if you live elsewhere. Double taxation agreements set out the details. For private holiday rentals in Italy, you can choose between standard income taxation (IRPEF) and Cedolare secca, a flat-rate tax on rental income.
The standard IRPEF system involves a little more administration, but may offer a lower overall tax burden. If you have no other taxable income in Italy, your rental income starts in the lower bands of the progressive tax scale.
Under IRPEF, you can also make use of renovation tax relief, with eligible relief claimed in equal annual instalments over ten years.
Alongside tax on rental income, allow for ongoing property costs. Our step-by-step guide to calculating IMU explains the Italian property tax.
Your path to a holiday apartment in Italy
We support you with buying, renovating and renting out your property. In an individual consultation or a compact crash course, we answer your questions and work through the next steps.
Email us at info@haaf-international.com or use the contact form.
