Why is Italy Selling Homes for 1 Euro?
Italy’s 1-euro home program has become one of the most intriguing real estate initiatives in Europe. Launched by small towns in southern Italy, the scheme aims to address the growing issue of rural depopulation by offering abandoned, dilapidated homes at the symbolic price of just €1. The idea behind the project is to attract new residents and investment to struggling towns that have seen their populations dwindle over the decades.
Many of these villages, once thriving, now face the challenges of empty homes, declining local economies, and a lack of young people. The government’s hope is that by offering homes for virtually nothing, they will entice foreigners, especially those from outside the EU, to invest in restoring the properties and reviving the local communities. The program has seen success in towns like Salemi (Sicily), and its appeal is growing across the country, with municipalities from Abruzzo to Puglia jumping on board.
What’s the Catch?
While the idea of buying a home for just €1 might sound like an irresistible bargain, it’s important to recognize that these homes are often in extensive disrepair. They may require significant structural work, and in some cases, they’re almost ready to be demolished. The real cost comes in the form of the renovation—and that’s where the catch lies. These houses may be cheap to purchase, but the renovation costs can be hefty.
To be eligible for the €1 sale, buyers must agree to renovate the property within a specified timeframe, usually 1-3 years. This is where the project becomes a long-term commitment. On top of this, buyers are also required to secure insurance bonds to guarantee that the work will be completed on time. The process can quickly escalate from a simple €1 purchase to tens of thousands of euros in renovation and legal fees. Moreover, there’s a risk that the project could become a money pit if the home needs more work than initially anticipated.
Who Can Buy 1-Euro Homes?
Both Italian citizens and foreigners (including non-EU nationals) can take advantage of the 1-euro homes initiative. Foreign buyers, however, need to meet additional requirements, such as obtaining an Italian tax code (codice fiscale), which is necessary to pay taxes in Italy. For non-EU citizens, buying a 1-euro home is possible as long as their country of origin has a bilateral agreement with Italy regarding property ownership.
However, owning one of these homes isn’t as simple as handing over a €1 coin. Buyers must also demonstrate their seriousness—many municipalities require potential buyers to visit the property in person before they can make an offer. Some regions even require buyers to present a clear renovation plan, outlining the work they intend to do.
What Are the Requirements for Buying 1-Euro Homes?
Buyers must meet several requirements to be eligible to buy 1-euro homes. Each participating municipality has specific requirements, but in general they all include the following:
- Renovation Commitment: After purchasing the house, buyers must begin renovation within a specific period—usually within one year—and complete it within three years. The cost of renovation can vary greatly depending on the condition of the property, but municipalities typically require that buyers spend a minimum of €20,000-25,000.
- Legal and Registration Costs: Although the homes are being sold for just €1, buyers must bear additional costs, such as notaio fees, property registration fees, and the purchase-related taxes. These costs can add up to several thousand euros, depending on the municipality.
- Insurance Bond: Buyers must purchase a surety bond (typically between €1,000 and €5,000) to guarantee that the renovations will be completed as agreed. If the buyer fails to complete the work, the bond will be forfeited.
- Local Engagement: Buyers must demonstrate a genuine interest in the local community. In some municipalities, this means committing to long-term residency or contributing to local development projects.
- Ongoing Renovation: Once the renovation is complete, there’s also a requirement to maintain the property. The goal is to ensure that the restored homes don’t fall into disrepair once more.
While these requirements may seem demanding, the Italian government also offers fiscal incentives to improve energy efficiency and help offset some renovation costs. For example, the bonus ristrutturazione edilizia program allows tax deduction of 50% of certain renovation expenses.
