Who can buy one and how does the process work?

With property prices in the UK, and in many parts of the world, out of reach for many first-time buyers, and with owners dreaming of a second home in the sun, the thought of buying an Italian home for pennies is heady.

Several small Italian towns have made headlines for selling vacant houses for one euro ($1.16) each in recent years.

But how does the plan work and who is eligible to buy one of these cheap summer villas?

Why does Italy sell houses for one euro?

As young Italians increasingly migrate to the city and choose cosmopolitan jobs over rural and community vocations, many of Italy’s prettiest remote villages are being abandoned, with tiny, aging populations beginning to die.

Some elderly Italians have found themselves with no one to leave their home to and have bequeathed it to local authorities, who must decide what to do with it, while some younger citizens have inherited property in areas they have no intention of moving to.

Owning a second home in Italy means paying taxes, so selling these unused homes cheaply can be more lucrative than keeping them.

That is why around 25 Italian municipalities are making potential owners an offer they cannot refuse: a house for the symbolic price of one euro.

The idea is that having these houses upgraded and occupied for years to come is worth more to cities than selling them at full price.

“We don’t need new construction and new reconstruction. The strategy to improve the housing environment and recover our cultural identity is to revive the small abandoned centers or rehabilitate buildings in a state of abandonment, with a history that is ours, ”reads a statement from the team in 1eurohouses.com.

Local authorities in areas such as Emilia-Romagna, Abruzzo and Campania are also hoping that an influx of new owners will stimulate the economy as they buy local products, employ local construction workers, invest money in local places and attractions and even boost tourism. creating boutique hotels or B&Bs.

What’s the trick?

You are not buying a shiny new villa: the houses selected for the scheme are often dilapidated and require significant structural improvements. You are investing in a home to repair it, not buying a move-in ready home.

However, the cost of renovations is still relatively low compared to other countries, around €20,000-50,000 ($23,000-57,000) depending on the size of the property.

While most homes are humble townhouses or cottages, some stately homes are also for sale, with a much higher price tag attached. sellers of this old monastery on the outskirts of Bologna estimate that essential renovations might cost €1.5 million ($1.733 million).

The legal fees for buying a house abroad can add up to three thousand euros (three thousand 466 dollars) and some municipalities also ask for a “guarantee fee” (from one thousand to 10 thousand euros). [mil 155 a 11 mil 555 dólares] depending on the city and the cost of the reform project) to prove that you are committed to improving the property.

On the positive side, Italy provides a super bonus tax exemption for buyers it covers 110% of qualified construction expenses.

You also won’t be able to make vague promises regarding restoring your new property in the future: new owners must submit details of a renovation project within two to 12 months of purchase (depending on location), start work on it within a year and complete it in the next three years.

It’s also worth noting that not all properties end up selling for just one euro. Popular houses have become the subject of a bidding war and several are at €5,000 ($5,777) or even €20,000 ($23,011).

So this is a plan for people who have some savings accumulated beyond the initial euro.

Who can buy a house for one euro?

“Is it true or is it a joke?” reads a section of the website case1euro.itwhich lists one-euro properties currently for sale in Mussomeli, 60 miles (96 kilometers) south of Palermo, Sicily.

It is not a joke. Rules differ from city to city, but in the case of Mussomeli, buyers must have the financial and practical means to:

Support all expenses for the drafting of the deeds of sale (notary, registration, transfer)
Prepare a project for the renovation of the property within one year of purchase, acquiring the necessary permits.
Commence work within two months of the date the building permit is issued.
Finish the job within three years.
Make a “guarantee policy” deposit of five thousand euros ($5,777), which they will forfeit if the work is not carried out within three years of purchase.

At Mussomeli, you can do whatever you want with the interior of the property, but you must keep the façade looking the same as it originally did.

The fine print goes on to say that you have the right to renovate the property yourself or with workers of your choosing.

This is the route French buyer Morgane Guihot and her husband took, telling CNN in 2019: “As we are both craftsmen and renovators, we did most of the work ourselves, which was minimal, and it was great to see our two-bedroom home come to life once more.”

Most cities that have established a one euro housing scheme have similar financial requirements; you will have to check the specific requirements of the city in which you want to buy. Some require you to live in the house following renovations, while others allow you to purchase it for the purpose of using it as a vacation home or as a small business such as a B&B.

Buyers who do not have a residence in Italy or who do not speak Italian may encounter more obstacles when it comes to organizing work and being able to make use of their property.

Has Brexit affected the British to be able to buy houses?

People living outside the European Union can still buy property in Italy, but only as “non-residents”. This means they pay higher taxes than the locals and you can spend up to 180 days a year in your Italian home, but no more than 90 days at a time.

To visit more regularly, you would have to apply for residency in Italywhich includes proving that you have sufficient funds to keep yourself unemployed in Italy.

I’m still interested. How do I start?

You should find one euro houses for sale on websites like 1eurohouses.com, case1euro.it and property-in-sicily.estateas well as on local government websites such as Municipality of Sambuca’s O City of Troina’s en Sicily.

Auctions2Italy also lists some two euro properties in the country and you will find case studies and “How We Did It” guides at Europe.properties.

American buyer Rubia Daniels, who bought and renovated a one-euro house in Sicily, said to Travel + Leisure a earlier this year that going in and seeing potential homes in person is a must; as is examining the foundations and the condition of the walls.

“Definitely don’t try to do it online; you have to be there to see it and experience the process to make sure you’re making a conscious decision,” Daniels said. “I wouldn’t do anything over the internet.”

“You don’t want to put anything where the walls are bent because that indicates a foundation problem,” he advised.

Areas with one euro housing plans

Emilia Romagna

The northern portion of Italy around Bologna has homes for sale in towns like Modigliana (where the aforementioned ruined monastery can be purchased).

Abruzzo

The region that hugs the coast to the east of Rome. Towns that raffled off their empty houses include Casoli, Santo Stefano di Sessanio and Pratola Peligna.

Campania

The spectacular volcanic slice of coastline around Naples, near Pompeii and the Amalfi Coast, has euro-one properties for sale in places like the near-abandoned Pietramelara, which has recently been home to just 15 families.

Sicily

Sicily is a hive of one euro housing projects. In addition to sleepy Mussomeli, the towns of Calatafimi Segesta, Augusta, Sambuca and Caltagirone are selling unwanted or reclaimed houses.

Piamonte

This northern region, close to Switzerland, offers homes in towns like Borgomezzavalle and Albugnano, close to renowned wine-producing regions and the open-air, wooded Antrona Valley.

The market

The medieval town of Cantiano, a 40-minute drive from the coast, has €1 houses for sale near pebble-white Adriatic beaches and truffle-hunting spots.

Liguria

Triora and Pignone are two of the areas in this region, famous for the colorful fishing villages of the Cinque Terre, as well as pesto and foccacia.

Apulia

With 195,024 inhabitants, the provincial capital of Puglia, Taranto, is one of the first large-scale cities to launch a one-euro house plan, putting buyers in touch with its maritime history and excellent seafood.

sardinia

The towns of Romana and Nulvi are in the province of Sassari, outside Alghero, and both have joined the scheme to sell one-euro houses.

Tuscany

Montieri, Grosseto, Lucca and Vergemoli are some of the cities that participate in the paradise of villas and the sacred wine of Italy.