How to Buy a House in Italy for 1 Euro in 2025: Complete Guide
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Contents
- Why Italy Is Practically Giving Away Homes
- The One Euro Home Program Has Expanded to Northern Italy
- How the €1 House Program Really Works
- 1. The Real Costs
- 2. Renovation Requirements
- 3. Residency Requirements
- 4. Municipality-Specific Rules
- Why Penne, Abruzzo Might Be Your Best Option in 2025
- Step-by-Step Guide to Buying a €1 House in Italy
- Success Stories and Cautionary Tales
- Success: Mussomeli, Sicily
- Warning: Budget Blowouts
- Warning: Potential Challenges
- Tax and Legal Considerations for Americans
- Is a €1 Italian House Right for You?
- Plan B Considerations for Wealth Protection
- The Bottom Line: Is It Worth It?
- Important Considerations About Italy's €1 House Program
- Final Thoughts
The “Casa a un euro” Program: Your Ticket to Italian Property
Picture this: a charming stone cottage nestled in a historic Italian village. Narrow cobblestone streets wind past your doorstep. Your neighbors invite you over for homemade pasta. The Mediterranean sun warms your terrace as you sip local wine.
And you bought this slice of paradise for just €1.
It sounds too good to be true – and it does indeed come with some terms and conditions. But Italy’s “Casa a un euro” (Houses for One Euro) program is very real – and it’s expanding across the country in 2025.
Why Italy Is Practically Giving Away Homes
Italy faces a growing problem: ghost towns. Many Italian municipalities are at risk of extinction due to:
- Young people migrating to big cities for better job opportunities.
- Aging populations left behind with insufficient services.
- Lack of economic opportunities in rural and remote areas.
- Poor transportation connections making daily commutes impossible.
- Declining agriculture as traditional farming becomes less viable.
- Crumbling infrastructure that local governments can’t afford to maintain.
- Schools and businesses closing as population numbers fall below sustainability.
This demographic crisis has left thousands of properties abandoned across the country. Homes that once housed generations of Italian families now sit empty, slowly deteriorating with each passing season.
To fight this depopulation crisis, local governments came up with a creative solution: sell abandoned properties for just €1 to attract new residents and revitalize dying communities.
What started as a desperate measure in southern regions has become a nationwide phenomenon. Now, even prosperous northern provinces like Trentino are offering substantial incentives for people to move in and breathe new life into struggling towns.
The One Euro Home Program Has Expanded to Northern Italy
Originally concentrated in Sicily and other southern regions, the €1 house program has moved north. As of 2025, more than 30 municipalities in the northern province of Trentino are offering significant financial incentives to attract new residents.
While not all northern towns offer €1 homes specifically, many provide substantial grants instead:
- Up to €20,000 toward purchasing a home.
- Up to €80,000 for renovation costs (on projects totaling €200,000).
- Additional incentives for landlords who offer discounted rentals.
- Tax breaks for remote workers who establish residency.
- Reduced utility connection fees for new residents.
- Free public transportation for the first year of residency in some towns.
It’s a big deal that these programs have now spread to the north. Here’s why: The South has always struggled economically, but the North is usually better off. So why are northern towns having problems too?
It comes down to a few simple things. Older folks are staying put while young people move to big cities. But there’s another twist in the north – too much tourism.
“We reached the limit of our resources, we had problems with traffic, and residents have difficulty finding places to live,” says Arnold Schuler, a provincial councilor in South Tyrol, highlighting the strain that excessive tourism can place on local infrastructure and housing availability.
This creates an odd situation. Some northern villages are packed with tourists during vacation seasons but have very few actual residents left.
How the €1 House Program Really Works
Behind the attractive €1 price tag lies a more complex reality. Here’s what you need to know before jumping in:
1. The Real Costs
That €1 house will ultimately cost much more. Most properties are abandoned, dilapidated, and require extensive renovation. Budget for:
- Initial purchase (€1).
- Notary and legal fees (€2,000 to €3,000).
- Renovation costs (€20,000 to €200,000+).
- Possible security deposit (€2,000 to €5,000).
- Ongoing property taxes and utilities.
2. Renovation Requirements
Most municipalities require you to:
- Submit renovation plans within 2-3 months of purchase.
- Complete renovations within 3-5 years.
- Use local contractors and materials in some cases.
- Restore the property in keeping with local architectural standards.
3. Residency Requirements
Some towns require buyers to:
- Establish residency in the property.
- Live there for a minimum period (typically 3-5 years).
- In rare cases, even establish a local business.
4. Municipality-Specific Rules
Each town sets its own requirements. For example:
- Penne (Abruzzo) doesn’t require a security deposit but mandates renovation within three years.
- Some Sicilian towns require a €5,000 refundable deposit.
- Certain municipalities offer renovation grants, while others provide no financial assistance.
Why Penne, Abruzzo Might Be Your Best Option in 2025
A standout opportunity has emerged in Penne, a picturesque town of 11,000 residents in the Abruzzo region (central Italy).
About Penne
Penne isn’t just any small Italian town. Founded by the Romans and later developed during medieval times, it features:
- A historic center with well-preserved medieval architecture.
- Proximity to both the Adriatic coast (30 minutes) and the Apennine mountains.
- Rich culinary traditions.
- A moderate climate with four distinct seasons.
- Local wineries producing Montepulciano d’Abruzzo.
- The nearby Gran Sasso National Park for outdoor enthusiasts.
- A relatively undiscovered region that offers authentic Italian experiences without the crowds of Tuscany.
Program Advantages
Unlike most €1 house programs, Penne:
- Requires no security deposit.
- Provides connects buyers with a network of architects, construction firms, and appraisers.
- Offers renovation costs starting around €20,000 for small/medium houses.
- Has over 40 vacant buildings available in its historic center.
- Features properties with authentic architectural elements like stone walls, terracotta roofs, and wooden beams.
- Includes buildings ranging from small apartments to larger multi-story homes.
“We really want to encourage and support those who come to revitalize the historic district,” says Mayor Gilberto Petrucci, who launched the initiative to save Penne’s medieval center from becoming a ghost town.
Step-by-Step Guide to Buying a €1 House in Italy
Ready to pursue your Italian dream home? Here’s your roadmap:
Step 1: Research Available Locations
Not all €1 house programs are created equal. Consider:
- Region (climate, culture, cuisine).
- Proximity to major cities and airports.
- Local amenities (healthcare, shops, restaurants).
- Community (expat presence, language barriers).
- Specific program requirements.
- Internet connectivity (crucial if you plan to work remotely).
- Healthcare quality and accessibility.
- Seasonal tourism patterns that might affect your experience.
- Earthquake risk (some central Italian regions have higher seismic activity).
- Transportation options if you don’t plan to drive.
Where to Look in 2025
Based on current program offerings, consider these regions:
Sicily: The original home of the €1 house program, with towns like Mussomeli, Sambuca, and Cammarata still offering properties. Offers year-round mild weather, stunning landscapes, and a lower cost of living, but more limited transportation connections.
Abruzzo: Penne’s program is the standout here. The region offers a mix of mountains and coastline within a short drive, good accessibility to Rome (2 hours), and authentic Italian living at reasonable prices.
Puglia: Several towns in Italy’s “heel” have launched programs in recent years. Known for its distinctive trulli houses, excellent food, and beautiful Adriatic coastline.
Trentino: The newest region to join the trend. Offers alpine scenery, proximity to Austria and Switzerland, excellent infrastructure, but typically higher renovation costs.
Sardinia: Island living with some of Italy’s best beaches. Towns like Ollolai offer €1 houses with additional grants for families with children who establish residency.
Resources for finding available properties:
- Official municipal websites (often only in Italian).
- 1 Euro Houses – Official Site, which aggregates listings.
- Facebook groups dedicated to €1 Italian homes (search “case 1 euro”).
- Real estate agencies specializing in €1 house programs.
- Italian news sites tracking new program launches.
- YouTube channels documenting renovation projects.
- Instagram accounts following the hashtag #1eurohouse
Step 2: Visit in Person
Never buy sight unseen. Plan a trip to:
- Inspect potential properties.
- Meet with local officials.
- Get a feel for the town and community.
- Connect with contractors for renovation estimates.
- Understand the true condition of the property.
Step 3: Secure Financing
Unless you’re paying cash for renovations, you’ll need:
- Proof of funds for the purchase and renovation.
- Possibly an Italian bank account.
- A clear understanding of international money transfer costs.
- Tax considerations for property ownership abroad.
Step 4: Make an Offer
Once you’ve found your ideal property:
- Submit an application to the municipality.
- Provide the required documentation (passport, proof of funds, etc.).
- Pay the €1 purchase price.
- Put down any required security deposit.
Step 5: Complete the Purchase
The buying process involves:
- Working with an Italian notary (notaio).
- Obtaining a codice fiscale (Italian tax ID).
- Signing the purchase agreement.
- Registering the property in your name.
Step 6: Begin Renovations
After purchase:
- Hire an architect to draw up renovation plans.
- Submit renovation proposals to the municipality for approval.
- Secure necessary permits.
- Hire contractors (preferably local).
- Begin work within the required timeframe.
Step 7: Meet Program Requirements
Stay compliant by:
- Completing renovations within the stipulated timeframe.
- Establishing residency if required.
- Maintaining the property according to local standards.
- Following any other municipality-specific rules.
Success Stories and Cautionary Tales
Success: Mussomeli, Sicily
This Sicilian town has seen hundreds of new residents from across the globe since launching its €1 house program. Americans, Australians, and Europeans have renovated historic properties and revitalized the local economy.
People are doing all sorts of things with these houses. Some fix them up and rent them out to vacationers. Others have gone all-in and moved to Italy full-time. It’s created quite a mix of people from all over the world in these tiny towns.
The idea has really taken off in Sicily especially. Buyers from all over have snapped up these dirt-cheap properties. What were once sad, empty buildings are now lively homes again. Towns that were slowly dying are getting a second chance.
Take Cammarata and Mussomeli in Sicily – they’ve seen many new people move in since they started selling €1 houses. These places were losing residents for years, but now they’re growing again.
Warning: Budget Blowouts
A report from Business Insider highlighted cases where foreign buyers ended up investing over €300,000 in renovations – far beyond their initial expectations. One American couple purchased a €1 home expecting to spend €30,000 on renovations but ended up with bills approaching six figures.
Unexpected structural issues, complex permitting processes, and language barriers can all contribute to cost overruns.
Warning: Potential Challenges
Prospective buyers must exercise caution. Renovating old, dilapidated houses can become a never-ending cost trap.
Some of the challenges buyers might face include:
- Unexpected structural issues in very old buildings.
- Dealing with Italian bureaucracy and paperwork.
- Language barriers when working with local contractors.
- Unfamiliarity with local building codes and requirements.
Renovation costs can sometimes spiral far beyond initial estimates, with, as mentioned, some buyers reportedly investing up to €300,000 in renovations.
Tax and Legal Considerations for Americans
As an American purchasing property in Italy, you’ll need to navigate both Italian and US requirements:
Italian Taxes and Fees
- Purchase tax (2-9% depending on primary/secondary residence status).
- Annual property tax (IMU) – typically €200 to €800 depending on location and value.
- Registration tax, cadastral tax, and stamp duty (around 3% combined).
- Notary fees (1-2.5% of declared property value).
US Reporting Requirements
- FBAR filing if your Italian bank accounts exceed $10,000.
- Form 8938 (Statement of Specified Foreign Financial Assets) if applicable.
- Reporting rental income on your US tax return.
- Potential capital gains tax when selling.
Entity Considerations
Some municipalities may require establishing an Italian company as part of the purchase process. For a US investor, it’s very important to choose the right structure to minimize complications on the US side of things.
Talk to your advisor about whether this makes sense for your situation and how it impacts your US tax and compliance position.
Is a €1 Italian House Right for You?
Ideal Candidates:
- Retirees looking for a European home base who can afford the renovation costs.
- Remote workers who can live anywhere and desire authentic cultural immersion.
- Investors seeking renovation projects with long-term appreciation potential.
- Italophiles dreaming of authentic immersion in a real Italian community.
- Those seeking a vacation property with potential rental income.
- Individuals with renovation experience or project management skills.
- People with Italian heritage wanting to reconnect with their roots.
- Artists and writers seeking an inspiring environment at an affordable price.
- Entrepreneurs looking to start businesses in tourism, hospitality, or artisanal crafts.
The Right Mindset
Successful €1 house buyers typically share these characteristics:
- Patient and flexible with timeframes.
- Comfortable with some level of uncertainty.
- Willing to embrace Italian culture and customs.
- Able to see potential in dilapidated spaces.
- Adaptable to the rhythms of rural Italian life.
- Prepared for bureaucratic challenges and paperwork.
Consider Carefully If:
- You have a tight renovation budget without room for surprises.
- You don’t speak Italian or aren’t willing to learn at least the basics.
- You need immediate move-in ready accommodation.
- You can’t visit Italy regularly during renovations to check progress.
- You’re unable to comply with residency requirements in applicable towns.
- You expect American-style conveniences and services.
- You’re uncomfortable with uncertainty in construction timelines.
- You need consistent high-speed internet for work (check availability first).
- You have mobility issues (many historic properties involve stairs and uneven surfaces).
- You require specialized healthcare that may not be available in small towns.
Plan B Considerations for Wealth Protection
While purchasing a €1 Italian home might not be primarily a wealth protection strategy, it aligns with several key Plan B principles:
Geographic Diversification
Owning property in Europe gives you:
- Asset exposure outside the US dollar.
- Real estate in a different legal jurisdiction.
- A potential foothold for European residency.
- Protection against US-specific economic risks.
- A tangible asset that can’t be easily frozen or seized by US authorities.
- Potential appreciation as remote work opens up rural areas to international buyers.
Potential Path to Residency
Italy offers several residency options, including:
- Elective Residency Visa (for those with passive income).
- Investment visas for substantial investments.
- Normal residence permit options.
- Family reunification for those with Italian ancestry.
While buying a €1 house doesn’t automatically grant residency rights, it can be part of a broader strategy.
Hard Asset Protection in Uncertain Times
In an era of banking instability, currency devaluation risks, and digital vulnerabilities, physical real estate offers:
- A tangible asset that exists regardless of financial system disruptions.
- Potential rental income in euros, diversifying your currency exposure.
- A hedge against inflation, as property values typically rise with inflation.
- A physical place to retreat to if conditions in your home country deteriorate.
As we’ve seen in recent years, having options is invaluable when unexpected global events disrupt normal life.
Alternative Option: Italian Government Incentives
If the €1 house program seems too risky, consider that Italy offers other incentives for property buyers and new residents that may be worth exploring with a qualified advisor.
Banking Considerations
Italy offers banking options that might be part of your broader financial diversification strategy:
- You may need an Italian bank account for property-related expenses.
- Banking in the EU provides different options than in the US.
- Remember that US citizens have reporting requirements for foreign accounts.
The Bottom Line: Is It Worth It?
Italy’s €1 house program represents both opportunity and obligation. For the right buyer with:
- Realistic expectations about costs and timeframes.
- Sufficient financial resources beyond the token purchase price.
- A genuine love of Italian culture and lifestyle.
- Patience for bureaucracy and paperwork.
- Flexibility with timelines and project management.
- Willingness to become part of a community.
…it can be a pathway to an authentic Italian lifestyle at a fraction of the normal cost.
But make no mistake – this is not a get-rich-quick real estate scheme. It’s a commitment to becoming part of the fabric of a community and contributing to its revitalization.
The Evolution of Italy's €1 House Programs
The program began in southern Italy several years ago and has since expanded to northern regions. Approximately 60 towns and villages are currently attracting new residents with this program.
The expansion to northern Italy, specifically to over 30 municipalities in Trentino, represents a new phase in addressing Italy’s depopulation challenges. While southern regions have long faced economic hardship and out-migration, the northern expansion shows that even more prosperous regions are dealing with population decline in certain areas.
Important Considerations About Italy's €1 House Program
Each municipality sets its own rules and requirements for their €1 house programs. These may include:
- Establishing a company.
- Completing the renovation within a few years.
- The obligation to live in the house for a certain period of time.
The primary consideration is that while the purchase price is nominal (€1), the true investment comes in the form of renovation costs and time commitment. Renovating old, dilapidated houses can become a significant financial commitment.
When considering such a purchase, it’s important to thoroughly research the specific requirements of the municipality you’re interested in and to understand the potential costs and commitments involved.
Final Thoughts
At The Nestmann Group, we help clients explore international opportunities that align with their wealth protection goals. While a €1 Italian house isn’t right for everyone, for some, it may represent an interesting possibility for lifestyle enhancement, asset diversification, and cultural exploration.
As with any international investment, consult with advisors familiar with both US and Italian requirements starting well before taking the plunge. Understand the tax implications, reporting requirements, and long-term commitments before signing any contracts.
Your Italian dream house awaits – just be prepared for what comes after that €1 purchase.
Wondering if this program is right for you? Consider requesting a call with one of our Associates to review your case, outline the pros and cons, and help you decide.
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We have 40+ years experience helping Americans move, live and invest internationally…
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We have 40+ years experience helping Americans move, live and invest internationally…
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