Simon Calder’s Travel
For many, the idea of owning a property in the sun-kissed landscapes of Italy is a distant dream, especially with soaring property prices in countries like the UK. The allure of a charming Italian casa for a mere One Euro (approximately 86p) is undeniably captivating. Headlines have buzzed about picturesque Italian towns offering vacant houses for this symbolic price over the past few years, sparking imaginations and fueling fantasies of la dolce vita.
But before you pack your bags and envision yourself sipping Aperol Spritz on your Italian terrace, it’s crucial to understand the reality behind these incredible deals. How exactly does the one euro house scheme work? Who is eligible to seize this opportunity? And are these bargain villas truly the steal they appear to be? Let’s delve into the details and explore the ins and outs of Italy’s one euro homes.
Why Italy is Selling Homes for a Single Euro
The phenomenon of one euro houses stems from a pressing demographic challenge facing many of Italy’s stunning, yet remote, villages. As younger generations of Italians increasingly gravitate towards bustling cities and modern careers, these idyllic rural communities are experiencing population decline and abandonment. Many of Italy’s most beautiful villages are slowly becoming ghost towns, with dwindling, aging populations.
In some cases, elderly residents find themselves without heirs to inherit their properties, leaving them to local authorities. Simultaneously, younger Italians may inherit homes in these regions but have no intention of relocating there. Owning a second, unused home in Italy incurs taxes, making it financially burdensome for some. Therefore, selling these vacant properties, even at a drastically reduced price, becomes a more attractive option for both the owners and the municipalities.
Read more: What’s it really like to buy a house through Italy’s one euro homes scheme?
Approximately 25 Italian municipalities have embraced the one euro house scheme, presenting potential homeowners with an offer that seems too good to refuse: a house for the token price of €1. The underlying strategy is that revitalizing these neglected homes and repopulating these villages is far more valuable to the community than selling the properties at market value in their current dilapidated state.
As stated by 1eurohouses.com, a platform dedicated to the scheme, “We do not need new constructions and new overbuilding. The strategy to improve the housing environment and reclaim our cultural identity is to revive the small abandoned centres or to redevelop buildings in a state of abandonment, with a story that is our history.”
Local authorities in regions like Emilia-Romagna, Abruzzo, and Campania anticipate that an influx of new residents will inject life into the local economy. New homeowners are expected to purchase local goods, employ local construction workers for renovations, patronize local businesses and attractions, and even stimulate tourism by establishing boutique hotels or bed and breakfasts. This initiative is seen as a way to breathe new life into these charming, but fading, Italian villages.
The Catch: What You Need to Know About One Euro Homes
While the prospect of buying an Italian home for one euro is incredibly enticing, it’s essential to understand that you are not acquiring a pristine, move-in ready villa. The properties available under the one euro scheme are typically in a state of disrepair, often requiring significant structural renovations. Think of it as investing in a fixer-upper project rather than purchasing a turnkey dream home.
However, the silver lining is that renovation costs in Italy can be considerably lower than in many other countries. Depending on the size and condition of the property, renovations can range from approximately €20,000 to €50,000. While the majority of homes are modest village houses or cottages, occasionally, grander properties, such as former stately homes, are also offered, albeit with potentially much higher renovation costs. For example, a former monastery outside Bologna, part of the scheme, is estimated to require a staggering €1.5 million in essential renovations.
Beyond renovation expenses, prospective buyers should also factor in legal fees associated with purchasing property abroad, which can amount to around €3,000. Furthermore, some municipalities require a “guarantee fee,” ranging from €1,000 to €10,000, depending on the location and the scale of the renovation project. This deposit serves as proof of your commitment to restoring the property.
On a positive note, Italy offers a beneficial ‘superbonus’ tax exemption, potentially covering 110 percent of qualifying building expenditures, which can significantly offset renovation costs for eligible buyers.
Importantly, this scheme is not for the faint of heart or those seeking a quick and effortless property acquisition. New owners are typically mandated to submit a detailed renovation project plan within two to twelve months of purchase, commence work within a year, and complete the renovations within three years. These timelines are strictly enforced to ensure the scheme’s objectives are met.
It’s also worth noting that while the starting price is one euro, demand can drive prices up. Highly sought-after properties may become subject to bidding wars, with final sale prices reaching €5,000 or even €20,000. Therefore, while the initial outlay is minimal, participants need to have sufficient savings to cover renovation costs and potential price increases. This scheme is best suited for individuals with some capital who are prepared for a significant renovation project and a longer-term investment.
Who Can Buy a One Euro House in Italy?
“Is it true or is it a joke?” This is a common question, and one addressed directly by websites like case1euro.it, which lists one euro properties for sale in Mussomeli, Sicily. It’s not a joke, but there are specific requirements. While rules vary slightly from town to town, Mussomeli’s requirements are representative of the general expectations. Prospective buyers must demonstrate the financial capacity and practical wherewithal to:
- Cover all expenses related to the property sale deeds (notary fees, registration, transfer taxes).
- Develop and present a renovation project plan within one year of purchase, obtaining all necessary permits.
- Commence renovation work within two months of receiving the building permit.
- Complete all renovation work within three years.
- Provide a “guarantee policy” deposit, in Mussomeli’s case, £5,000 (approximately €5,800), which is forfeited if renovations are not completed within the stipulated timeframe.
In Mussomeli, homeowners have considerable freedom regarding interior design but are typically required to maintain the original facade of the property to preserve the village’s aesthetic character. Buyers are permitted to undertake renovations themselves or hire their own contractors. French buyer Morgane Guihot, who purchased a one euro home with her husband, told CNN in 2019, “As we’re both artisans and renovators we did most of the work ourselves, which was minimal, and it was great seeing our two-room house come to life again.”
Most towns participating in the one euro house scheme have similar financial and practical requirements. It’s crucial to research the specific requirements of the municipality where you are interested in buying. Some towns may stipulate that buyers must reside in the property after renovations, while others allow for use as a holiday home or for commercial purposes like a B&B.
Non-Italian residents or those who don’t speak Italian may face additional challenges in managing renovations and navigating the bureaucratic processes involved. However, these hurdles are not insurmountable, and many foreigners have successfully purchased and renovated one euro homes.
Brexit and Brits Buying One Euro Homes: What’s Changed?
Brexit has introduced some changes for UK citizens looking to buy one euro houses in Italy, but it hasn’t closed the door on this opportunity. Individuals living outside the EU, including Brits, can still purchase property in Italy as “non-residents.” However, non-resident status entails higher property taxes compared to Italian residents. Furthermore, there are limitations on the duration of stay in Italy. Non-residents can spend up to 180 days per year in their Italian home, but no more than 90 days within any 180-day period within the Schengen area.
To spend more extended periods in Italy, UK citizens would need to apply for Italian residency. This process involves demonstrating sufficient financial resources to support themselves without seeking employment in Italy. While Brexit has added a layer of complexity, it hasn’t prevented Brits from participating in the one euro house scheme.
Getting Started: Your Path to a One Euro Home
If you’re still intrigued and ready to explore the possibility of owning a one euro house in Italy, here’s how to begin your journey. Several websites list available one euro properties, including 1eurohouses.com, case1euro.it, and property-in-sicily.estate. You can also find listings on individual local government websites, such as the Comune of Sambuca’s or Citta de Troina’s in Sicily. Auctions2Italy even lists some properties starting at €2. For inspiration and guidance, Europe.properties offers case studies and “How we did it” guides from those who have successfully navigated the process.
American buyer Rubia Daniels, who renovated a one euro home in Sicily, emphasized the importance of in-person visits in an interview with Travel + Leisure in 2022. She strongly advises against relying solely on online information and stresses the necessity of physically inspecting potential properties, paying close attention to the foundations and the condition of the walls. “Definitely don’t try to do it online — you need to be there to see it and experience the process to make sure you’re making a mindful decision,” Daniels advised. “I wouldn’t do anything through the internet.” She cautions against properties with buckled walls, which may indicate underlying foundation problems.
Exploring Regions Offering One Euro Homes
The one euro house scheme is spread across various regions of Italy, each with its unique charm and appeal. Here’s a glimpse into some of the participating areas:
Emilia-Romagna
This northern Italian region, surrounding Bologna, offers houses in towns like Modigliana, known for its verdant landscapes and ancient ruins, including the aforementioned monastery.
Abruzzo
Located east of Rome, hugging the Adriatic coast, Abruzzo features towns like Casoli, Santo Stefano di Sessanio, and Pratola Peligna, participating in the scheme.
Campania
The dramatic coastline around Naples, near Pompeii and the Amalfi Coast, includes towns like Pietramelara, offering one euro properties.
Sicily
Sicily is a hotspot for one euro homes, with towns like Mussomeli, Calatafimi Segesta, Augusta, Sambuca, and Caltagirone all participating.
Read more: Best hotels in Sicily
Piedmont
This northern region near Switzerland offers homes in towns like Borgomezzavalle and Albugnano, close to renowned wine regions and the Antrona Valley.
Le Marche
The medieval town of Cantiano, a short drive from the Adriatic coast, offers one euro homes near beaches and truffle-hunting locations.
Liguria
Triora and Pignone are among the Ligurian towns participating, a region famous for Cinque Terre, pesto, and focaccia.
Puglia
Puglia’s provincial capital, Tarento, is a larger city participating in the scheme, offering access to maritime history and seafood.
Sardinia
The Sardinian towns of Romana and Nulvi, near Alghero, are also offering one euro homes.
Tuscany
Tuscany, renowned for wine and villas, includes participating towns like Montieri, Grosseto, Lucca, and Vergemoli.
The Italian one euro house scheme presents a unique and potentially life-changing opportunity to own property in Italy for a minimal initial cost. However, it’s crucial to approach this with realistic expectations, a clear understanding of the requirements, and a willingness to undertake a significant renovation project. With careful planning and due diligence, the dream of owning an Italian home for one euro can become a reality.
