Italian Real Estate Investment: Unlock High ROI, Tax Incentives, and Tourism-Driven Capital Gain

Italian Real Estate Investment: Unlock High ROI, Tax Incentives, and Tourism-Driven Capital Gain

Italy’s real estate market is emerging as a compelling opportunity for savvy investors seeking both strong returns and a vibrant lifestyle. Affordable yet high in value, Italian properties boast an impressive average ROI of 22%, driven by capital appreciation in sought-after locations and bolstered by government incentives like the renovation bonus, facades bonus, and the transformative 110% Superbonus. Beyond the numbers, Italy’s allure as a top tourist destination offers additional benefits—whether you’re looking to enjoy a vacation home, secure a retirement haven, or generate passive rental income, the country’s rich culture, breathtaking landscapes, and affordable cost of living enhance its investment appeal. In this article, we delve into the diverse advantages of investing in Italian real estate while offering expert insights and guidance to help you navigate this dynamic market.


Italian real estate is an affordable real estate but with high-value properties that have the potential for capital appreciation. As the demand for properties increases, in particular in famous locations, property values rise as well, resulting in a return on investment, or ROI that measure the economic efficiency of a financial transaction. As a matter of fact, Italian real estate has a high average of ROI of 22%. Moreover, according to recent ISTAT, in the third quarter of 2021 the House Price Index (HPI), which measures the evolution of market prices of all residential properties that are purchased by households, increased by 4.2% compared to the same quarter of the previous year.

In addition to this, the Italian government has introduced new policies with regard to tax deductions and state incentives in order to incentivize renovation works. This, in order to increase energy efficiency levels in households. The new policies include the renovation bonus, and the facades bonus and the 110% Superbonus, to name a few.

Photo by Yanapi Senaud

Tourism is another relevant aspect to take into consideration. The house, the object of the investment, can be used as a vacation home or a retirement destination, though it can also generate a passive income from rentals when not using it. In fact, Italy is one of the most popular destinations for tourists. That can ensure a high demand for rental properties throughout the year.

Last but not least, the affordable cost of living in a country that is one of the most famous travel destinations, rich in culture, astonishing architecture, breathtaking landscapes, and delicious food. The quality of life, in Italy, is pretty high. As a consequence, investing in real estate can provide the investor with the opportunity to enjoy and be part of this lifestyle.

It’s important to note that policies and regulations may change, so it’s advisable to consult with a local tax professional or an Italian real estate lawyer who can provide up-to-date information and guidance specific to your situation. Lexia offers expert legal assistance in Italian real estate investment and has a team of experienced lawyers who are well-versed and can assist you during the process. Contact them using the form below for any inquiries.

Please note: While many of the key themes—such as Italy’s appealing lifestyle, investment potential, and diverse property benefits—remain relevant, some of the specific data points and government policies referenced in the article (for example, the 22% average ROI, the Q3 2021 ISTAT figures, and tax incentives like the renovation bonus, facades bonus, and the 110% Superbonus) may have evolved since this article has been written. The Italian real estate market, like any dynamic sector, is subject to economic fluctuations, regulatory updates, and policy changes over time.

    Featured image by Tierra Mallorca

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