Buying Property in Sardinia as a Foreigner: The Definitive Guide

The Tax Code Is the First Step

Every year, approximately 8,000 foreigners purchase a property in Sardinia. British, Germans, Americans, Swiss, Scandinavians: different nationalities, different motivations, but all united by the same initial requirement: obtaining an Italian tax code (codice fiscale). Without this document, it is impossible to sign any notarial deed, open an Italian bank account, or register a property.

The tax code is obtained within a few days at any Italian consulate abroad or directly in Italy at the Revenue Agency. It is free, requires no residency, and does not entail automatic tax obligations. It is simply the identification number the Italian system uses to track transactions.

The Purchase Process Step by Step

The real estate purchase process in Italy follows a precise procedure that, if followed correctly, offers significant protections for the buyer. The first phase is the purchase proposal, a preliminary document that fixes the price and main transaction conditions. If accepted by the seller, the process continues with the preliminary contract (compromesso), a binding contract requiring the payment of a deposit, typically 10-20% of the price.

The notarial deed (rogito), the definitive property transfer act, is executed before an Italian notary, who is responsible for verifying the cadastral and mortgage regularity of the property. The notary is appointed and paid by the buyer, ensuring they work in the buyer's interest.

Taxation for Foreign Buyers

Real estate purchase taxation in Italy depends on the property's intended use and the buyer's tax residency. For a non-resident purchasing a second home, the main taxes are the registration tax (9% of cadastral value), mortgage tax (€50), and cadastral tax (€50).

For those transferring residency to Italy within 18 months of purchase, first-home incentives apply: registration tax at 2% instead of 9%, with significant savings. Some regions, including Sardinia, offer additional incentives for those purchasing in villages with fewer than 3,000 inhabitants.

Risks to Avoid

The Sardinian real estate market, like any mature market, has its pitfalls. The most common for foreign buyers are: properties with unsettled building violations, properties with undeclared mortgages or seizures, and unregistered preliminary contracts that offer no legal protection.

My recommendation is always the same: rely on local professionals with proven experience, both for the real estate and legal-fiscal aspects. The savings one thinks to achieve by going it alone rarely justify the risks involved.