The €1 Homes Initiative was created to combat depopulation in Italy's small towns and rural areas, particularly in Sicily, Sardinia, Abruzzo, Tuscany, Puglia, and Piedmont.
Local municipalities make abandoned properties available in order to:
Purchasing a €1 home is not a standard real estate transaction. It is a purchase agreement that includes a legally binding redevelopment commitment.
Strict Deadlines
Bank Guarantee
Buyers are required to provide a bank guarantee, typically between €2,000 and €5,000, in favor of the municipality.
Residence Requirement
In the vast majority of municipalities, buyers are not required to live in the property.
The property may be used as:
Only a small number of municipalities give priority to applicants who commit to transferring their official residence to the village.
A €1 house never actually costs just one euro. Below is a realistic estimate of the total investment.
The official purchase price starts at €1, although competitive tenders often result in final prices ranging from €1 to €3,000.
Preparation of the deed of sale and land registry registration generally costs between:
€2,500 – €4,000
For properties purchased as a second home, registration tax is approximately 9% of the cadastral value, typically amounting to:
€1,500 – €3,000
Foreign buyers generally require legal assistance or certified Italian translation during the notarial signing process.
Estimated cost:
€1,000 – €2,000
Hiring a local architect or surveyor to prepare plans, surveys, permit applications, and supervise the works generally costs:
€4,000 – €8,000
Roof replacement, structural reinforcement, waterproofing, and masonry restoration typically cost:
€15,000 – €30,000
Including:
Estimated cost:
€20,000 – €40,000
Basic furnishings including:
Estimated investment:
€5,000 – €10,000
Approximately €49,000 – €100,000
(plus the refundable municipal guarantee of €2,000–€5,000).
The tax treatment depends on whether the property qualifies as a Primary Residence or a Second Home.
This status applies only if the buyer transfers their official residence to the property within 18 months of purchase.
Benefits include:
This is the most common scenario for international buyers purchasing holiday homes or investment properties.
It includes:
Italy also offers the opportunity to purchase entire villages as a single real estate investment.
An abandoned historic village typically includes:
Purchase price:
€500,000 – €2,000,000
Infrastructure and restoration costs (roads, water, electricity, sewage systems, restoration works):
€5,000,000 – €15,000,000+
These villages have already been renovated and converted into:
Purchase prices range from:
€3,000,000 – €20,000,000+
depending on location (particularly in Tuscany and Umbria).
One of Italy's most successful hospitality concepts is the Albergo Diffuso ("Scattered Hotel").
Instead of constructing a new hotel, the existing buildings throughout the village become guest rooms and suites, while a central building serves as:
This model preserves the village's historic architecture while often allowing owners to benefit from regional, national, or European tourism development grants.
Purchase Price
€1 (or up to a few thousand euros through public tenders)
Property Condition
Abandoned and requiring complete renovation
Time Commitment
Mandatory completion of renovations within 3 years
Bank Guarantee
Required (€2,000–€5,000)
Estimated Total Investment
€50,000 – €80,000
Purchase Price
€20,000 – €35,000
Property Condition
Generally livable or requiring only minor renovations
Time Commitment
Completely flexible
Bank Guarantee
None
Estimated Total Investment
€35,000 – €60,000
Purchase Price
€500,000 – €5,000,000+
Property Condition
Requires extensive infrastructure development and restoration
Time Commitment
Dependent on comprehensive planning, permits, and development schedules
Bank Guarantees
Typically subject to financing agreements, development contracts, and institutional funding
Estimated Total Investment
€5,000,000 – €20,000,000+
