For many international buyers considering property in Italy, one question comes before almost everything else:
“If I invest €500,000 in a property in Italy, what return can I realistically expect?”
There is no single answer.
Rental yields vary considerably according to the city, neighbourhood, property type, purchase price and rental strategy.
A small apartment in Turin, a central property in Rome, a student apartment in Bologna and a Tuscan farmhouse may all represent potential investments — but they should not be evaluated in the same way.
And perhaps most importantly:
A 6% advertised gross yield does not necessarily mean a 6% return on your investment.
Understanding the difference between gross rental yield and realistic net return is therefore essential before buying.
Market data in this guide updated September 2026.
Rental yield measures the income generated by a property in relation to its value or purchase price.
The simplest calculation is the gross rental yield:
Annual Gross Rental Income ÷ Property Purchase Price × 100
For example, if you purchase an apartment for €300,000 and receive €18,000 per year in rent:
€18,000 ÷ €300,000 × 100 = 6% gross rental yield
At first sight, your property appears to be producing 6%.
But that is not the amount you actually keep.
Gross yield does not take into account the costs associated with buying, owning and managing the property.
A more meaningful investment analysis needs to consider expenses such as:
purchase taxes, notary costs, agency fees, Property Finder fees, IMU, condominium charges, insurance, maintenance, property management, taxation, vacancy and repairs.
For short-term rentals, additional expenses may include utilities, cleaning, linen, guest management, booking costs, pool and garden maintenance and frequent repairs.
This is why we encourage investors to look beyond the headline percentage.
The relevant question is not simply:
“What is the gross yield?”
but:
“What is likely to remain after all the relevant costs?”
Current market studies demonstrate how significantly rental yields can vary between Italian cities.
According to an Idealista study published in July 2026, which compares advertised residential sale prices with advertised rents, the estimated gross residential rental yield in Italy was approximately 9.7% in the second quarter of 2026.
Among major cities, the estimated figures varied considerably.
| City | Estimated Gross Residential Yield – Q2 2026* |
|---|---|
| Palermo | 8.4% |
| Genoa | 8.0% |
| Turin | 7.6% |
| Bari | 7.4% |
| Rome | 6.9% |
| Naples | 6.6% |
| Florence | 5.8% |
| Bologna | 5.6% |
| Milan | 5.4% |
* Source: Idealista, Q2 2026. These percentages are market-level estimates of gross yield calculated by comparing advertised sale prices with advertised rental prices. They are not guaranteed returns, do not represent the performance of every property in the city and do not account for acquisition costs, taxation, vacancy, maintenance, management or other ownership expenses.
This distinction is extremely important.
A property investor should not read this table as meaning that purchasing a property in Palermo automatically produces an 8.4% return or that every property in Milan produces 5.4%.
These are broad market indicators.
Individual results can be significantly higher or lower.
The table reveals something interesting.
Some of Italy's most expensive property markets do not produce the highest estimated gross rental yields.
Milan, for example, currently has one of Italy's highest average asking prices. Immobiliare.it reports an average asking price of approximately €5,665/m², compared with around €2,288/m² in Turin and €2,325/m² in Bari.
Yet Idealista's estimated gross yield is approximately 5.4% for Milan versus 7.6% for Turin and 7.4% for Bari.
The reason is relatively simple.
If purchase prices rise faster than achievable rents, gross yields can become compressed.
This is why the most expensive or internationally famous location is not automatically the one offering the highest rental yield.
Immobiliare.it's current market data provides another way to understand the differences between Italian cities.
As of 2026, average advertised residential sale prices and asking rents include approximately:
| City | Asking Sale Price €/m² | Asking Rent €/m²/month |
|---|---|---|
| Milan | €5,665 | €22.55 |
| Florence | €4,775 | €21.70 |
| Rome | €3,864 | €19.31 |
| Bologna | €3,834 | €16.59 |
| Venice | €3,414 | €16.14 |
| Bari | €2,325 | €12.88 |
| Turin | €2,288 | €12.98 |
| Perugia | €1,397 | €9.94 |
Source: Immobiliare.it, 2026 market quotations. Figures represent average advertised prices and rents and should not be interpreted as completed transaction prices or rents achievable for a particular property.
Perugia is particularly interesting as an example.
The average advertised purchase price is considerably lower than Rome, Florence or Milan, while asking rents are not proportionally as low.
That does not automatically make Perugia a better investment.
It simply demonstrates why investors should compare entry price and realistic rental income together.
This is one of the most important concepts for an international property investor.
Suppose Property A has an estimated gross yield of 8% and Property B has an estimated gross yield of 5%.
Property A is not automatically the better investment.
You also need to consider:
tenant demand, vacancy risk, condition of the property, maintenance costs, neighbourhood, potential future resale market, liquidity and possible long-term capital appreciation.
A high yield can sometimes compensate for higher risk or weaker future resale demand.
Conversely, investors may accept a lower rental yield for a prime property in a highly liquid and internationally recognised location.
Yield is one part of the investment decision — not the entire decision.
Consider an illustrative apartment purchased for €300,000.
Suppose it can realistically be rented for:
€1,500 per month
Annual gross rent would be:
€1,500 × 12 = €18,000
The gross rental yield would therefore be:
€18,000 ÷ €300,000 = 6%
But now suppose the owner incurs annual expenses for IMU, condominium costs not recoverable from the tenant, insurance, maintenance and property management.
There may also be taxation on the rental income.
The owner's actual return will therefore be lower than 6%.
And if the property remains vacant for two months between tenants, annual gross income falls to €15,000.
The same property would then produce a gross yield of:
5%
before expenses and taxation.
This is why occupancy matters.
This example is purely illustrative and does not represent a forecast for any specific Italian property.
Now consider an apartment purchased for €500,000 and used for short-term rentals.
Suppose its average achieved nightly rate were €220 and it were occupied for 200 nights per year.
Potential annual gross revenue would be:
€220 × 200 = €44,000
On the purchase price alone, this corresponds to:
8.8% gross revenue relative to the purchase price.
That may initially look very attractive.
But short-term rentals generally involve significantly higher operating costs.
The owner may need to pay for cleaning, linen, utilities, Wi-Fi, guest management, platform or booking costs, maintenance and property management.
There may also be periods of lower demand and unexpected repairs.
The €44,000 therefore cannot be treated as the owner's investment return.
Again, these figures are illustrative only and are intended to demonstrate the calculation rather than predict the performance of a specific property.
Country properties require an even more careful analysis.
Imagine purchasing a Tuscan property for €900,000.
Suppose it is available for holiday rental and generates €70,000 in annual gross rental revenue.
Relative to the purchase price, that represents approximately:
7.8% gross revenue.
But a country estate may also require:
pool maintenance, gardening, land maintenance, heating, utilities, insurance, cleaning, linen, property management, periodic repairs and potentially higher ongoing maintenance than a city apartment.
If the property is used personally by the owner during several peak-season weeks, those weeks also need to be removed from the rental-income projection.
The resulting net return could therefore be very different from the headline 7.8%.
For villas, farmhouses and historic properties, gross revenue is particularly different from net investment return.
Rental yields for rural and lifestyle properties are considerably more difficult to standardise than those for city apartments.
There is no sufficiently robust public dataset that allows us to state that a Tuscan farmhouse, Umbrian country estate or Puglian masseria currently produces a reliable average yield of a particular percentage.
We therefore prefer not to publish a generic percentage that could be misleading.
These properties need to be analysed individually.
A Tuscan farmhouse may have considerable appeal to international holidaymakers, particularly if it combines:
an attractive location, swimming pool, views, outdoor areas, sufficient bedrooms, quality renovation and convenient access to major destinations.
But the operating costs can also be substantial.
A villa achieving high weekly rates in July and August may not necessarily produce an exceptional annual net return if demand falls significantly outside the main season.
For these properties, the correct analysis is:
Average Achievable Rate × Realistic Annual Occupancy – Operating Costs
rather than simply comparing advertised summer rental rates.
Umbria can present a different entry-price environment from Tuscany, while offering countryside, historic towns and lifestyle properties attractive to international buyers.
Current Immobiliare.it data, for example, shows an average residential asking price of approximately €1,397/m² in Perugia, compared with €4,775/m² in Florence. Average asking rents are approximately €9.94/m²/month in Perugia versus €21.70 in Florence.
These city averages do not represent Umbrian country estates, but they demonstrate how different the broader entry-price environment can be.
For a casale, the analysis needs to be property-specific.
Puglia combines several potential rental markets.
Cities such as Bari can attract longer-term residential demand, while areas such as the Valle d'Itria and selected coastal locations can attract tourism and international holiday demand.
According to Idealista's Q2 2026 analysis, Bari's estimated gross residential yield was approximately 7.4%. Again, this relates to the general residential market — not masserie or holiday villas.
A masseria requires a completely different calculation based on seasonality, achievable weekly rates, occupancy, staffing or management requirements and annual property costs.
Rental yield also needs to be considered within the broader Italian rental market.
Nomisma's 2026 rental-market analysis describes a continuing imbalance between housing demand and available traditional rental supply.
In its April 2026 Rental Observatory, Nomisma reported continued pressure on rents linked in part to insufficient supply.
Its July 2026 market report found that rents for homes in good condition increased by approximately 3.3% year-on-year during the first half of 2026, while significant differences remained between individual cities.
This is relevant to investors because rental demand does not depend only on tourism.
Employment, universities, housing supply and demographic patterns can create strong long-term rental markets as well.
If a property can potentially operate under either strategy, compare them on the same basis.
Do not compare:
€250 nightly rate
with:
€2,000 monthly rent.
Instead calculate:
Realistic Annual Occupancy × Achievable Average Nightly Rate
minus the costs associated with short-term rental.
Realistic Annual Rent
minus the costs associated with long-term ownership and management.
Only then can the two strategies be compared meaningfully.
Another common mistake is calculating yield only against the advertised purchase price.
If you purchase a property for €500,000, your total investment will generally be more than €500,000.
Depending on the transaction, additional acquisition costs may include:
purchase taxes, notary fees, real estate agency commission, Property Finder fees, technical due diligence and other professional expenses.
If renovation and furnishing are required, those costs should also be included when assessing the total capital invested.
A more conservative calculation can therefore compare rental income with:
Total Capital Invested
rather than simply the property's purchase price.
Investment and second properties in Italy may also be subject to IMU – Imposta Municipale Propria.
Depending on the property, owners may additionally face condominium charges, insurance, routine maintenance, extraordinary repairs and professional or management costs.
A country property may involve additional expenses for gardens, pools, land and heating.
These expenses can materially affect the difference between gross yield and net return.
Rental income also needs to be considered after taxation.
The applicable tax treatment depends on the type of rental, the owner and the relevant circumstances.
For qualifying short-term rentals subject to the cedolare secca regime, current rules generally provide a 21% rate for one property selected by the taxpayer and 26% for additional qualifying short-term rental properties. Agenzia delle Entrate confirms that these rules have applied from tax year 2024.
Long-term rental taxation can differ depending on the contractual structure and whether the relevant conditions for alternative tax regimes are satisfied.
For this reason, expected net returns should be reviewed with a qualified Italian tax adviser.
There is no percentage that can universally be described as a good rental yield.
The current Idealista data illustrates why.
An estimated gross yield of 5.4% in Milan and 7.6% in Turin reflects two very different property markets.
The investor also needs to ask:
What am I buying for that price?
How easy will it be to rent?
How stable is tenant demand?
What are the annual costs?
How much management will it require?
Who might buy it from me in the future?
Am I seeking income, capital appreciation, personal use — or all three?
A lower-yielding property can still suit one investment strategy better than a higher-yielding property.
Rental yield measures income.
Capital appreciation measures changes in property value.
They should not be confused.
As discussed in our guide to investing in Italian real estate, some Italian cities have experienced substantial increases in asking prices over recent years, while others have shown more moderate growth.
An investor may therefore prioritise:
higher current rental income,
potential long-term appreciation,
or a balance between the two.
Neither objective is inherently better.
The right strategy depends on the investor.
Many international clients are not looking for a purely financial asset.
They want:
a home in Italy that can also generate income when they are not using it.
In this case, traditional rental yield calculations need to be adjusted.
Suppose a Tuscan villa could theoretically be rented for 20 weeks per year.
If you intend to use it personally for six of the most desirable weeks, those weeks should not also appear in your projected rental income.
This does not make the property a poor investment.
It simply means part of the return you receive is personal enjoyment rather than financial income.
The two should be separated when analysing the numbers.
Before purchasing an investment property, we recommend building a realistic model around the following:
PURCHASE
Property price
= Total Capital Invested
INCOME
Realistic annual rent
– Vacancy
– Property management
– Maintenance
– IMU
– Condominium and ownership costs
– Insurance
– Rental operating costs
– Applicable taxation
= Estimated Net Income
Then compare the estimated net income with the total capital invested.
This provides a far more useful picture than simply looking at an advertised gross yield.
At Italy Property Finders, we do not believe an investment property should be selected simply because an advertisement claims a particular yield.
Before purchasing, we can help clients evaluate the property in the context of their investment objectives.
This can include considering:
purchase price, location, comparable properties, realistic rental potential, likely rental strategy, seasonality, ownership costs, management requirements and future marketability.
Where detailed tax, legal or financial analysis is required, we coordinate with appropriately qualified professionals.
And our involvement does not necessarily end when you receive the keys.
Italy Property Finders can also continue supporting international owners after the purchase.
Depending on the property and agreed service, we can provide property management and coordinate short-term or long-term rentals, allowing clients living abroad to have a local point of reference in Italy.
This can include coordinating property preparation, rental activity, maintenance, cleaning and local suppliers, as well as ongoing supervision of the property.
For long-term rentals, we can coordinate the practical management of the property and tenancy together with the relevant licensed and professional partners where required.
For owners using an external rental company, we can also provide owner representation, acting locally on the owner's behalf and overseeing the relationship with property managers and other professionals.
The objective is continuity:
Property Search → Purchase → Preparation → Rental Strategy → Property Management
Idealista estimated a national gross residential rental yield of approximately 9.7% in Q2 2026. This is a market-level calculation based on advertised sale and rental prices and should not be interpreted as the return an individual investor will achieve.
Among the larger markets analysed by Idealista in Q2 2026, Palermo was approximately 8.4%, Genoa 8.0%, Turin 7.6%, Bari 7.4% and Rome 6.9%. Florence, Bologna and Milan were lower at approximately 5.8%, 5.6% and 5.4% respectively.
No. Gross yield does not deduct ownership costs, taxation, management, vacancy, maintenance or acquisition costs. Your net return can therefore be considerably lower.
There is no sufficiently robust public dataset that supports a single reliable average yield for Tuscan farmhouses. The result depends heavily on purchase price, location, property quality, occupancy, seasonality and operating costs. Each property should be analysed individually.
The same principle applies. A masseria is very different from a standard city apartment and should be evaluated according to achievable rental rates, realistic annual occupancy, seasonality and its potentially substantial operating and management costs.
Not necessarily. Short-term rentals can generate higher gross revenue in some locations but usually involve higher operating costs and greater management. Long-term rentals may produce lower headline income but greater stability.
We can help analyse the property, likely rental strategy, costs and potential income assumptions so that you have a clearer picture before making a purchase decision. Where regulated tax, financial or legal advice is required, we coordinate with qualified professionals.
Yes. Depending on the property and agreed service, Italy Property Finders can provide ongoing property management, coordinate short-term or long-term rentals and act as a local point of reference for international owners.
Rental yield is an important part of property investment — but it should never be considered in isolation.
Current market data shows estimated gross residential yields ranging from approximately 5.4% in Milan to 8% or more in several other major Italian markets, while smaller cities can show even higher headline figures.
But the highest percentage is not automatically the best investment.
The property itself, its micro-location, condition, tenant demand, operating costs, management requirements and future resale potential all matter.
For international investors, the objective should therefore not simply be:
“Where can I get the highest yield?”
A better question is:
“Which property offers the right balance of income, cost, risk, future potential and personal objectives for me?”
At Italy Property Finders, we can help you answer that question — and continue managing the property once you own it.
The gross-yield figures cited in this guide come from Idealista's Q2 2026 residential investment study. Idealista calculates these market indicators by relating advertised sale prices to advertised rental prices. They are gross market estimates, not guaranteed investment returns or net yields.
Current advertised sale-price and rental-price data comes from Immobiliare.it's 2026 market quotations. These are asking prices and asking rents rather than completed transaction values.
Broader rental-market context is drawn from Nomisma's 2026 residential and rental-market research.
Tax references have been checked against Agenzia delle Entrate guidance.
Idealista — Rental Yield Study, Q2 2026
Immobiliare.it — 2026 Property Market Data
Nomisma — 2nd Real Estate Market Report 2026
