Buying a property is probably one of the most important life decisions one can make and it requires a huge amount of capital, especially if you are planning to invest in a luxurious home. But what if we tell you that there is a place in this world where you can buy a house for less than hundred rupees. Recently, several small towns in Italy have hit the headlines for selling off vacant houses for just €1.
You must be wondering how does this scheme work? Who is eligible to grab one of these bargain villas? Fret not!, In this blog, we will answer all your questions and understand why Italy is offering this ‘too good to be true’ deal.
Why Is Italy Selling One Euro Houses?
Back in the late 1800’s and early 1900’s, a large number of Italian residents left the country and migrated to America. People came from all over Italy but the majority of the migrants were from the Mezzogiorno region down south, where the summer heat makes it impossible to earn a living, no matter how hard one works. For many Calabrians who traveled to the US with the hope of returning at some point but never did, America turned out to be their ideal.
As a result, the homes they had grown up in were eventually abandoned and the remaining villagers began to die while their children moved elsewhere in search of better opportunities. Since many of these properties were located in the ancient city centers, it is rather common to observe numerous abandoned buildings that are beginning to fall apart as you stroll around these places.
Some elderly Italians have now found themselves with no one to leave their house to and so, they bequeathed it to the local authorities instead, who have to decide what to do with it. On the other hand, there are many youngsters in Italy who have inherited the properties in areas they have no intention of moving to.
Having a second home in Italy means paying multiple taxes, so selling these unused apartments off cheaply can be more profitable than keeping them. This is the reason why almost 25 municipalities in Italy are making prospective homeowners an offer they can’t refuse – a home for an unbelievable price of €1.
What’s The Catch In It?
You’re not purchasing a brand-new villa because the homes chosen for the scheme tend to be in need of extensive structural repairs and are often in disrepair. You are mainly investing in a fixer-upper and not a house that is ready for living.
Still, compared to other nations, renovation costs are still rather reasonable, ranging from €20,000 to €50,000, depending on the size of the home. The majority of dwellings are modest cottages or village homes, but there are also some grand homes available for purchase, though at a significantly greater price.
Legal fees for purchasing a house overseas can add up to €3000 (2,67003 INR) and some municipalities need a “guarantee fee” (ranging from €1,000 to €10,000 depending on the municipality and renovation cost) to demonstrate your commitment to upgrading the property. On the plus side, Italy does offer a ‘super bonus’ tax exemption for buyers, who covers 110% of qualifying building expenses.
Can A Foreigner Buy One Euro Houses?
Of Course! But there are several things that you should consider before taking the plunge. Foreign citizens can only buy a one euro houses in Italy if he/she is in possession of an Italian tax code, as this is essential to pay taxes. The Italian Revenue Agency issues the tax code, which is every citizen’s proof of identification in relations with Italian bodies and administrations.
Notably, there are no specific requirements for purchasing houses for sale in Italy for one euro, however there are some basic conditions that vary from municipality to municipality. In some villages in Italy, for instance, when buying a house under the 1 euro scheme, it’s important to propose a project for the development and realization of properties for tourism or receptive use.
In other circumstances, the properties will be sold just for residential use or with no use limitations at all. Emilia-Romagna, Abruzzo, Campania, Sicily, Piedmont, Le Marche, Liguria, Puglia, Sardinia are some of the areas running one euro houses schemes in Italy.
