1 Euro Houses in Italy: What the Contract Requires, What It Really Costs and What to Check Before You Apply

1What exactly is a 1 euro house in Italy?

A 1 euro house is an old or abandoned property sold at a symbolic price under a municipal scheme, in exchange for the buyer's undertaking to renovate it within a fixed period. No national law regulates these schemes: each comune decides whether to run one, publishes a notice and a regulation, and sets the conditions.

On the official pages we reviewed we found two main models. In the first, the municipality acts as an intermediary: private owners of neglected or unused buildings notify the municipality that they are willing to transfer them, and the municipality publishes the list, selects buyers and approves the assignment. This is how the scheme is described by the Municipality of Caltagirone in Sicily and the Municipality of Cantiano in the Marche. Cantiano states expressly that the seller is the private owner, not the municipality, and that the owner undertakes to maintain the willingness to sell for three years. In the second model, the municipality sells properties it owns: in October 2025 the Municipality of Petrizzi in Calabria published a notice on abandoned municipal properties in the historic centre at a symbolic price of 1 euro, and provided that ownership would be transferred by notarial deed only after the planned works are completed.

In practice, what is true for one municipality is not necessarily true for its neighbour. The price, the obligations, the guarantee and the sanctions are set only in that municipality's documents, so read them in full before applying.

2How does the scheme work, step by step?

The process starts with an official notice from the municipality and ends only when the works are completed and the guarantee is released. According to the pages we reviewed, the usual sequence is:

1. Finding the notice: the notice (avviso or bando) is published on the municipality's website and on its official online notice board (Albo Pretorio), usually together with a regulation approved by the municipal council.
2. Applying: you submit an expression of interest or an offer by a set deadline. In Petrizzi, for example, the deadline was 31 October 2025 at 14:00, with submission by registered mail, certified e-mail (PEC) or by hand.
3. Selection and ranking: where several applicants want the same property, a committee or the municipality ranks the applications and approves the assignment by formal decision.
4. Signing the deed: Caltagirone and Cantiano require the deed to be signed within two months of approval of the assignment. In Cantiano the guarantee is also provided at that stage.
5. Renovation project and permit: you submit to the municipality's technical office a renovation project prepared by a qualified technician and obtain a building permit.
6. Carrying out the works: you start and finish within the deadlines in the regulation, and the municipality supervises the execution.
7. Completion: once the works are completed in accordance with the conditions, release of the guarantee is considered under the regulation, and in the Petrizzi model only then is ownership transferred.

3What does the contract require? A comparison of three municipalities

The core obligation is a renovation timetable backed by a financial guarantee in favour of the municipality. The table summarises what appears on the official pages of three municipalities as published at the time (Caltagirone in 2022, with a deadline in January 2024; Petrizzi in October 2025). It is meant to illustrate the differences, not to replace the current regulation.

4What happens if you miss the deadlines?

The answer is in the specific municipality's regulation, and it is the most significant risk in the transaction. The guarantee is meant to secure performance of the works, so failure to meet the conditions may lead to its forfeiture, as provided in the regulation and the policy.

In the model where ownership is transferred only after the works are completed, as in Petrizzi, there is an additional risk: you invest money in renovating a property that is not yet registered in your name. In that situation it is important to check what the agreement with the municipality says about your rights in the interim period, what happens if the permit is delayed by the municipality itself, and whether an extension can be requested and on what terms. It is also worth checking whether the regulation restricts sale, letting or change of use for a certain period after the purchase.

5How much does a 1 euro house really cost?

1 euro is only the price. The real cost consists of purchase taxes, the notaio's fees, technical professionals, building charges, the renovation itself and holding costs, and the renovation is usually the largest component.

• Registration tax: on a purchase not subject to IVA, such as a purchase from a private individual, the registration tax is 9%, but according to the Italian Revenue Agency the proportional tax cannot be less than EUR 1,000. Add EUR 50 ipotecaria tax and EUR 50 catastale tax (as of the Revenue Agency guide of October 2025). In other words, even on a 1 euro house you pay at least EUR 1,100 in purchase taxes. Where the seller is the municipality, ask the notaio to confirm the tax regime in advance.
• Prezzo-valore: an individual buying residential property can ask for the tax to be calculated on the cadastral value (rendita × 1.05 × 120) rather than on the price. For a 1 euro house this is mainly a calculation the notaio performs, and we explain it in our guide to property taxes in Italy: registration tax, IVA and IMU.
• Notaio: the notaio's fee and related expenses are not derived from the price alone. Ask for a written quote that separates fees, taxes and expenses.
• Qualified technician: survey, Catasto conformity check, updating the Catasto registration (accatastamento) if needed, regularisation of building irregularities (sanatoria) and preparing the renovation project. Some municipalities expressly place these costs on the buyer.
• Permit and charges: fees and payments to the municipality for the building permit, at the municipality's rates.
• The renovation: a contract with a local builder, supervision and remote project management. There is no way to estimate the cost without an engineering survey of the specific building.
• Guarantee: a premium to the insurer or bank for the polizza fideiussoria for its entire term.
• Holding: IMU and TARI from the first year. An Israeli resident does not benefit from the IMU exemption for a main residence.

6What should you check in the property before applying?

You check the same layers as in any purchase in Italy, ownership, the Catasto and building compliance, but with abandoned houses the chance of finding problems is higher. A building that has stood empty for many years may be registered in the names of many heirs, carry old encumbrances or not match its Catasto registration.

• Ownership and encumbrances: who the registered owners are in the land registers, whether all of them will sign, and whether there are mortgages, attachments or third-party rights.
• Catasto: whether the property is registered, in which category, and whether the plan matches the actual state. The deed of sale requires a declaration of such conformity.
• Building compliance: whether the existing building conforms to its permits, and what may be built under the municipal plan and under conservation constraints in the historic centre.
• Structural condition: structure, roof, damp and, in relevant areas, compliance with seismic requirements.
• Utilities and access: connection to water, sewerage and electricity, and access for vehicles and building equipment in narrow streets.

We explain the detailed checks, the difference between a visura catastale and a visura ipotecaria, and the effects of the Salva Casa law in our guide to property due diligence in Italy: the Catasto and building compliance. For a 1 euro house it is worth commissioning a qualified technician's inspection even before applying, because once you sign, the clock starts running on the renovation project.

7What is the notaio's role, and can you sign from Israel?

Yes, you can sign from Israel, and the deed is drawn up by a notaio as in any purchase in Italy. The notaio identifies the parties, checks the property in the registers, collects the taxes and registers the transfer. The notaio does not represent the buyer and does not check whether your renovation plan is realistic.

Because of the short deadlines, prepare in advance what is needed for signing: a codice fiscale and, if you will not travel to Italy, a notarial power of attorney with an apostille and translation, as required by the notaio. The process, including the power of attorney and remote signing, is described in our guide to the property purchase process in Italy before a notaio.

8Is a 1 euro house right for an Israeli investor?

It depends on whether you are prepared to manage a construction project in Italy on a binding timetable, not on whether the price is low. The obligations are personal, they are backed by a guarantee, and they require a local builder, technician and supervision throughout the period.

It is also worth considering in advance what you will do with the property after the renovation. If you intend to let it, check that the regulation allows this and learn the tax rules, which we set out in our guide to renting out property in Italy and rental income tax. On the Israeli side, a property abroad affects reporting to the Israel Tax Authority and the tax on letting or sale, as explained in our guide to the Israeli side of a property abroad. Keep every document evidencing renovation payments, as it may be relevant to calculating the gain in the future.

9What to do before applying, and how we accompany you

Before applying, read the municipality's notice and regulation in full, check the property in the registers and on site with a qualified technician, build a budget that includes the renovation, the guarantee and holding costs, and prepare a codice fiscale and a power of attorney. The local steps, the deed, the permits and the engineering project, are carried out by notai, lawyers and technicians licensed in Italy. We coordinate the work from Israel: we go through the regulation and the obligations with you, make sure the checks are done before signing, and review the transaction from the perspective of an Israeli buyer, including the implications in Israel.

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