Property in Venice, Italy

9 Replies

I am contemplating purchasing a vacation rental property in Venice Italy.  Initial research appears that this could be a good decision, however, I am leery given the foreign laws and convulsion of Italian process.  Has anyone done something like this?  Any thoughts or advice?

Never done anything like it, but you can always look up Italian real estate agents and I'm sure they will help you through the process. I would try to contact them via e-mail to avoid the hassle of trying to make international calls (and paying for them). If you get in touch with them via e-mail, ask for their Skype or Google+ so you can do a free video call with them. That's where I would start anyway.

What websites did you find for pricing when you do your initial research?

@Karl Maritato

Here;s a guide to buying property in Italy

http://www.detulliolawfirm.com/wp-content/uploads/...

This is a good overview of things to consider when buying in Italy.

Suggest that you contact an international tax attorney to determine what your US tax consequences are too.  An Italian attorney can not advise you on that.  Don't let the international tax attorney talk you in to buying a trust.  There may not be trust law in Italy. 

In many foreign countries, including Panama ( where I live), it is common to take title to a property in a corporation or a foundation.  So there could be the extra expense of setting up an Italian corporation.  Then of course, you'll have to report the foreign corporation to the IRS every year even if the only asset is the property.

I have lived in Italy for a number of years, though in Rome. Perhaps Venice is not quite as bad but .....

Italian tax laws are archaic and hard to manage if you do not have someone that can help you manage. Nothing is straightforward here and often corrupt.

Be very careful of unclear titles and ownership. Anything that winds up in court can take many years.

If you can get through all that to manage the property, when you do try to sell it, if you are not in the EU the taxes are very high. So make sure you understand the entire buy and sell cycle including costs and taxes throughout the transaction.

That being said, a lot of foreigners own property in Italy you just need to be extra careful and find a good competent lawyer that hopefully is trustworthy. Sorry I do not know anyone up there to refer you to

excellent counsel here - thanks esp Julie and Jackie - I am interested in Italy to retire in, but not Venice which I do love but...frankly I would like Trieste more as a place to live/invest in.

Venice has its own particular structural considerations - esp if it is near a canal / the areas that flood etc - try to visit in more than one season and also at night - sometimes places that are totally quiet and idyllic by day have horrendous noise at night.

EU laws also make life difficult for living/investing!

Originally posted by @Karl Maritato :

I am contemplating purchasing a vacation rental property in Venice Italy.  Initial research appears that this could be a good decision, however, I am leery given the foreign laws and convulsion of Italian process.  Has anyone done something like this?  Any thoughts or advice?

 I´m curious what your ´initial research´ entails? While Venice has an extremely robust tourist market, related taxes are quite high (and so are property values). Considering my own business and personal interests, I explored this idea when my wife and I were there this past June, looking through dozens of property listings on the streets and posted in back corners and brokerages. Comparing the property values versus occupancy forecasts and ADR (plus related expenses), the numbers really just did not pencil out. Admittedly, there is the fact that I just didn´t love Venice and wouldn´t buy a VR property anywhere I didn´t love, so perhaps another of a different mind may be more dedicated to finding the property that makes the numbers work. 

Hi David...sorry for the late response...I can't say that I have done robust research yet, just getting the feet wet...hence "initial research".  I will say that a few websites on Venice I have been looking at have suggested its doable, of course, based on the right property at the right price.  Certain areas have shown steady year round occupancy with tourists.  I will say I haven't looked deep enough yet regarding taxes and full details.  Happy to share anything I do find out on this thread.  

Hi Karl, here's just my 2 cents...

I'm Italian and of course Venice is surely a beautiful city. I'm not an expert of that market but having considered the involved costs of buying in Italy and the necessity to find a reliable property manager I would be careful. The involved capital would be quite high, considered the city, and so the related risks.

Closing costs in Italy are around 15% and you need to understand the taxation system. Not a big deal but be sure to have your numbers clear before you proceed.

Here's a link where you can find more info about Italian market.

http://www.globalpropertyguide.com/Europe/Italy

Let us know if you decide to go on with your research, I'm interested in it!

Luca

Luca, that is a great website...Thank you so much for the info, it is very enlightening.

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