Hope this thread isn't completely dead, but I wanted to weigh in my views for investing in Italy.
I've been living here for almost 2 years now, and have been spending time trying to understand the market more. I will preface by saying that I haven't invested here, but I have spoken to other investors who are here. Additionally, I am in the South of Italy, so my perspective will be of that of someone who has studied the people here. (My profile photo is actually me on a boat going across the Adriatic Sea from Brindisi, Italy to Greece) The north and south seem to be different in their views of business, as the south are more relaxed and the north, so I've been told, are more capitalistic. This is only a guess, take it with a gain of salt. I am 'boots on the ground' in case anyone wants to use us to make calls or inquire more information. That said, here is what I've learned.
1. Employment Rate: Italy has historically had one of the lowest employment rates in Europe. In 2024, approximately 62% of Italians aged 15 and above were employed, compared to the European Union average of 71%. This figure represents the highest employment rate ever recorded in Italy, indicating a positive trend despite remaining below the EU average. https://www.statista.com/topics/12899/employment-in-italy/
2. Population Growth Rate: Italy's population has been experiencing a gradual decline. In 2025, the population is estimated at 58,518,843, marking a 0.3% decrease from 2024. This downward trend has been consistent over the past decade, with annual declines ranging from 0.15% to 0.44%. https://www.macrotrends.net/global-metrics/countries/ITA/ita...
3. Birth Rate: The birth rate in Italy has been steadily decreasing. In 2025, it is projected at 7.016 births per 1,000 people, a slight decline from 7.026 in 2024. Over the past decade, the birth rate has dropped from 8.354 in 2015 to 7.016 in 2025, reflecting a continuous decline. https://www.macrotrends.net/global-metrics/countries/ITA/ita...
4. Death Rate: The death rate has been gradually increasing. In 2025, it is projected at 11.119 deaths per 1,000 people, up from 11.026 in 2024. Over the past decade, the death rate has risen from 10.192 in 2014 to 11.119 in 2025. https://www.macrotrends.net/global-metrics/countries/ITA/ita...
Italy is in a unique position, where all the youth are either leaving for college, or once they get their degree, they leave Italy to go take jobs in other EU countries. Because they're EU citizens, they can live and work anywhere in the EU. The majority of people that are still in Italy, are the older population who are mostly on pension. I'm unsure if it's the entire EU, but forsure in Italy, they receive a pension at a certain age. This, and the work ethic here are completely different than a capitalistic country like the United States. With the given of pension so long as you work, most of the working class do not aspire or create businesses here. Additionally, the cost to create a business here is not as inexpensive as the United States, in some cases it can cost thousands of dollars to setup. While that is not a big hurdle, it should at least start to give you an understanding of the mentality the Italian government have towards business owners. Corporate Income Tax are 24%, however banks and insurances companies are higher with an additional 3.5%
Mortgage in Italy
It's also important to note that there are no Mortgage companies here, everything is done with 1 of the very few banks here. They hold all the cards. When I asked for a loan, they asked if my business received money in Euros. I told them no, they said the best they can do for a mortgage was for me to pay 50% down. That being said the, interest rate was very low. 1%-2%.
Appreciation Value
Over the entire country, the appreciation value of homes only increases 1%-2%. Look above and see the population to learn why.
1 Euro Houses
There are certain towns in Italy where the population growth had dropped dramatically, that some towns have been completely abandon. All the youth have left, maybe the elders are still there or they are deceased and the children don't want the property. Internet capabilities are low, and no one wants to live there. The houses are sold very cheap, however to fix them up, you are usually investing about $30k-$100k to make them livable. As an American, we love our amenities. So I'm sad to say, that because of the local italian government, any reconstruction of these types of buildings, must follow the guidelines of what is allowed and not allowed. You can rent these units out, but there aren't many people who want to rent and live in it. You could set it up as an Airbnb, but that brings me to the next section.
Airbnb & STR Value
Almost all of the major cites, especially Florence, have created bans on new Airbnbin their cities. For the case of Florence, there are college students there who are having a hard time finding housing due to all the units becoming Airbnbs. The government has now started creating laws to stop the growth of Airbnb. It's also important to note that because much of the Italian citizens that are there and can vote are in the older demographic, much of the laws and policies are to keep them happy, which means less development and growth. It also keeps to a nationalistic conservative agenda, and without capitalism, it is just cuts to programs, and no investment into other areas.
I have stayed at Airbnb's in Rome and Naples, and there are Airbnbs of course, but you really need to speak and learn the system. The one in Naples took a 4 bedroom, and divided it up to 4 Airbnb units.
Expat network
Most of the expats I've met here in the south are retired and want to just relax. Many from non-EU countries, and because of Brexit, some brits here that don't want to leave.
Military Housing
One opportunity I did hear about, is military housing. Apparently the US government will pay for the rent of enlisted men if the property is close to a military base. I think this actually happens all over the world, but some landlords will increase their rent to the amount that the US government is willing to spend on rent in that location. So while the rent prices on an island like Sardinia is low, the landlords will increase the prices for the military members because it comes out the US pocketbook.
Rehabs
There are no Home Depots, Walmarts, Costco's. This is on hard mode. What the local shop has, is what you get, unless you want to travel farther to see what else others have. Calling on the phone is usually useless as they'll tell you to come in. Even if you're hours away. And if you need to import something into Italy, add 20% to the cost of whatever it is you want in, due to the VAT tax. (This includes Amazon)
Equity Loan
The last opportunity I've thought about recently, is taking the equity out of the house here in Italy, and investing it into a property in the US where appreciation is higher. Since loans here can be as low as 1% interest, and the LTV is up to 50% a property, I think you can take the equity out, get a small loan here, and put the money into an investment property in the US. The money generated could pay for both loans, and even cash flow.
Italian Buraccuracy
I thought the United States is slow and has poor processes set, but here is absolutely worse. Imagine you aren't able to make a phone call to get information and you need to physically go to where the person is to speak with them. This is how much of the businesses are here, not even talking about the Italian government. The laws shift and change frequently, and no one really seems to understand the process, and if they do, they are never incentivized to actually help you. As I stated above, maybe it is because I'm in the south, but if you attempt to speak with people, conducting due diligence, they become offended you would question anything they provide.
Outside of Real Estate
Many of the business here in the south don't use digital marketing, ads, etc. So anyone who advertises or uses ANY marketing technique, can really advance businesses here.
When it makes sense to invest in Real Estate in Italy
If you are looking for appreciation growth, or increased rental rates, I don't think Italy will be a good investment unless you are getting some of the best areas. I have seen appreciation in Milan as a market. Rome is probably good too, any major city will be much better than the rest of Italy. When you get to rural areas, even in Tuscany, you need to more risk-adverse as the property value might not increase, unless you have another operating business on it like a boutique hotel or vineyard, that you can blast social media influencers to get more people to come. If you don't have a content deliver network to show why people should come to your rural region, you might have a much more difficult time. If you're investing in major cities, you'll have an easier time with occupancy rates for STR for Airbnb, but will have be very cautious about the changing laws. I'd recommend either being in Italy for some time out the year, every year you have property here, or have someone physically here (like me!) who can monitor your investment closely.
I hope this provides some perspective on the situation here in Italy! I'm happy to answer any additional questions as best as I can.
