Selling Property in Italy from Abroad: Legal Steps and Requirements

Selling an Italian property without being physically present in the country is a perfectly lawful and relatively common operation, but it requires careful planning and a precise understanding of certain rules specific to Italian law. The foreign owner who wishes to sell an apartment, a holiday home, or a commercial property in Italy must contend with notarial formalities, capital gains tax obligations, and the need to delegate authority to a local representative.

Problems almost always arise from a lack of advance information: foreign sellers who discover at the last minute that they need to attend the notary in person, or who find themselves facing a capital gains tax bill they had not anticipated, or who sign a preliminary contract without fully understanding its legal consequences. This guide walks through the property sale process in Italy from the perspective of the foreign owner residing abroad: the necessary steps, the available tools, the taxes to consider, and the pitfalls to avoid.

The Legal Framework: Who Can Sell and in What Form

In Italy, the transfer of ownership of real property requires, as a matter of law, a notarial deed (atto pubblico) executed before a notary (notaio, Art. 1350 c.c.). There is no possibility in Italy of transferring ownership of real property by a simple private agreement: the notarial deed is a requirement of validity, not merely of form. The notary is a public official appointed by the State who verifies the legality of the transaction, confirms the identity of the parties, checks that the property is free of encumbrances and mortgages, and registers the deed in the property registers.

The foreign seller has two options for participating in the sale:

• Physical presence before the notary: the seller attends the Italian notary’s office in person on the date set for the deed. If they do not speak Italian, the notary must engage a qualified interpreter, whose costs are borne by the client.
• Special power of attorney (procura speciale): the seller formally delegates a representative — typically an Italian lawyer or trusted professional — with the powers necessary to execute the sale deed on their behalf. This is the solution most commonly used by foreign owners not resident in Italy.

The Special Power of Attorney: How It Works and How to Obtain It

The notarial special power of attorney (procura speciale notarile) is the instrument by which the foreign owner formally delegates a person — the attorney-in-fact (procuratore) — to act on their behalf for the performance of one or more specific legal acts, in this case the sale of the Italian property. It is a flexible and secure tool, widely used in international practice.

How to Obtain the Power of Attorney from Abroad

The foreign owner can obtain a power of attorney valid in Italy in two main ways:

1. Before a local notary, with apostille: the owner attends a notary in their own country and signs the power of attorney before them. The document is then authenticated with the apostille provided under the Hague Convention of 5 October 1961, which ensures its international recognition. If the owner’s country is not a signatory to the Hague Convention, the apostille is replaced by consular legalisation at the competent Italian consulate.
2. Before the Italian consul: the owner attends the Italian consulate or embassy in their country and signs the power of attorney before the consular officer, who has notarial powers for instruments intended to take effect in Italy (Art. 6, D.P.R. no. 200/1967). This route is more straightforward and does not require an apostille, since the document is already executed before an Italian authority.

In both cases, if the power of attorney is drafted in a foreign language it must be accompanied by a sworn Italian translation certified by an official translator. The Italian notary who receives the document will verify its formal regularity before proceeding with the deed.

Practical tip: the most reliable approach is to have the draft power of attorney prepared by the Italian notary who will be handling the sale deed. The draft is then sent to the seller, who signs it before a notary in their own country, who authenticates the signature. The local notary’s signature is then apostilled. Once returned to Italy, the apostilled document must be accompanied by a sworn Italian translation. This sequence — Italian notary drafts, local notary authenticates, apostille, sworn translation — minimises the risk of the power of attorney being rejected for formal defects.

What the Power of Attorney Must Contain

To be valid for the purposes of a property sale, the special power of attorney must contain certain essential elements:

• Precise identification of the seller (full name, date and place of birth, address, identity document details).
• Identification of the attorney-in-fact (the person delegated to act in Italy).
• Precise description of the property being sold (address, cadastral references, appurtenances).
• Price specification: the sale price must be expressly stated, or at least determinable through precise criteria. A reference to a “price already agreed” without stating the figure is not sufficient.
• Specific powers: collection of the price, execution of the notarial deed, and any ancillary powers (discharge of mortgages, issuance of receipts).
• Duration: it is good practice to specify an expiry date, which limits risk in the event of loss or misuse.

Recent case law has clarified several critical points on the validity of the power of attorney that the foreign seller must be aware of:

Nullity for indeterminate price — Trib. Avellino, judgment no. 288/2025: a power of attorney authorising a sale “at the price already agreed” without specifying the actual price is void for indeterminacy of the subject matter. The nullity of the power of attorney produces the derivative invalidity of the sale contract executed by the attorney-in-fact.

Automatic termination after completion — Trib. Monza, judgment no. 1663/2025: a special power of attorney granted for the sale of a specific property terminates automatically once the sale is completed. The attorney-in-fact cannot perform further acts (e.g. acknowledgement of debts) unless expressly authorised.

Revocation and third parties — C. App. Roma, judgment no. 6078/2024: revocation of the power of attorney is not enforceable against third parties unless brought to their knowledge by appropriate means. Verification carried out by the third party at the notary’s office that authenticated the power, confirming the absence of revocation, excludes knowledge of the revocation.

A power of attorney that is too generic — failing to identify the property, specify the price, or define the powers conferred — may be rejected by the Italian notary or render the sale contract void. Legal assistance from an Italian lawyer in drafting the power of attorney is always advisable.

The Stages of a Property Sale in Italy

1. Purchase Offer and Negotiation

The sale process typically begins with a purchase offer (proposta di acquisto) from the buyer, often through an estate agent. If accepted by the seller, the offer already constitutes a preliminary contractual commitment (Art. 1326 c.c.) — even without taking the form of a full preliminary contract. The foreign seller who receives a purchase offer should read it carefully before signing: once accepted, the seller is bound by its terms for the stated period.

At this stage it is important to verify the buyer’s reliability and the seriousness of the offer. The offer is usually accompanied by a deposit cheque (typically 5–10% of the price). If the seller accepts and the buyer withdraws, the deposit is retained; if the seller withdraws, they must return double the amount — though this depends on how the offer is worded. It should be noted that retaining the deposit and claiming damages are alternative remedies and cannot be pursued simultaneously: a seller who retains the deposit (or demands its double) cannot additionally seek further compensation (Trib. Genova, judgment no. 1858/2025).

2. The Preliminary Contract (Compromesso)

The preliminary sale contract (contratto preliminare or compromesso) is the contract by which the parties mutually commit to executing the subsequent final deed at agreed terms (Art. 1351 c.c.). It is not mandatory in every transaction. In practice, it is most commonly used when the sale is subject to a condition — for example, the granting of a mortgage to the buyer, or the expiry of an existing tenancy on the property. Where the accepted purchase offer leads directly to the final deed, it is often unnecessary to interpose a preliminary contract.

Where a preliminary contract is signed, it must be registered with the Italian Revenue Agency (Agenzia delle Entrate) within 30 days. If the price exceeds €77,468.53 or if the buyer wishes to be protected against any interim disposal of the property by the seller, the preliminary contract should be transcribed in the property registers through a notary (Art. 2645-bis c.c.).

On the transcription of the preliminary contract, recent case law has established important principles:

Mandatory time limits — Cass. civ., Sec. II, judgment no. 7634/2025: the time limits under Art. 2645-bis c.c. (one year for execution of the final deed and a maximum of three years from transcription) are both mandatory and serve general interests. They are not available to the parties and cannot be extended beyond the three-year maximum.

Extension enforceable against third parties — C. App. Milano, judgment no. 2440/2025: an extension of the deadline for the final deed is enforceable against third parties only if agreed before the expiry of the one-year period and by means of a transcribed instrument.

The preliminary contract creates serious obligations for both parties. A seller who withdraws without justification must return double the confirming deposit received (Art. 1385 c.c.). However, planning and building irregularities that make the legal stability of the title uncertain may constitute an objective obstacle to the transfer and entitle the buyer to withdraw with the return of double the deposit (Trib. Santa Maria Capua Vetere, judgment no. 67/2025). For further detail: Preliminary Contract for Purchase of Real Estate in Italy.

3. Property Due Diligence

Before the final deed it is essential to carry out a thorough due diligence on the property, to verify that there are no issues that could block the sale or expose the seller to subsequent liability:

• Mortgage register search (visura ipotecaria): verifies the absence of mortgages, enforcement measures, or other encumbrances. Where mortgages exist, they must be discharged before or simultaneously with the deed. The costs of discharging mortgage registrations are deductible as inherent costs for the purposes of calculating the taxable capital gain (Cass. civ., Sec. VI-5, order no. 18252/2022).
• Cadastral search (visura catastale): verifies the correspondence between the property’s actual state and the floor plans filed in the cadastre. Any discrepancies must be rectified before the sale.
• Planning and building regularity: verifies that the property was built or modified in conformity with the planning permissions granted by the Municipality (Art. 46, D.P.R. no. 380/2001).
• Energy Performance Certificate (Attestato di Prestazione Energetica — APE): a mandatory document certifying the property’s energy class (Legislative Decree no. 192/2005). The obligation to produce it falls on the seller, absent any different agreement between the parties (Trib. Bergamo, judgment no. 1204/2025).
• Certificate of habitability (certificato di agibilità): certifies that the property is fit for its intended use. It is not always mandatory for the sale, but its absence can reduce the commercial value of the property and give rise to disputes.

Planning regularity deserves specific attention in light of the most recent case law:

Textual nullity vs. substantive non-conformity — Cass. civ., Sec. II, order no. 15587/2022 (Full Court): the nullity under Art. 46 D.P.R. 380/2001 is textual in nature — it applies only to the failure to include the planning title references in the deed, not to any non-conformity between what was built and what was authorised. Where the deed contains the references to the actual and applicable planning title, the contract is valid regardless of whether the construction conforms to it.

Non-conformity as encumbrance under Art. 1489 c.c. — Trib. Avellino, judgment no. 1111/2025: building non-conformities with respect to the referenced planning title constitute a breach referable to Art. 1489 c.c. (encumbrances and limitations), not a defect under Art. 1490 c.c. The applicable limitation period is the ordinary ten-year period.

Missing APE — Trib. Bergamo, judgment no. 1204/2025: the obligation to produce the APE falls on the seller, absent any different contractual agreement. C. App. Genova, judgment no. 1037/2024: the absence of the APE affects the substantive content of the deed and cannot be remedied by a subsequent notarial correction (rettifica).

A practical recommendation: before putting the property on the market, it is advisable to commission a technical survey from a qualified surveyor (geometra) or architect. This report will identify any cadastral discrepancies and planning irregularities in advance, giving the seller time to regularise the position before the buyer’s own checks reveal problems — which at that stage could jeopardise the transaction or justify the buyer’s withdrawal.

4. The Final Notarial Deed (Rogito)

The notarial deed (rogito or atto pubblico di compravendita) is the culminating moment of the sale process. The notary reads the deed in the presence of the parties (or the seller’s attorney-in-fact), verifies their identity, confirms payment of the price, and collects the signatures. The deed has immediate proprietary effect: ownership passes to the buyer at the moment of signing.

The notary is chosen and paid by the buyer in Italian practice — meaning the foreign seller does not bear the notarial fee. The seller will, however, bear the costs of the power of attorney and any legal assistance. At the deed, the notary retains the taxes payable by the buyer and arranges transcription in the property registers and the cadastral update.

Payment of the Price: Methods and Transfer Abroad

Payment of the price in an Italian property sale must be made by traceable instruments (bank drafts or bank transfers) — cash payments are prohibited above the threshold of €5,000 (Legislative Decree no. 231/2007 and subsequent amendments).

For the non-resident foreign seller, the critical question is the transfer of the proceeds abroad. There is no legal prohibition on transferring the sale proceeds to a foreign bank account, but Italian anti-money laundering rules and the currency regulations of the destination country must be observed. It is essential to ensure that any capital gains tax due in Italy has been settled before the transfer, or that the corresponding amount has been set aside.

Taxation of the Sale: Capital Gains on Italian Property

The most significant tax issue for the foreign seller is the potential capital gain (plusvalenza immobiliare) — the positive difference between the sale price and the original acquisition cost — which may be subject to Italian taxation.

When Capital Gains Are Taxable

Under Art. 67, para. 1, lett. b) of the TUIR (D.P.R. no. 917 of 22 December 1986), the gain realised on the disposal of real property is taxable in Italy if the property was acquired less than five years before the sale, unless the property was used as the seller’s main residence for the greater part of the period of ownership.

The following are exempt from taxation:

• Properties held for more than five years (the period runs from the date of the acquisition deed, not from the date of any preliminary contract).
• Properties received by inheritance (regardless of the period of ownership).
• Properties used as the seller’s or their family members’ main residence for the greater part of the period of ownership.

How Capital Gains Are Calculated

The taxable gain is the difference between the sale price and the acquisition cost, increased by all inherent expenses — acquisition taxes, notary fees, estate agent fees, and documented renovation costs. Recent case law has clarified certain specific situations relevant to foreign sellers:

Mortgage discharge costs deductible — Cass. civ., Sec. VI-5, order no. 18252/2022: costs incurred to discharge mortgage registrations are deductible as “inherent costs” under Art. 68 TUIR and reduce the taxable gain.

Value of pre-existing buildings on development land — Cass. civ., Sec. Tax., order no. 10954/2024: on the disposal of development land, the value of buildings standing on the land for more than five years must be deducted from the taxable gain, even if they are not registered in the cadastre.

Consolidation of usufruct — Cass. civ., Sec. Tax., judgment no. 3614/2025: where a usufruct is consolidated with the bare ownership before disposal, the initial value for calculating the gain must not include the value of the redeemed usufruct.

It is therefore essential to retain all documentation relating to the original acquisition and any subsequent renovation work. The greater the documented expenditure, the lower the taxable gain.

Applicable Rates and the Substitute Tax Option

Where the gain is taxable, the seller may choose between two tax regimes:

• Ordinary IRPEF taxation: the gain is added to the seller’s overall income and taxed at the progressive IRPEF rates (23% to 43%). For a non-resident seller, Italian IRPEF applies to Italian-source income.
• 26% substitute tax (imposta sostitutiva): the seller may opt, at the time of the notarial deed, for a flat substitute tax of 26% on the gain, payable directly to the notary. This option is frequently advantageous for sellers with higher income levels, as it avoids the progressive IRPEF scale.

The option for the substitute tax must be exercised at the deed: it cannot be elected afterwards. The notary calculates the tax and remits it to the Treasury on the seller’s behalf.

For a full overview of property taxation in Italy: Taxes and Property Duties in Italy: What You Need to Know.

Specific Considerations for the Non-Resident Foreign Seller

The Italian Tax Code (Codice Fiscale)

To execute any property transaction in Italy — including the final deed through an attorney-in-fact — the foreign seller must hold an Italian tax code (codice fiscale). This can be obtained at Italian consulates abroad or at any office of the Italian Revenue Agency in Italy. Obtaining one is free of charge and requires only a valid identity document.

Tax Residence and Double Taxation Treaties

A non-resident foreign seller who realises a taxable gain in Italy should verify whether a double taxation treaty exists between Italy and their country of residence. Italy has concluded tax treaties with more than 100 countries. These treaties determine which state has the right to tax the capital gain on real property, preventing the same income from being taxed twice. As a general rule, treaties attribute the primary right to tax real property gains to the state in which the property is located — Italy, in this case.

The Estate Agent and Commission

In Italy, an estate agent who has procured the buyer is entitled to a commission (provvigione) from both parties — seller and buyer — unless otherwise agreed (Art. 1755 c.c.). The typical commission is 2–3% of the price for each party, but is negotiable.

Recent case law has clarified the limits of the right to commission in certain situations common in practice:

Continuous activity required — Trib. Roma, judgment no. 646/2025: merely having introduced the parties is not sufficient. An agent who handled only the letting cannot claim commission on a subsequent sale without evidence of continuous activity specifically directed at achieving the sale.

Identity of the transaction — Trib. Torre Annunziata, judgment no. 1374/2025: there is no right to commission where the transaction is concluded approximately one year later, on substantially different terms and through a different agent.

Substitution of parties — Trib. Salerno, judgment no. 1686/2025: the identity of the transaction is not broken when the parties substitute others for themselves in the execution, provided there is continuity in the underlying economic operation.

A foreign seller who has independently found a buyer may sell without an estate agent, saving the commission. In that case it is still advisable to engage an Italian lawyer to draft the preliminary contract and verify the documentation. Bear in mind: if an agent has been involved in the negotiations — even informally — they retain the right to commission if the deal is concluded, subject to the jurisprudential limits set out above.

Frequently Asked Questions

Do I need to come to Italy to sell my property?

No. With a valid special power of attorney, an attorney-in-fact can sign the notarial deed on your behalf. The power of attorney can be obtained before a notary in your own country (with apostille) or before the competent Italian consul. This is the solution most commonly used by foreign owners not resident in Italy.

How long does the sale process take?

Timelines depend on the complexity of the situation. From the accepted purchase offer to the final deed typically takes two to four months — the time needed to obtain documents, carry out checks, prepare the power of attorney, and schedule the notarial appointment. Where the property has cadastral issues or mortgages to discharge, timelines will be longer.

Do I have to pay capital gains tax if I inherited the property?

No. Properties received by inheritance are exempt from capital gains tax, regardless of when the sale takes place (Art. 67, para. 1, lett. b), TUIR). The acquisition cost for calculation purposes corresponds to the value declared in the succession declaration.

The buyer wants to pay part of the price off the books. What are the risks?

The risks are very significant. Declaring a price lower than the actual one in the sale deed is a tax offence that can result in tax assessments, penalties, and — in serious cases — criminal liability for both parties. The Italian Revenue Agency cross-checks declared values against market prices and can reassess the declared value.

I have already received a deposit on the preliminary contract. If the buyer pulls out, can I also claim damages?

No, not cumulatively. Retaining the confirming deposit (or demanding its double) and claiming damages are alternative remedies and cannot be pursued simultaneously (Trib. Genova, judgment no. 1858/2025). A seller who retains the deposit has already liquidated the loss on a fixed-sum basis and cannot separately claim additional compensation — unless they expressly opt for full rescission with damages, forgoing the deposit mechanism.

Can I transfer the sale proceeds to my foreign bank account?

Yes. There is no legal prohibition on transferring Italian property sale proceeds to a foreign account. The international transfer should be documented with reference to the notarial deed. You must ensure that any capital gains tax due has been settled before the transfer, and verify the declaration obligations applicable in your country of residence.

Conclusion

Selling an Italian property from abroad is a manageable operation with the right tools, but it requires planning and attention to detail. The special power of attorney resolves the physical presence problem, but it does not remove the need to verify the property’s documentary position, calculate the tax exposure correctly, and structure the preliminary contract in a way that protects the seller’s interests.

The most common mistake is underestimating the timeline and ancillary costs: mortgage discharges, cadastral regularisation, sworn translations of documents, and the cost of the power of attorney can all significantly affect the net proceeds. A preliminary review with an Italian lawyer before putting the property on the market makes it possible to avoid surprises and approach negotiations from a position of full awareness.

For those in the opposite position — a foreign buyer interested in property in Italy — see our guides: Buying Property in Italy as a Foreigner: 5 Essential Legal Tips and Buying Property in Italy from Abroad: Complete Legal Guide.

For assistance with selling an Italian property from abroad, drafting a special power of attorney, or managing the notarial process, Studio Legale Giorgianni is available. Further information is available in the Italian Property Lawyer section and on our Italian Lawyer hub page.