Are you planning to buy property in South Tyrol? There are several important aspects to consider. Here, we’ll inform you about the specifics of purchasing real estate in South Tyrol and explain the concept of “conventioned” properties.
Who can buy property in South Tyrol?
In general, EU citizens are allowed to purchase residential property in South Tyrol. They have the same rights as Italian citizens when it comes to real estate purchases.
However, before you can buy property in South Tyrol, you’ll need an Italian tax number (Codice Fiscale). This is required not only for the purchase itself but also for opening a bank account and signing contracts (e.g. electricity or phone services). You can apply for it at the local tax office (Agenzia delle Entrate) or via the Italian embassy in your home country. Since processing times can be long, it’s advisable to take care of this early.
Conventioned housing: Special regulations for residents
A key factor to consider is the availability of “conventioned” apartments. These are often more affordable but come with legal restrictions recorded in the land register. Such apartments can only be occupied by individuals who have had their primary residence in South Tyrol for at least five years, or who are employed in the region. This means they cannot be used as holiday or second homes.
Differences in property law
Property law in Italy and South Tyrol includes some notable differences, mainly due to South Tyrol’s autonomous status and its focus on protecting the local population.
Property ownership and restrictions for non-residents
While in Italy anyone – including foreigners – can buy property, South Tyrol enforces stricter regulations. Many properties, especially apartments, are subject to residency restrictions (conventioned status). Only those who have lived in South Tyrol for at least five years and/or work there may use such properties. This is designed to prevent excessive use of housing as second homes and to protect availability for locals.
Land registry and cadastre system
There are also differences in how real estate is administered. South Tyrol has its own historic land registry system, based on the former Austrian land book regulations of Tyrol. This provides legal certainty for buyers, especially regarding ownership verification and encumbrances on the property.
Taxes and fees
In Italy, real estate purchases are subject to various taxes – including registration, mortgage, and cadastral fees. The exact amounts depend on whether the property is used as a primary or secondary residence. South Tyrol also has additional tax rules, especially higher fees for second homes, to discourage speculative investments and ensure that housing remains accessible to permanent residents.
Conclusion
While Italian property law is generally liberal, South Tyrol has special regulations aimed at protecting the local population and ensuring sustainable use of land and housing. These measures include the conventioning of properties, tax rules discouraging speculative purchases, and strong protections for agricultural land and businesses.