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Can an Italian Citizen Buy Property in the USA? Complete Guide

Yes — Italian citizens can buy property in the United States with no restrictions. Italy has an established buyer presence in US luxury markets, particularly New York City’s most prestigious addresses and Florida’s waterfront lifestyle properties. Two things distinguish the Italian buyer’s experience: the US-Italy estate tax treaty provides protection Canadian and Australian buyers lack, and the IVIE — Imposta sul Valore degli Immobili all’Estero — creates an ongoing annual obligation for Italian tax residents who own property abroad. At 0.76% of the property’s value per year, IVIE is a carrying cost that must be factored into the investment calculation.

The IVIE: Italy’s Annual Tax on Foreign Real Estate

The IVIE is one of the most important and least-known obligations for Italian buyers of US property. Italian tax residents who own real estate abroad pay IVIE annually at 0.76% of the property’s value. (1) Example calculation: Italian tax resident owns a $600,000 Manhattan apartment. IVIE = 0.76% of $600,000 = $4,560 per year (approximately €4,200 at EUR/USD 0.92). This is an ongoing annual obligation, not a one-time charge. (2) Credit for US property taxes: US property taxes paid are credited against IVIE. If the US property tax exceeds IVIE, the net Italian obligation may be zero. In high-property-tax US jurisdictions, this credit can significantly reduce or eliminate IVIE. (3) Who pays IVIE: Italian tax residents on worldwide foreign real estate. Italians who have moved to the US and are no longer Italian tax residents do not pay IVIE on their US property. (4) File on the Italian Redditi PF: declared annually via Quadro RW of the Italian tax return.

The US-Italy Estate Tax Treaty

Italy has an estate tax treaty with the United States (1999). Italian tax residents who own US property receive a proportional unified credit — significantly better than the bare $60,000 non-citizen exemption. This treaty protection is equivalent to what UK, German, French, and Irish buyers receive — and makes Italian buyers better positioned than Canadian or Australian buyers who have no treaty at all. Consult a US estate attorney with Italian client experience for the specific calculation relevant to your asset profile.

Italian Buyer Markets in the USA

FIRPTA and the Exit Strategy

When an Italian sells US property: 15% FIRPTA withheld at closing. Form 8288-B certificate filed at listing reduces to actual tax. Italian plus-valenza (capital gains) tax also applies to Italian tax residents on the same gain — coordinated through the US-Italy DTA. Italian sellers face a parallel to French sellers: US tax paid is credited against Italian tax, but the Italian plus-valenza rate must be confirmed with an Italian commercialista. Full FIRPTA guide: FIRPTA complete guide.

Guides: IVIE, FIRPTA & Selling — Find an Agent

Frequently Asked Questions

Can an Italian citizen buy property in the USA?

Yes. No restrictions. Italy is one of the most established European buyer nationalities in US real estate. Primary markets: New York City, New Jersey, Florida, California.

What is the IVIE and does it apply to Italian buyers of US property?

IVIE (Imposta sul Valore degli Immobili all'Estero) is Italy's annual tax on foreign real estate. Italian tax residents pay 0.76% of the US property's value per year. US property taxes paid can be credited against IVIE, potentially reducing or eliminating it.

Does Italy have a US estate tax treaty?

Yes (1999). Italian buyers receive a proportional unified credit — better protection than Canadian or Australian buyers.

Do Italian buyers prefer condominiums or co-ops in New York?

Condominiums. Co-op boards scrutinize foreign buyers and often restrict non-US residents. Italian buyers purchase condominiums almost exclusively in Manhattan.