Renovating a house in Italy: Costs, permits, and more (US guide)

If you’ve just bought a new house in Italy, it might be time to make renovations. You can build your dream vacation home and increase the value of your property.

We’ve put together a full guide to renovating a house in Italy, including everything you need to know about costs, permits, and how to stick to a schedule.

We'll also introduce the Wise account, which allows you to send, spend, and receive your money across the globe in over 40 currencies – all at the fair mid-market rate.

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Is it difficult to renovate a house in Italy?

Renovating a house is a popular choice for US citizens who move to Italy. You can change or add to your new home, all while pushing up the resale price.

However, it’s not always easy to renovate a property, especially in a foreign country. Let’s take a look at some of the pros and cons of renovating a house in Italy.

Can a US citizen buy a house in Italy to renovate?

You can buy property in Italy as a foreigner, but you’ll need to look into any specific requirements before purchasing a house or making your renovations.

You’ll need to apply for the appropriate building permits before you start your work. Look out for historic properties or conservation areas, as Italy’s building rules can be quite restrictive.

What's the catch with Italy's €1 homes?

Italy’s 1-euro home program lets you purchase a property for a symbolic low price. Although it sounds like a great deal, there’s a catch. These homes are usually abandoned or derelict, so you’ll need to commit to serious renovations.

You’ll also need to navigate Italy’s complex bureaucratic process to secure the appropriate permits for your renovations.

The cost of your house may be low, but you’ll likely end up paying a lot of money for permits, renovations, and other requirements.²

How much does it cost to renovate a house in Italy?

So, what is the cost of renovating a house in Italy? There are lots of things to think about, including real estate fees and permit fees, as well as the cost of the renovations themselves.

You’ll also need to think about exchange rate costs. When you send money from the US to contractors in Italy, your bank will convert your money into euros for you. This conversion typically comes at a costly exchange rate markup.

Let’s take a look at the cost of some key house renovations in Italy. These prices are likely to differ by location.

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What to consider when renovating a house in Italy

Let’s take a look at some things to consider when renovating a house in Italy, including everything you need to know about building permits, planning permission, and setting a budget.

Is it a protected building?

Italy has restrictive rules about renovating historic buildings. If your property is a protected building, or if you live in a protected area, your renovations will need to follow strict guidelines.

The Code of Cultural Heritage and Landscape protects certain properties against major changes. You can find out if your property is considered historic on the *Associazione Dimore Storiche Italiane *website.³

How does Italian planning permission work?

Getting planning permission in Italy can be a complicated process. The exact permits you’ll need will depend on your municipality, your property type, and the scale of your renovations.

Some properties may already have the appropriate planning permission. However, in most cases, you’ll need to submit a building permit application to your local council. This will include all the renovations you intend to make.

The council will review your application and send over any changes or remarks. On approval, you can begin renovating your property.⁷

Most extensive renovations will require a building permit. Known as a Permesso di Costruire, this ensures you adhere to your local region’s rules.³

You may be required to consult with an architect or engineer if your work falls under “extraordinary maintenance.” This is typically anything other than small changes to your property.¹

How do property evaluations in Italy work?

Before making any renovations, you’ll need to fully understand the condition of your property. An inspection assesses key aspects of your new home, such as your foundation, roof condition, electrics, and plumbing.

This is a great first step to help you identify key problem spots in your home. You can use your evaluation to plan out what you want to repair, change, or build.⁸

Do you have a renovation schedule in place?

Some renovations will take more work and money than others. A renovation schedule can help you work out what needs doing and when. You can plan out your budget and understand your time frame for completion.

Make sure to work with the appropriate professionals, including lawyers, designers, engineers, architects, and contractors.

Do you hire contractors for home renovations in Italy?

If you're thinking about carrying out your Italian house renovation yourself, it may be best to hire building professionals to help you navigate your renovations. Renovating can be complicated — and Italian homes are different from those in the US.

It’s important to find the right contractor for your project. Look out for companies who belong to the Associazione Nazionale Costruttori Edili (ANCE) or the Confederazione Nazionale dell’Artigianato e della Piccola e Media Impresa (CNA).

Your contractor will manage all building work. They can identify any issues with your project and help you successfully navigate Italian property regulations.

You can also use the Ordine degli Architetti, Pianificatori, Paesaggisti e Conservatori (OAPPC) to find a reputable architect for your project.⁷

If you’re based in the US, you may find it hard to renovate your house from afar. Working with professionals in Italy is a more convenient choice.

Do you have the right insurance?

The construction company responsible for your renovations will need to take out 2 insurance policies, including a provisional definitive surety and a posthumous 10-year policy.⁹

Do you have a contingency plan in place?

It’s important to have a contingency plan in place in case something goes wrong. Your plan may include a fund to draw on if you go over budget, for example.

This will depend on the scale of your renovation, but it may be wise to put aside at least 10% to 20% over your budget to cover unforeseen costs.¹

If something goes wrong, you’ll need to seek legal advice immediately. Common renovation problems may include issues with hired professionals or structural faults, for example.

Are there fees and tax considerations for renovating a house in Italy?

You may need to pay permit fees to get planning permission for your home. You’ll also need to consider labor and material costs for your project.

You’ll pay a reduced rate of 10% VAT (value-added tax) for home renovations in Italy. You can also reclaim 50% of your renovation expenses through an income tax deduction. This renovation bonus system applies to up to 96,000 EUR per property.³

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How long does it take to renovate a house in Italy?