How Americans Can Buy a $1 Home in Italy

Imagine basking in the sun at your villa in the quaint Italian village of Ollolai, sipping on a spritz, and eating pasta all day—and doing it all for the cost of a convenience store coffee. Sounds pretty good, right? Well, it’s not quite that simple.

Interest in Americans moving abroad surged in the two days after Donald Trump won this year’s presidential election.

“We received a rush of applications in the middle of the year, a sort of slowdown period from July to mid-October as many were traveling in the summer and others wanted to wait to see how things turned out with the election,” says Steve Corbin, senior associate and attorney at Harvey Law Group, an immigration law firm. “Since the results, we’ve seen a flurry of inquiries.”

Now, those looking abroad to escape the country’s policies and current high mortgage rates could consider Italy for homeownership—and they’re especially interested in the country’s glut of $1 houses.

Due to an aging population and urban migration, some of the country’s quaintest towns have an empty-home problem. The towns are looking for people to purchase—and renovate—unoccupied and abandoned homes.

To drive interest in the properties, many of these towns are advertising homes for $1. These municipalities are hoping an influx of new ownership could help jump-start local economies and provide needed tax funds for public services.

The town of Ollolai, on the island of Sardinia, for example, is encouraging Americans to “start building your European escape.”

Buying an Italian villa for $1 seems like a dream come true, but there are a few catches. Here’s what you need to know before you buy.

How to find your home

Some areas of the country are offering more affordable housing than others. The bulk of available properties are in Sicily, Umbria, and Tuscany, but you can find homes around the country.

Various websites catalog what’s available and where, but most strongly recommend that you visit the location before you buy. Homes are in various states of disrepair: Some need relatively minor fixes, but others might need major renovations and updates. Some homes might look postcard-cute, but buyers who don’t bother visiting run the risk of walking into a scary money pit.

Prepare to spend more than $1

While many homes are listed at $1, the actual investment you’ll need to make is much more. To start, municipalities require an upfront deposit of $5,000 to be considered for the home, along with a $15,000 renovation deposit. Those funds are put in escrow while you wait to see if you’ve been granted a home. If you’re given the chance to buy a home but don’t complete your renovations within a set period of time, you’ll lose your deposit.

Beyond the deposits, you’ll also be responsible upfront for paying any legal fees that might be incurred in the transfer process, including property and land registration taxes, along with VAT and notary fees.

Many buyers and agents in Italy say it can actually be cheaper to look for houses priced below $50,000 that don’t come with specialized stipulations.

Renovations are required

Once you buy a home, you’re locked in and required to submit a renovation plan to the local council and start work on the property within two months of purchase. You’ll have to complete your renovations within three years or risk losing the home altogether.

Because most of these homes are hundreds of years old, they could require a major investment. Foundations may be crumbling, plumbing may be nonexistent, or the roof may need to be completely replaced. In some cases, buyers have had to spend tens of thousands of dollars to get their homes in liveable condition, but that’s the gamble you’re taking on a $1 property.

Aside from the material cost of renovations, you’ll also want to factor in the cost of either overseeing the renovation project or hiring someone to do it for you.

Each town and municipality will have its own stipulations and regulations about how property is transferred. In the Sicilian town of Mussomeli, for example, homeowners can alter the inside of the properties but not the outside. The purchasing of property in the country doesn’t automatically grant you a visa to stay, and some towns require you to apply for permanent residency in order to buy.

So if you’re serious about snatching up a $1 property in Italy, you’ll need to do some research.