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How does the 1 Euro house initiative work? What are the rules to follow and the risks of the investment?
In this video, I will answer the most frequently asked questions on the topic in the simplest way possible… let's begin!
First of all: is it really possible to buy a house in Italy for 1 euro? The answer is YES. It all started in 2008 when the Municipality of Salemi, a small village in Sicily, put the first house up for sale for 1 euro, for reasons I am about to explain. Over time, the initiative spread to other Italian municipalities, especially in the central and southern regions.
Naturally, these are not new houses but dilapidated properties, often abandoned for years. Some are even at risk of collapse and all require significant renovation work. As you will see, the symbolic purchase price of 1 euro is just the starting point for a series of additional expenses. Moreover, to secure the property, it is essential to follow certain rules.
The project was born to counteract the depopulation of some Italian villages, which are losing residents, especially young people moving to big cities that offer more services and conveniences. For these towns, empty houses represent an urban, social, and economic problem. Leaving houses abandoned leads to decay, community expenses, and risk of collapses, as has already happened in some towns.
Who owns these houses? The 1 euro houses can belong to either private individuals or municipalities. In the case of private owners, they are often heirs of the former owners: people who live far away, sometimes even abroad, and have no interest in dealing with abandoned and dilapidated properties on which they would still have to pay taxes. In these situations, the municipality acts as an intermediary between the heirs and potential new buyers, facilitating the transfer of ownership.
In which areas of Italy are these houses located? Most of the 1 euro houses are located in central and southern Italy, especially in Sicily, Calabria, Basilicata, and Abruzzo. However, the project is expanding, and today it is possible to find opportunities in other regions as well. The municipalities participating in the project are mostly small villages perched on hills, often far from large urban and commercial centers. This isolated position has contributed over time to depopulation.
Despite their small size, these towns offer everything needed for a comfortable life in a more peaceful and authentic setting. Compared to big cities, there is less traffic, cleaner air, and a more relaxed pace. Life is marked by cultural traditions, popular festivals, and a strong sense of community. Many of the inhabitants were born and raised in the village and proudly maintain their connection to their roots. Generally, they are welcoming, kind, and curious about tourists.
Who can buy a 1 euro house? Anyone can buy these houses, including foreign citizens: in this case, the principle of reciprocity must be respected. Essentially, if Italian citizens can buy a house in your country, you can do the same in Italy. An exception is made for European Union citizens, who do not need reciprocity, as they enjoy the same rights as Italian citizens.
What are the rules for buying a 1 euro house? The regulations to follow vary depending on the municipality, but there are 4 fundamental rules common to all participating towns.
First rule: the purchase of the house does not follow traditional sale methods. First, the municipality publishes a public notice, usually on its official website, announcing the availability of 1 euro houses. In the notice, you will find the list of available properties, the requirements to participate, the forms to fill out, the deadlines for submitting the application, and the commitments the buyer must adhere to. All interested parties can participate by submitting their application as potential buyers. The municipality reviews the applications received and evaluates the candidates based on certain criteria. People who commit to moving to the municipality or starting a business, for example, have a higher chance of being selected because one of the main goals is to repopulate the towns and revitalize the local economy. It is not a real auction, as there are no bids among participants, and the property price remains 1 euro. The selection process resembles a competitive selection, where participants are evaluated based on specific criteria and scores: the candidate with the highest score wins the house.
Second rule: the winner of the notice must renovate the house. The new owner is obliged to start and complete the renovation work within the timeframes set by the municipality, as stated in the notice, complying with all regulations regarding renovation, as well as any historical and landscape constraints present in some villages. Generally, a minimum of 1 year up to a maximum of 3 years from the assignment of the property is granted to complete the work.
Third rule: to participate in the notice, it is necessary to provide a guarantee, called "fideiussione". This is an insurance or bank guarantee in favor of the municipality, which serves to protect the municipal administration. In case of problems with the work, delays, or the new owner deciding not to proceed, the municipality can claim the amount of the guarantee directly from the bank or insurance company as compensation. The property will also return to the municipality's availability. The amounts of the guarantees vary, but usually range from a minimum of 1,000 to over 5,000 euros. If the new owner fulfills their commitments, the guarantee is canceled, while those who do not win the property will have their guarantee returned.
Fourth rule: all expenses are borne by the buyer. The property price is indeed 1 euro, but as mentioned earlier, it is just the starting point for a series of costs that the future owner must bear. In case of purchase, you will need to consider: Purchase taxes, Notary fees, Expenses for the project and professionals involved in the work, Building permit fees, Renovation work, Initial municipal property taxes. Additionally, there may be costs for a consultant, such as a lawyer or real estate agent, to assist you in the initial phase, helping you correctly participate in the notice.
In summary, these are the 4 rules to follow to buy a 1 euro house:
You must participate in a public notice.
The house must always be renovated (within the timeframes set by the municipality).
A guarantee must be provided.
All expenses are borne by the buyer.
What are the main risks of the investment? The main risks of the investment concern the renovation, particularly underestimating costs and difficulty in finding qualified companies. The condition of the houses is often worse than it appears during an initial visit with the municipal official, but many problems only become apparent during the work, once the property has been purchased. It should not be forgotten that these are houses abandoned for years, with possible structural problems, damp walls requiring significant remediation, sewage systems to be redone, or building code violations to be regularized.
Moreover, you must consider the logistical problems of some areas, which could contribute to increased costs. Many small historic centers have narrow streets with difficult access for heavy vehicles, making the transport of construction materials slower, more complex, and expensive. Many initial estimates are overly optimistic, but unfortunately, owners realize this too late. Finding a designer or qualified company is not easy, and this problem, widespread throughout Italy, could be more critical in small villages and isolated towns. It is therefore essential to assess the availability of professionals before committing to the purchase. Remember that once the house is purchased, it is mandatory to comply with the deadlines imposed by the municipality: if the renovation is not completed within the expected timeframes, you will lose both the house and the guarantee money.
How much does the renovation cost? Renovation costs depend on various aspects, but since these are old properties or even with stability problems, the expense could be significant, in some cases. As an indicative level, the complete renovation of the interiors of a house or apartment has an average cost of about 1,000 euros per square meter. This range includes all necessary construction work to demolish and completely renovate the interiors, including the replacement of systems and the refurbishment of finishes such as floors, coverings, doors, windows, and bathroom furnishings. If it is not necessary to renovate all the interiors, you will spend less (obviously). To this expense, you must add the design costs and other required tasks, which can account for up to about 10% of the work cost, plus any work on the exterior of the house, which unfortunately is difficult to quantify without knowing the house's condition. If you want to learn more about the topic, I recommend watching my video on Italian renovations, which you can find in the description.
Is it possible to buy these houses without hiring an agent? Yes, it is possible to proceed without an agent. However, relying on a professional can make the entire process much smoother, especially when dealing with properties related to the 1 euro house initiative. Each municipality adopts specific regulations, timelines, and documentation: an agent with local experience can guide you step by step, helping you correctly fill out all the documents and reducing the risk of errors that could slow down or compromise the purchase.
Is it possible to transform the property into a B&B? In many cases, it is possible, but you will need to check the regulations of the municipality where the property is located.
Are buyers required to live in the new house? You are not required to live in the new house, but some municipalities carefully select who can acquire the 1 euro houses. In case of multiple interested parties, they may prefer those who can spend more time in the town over those who would only visit occasionally.
Does buying the house guarantee residency in Italy? No, purchasing the property does not entitle you to apply for residency in Italy.
Where can you find the 1 euro houses? There is no official portal for the initiative with an updated map of all the 1 euro houses for sale in Italy. To start, you can consult these sites that list some of the available properties, most of which are located in Sicily.
Before saying goodbye, I want to tell you something very important. As we have seen, the 1 euro house initiative is undoubtedly fascinating. It offers the possibility of becoming a homeowner at symbolic costs and contributing to the revival of Italian villages full of history. But be careful: it's not a game, but an investment, and as such, it presents a series of risks, mainly related to renovation. The commitment is real, with deadlines to meet and work to be completed. If you don't keep your promises, the municipality will claim the guarantee and take back the property. If you're interested in the project, make sure to gather all the information, evaluate it carefully, and if you decide to proceed, do it with awareness and the right resources. If you don't have experience with Italian renovations and want to learn more, in the description you’ll find my video where I explain how they work and answer the most frequently asked questions on the topic. If this video was helpful, drop a like and subscribe to the channel, turning on notifications ciao!