With property prices reaching record highs in some parts of the world, the opportunity to buy a home for just €1 (£0.85) may seem too good to be true. But a handful of Italy's historic towns and villages have been offering exactly that over the past few years. Of course, these real estate steals come with a few strings attached.
While it's made headlines in more recent years, Italy's €1 home scheme started back in 2008. The quaint town of Salemi on the island of Sicily began offering up a selection of vacant properties for a small, symbolic price tag. The initiative quickly caught on, with more rural towns adopting the same model.
The scheme's rules differ between locations, but it gives buyers around the world the opportunity to purchase a neglected home for almost nothing and renovate it.
Why are the homes so cheap?
In Italy and other countries across Europe, waves of young people have been relocating from small, rural communities to cities in pursuit of better job opportunities. This surge of migration has resulted in dwindling and ageing populations in remote regions and scores of abandoned properties.
Local authorities see the €1 home scheme as a way to inject new life into shrinking towns and villages. New residents are enticed by the offer of cheap property and the area's empty housing stock is revitalised.
Italy has by far the most €1 home initiatives, extending from southern regions including Campania and Puglia to Tuscany and Emilia-Romagna. There are aggregate websites like 1 Euro Houses with details of participating municipalities, while some towns like Mussomeli in Sicily have dedicated listing sites.
The scheme has spread to other parts of Europe too. The home pictured here was one of 18 in the French city of Roubaix listed for €1 (£0.85) in 2018.
In some areas, sales are run as auctions, which can mean €1 homes sell for more than advertised.
Eligibility criteria
The €1 homes are typically released by municipalities in batches, and you need to meet certain criteria to purchase them. Requirements vary between towns, but generally you need to be over the age of 18 and able to prove you have the funds to carry out the necessary renovations within a specific time frame. Many schemes require a deposit as a guarantee, and some might incur ownership taxes or other admin costs.
Some towns and villages require buyers to inspect homes in person before a sale is finalised and even commit to permanently relocating to the municipality. Be aware, buying a house does not automatically give you the right to live in the country.
Legal conditions
Many countries from outside the EU, including the UK, have reciprocal agreements with Italy, meaning citizens can purchase property in Italy without legal residency and vice versa.
However, you need an Italian tax code to buy a home here. For UK citizens who plan to relocate to Italy, tax codes are allocated by local immigration offices or police district headquarters, depending on your type of residence permit. If you're not relocating to Italy, you can nominate a representative to apply for a code for you from the Italian Revenue Agency.
Visa requirements
Purchasing a home doesn't grant you an Italian residency visa if you’re a UK citizen. But many citizens from outside of the EU, including the UK, can stay in Italy for up to 90 days within a 180-day period thanks to the EU's visa-free regime.
However, for some €1 house schemes, you may need to commit to living permanently in the municipality, so a long-term visa may be necessary.
Residency options
There are a few routes for UK citizens looking to permanently relocate to Italy. An elective residency visa is granted to foreigners, such as retirees, who can support themselves financially without working, while an investor visa is available to those who invest a minimum of €250,000 (£210k) into the Italian economy.
Alternatively, a digital nomad visa allows you to live and work remotely in Italy. There are other visa options if you're eligible for a work permit or have family in Italy.
After five years, non-EU citizens can obtain permanent residency if they meet certain income and language requirements.
It's a good idea to inspect a €1 house in person before you apply to purchase it. It's also worth hiring a surveyor to assess the condition of the home. Their report will give you an idea of the scale of work required.
Research the local area and see if it's at risk of earthquakes or landslides. If you're planning on relocating and working remotely, be sure to check what internet connectivity is like, plus what local amenities and transport infrastructure are available.
The cost of renovating a €1 house depends on the condition of the property. Some sources estimate an average expenditure of between €20,000 (£17k) and €50,000 (£42k), depending on the size of the home but the upper limit could easily exceed that.
For properties that require a thorough renovation, Mussomeli's municipality website states that costs typically start from €65 (£55) per square foot, but other sources put that figure closer to €92.90 (£79) per square foot
In most cases, you're free to tackle the renovation yourself or enlist local trades to help.
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Some municipalities require the submission of a renovation plan prior to purchase, two months after or within 12 months of buying a property. Schemes usually stipulate that work must begin within a year and be completed within three years.
If buyers fail to meet progress milestones, they may lose their deposit, which can typically be up to €5,000 (£4.2k). Penalties vary between areas. For example, the Calabrian village of Cinquefrondi's 2020 scheme enforced fines of up to €20,000 (£17k) for incomplete projects.
There are numerous challenges involved in fixing up a €1 home. The properties on offer are typically dilapidated and require serious work, like this home in Zungoli, a southern Italian village that has participated in the initiative numerous times since 2018.
Communities tend to be in remote, rural areas, sometimes with limited access, which can make it tricky to get construction equipment and materials to site. Some municipalities may also impose restrictions on renovations, including preserving the home's original façade.
As well as the deposit and renovation costs, there are other hidden fees you need to consider, including sales taxes and notary fees – a notary is a lawyer responsible for drawing up the deed of sale. There's also stamp duty: typically 9% of the property value but it can go up to €20,000 (£17k) for luxury homes.
If you choose not to open an Italian bank account, you'll need to pay a representative, such as an Italian law firm or your notary, to handle your funds.
Municipal property tax is also payable on second homes and all homeowners must pay a local waste collection tax.
Financial assistance
Luckily, there are tax breaks available to residents and non-residents to help with renovation costs. The Italian Superbonus allows you to recover up to 65% of the cost of certain energy-saving building works, including installing thermal insulation, heat pumps and other energy-efficient systems.
Similarly, the Ecobonus covers up to 50% of expenses incurred through eco-friendly upgrades, but savings are limited to 36% for second homes.
Both bonuses are given via tax deductions and have very specific criteria, often over long periods of time, so it's important to read the small print.
While some municipalities will allow you to sell your home after renovating it, others may place restrictions on reselling or require the buyer to live at the property for a certain number of years. After all, one of the scheme's aims is to repopulate dwindling communities.
If you're looking to flip a property and make quick money, the €1 house scheme is probably not for you – house prices tend to be low in rural communities and the margin for profit is usually small.
The village of Cammarata in Sicily is one location participating in the initiative. In 2021, the municipality collaborated with local non-profit StreetTo, run by a team of young people who grew up in Cammarata, to create a database of €1 homes in need of rescue.
Available homes are listed on StreetTo's website and preference is given to applicants who want to make Cammarata their permanent home. Renovations must be completed within three years and a €5,000 (£4.2k) deposit is required.
Over in the central region of Abruzzo, the scenic town of Penne has been selling off €1 homes since 2022. According to information shared by the municipality, the latest batch of homes requires a guarantee of €4,000 (£3.4k).
Applications are prioritised from buyers who commit to using local tradespeople and who will use the home as their primary residence. It's worth noting that applicants can offer more than the modest price tag, so if you are keen to secure one it might be a good tactic.
Briefly mentioned earlier, the Sicilian town of Mussomeli runs a particularly active scheme, which has reportedly seen the sale of between 350 and 400 homes.
€1 homes are listed on the municipality's website and applicants must visit a house in person before making a purchase request.
A €5,000 (£4.2k) insurance deposit is needed to secure a home and buyers then have one year to prepare the home for renovation and a total of three years to finish the project.
Meredith Tabbone, a financial advisor from Chicago in the US, bought a home through the €1 house scheme. Meredith's great-grandfather was from Sambuca di Sicilia in Sicily, so when the town started selling off its empty homes in 2019, it felt like fate.
While the property was listed for €1, Meredith bought it at auction for €5,555 (£4.7k). The building is pictured here following the renovation, but it was in a dire state when Meredith got the keys.
It was clear the structure had been abandoned for some time, however, architectural gems such as the vaulted ceiling were still intact.
After paying a €5,000 (£4.2k) deposit, Meredith decided to expand the project by purchasing the rundown buildings next door to the original home, with a plan to combine them into one house. She bought a total of five properties in the town and hired local tradespeople to bring her dream to life.
Five years and €475,000 (£400k) later, the ambitious renovation was completed. The primary home was expanded to around 2,700 square feet of sensitively updated living spaces that fuse modern amenities with historic charm.
Pictured here, what was once a stable was transformed into a stylish kitchen with a marble island and pantry nook, framed by beautifully restored stone walls.
In this ground-floor guest bedroom, the floor was raised around three feet and whitewashed beams that reference the home's history replaced the utilitarian concrete ceiling.
The experience has been life-changing for Meredith. She now splits her time between Chicago and Sicily and says that taking a chance on a €1 home has helped her embrace a slower pace of life. Are you up for the challenge?
*All prices and conversion rates correct at time of publishing
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