Case #TI2602C
Purchase of two apartments in Italy with sitting tenants
Service area: Real estate in Italy
Sector: Residential - income-generating property
Region: Italy (Piedmont, Province of Alessandria)
Sector: Residential - income-generating property
Region: Italy (Piedmont, Province of Alessandria)
Context
A CIS-based client wanted to acquire residential property in Italy for rental income - with a low entry threshold and predictable yield. No relocation, no hands-on management, with sitting tenants from day one.
Two units in the same building in Ovada (AL, Piedmont) - old building stock, both apartments already let on long-term contracts.
Two units in the same building in Ovada (AL, Piedmont) - old building stock, both apartments already let on long-term contracts.
What made it complex
The technical audit identified discrepancies between the cadastral plans and the actual condition of the apartments. Without resolution, the notary cannot proceed with the transaction. The objective: have corrections made at the sellers' expense, within the agreed price structure. Timeline extended from six weeks to four months.
Scope of work
- Technical audit: geometra + municipal archive (Comune) review before signing any agreement
- Identification of cadastral discrepancies and structuring of the negotiating position
- Coordination of corrections via DOCFA - at sellers' cost, absorbed into the price structure
- Transaction support at the Rogito with tax optimisation under the Prezzo-Valore system
- Transfer of tenancy agreements to the new owner (Subentro) via Modello RLI
- Security deposit transfer via separate instant payment on the day of signing
Result
The client entered with a clean title, sitting tenants, and income from day one.
- All-in investment: 57,400 EUR (two apartments - purchase + agent + geometra + notary + taxes + advisory)
- Rent: 280 and 300 EUR/month, utilities paid by tenants
- Contracts: 4+4, Cedolare Secca flat tax 21%
- Net income after tax: ~5,500 EUR/year
- Net yield: ~9.6% p.a. (without IMU) / ~9.0% (IMU included)
- Payback period (gross): ~8 years
- Subentro confirmed the day after signing, registration fee: 0 EUR
Key Takeaway
Income-generating property in Italy with a budget from 30,000 EUR per unit is achievable. The provincial markets of Piedmont and Liguria deliver net yields of 9-10% when the transaction is properly structured. The critical condition: technical and cadastral audit before signing - in old building stock, discrepancies are common and expensive when found too late.
For CIS-based clients, this is also one of the few working formats for holding a EU asset with real income and minimal operational involvement.
For CIS-based clients, this is also one of the few working formats for holding a EU asset with real income and minimal operational involvement.