CHAPTER EIGHTEEN: Property Investing in Italy

Italy is a country of variety, both romantic and cool in equal measure. Magnificent beaches, unspoilt countryside, mountains, ancient cities and towns, an artistic heritage second to none, an enviable climate, world-renowned cuisine and a vibrant and fascinating culture have all combined to make Italy one of the favourite holiday destinations in Europe. The cost of living is comparatively low, the health service and transport infrastructure are excellent, and the pace of life is refreshingly easy-going. Also, due to more stringent planning regulations than in Spain and other countries, Italy has kept its charm and has remained largely unspoilt. For lovers of the outdoors, there is climbing, skiing and snowboarding in the mountains, while the more gentle hilly areas of Tuscany and Umbria are ideal for hiking and mountain biking. Numerous beach resorts dotted along Italy’s coastline also provide excellent opportunities for watersports including sailing, windsurfing and scuba diving.

Economically, Italy is currently moving fairly slowly. Over the last decade the government has pursued a tight fiscal policy in order to meet the requirements of the Economic and Monetary Unions, and has benefited from lower interest and inflation rates. Numerous short-term reforms have been implemented, aimed at improving competitiveness and long-term growth, but other reforms, such as lightening the high tax burden and overhauling the rigid labour market, have been slower to happen. This is partly due to the economic constraints placed on the leadership by the budget deficit, which has breached the EU ceiling. GDP growth stood at 0%...