How to buy a house for one euro in Italy and Europe

The Case 1 Euro website states: “For just 1 euro you can buy your dream in this beautiful town in the heart of Sicily, just a few kilometres from stunning beaches and the historic temples of Agrigento.”

“In Mussomeli you will experience ancient Sicily, the real Sicily. Mussomeli is the city of Manfredi Castle and tradition. In Sicily you will not only buy a house, but you will also have the opportunity to experience our culture, traditions, and the slow and leisurely life of one of the most peaceful and safe lands in the world.”

Not surprisingly, one of the site’s FAQs is: “Is this real or a joke?”

The answer is yes. The scheme is fully managed by the local council.

The work may or may not be done by local construction companies, but the city has builders and architects.

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Buyers will need to travel to Mussomeli to personally inspect the property and obtain a quote for repairs and updates. If the amount is satisfactory, the interested buyer will fill out an application for purchase and must submit it in person at the municipal office.

The contract outlined a time limit for the restoration (three years to complete) and included a €5,000 (about $8,000) security deposit to the council, valid for three years, which the council would retain if the buyer failed to meet its obligations and left the property in ruins.

So why are these homes so cheap? Taxes, of course. The tax structure makes it financially uneconomical to own multiple properties. If a family inherits a second property, it may make more sense to sell it at a low price.

“In Italy, property tax is not payable on the first home (for Italian citizens only),” explains the Case 1 Euro website. “If you own more than one home, you must pay it. Therefore, many citizens who own multiple homes have to pay the maximum tax to the Italian government, so they would rather sell their home for 1 euro than pay the additional tax.”

This article was originally published on domain.com.au.