Buying Property in Italy: What the EU’s New Energy Rules Mean for Foreign Buyers
Italy’s historic apartments, countryside farmhouses and character-filled villas attract buyers from around the world. However, many of these properties were built long before modern standards for insulation, heating and energy efficiency.
That makes the European Union’s revised Energy Performance of Buildings Directive—usually called the EPBD—particularly important for anyone considering buying, renovating or investing in Italian property.
The new rules are designed to reduce energy consumption across Europe’s building stock and support the transition towards zero-emission buildings by 2050. They could also influence renovation costs, property values and buyer demand in Italy.
For international buyers, the key message is simple: a property’s energy performance is becoming an increasingly important part of the purchasing decision.
Why the EPBD matters in Italy
Italy has one of Europe’s largest stocks of older and historic buildings. Many homes have limited insulation, inefficient windows and heating systems that are expensive to operate.
This creates a challenge for property owners—but it may also create an opportunity.
Buyers who improve an inefficient property could benefit from:
Lower heating and cooling costs
Greater year-round comfort
Better appeal to future buyers and tenants
Reduced exposure to changing energy regulations
The potential to add value through carefully planned renovation
Across the EU, approximately 85% of buildings were constructed before 2000 and around 75% have poor energy performance. Buildings account for roughly 40% of the EU’s energy consumption, making renovation a major part of Europe’s climate strategy. European Commission: Energy Performance of Buildings Directive
What is changing under the revised EPBD?
The revised directive entered into force on 28 May 2024. EU countries were required to transpose it into national legislation by 29 May 2026, with detailed national measures determining how many of its provisions operate in practice.
This distinction matters. The EPBD establishes an EU-wide framework, but Italy decides how many of the residential measures are implemented within its national property market.
Residential buildings
For residential property, the directive does not impose a blanket rule requiring every individual home to achieve a particular energy class by a fixed date.
Instead, each country must establish a national pathway that reduces the average primary energy use of its residential building stock by:
16% by 2030
Between 20% and 22% by 2035
At least 55% of this reduction must be achieved through improvements to the worst-performing residential buildings. Countries have flexibility to decide which properties and measures to prioritise.
Non-residential buildings
The rules are different for non-residential property.
National minimum energy-performance standards must lead to the renovation of:
The 16% worst-performing non-residential buildings by 2030
The 26% worst-performing non-residential buildings by 2033
This may be particularly relevant to investors considering hotels, hospitality businesses, offices, shops or mixed-use properties in Italy.
Zero-emission new buildings
The directive makes zero-emission construction the future standard for new buildings.
New buildings occupied or owned by public bodies must meet the zero-emission standard from 2028, while all other new buildings must do so from 2030.
This mainly affects newly constructed property rather than existing Italian homes, although it will gradually change what buyers expect from the wider market.
Solar-ready buildings and renewable energy
New buildings must be designed so that solar energy installations can be added where technically and economically appropriate.
Solar requirements will also be introduced progressively for certain existing non-residential buildings. For buyers renovating detached homes, farmhouses or villas, solar panels may become an increasingly attractive part of the project even where they are not compulsory.
Fossil-fuel boilers
EU countries were required to stop providing financial incentives for the installation of new stand-alone fossil-fuel boilers from 1 January 2025.
This does not amount to an immediate EU-wide ban on every existing gas boiler. However, it signals a long-term move towards heat pumps, renewable heating and other lower-emission systems.
Energy Performance Certificates
Italy already requires an Attestato di Prestazione Energetica, or APE, in many property sales and rental situations.
The APE places a property within an energy class, normally ranging from A4 for the most efficient buildings to G for the least efficient.
Under the revised EPBD, energy certificates will become more consistent and increasingly digital. As buyers become more aware of running costs and renovation obligations, the rating shown on an Italian property’s APE is likely to carry greater commercial importance.
Will owners be forced to renovate every inefficient Italian home?
There is no EU-wide rule automatically forcing every Italian residential property to reach class E by 2030 and class D by 2033.
That claim is based on an earlier version of the proposed legislation and does not accurately describe the final directive.
The adopted EPBD gives national governments flexibility to determine how residential energy reductions will be achieved. It also allows countries to create exemptions for certain categories, potentially including officially protected historic buildings, places of worship and some holiday homes.
However, an exemption should never be assumed. Its availability will depend on the property, its use and the way Italy implements the directive.
The practical obligations affecting a particular home must therefore be checked under current Italian national and regional rules.
What this means for foreign property buyers
The EPBD should not necessarily discourage people from buying older homes in Italy. Some of the country’s most attractive opportunities are properties requiring restoration.
It does mean that energy performance should form part of the financial assessment before making an offer.
An inexpensive house can become considerably less affordable if it requires a new roof, replacement windows, insulation, electrical work and a completely new heating system.
Before buying, consider requesting:
The property’s current APE certificate
Estimated annual energy consumption
Details of the heating and cooling systems
Information about windows, roofing and insulation
Quotations for likely energy improvements
Confirmation of any historic-building restrictions
Advice about national or regional incentives
An assessment from an independent geometra, architect or engineer
The APE is useful, but it should not replace a full technical inspection. A qualified professional can help identify which improvements are possible, what they may cost and whether planning permission will be required.
Potential opportunities for investors
Energy-inefficient property may increasingly trade at a discount, particularly where substantial work is required. For an informed buyer, that could create an opportunity to purchase well, renovate carefully and reposition the property.
A renovated Italian home with lower operating costs and a stronger energy rating may appeal to:
Buyers planning to live in Italy permanently
Retirees concerned about ongoing household costs
Tenants looking for comfortable year-round accommodation
Holidaymakers seeking modern facilities
Future purchasers comparing similar properties
Energy improvements can also make traditional homes more comfortable without removing their character. Insulation, efficient glazing, modern heating and renewable energy can often be incorporated sensitively when the project is properly designed.
The risks buyers should consider
The greatest risk is purchasing on price alone.
Some low-cost Italian properties need extensive structural and energy-related work. Renovation costs can rise further when access is difficult, the building is protected or local planning restrictions limit what can be changed.
Buyers should also avoid assuming that a current government incentive will remain available throughout the project. Italian tax deductions, grants and renovation schemes can change, and eligibility may depend on residency, tax status, building type and the nature of the work.
Always confirm the latest position with an Italian accountant and qualified technical professional before including an incentive in your budget.
The bottom line
The revised EPBD is likely to make energy performance increasingly influential in the Italian property market. Efficient homes may become more attractive, while properties with poor ratings could require larger renovation budgets or face greater resistance from future buyers.
For international buyers, this does not mean avoiding older Italian property. It means carrying out stronger due diligence.
Check the APE, understand the heating system, obtain realistic renovation estimates and investigate restrictions before committing to a purchase. A beautiful Italian home can still be an excellent investment—but its future running costs and energy performance now deserve as much attention as its location, views and purchase price.
The EPBD establishes the European framework, while the detailed rules affecting an individual property depend on Italian legislation and local implementation. Buyers should obtain current professional advice before making financial or renovation decisions.
This article provides general information and should not be treated as legal, tax, engineering or investment advice.




