Buying a CAV in Italy – What Foreign Buyers Need to Know

Buying a CAV in Italy – What Foreign Buyers Need to Know

Italy, and especially Sardinia, is increasingly popular among international real estate investors. One attractive option is purchasing a CAV (Casa Appartamento Vacanze) for commercial (tourism) use.

🏡 What is a CAV?

A CAV is a holiday home or apartment that is officially designated for tourist rental. This means:

• Not allowed for personal residential use

• Not suitable for long-term rental

• Registered as a commercial hospitality business

✅ What can the buyer do?

• Rent the property to tourists (short term)

• Delegate all operations to a local agency

• Earn income from holiday rentals

❌ What is not allowed?

• Using it as a private second home

• Renting to long-term tenants

• Changing its use to residential without permits

💼 Do I need to open a company in Italy?

No, not if you delegate the management.
If a licensed agency manages the property, you do not need to open a VAT number (Partita IVA).
The agency takes care of everything: guest check-ins, cleaning, local reporting, and income handling.

💰 How does taxation work?

Even as a non-resident (for example, living in Germany), you must pay taxes in Italy on the rental income.

• Under the Double Taxation Treaty between Italy and Germany, Italy has the right to tax income from Italian real estate.

• You must obtain a Codice Fiscale (Italian tax code).

• An Italian tax advisor will file your annual income tax declaration.

• Income is taxed at progressive IRPEF rates (23–43% depending on the amount).

• You must declare the income in Germany, but you’ll receive a tax credit for taxes paid in Italy.

📌 Summary

Buying a CAV in Sardinia is a smart way to generate steady rental income without living in Italy.
With professional management, everything is handled smoothly – and you stay fully compliant with Italian and international tax rules.
We’re here to guide you through every step – from purchase to rental to tax assistance.