Conventioned apartments in South Tyrol – what buyers need to know now

What does “subsidized housing” mean?

Subsidized or “housing for residents” are properties subject to specific legal restrictions.
Their purpose is to ensure that housing remains accessible to the local population and to limit speculation and excessive tourist use.

Housing Reform 2025 – new rules for buyers and residents

Since June 20, 2025, the new “Housing Reform 2025” has introduced major changes for subsidized housing:

• Main residence requirement: those who move into a subsidized apartment must transfer their official residence within 60 days.
• Ownership of other properties is no longer relevant.
• Increased penalties: unauthorized use results in doubled fines; for tourist use, tripled fines apply.

Who can buy or occupy a resident-restricted apartment?

Anyone can purchase a subsidized property, but the key factor is who occupies it.
The law states that the resident (or a family member) must have a stable connection to South Tyrol.

Obligations for buyers

Buyers of subsidized apartments assume legal obligations.
If they are not residents, the property must be rented or occupied by an eligible person, respecting the provincial rent limit (“Landesmietzins”).
The apartment must be occupied within one year of completion.

Duration of the restriction

The restriction is generally permanent.
For older properties, it may expire after 20 years with an official clearance certificate issued by the mayor.

Advantages and disadvantages

Advantages

• More affordable purchase prices
• Secured housing for local residents
• Stable long-term demand

Disadvantages

• Limited use: only eligible persons may occupy the apartment.
• Limited market appeal: Although the selling price is not legally limited, market demand may be narrower since only eligible buyers can acquire or occupy it. Consequently, value growth tends to be more moderate than for unrestricted properties.
• Rent limit: The provincial rent cap must not be exceeded.

Conclusion

Purchasing a subsidized apartment in South Tyrol is not an ordinary real estate transaction.
It requires a thorough understanding of the legal framework but represents a real opportunity for residents to acquire property in their home region.

SANLUI Real Estate – your partner for property in South Tyrol

Would you like to know whether a subsidized apartment is right for you or what opportunities the market currently offers?
Contact SANLUI Real Estate – we provide expert, discreet, and personalized advice.

Legal notice

This article does not constitute legal or tax advice.
Legal references: Art. 79 Provincial Law 13/1997, Law 9/2018, and Housing Reform 2025.