Published on and written by Cyril Jarnias
Sanremo has long attracted lovers of the Italian Riviera. But behind the postcard image, the city is increasingly establishing itself as a genuine investment market, driven by booming tourism, a world-famous festival, and rental yields often above the Italian average. For a foreign investor, the question is no longer whether Sanremo is interesting, but how to invest wisely.
A real estate investment in Sanremo requires analyzing several factors: market prices and yields, differences between neighborhoods, seasonality, and the types of properties available. Financing for foreigners, rental taxation, and the impact of events like the Sanremo Festival on short-term rental dynamics are also crucial elements to consider.
A rising market, fueled by demand and a shrinking supply
The starting point is prices. In the municipality of Sanremo, the average sale price for residential properties hovers around 3,198 €/m² as of September 2025, slightly up from the previous year. Over two years, the recent high stands at 3,221 €/m² and the low at 3,023 €/m², indicating a fairly stable but upward-trending market. Another source confirms this trend, with an average around 3,210 €/m² and an annual increase of approximately 5.87%.
This is the average gross rental yield achieved in Sanremo, which can climb as high as 8.7% depending on the neighborhood.
The market is characterized, however, by a shortage of properties for sale. A significant portion of the housing stock has been converted into short-term rentals, which reduces the supply for traditional buyers but supports prices and rents. The result: an average property value around 229,000 €, an average monthly rent of 980 €, and a theoretical payback period of about 19.5 years.
To place Sanremo within the Italian landscape, prices per square meter are lower than in the major cities: roughly 2,500–3,200 €/m² compared to 6,000 €/m² in Rome or 7,500 €/m² in Milan. In other words, it remains a premium coastal market, but cheaper than the economic capitals.
Sanremo: a residential and vacation market
The city is home to just over 53,000 permanent residents and nearly half of all transactions involve second homes. This translates into a highly hybrid market: primary residences for some Italians, leisure homes for many domestic and foreign buyers, and rental investment products for others.
In Genoa, the most sought-after properties are apartments with sea views in the historic center, waterfront villas with pools, and modern residences in quiet neighborhoods like Foce or San Martino. Prices in these residential areas generally range from 2,200 to 3,500 €/m². For large seaside villas, prices can reach 8,000 to 12,000 €/m². For instance, a two-room apartment near the casino might cost around 350,000 €, while a three-bedroom villa slightly set back from the beach could be listed at around 600,000 €.
Understanding prices by neighborhood: from the center to the hinterland
Sanremo is not a homogeneous market. Depending on the neighborhood, proximity to the sea and the center, or even the view, the price gap can be considerable. Data from September 2025 provides a very telling map.
Price overview by area
The table below summarizes average sale and rental prices in the city’s main sectors.
| Zone / Neighborhood | Average Sale Price (€/m²) | Average Rent (€/m²/month) |
|---|---|---|
| Centro | 3,689 | 14.95 |
| San Martino – Villetta – La Brezza – Tre Ponti | 3,597 to 3,789 | 12.42 |
| Solaro – Foce – Semeria | 3,562 | 12.80 |
| Corso degli Inglesi – San Bartolomeo | 3,244 | 13.05 |
| Poggio – Bussana | 3,093 | 12.28 |
| Ospedale – Borgo – Baragallo | 2,244 | 10.65 |
| Verezzo – San Romolo – Borello – Coldirodi (hinterland) | 1,798 to 2,113 | 12.04 |
Several key takeaways emerge from the details.
Average price per square meter in August 2025 in Sanremo’s Centro, the most expensive sector for rentals.
San Martino, Villetta, La Brezza, and Tre Ponti form another highly sought-after cluster. According to one analysis, this is where average prices are the highest in the city, around 3,789 €/m². These neighborhoods blend recent residences, apartments with terraces, and direct sea access, explaining this pricing advantage.
The Foce area is known for its tranquility, services, and immediate proximity to the beach, making it one of the most sought-after sectors. Real estate prices here range from around 3,550 to 3,562 €/m², with rents near 13 €/m². This neighborhood is typically chosen for acquiring a high-end second home or for a rental investment, mainly attracting families and retirees.
At the other end of the spectrum, Verezzo, San Romolo, Borello, and Coldirodi, set back on the heights, show the most affordable prices, starting from about 1,800 €/m² according to some sources and around 2,100 €/m² according to others. These areas often offer panoramic sea views, a village atmosphere, and larger living spaces, but with fewer immediate services. For an investor on a budget who accepts a less central location, the size-to-price ratio is particularly attractive.
Finally, Ospedale–Borgo–Baragallo, midway between the center and the outskirts, offers a compromise: average sale prices around 2,244 €/m² and rents of about 10.65 €/m². This type of neighborhood can yield higher returns, as the sale-to-rent spread is more favorable than in the hyper-center.
Rental yields: where does the best profitability lie?
For an investor, the question of returns comes first. Available figures provide a clear picture, based on property size and type of rental.
Profitability by apartment type
A database specific to Sanremo details average yields based on number of bedrooms:
| Type | Average Price (€) | Average Monthly Rent (€) | Average Gross Yield |
|---|---|---|---|
| 1 bedroom | 108,250 | 750 | 8.31% |
| 2 bedrooms | 158,500 | 800 | 6.06% |
| 3 bedrooms | 230,000 | 1,150 | 6.00% |
| 4+ bedrooms | 370,000 | 1,300 | 4.22% |
It is clear that smaller units are the most profitable, particularly one-bedroom apartments (one bedroom) with over 8% average gross yield. Three-bedroom units sit around 6%, while larger apartments drop to around 4% because rents increase more slowly than sale prices.
Nearly half (48%) of all rental listings are for two-bedroom homes, and 22% for three-bedroom homes. These majority segments offer investors targeting sought-after areas a combination of strong demand, low vacancy, and solid profitability. Studios (insufficient data) and large homes (13% for 4+ bedrooms) are a minority.
Center vs. outskirts: price-to-rent ratio
The price-to-rent ratios provide another analytical framework. In the city center, the price-to-rent ratio comes out at around 28.42, compared to 22.48 in the outskirts. The higher this ratio, the longer the theoretical payback period of the investment through rents. In practical terms: it is more “expensive” to buy each euro of potential rent in the center than outside.
As for average gross yield, it is around 3.52% in the hyper-center versus 4.45% outside, considering only traditional long-term rentals. But these figures must be nuanced by a key factor in Sanremo: the weight of seasonal and short-term rentals, which completely changes the game in tourist areas.
The leverage of seasonal and short-term rentals
Sanremo is experiencing a boom in short-term rentals. There are approximately 1,300 active Airbnb and similar listings. According to 2024–2025 data, a typical property rents for an average of 182 to 186 nights per year, with a median occupancy rate of 50–51%. The average daily rate hovers around 115–118 €, and the average annual income is between 21,000 and 22,000 €.
Summary of the main indicators for the short-term rental market
Average percentage of nights occupied relative to available nights over a given period.
Average revenue generated per rental night, excluding fees and taxes.
Average revenue generated by a property over a one-month period.
Average number of nights per booking, an indicator of the type of clientele.
| Indicator (Airbnb & similar) | Average Value |
|---|---|
| Nights rented per year | 182 – 186 |
| Median occupancy rate | 50 – 51% |
| Average nightly rate (ADR) | 115 – 118 € |
| Average annual revenue | 21,000 – 22,000 € |
| Average monthly revenue | 1,789 – 1,863 € |
| Annual revenue variation | +32 to +38% |
| Share of “entire home” listings | 95.5% |
| Share of apartments/condos | 84% |
If we apply these figures to an apartment purchased for 200,000 €, generating 22,000 € in gross annual revenue, we get a gross yield of around 11%. Even after deducting expenses, management, and taxes, the net profitability can far exceed that of traditional long-term rentals. This explains why yields on the short-term segment in Sanremo are often reported between 7 and 9%, and even higher for well-located and well-managed properties.
It is worth noting that the market is not considered “saturated”, even though Sanremo ranks relatively low in the Italian table for annual revenues compared to some hotspots (Florence, Rome, Venice). This leaves room for growth, provided the focus is on location, property quality, and professional management.
The key role of the Sanremo Festival and seasonality
It is impossible to understand the local real estate market without mentioning the Sanremo Festival. Every year, for one week, the city transforms into a media, economic, and cultural capital. Journalists, artists, TV production crews, sponsors, guests… The influx is massive and highly solvent.
For the hotel and restaurant (HoReCa) sectors, this week represents revenue peaks of +200 to +300% compared to the seasonal average. Hotels are full, restaurants run double shifts, and providers of logistics, security, audiovisual, and event services earn a significant portion of their turnover during this period.
For owners and investors, demand explodes near the Teatro Ariston, the seafront, and the panoramic neighborhoods. Key criteria are: centrality, attractive appearance, sea view, terraces, comfort, and discretion. These specific areas also show the greatest medium-term stability in prices and rents.
The Festival effectively acts as a permanent “intangible infrastructure”: it boosts the city’s international profile, increases Sanremo’s desirability as a second-home destination and investment location, and helps stabilize tourist demand throughout the year. Combined with the mild climate and proximity to France, this explains why Sanremo has been the most sought-after non-capital city in Italy for buyers for three consecutive years, ahead of other coastal destinations.
Seasonality from the buyer’s perspective
For buying, the season also matters. Across Italy, spring traditionally accounts for 35% of annual sales, and properties sell faster from March to June, with demand increasing by about 15%. In summer, especially on the Riviera, tourists are numerous and competition can be tough, particularly for commercial or tourism-related properties. In regions like Liguria, there is even an average price premium of around 25% during high season, with sellers very reluctant to negotiate.
About a quarter of annual real estate sales close in the fall.
To structure a buying strategy in Sanremo, many investors therefore favor late summer or fall, periods conducive to negotiations, more relaxed viewings, and preparing a property for rental during the following high season.
New builds, developments, and villas: what you can buy in Sanremo
Beyond the overall statistics, it is useful to look at the types of specific properties currently available in the city, as they clearly illustrate the market’s orientation toward quality, energy efficiency, and sea views.
New and upscale residences
Sanremo has a significant number of new developments or recently built ones, often in the San Martino, Foce–Semeria neighborhoods or around Bussana. A few emblematic examples give an idea of prices and amenities.
For instance, there is a new building on Via Vesco in the San Martino neighborhood, composed of four units, all with private parking spaces, and fully accessible (no architectural barriers). The available units range from 60 to 170 m², with prices between roughly 347,000 € and 677,000 €. The positioning is clearly in a comfortable segment, suitable for upper-middle-class Italians or foreigners.
Residenza Carducci in Sanremo is a small upscale building with only eight apartments.
In the San Martino–Villetta area, a project on Via Carlo 433 offers seven prestigious apartments in energy class A, surrounded by gardens, steps from the sea, with large panoramic terraces. It includes a 178 m² penthouse at 1,150,000 €, and units around 123–127 m² between 650,000 and 665,000 €. Another project, Vesco 39, emphasizes a combination of modernity, comfort, and energy savings, with apartments ranging from 80 to 105 m², priced from 590,000 to 771,000 €.
On the seafront, the Vistamar residence embodies the new generation of ultra-contemporary complexes: built in 2022, 25 luxury apartments, a green rooftop, an infinity pool on the penthouse, high-end finishes (cream marble, white oak parquet, home automation, radiant floor heating with heat pump, fan-coil air conditioning), concierge service, direct beach access via an underground passage, and connection to the bike path. A top-floor unit has a 153 m² terrace, three bedrooms, and a garage with beach access. This type of property targets an international clientele seeking uncompromising comfort.
Villas and homes with sea views
Sanremo and its hills also host a large number of villas, some under construction, some historic but renovated. In the areas of Coldirodi, Solaro, Capo Pino, or on the hills of San Lorenzo, you can find detached homes ranging from 280 to over 500 m², often on plots of 1,400 to 3,000 m², with pools or planned pools, security systems, rainwater harvesting, home automation, and spectacular sea views.
The sale price of a former luxury hotel in Nice of 5,000 m², with an approved redevelopment project for a senior residence.
For an investor, these products are not necessarily suited to standard rentals, but they can be interesting for projects such as hotel-style residences, luxury retirement homes, boutique hotels, or upscale coliving, especially in an Italian context where hotel and para-hotel investment is growing strongly.
Financing a purchase in Sanremo as a foreigner
Italy allows non-residents and non-citizens to buy real estate, provided the principle of reciprocity is respected: the country of origin must grant Italians similar rights. This is the case for most Western countries, including the United States, the United Kingdom, Canada, Switzerland, and Australia. Citizens of the European Union can buy freely.
Buying with a mortgage is possible, but conditions are stricter than for residents.
Real estate loans: loan-to-value, term, requirements
Italian banks generally lend 50 to 60% of the property price to a non-resident, sometimes up to 70% for the best profiles. Residents with income in Italy can get 70–80%, especially for a primary residence, and public schemes even exist to finance up to 95–100% for young first-time Italian buyers.
For a foreign investor looking to purchase a property in Sanremo, a personal down payment of 30 to 50% of the price, or even more, is generally required to secure good financing terms. The loan term is often limited to 20–25 years for non-residents, and the loan must be fully repaid before the borrower reaches an age typically between 70 and 80.
Banks typically require that the total debt burden does not exceed 30–35% of net income, with an annual income three to four times the monthly installment. Files for self-employed workers require three years of financial statements. All foreign documents must be translated into Italian and sometimes apostilled.
Interest rates for non-residents are higher than for residents, often by 1 to 2 percentage points. In 2025, fixed rates around 3.5 to 5.5% are cited for foreigners, while banks like Intesa Sanpaolo or Unicredit advertise minimums around 3.5–3.8%.
The process of obtaining the loan is lengthy: expect 3 to 4 months for a non-resident, compared to 1 to 2 months for a resident, due to checks, translations, and the banks’ increased caution. Using a broker specialized in international financing is often recommended to navigate between Italian banks and certain private banking players.
Essential administrative steps
Before even considering financing, an investor must obtain their Codice Fiscale, the Italian tax identification number, which is essential for signing any contract, opening a bank account, paying taxes, and taking out insurance. The Codice Fiscale can be obtained free of charge from the Agenzia delle Entrate or through an Italian consulate abroad.
For a real estate purchase in Italy, opening a local bank account is generally essential to obtain a loan and process the transaction. The process typically follows three steps: a purchase offer, a preliminary contract (contratto preliminare) accompanied by a deposit of 10 to 30%, and then the signing of the final deed (rogito) before a notary. The notary checks the validity of the title deeds, the absence of undisclosed mortgages, and handles the registration of the deed.
The notary acts as a public official, neutral between seller and buyer, although it is usually the buyer who chooses and pays them. The assistance of an independent English- or French-speaking lawyer is strongly recommended, especially for foreigners unfamiliar with Italian law.
Taxation of rentals in Sanremo: what an investor should know
Buying a property in Sanremo to rent it out inevitably means entering the Italian tax labyrinth. The good news is that the country offers an attractive flat-rate regime for rental income, the cedolare secca, but this regime is not always applicable, especially when the activity becomes akin to a true business.
Long-term rentals and the cedolare secca
For “classic” rentals (leases longer than 30 days, residential leases), the owner can choose between two main regimes:
– the cedolare secca, a flat tax of 21% (with a reduced rate of 10% in certain specific situations) on the gross rent, which replaces income tax (IRPEF), regional and municipal surtaxes, as well as the registration and stamp duty on the lease;
– the ordinary IRPEF regime, with progressive taxation from 23 to 43% on a tax base equal to 95% of rents (standard 5% deduction for expenses), plus local and regional surtaxes.
For a non-resident, the cedolare secca regime simplifies Italian real estate taxation: the rent is not integrated into the progressive IRPEF, there are no local surtaxes, and the calculation is transparent. However, the major drawback is the complete absence of deduction for expenses, such as loan interest, renovations, or management fees. Opting for this regime must be done when registering the lease.
Short-term rentals and “entrepreneurial” activity
Things get more complicated with short-term tourist rentals (under 30 days). For one or two properties rented occasionally, the cedolare secca can apply at 21% (and, for a second property under recent budget laws, a tax rate of 26% is foreseen on certain portions of income).
Beyond two or three apartments rented short-term during the year, the legislator considers the activity to become a business activity. From three units, the law for fiscal year 2026 presumes an entrepreneurial activity, which implies:
To carry out an activity in Italy, it is mandatory to open a Partita IVA (VAT number). Registration with social security (INPS) and payment of contributions may also be required. By leaving the cedolare secca regime, the income is treated as professional income, implying the keeping of accounts, potential application of VAT, and taxation under the ordinary regime or the flat-rate regime (Regime Forfettario).
The Regime Forfettario can be attractive for small structures: a tax base limited to 40% of gross rents (automatic 60% deduction), a flat rate of 5% or 15% depending on the situation, and no application of VAT on rents. However, VAT on expenses is not recoverable, and social security contributions may be added, representing up to roughly 15% of gross rents, although reductions exist in the first few years.
For a foreign investor who does not wish to run a “micro-business” in Italy, it is often simpler to stay below the thresholds for professional activity, or to completely delegate management to a management company, which can shift part of the tax burden onto that company’s professional income rather than the owner’s.
Local taxes and other levies
Beyond income tax, any property in Sanremo entails:
Main taxes and levies linked to property ownership or occupation in Italy.
Annual tax due by property owners, based on the cadastral value. Rates vary by municipality; applies to second homes and rental properties.
Annual tax covering waste collection and disposal services, calculated based on property size and number of occupants.
One-time tax paid when signing a lease or purchase deed. Rates vary; reduced rates apply for primary residences under certain conditions.
Tax due on the sale of a property not used as a primary residence, calculated on the capital gain realized since acquisition.
For a non-resident, one must also keep in mind the taxation in their home country. In principle, double taxation treaties provide that Italy retains the right to tax real estate income located within its territory, but taxes paid in Italy may be credited in the country of residence. This is notably the case between Italy and the United States or most European countries.
Property management and local players: a highly professionalized market
The dynamism of short-term rentals in Sanremo has fostered a dense ecosystem of specialized companies that can simplify the lives of investors.
Players like Wonderful Italy, Homeleven, or local agencies offer comprehensive services: listing on major platforms (Airbnb, Booking, VRBO, etc.), dynamic pricing optimization, guest check-in, professional cleaning, maintenance, and handling of administrative and fiscal formalities (police registration via the Alloggiati Web portal, tourist tax reporting, etc.). Most offer free rental potential assessments and monthly performance reports.
For property acquisition, agencies like LiguriaHomes Casamare, The Italian Property Company, or Acquamarina International Home have in-depth expertise in the local market, from Sanremo to Bordighera, including Imperia and Ospedaletti. Some benefit from international partnerships (e.g., Hamptons International) or specifically target foreign English-speaking, Russian-speaking, or Northern European clientele.
For a foreign investor who lacks the time or inclination to remotely manage a short-term rental with high seasonality, the simplest solution is often to entrust management to one of these specialized structures, even if it means paying a commission, in exchange for a better occupancy rate and ADR optimization.
Sanremo in the Italian and Ligurian context
Sanremo fits into a generally positive Italian real estate dynamic. Nationally, residential transactions reached nearly 950,000 in 2024, slightly up, with 93.7% of these transactions being residential. The Northwestern regions, including Liguria, showed sales growth of around +3.3% over the year.
Foreign investors, who represent about 58% of investment volumes in Italy, primarily target tourist destinations, art cities, coastal areas, and the luxury market. Sanremo combines these assets: it is a seaside town with a mild climate on the Ligurian Riviera, close to the French Riviera, with a long tourist and event tradition, and a glamorous image sustained by its Festival and Casino.
Compared to other Italian or Croatian tourist destinations, Sanremo sits in an intermediate price range. The historic centers of Florence, Rome, or Venice often exceed 5,000 to 7,000 €/m² with similar or even lower long-term yields, and stricter regulations on tourist rentals. In Croatia, cities like Dubrovnik or Split show comparable prices, but with an even stronger dependence on mass tourism, which can increase volatility in a crisis.
Sanremo, on the other hand, benefits from an extended tourist season from March to October, mild winters, and a more pronounced residential dimension, which helps cushion potential shocks.
How to build an investment strategy in Sanremo
In conclusion, investing in real estate in Sanremo requires carefully balancing three dimensions: choice of neighborhood, trade-off between short-term and long-term rentals, and legal and tax optimization.
An investor with a more “wealth preservation” approach, seeking a quality second home with personal use and limited seasonal rental, would naturally lean toward the Centro, Foce, San Martino, or Solaro areas, with a new or renovated property, sea view, and terrace. The gross yield may be slightly lower than a purely rental product, but long-term appreciation and the enjoyment of use will offset this difference.
For a yield-focused investor, prioritize one- or two-bedroom apartments in the Ospedale–Borgo–Baragallo, Poggio–Bussana sectors or certain points in the hills of Coldirodi or San Romolo, combined with well-managed short-term rentals. Aim for gross yields of 7–9% while monitoring changes in tax rules on tourist rentals and the threshold for transitioning to professional activity.
A professional or institutional investor, on the other hand, might look at redevelopment opportunities (former hotels, large historic villas, seafront buildings) into service residences, co-living, para-hotel structures, or upscale senior residences, capitalizing on sustained demand for hotel and semi-hotel products in Italian tourist cities.
The local real estate market is experiencing a moderate but steady increase. Tourist demand is strong and now much more spread out over the entire year. The Sanremo Festival, a tool for global visibility, reinforces the city’s appeal to travelers and buyers year after year.
For a patient, well-advised investor attentive to tax aspects, Sanremo today offers a rare combination of quality of life, return potential, and long-term appreciation prospects.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
