Italian implications of Canadians buying property in Italy

Canadians buying Italian real estate

Italian implications of the Canadian residential property purchase prohibition

Question: Can a Canadian buy real estate in Italy?

Answer: Canadians can buy an Italian property in several instances, in spite of the “Prohibition on the Purchase of Residential Property by Non-Canadians Act” in force since January 1, 2023.

In summary, the Canadian law above established a restriction for foreigners wanting to buy residential properties in Canada. Based on the international law principle of reciprocity, Italy is going to apply mirroring restrictions to Canadians wishing to buy properties in Italy.

However, the Canadian law also established some exceptions and, after the law above, the Canadian government issued some “Regulations” to better determine the extent of purchase restrictions and exemptions.

Some provisions in the Canadian law and regulations above refer to specific features of the Canadian legal system that do not exist in Italy, or exist in a different form. This makes the definition of the Italian “mirroring” approach more difficult.

In particular, the Italian authorities must first acquire a good understanding of the legal extent of the non-Italian law and regulations, as interpreted under the Canadian legal system, and then they have to identify to what extent such law and regulations apply within the Italian legal system.

The Italian authority most commonly involved in such a reciprocity check is the Italian notary (Notaio). Here is more information about the role of the notary in Italy with respect to real estate transactions.

In general, when it comes to complex matters, each notary in Italy might have their own professional opinion and approach to the interpretation of the law. This might result in different notaries suggesting different legal solutions to similar problems.  In this scenario, we have seen that Italian notaries are taking significantly different approaches with respect to how to deal with the sales of Italian properties to Canadian citizens.

We have worked on several cases of Canadians willing to buy properties in Italy after the ban went into force and have some tips to increase the chances of success.

First, make sure you discuss the case with a legal expert (notary or lawyer) who has significant experience with international laws and cross-border real estate transactions.

Second, if the first feedback you receive is negative, consider a second opinion from someone with more experience.

Third, set yourself up for success by focusing on “easier” targets. More specifically, although each notary might have their professional opinion and approach to this matter, to the interpretation of the Canadian law and regulations, and to how it should be mirrored in Italy, and although each matter should be reviewed on a case-by-case basis, here are some scenarios where chances of a successful outcome might be higher:

1. The Canadian buyer has an accepted purchase offer that was signed prior to Jan. 1, 2023;
2. Transfer by death, separation, divorce, or gift are not affected by the ban;
3. The buyer has Italian long term immigration status;
4. The buyer is a dual citizen holding also an EU passport;
5. The buyer is purchasing the property with a spouse or civil union partner who is an EU citizen or an Italian permanent resident;
6. The buyer is a legal entity, as opposed to an individual (for example, an Italian registered company).

Contact Us to discuss your specific case circumstances and goals with an expert real estate lawyer.

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