Q: Can Australian citizens purchase property in Italy?
A: Yes, Australians can buy property in Italy, but certain restrictions may apply depending on the type of property and the notary handling the transaction.
Italy follows the principle of reciprocity, a concept in international law stating that a country will apply similar restrictions to foreign buyers as their home country imposes on its own real estate market. Since Australia limits property purchases by foreign buyers, Italy applies the corresponding restrictions to Australian citizens seeking to buy property in Italy.
The authority responsible for verifying reciprocity is the Italian notary(Notaio), a public official who plays a central role in real estate transactions. Notaries ensure that the purchase complies with Italian law, verify necessary legal requirements and authenticate the signatures on the final sale agreement.
What type of property can Australians buy in Italy?
- Newly Built Properties → Generally permitted without restrictions.
- Pre-Owned Homes → May be allowed if one or more of the following conditions is met:
- The buyer intends to reside in the property while in Italy, even if temporarily. Therefore, even a holiday property might qualify.
- The property is purchased with the intention to do significant renovation work on it, better if the project somehow contributes to improving Italy’s housing stock.
Additionally, there are some other situations where the reciprocity rule will not apply at all, for example, if you have permanent Italian immigration status (“permesso di soggiorno”), or if you hold another passport from a country that does not have any restrictions for Italians buying properties there.
Even if you meet one of the scenarios above, your Italian notary may not agree with your view and might refuse to certify the transaction. In some cases, notaries may require additional legal requirements to be met before finalizing the transaction. It all depends on the notary interpretation of the law and of the applicable circumstances, often as they are presented to the notary.
How can Studio Legale Metta assist?
- Legal assessments and advice to comply with Italian reciprocity rules;
- Add special clauses to purchase offers and purchase contracts to pass notary reciprocity check;
- Add reciprocity contingency clauses and safe deposit payment methods pending notary check;
- Liaise with local notaries experienced in handling transactions for Australian;
- Assist with documentation and regulatory compliance.
We recommend consulting an experienced advisor ideally before signing a purchase offer. Our real estate lawyers will be happy to review your case circumstances and advise you accordingly, whether you have not signed a purchase offer yet or if you are under contract and need assistance to move forward with the transaction. You can schedule a consultation with us completely online.
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