Can Foreigners Buy Property in Italy?

You've seen the stone farmhouses in Tuscany, the whitewashed trulli in Puglia, the cliffside apartments on the Amalfi Coast — and you want one. But before you shortlist properties, there's a legal question that Italian notaries must resolve before they can execute any deed: are you actually allowed to buy?

The short answer is yes — for most nationalities. But the rules differ significantly depending on where you come from, and for Canadian buyers in particular, the situation is genuinely complicated.

The Reciprocity Principle: Italy's Baseline Rule

Italy doesn't grant an unconditional right to buy real estate. Under Article 16 of the Preleggi (the Preliminary Provisions to the Italian Civil Code), a foreign citizen can purchase Italian property only if an Italian citizen is granted equivalent rights in that person's home country. This is the principio di reciprocità — the reciprocity principle.

Before signing the final deed (rogito), the notaio is legally required to verify active reciprocity via the Ministry of Foreign Affairs database. If reciprocity doesn't exist, the deed cannot be executed. And if it is executed anyway, the contract is void — nullità assoluta — with no legal remedy other than trying to recover funds from the seller.

That sounds alarming, but most nationalities are either fully exempt or currently covered by reciprocity agreements. Here's how the four main buyer cohorts stand.

EU and EEA Citizens: No Restrictions

If you hold citizenship of any EU member state, or EEA countries Iceland, Liechtenstein and Norway, you can buy Italian property under exactly the same conditions as Italian citizens. The reciprocity check simply doesn't apply to you.

This also applies to non-EU citizens who hold a valid Italian residence permit (permesso di soggiorno) for employment, family reunification, study or humanitarian reasons. Political refugees and stateless persons who have been legally resident in Italy for at least three years are equally exempt.

Americans Buying Property in Italy

US citizens enjoy broad real estate reciprocity with Italy, and American buyers are one of the most active foreign groups in the Italian market — drawn by heritage connections, retirement plans, and the favorable dollar-to-euro exchange rate.

However, there's a complication that often catches buyers off guard. Because real estate law in the United States is regulated state by state, certain US states impose restrictions on foreign ownership of agricultural or strategic land. If your home state legally restricts Italian citizens from buying agricultural land, an Italian notaio is barred from executing a deed transferring comparable land to you. This affects a minority of buyers, but it's worth checking before you fall in love with a rural estate in Umbria.

For urban residential property, American buyers can proceed freely. The notaio verifies your state of residence during the closing process.

British Buyers After Brexit

Before January 2020, UK citizens were EU nationals and had unrestricted rights to purchase Italian property. Post-Brexit, they are classified as third-country nationals, which means they are now subject to the standard reciprocity check.

In practice, reciprocity between the UK and Italy is currently maintained, so British buyers can still purchase freely. But this situation depends on UK law remaining stable. If the UK were to introduce restrictions on foreign ownership of residential property that affected Italian nationals, Italian law would immediately apply reciprocal restrictions to British buyers in Italy. This is something to monitor if you're planning a long-term hold.

British buyers also face a separate challenge unrelated to property law: after Brexit, UK passport holders are limited to 90 days in any 180-day period within the Schengen Area. Owning a home in Italy doesn't change that unless you obtain a formal residency status such as the Visto per Residenza Elettiva.

Australian Buyers: Protected by Treaty

Australians are in a stronger legal position than most non-EU buyers. Australia signed a Bilateral Investment Treaty (BIT) with Italy in 1967, ratified via Presidential Decree No. 1430 of December 9, 1970. This treaty acts as a lex specialis — a specific law that supersedes the general reciprocity requirement.

What this means practically: even though Australia's Foreign Investment Review Board (FIRB) imposes temporary restrictions on non-resident foreigners purchasing existing residential property in Australia, Italian law does not apply a reciprocal block to Australian citizens buying in Italy. Australian buyers can proceed without any restriction beyond the standard transaction requirements.

The major practical challenge for Australian buyers is distance. Conducting due diligence, attending signings, and managing the process from the other side of the world requires careful use of a Procura Speciale (Special Power of Attorney), which allows a trusted representative — typically a lawyer — to sign documents on your behalf in Italy.

Canadian Buyers: Restricted Since 2023

This is the most complicated situation in the current market. In January 2023, Canada introduced the "Prohibition on the Purchase of Residential Property by Non-Canadians Act," which bars non-Canadian residents from buying most residential property in Canada. Italy applied reciprocal restrictions immediately, which means Canadian citizens are currently barred from purchasing residential property in major Italian municipal zones.

Three exceptions allow Canadian buyers to proceed:

Small municipalities: Canadians can purchase in Italian towns (Comuni) with a population of 10,000 or fewer, located outside designated metropolitan census areas. This opens up a significant portion of rural and small-town Italy — including many of the areas covered by the well-publicised €1 house programs.

Dual citizenship: Canadians who hold dual citizenship with any EU member state are treated as EU citizens under Italian law and face no restriction.

Spousal exemption: Canadian citizens purchasing jointly with an EU citizen spouse or civil partner, or with a spouse who is a permanent resident of Italy, can proceed with the transaction.

If you're Canadian and considering Italian property in a city like Milan, Rome or Florence, you need legal advice before making any offer. The restriction is real and the notaio will check.

Non-EU Citizens from Other Countries

For nationals of countries outside the US, UK, Australia, Canada, and the EU/EEA bloc, the situation depends on whether a bilateral investment treaty exists or whether standard reciprocity has been established. Many countries — including Japan, South Korea, and Switzerland — have active reciprocity or bilateral agreements with Italy.

For nationals of countries where reciprocity has not been confirmed, the notaio must check the current MAE (Ministry of Foreign Affairs) registry before the deal can close. Identifying this early — ideally before signing any binding offer — prevents the deal collapsing at the final hurdle.

What Happens If You're Exempt or Covered?

Once the reciprocity question is resolved, the buying process is the same for all foreign nationals: obtain a Codice Fiscale (Italian tax number), work through the standard sequence from Proposta d'Acquisto through Compromesso to Rogito, and budget for total transaction costs that typically run 9% to 18% on top of the purchase price depending on your tax status.

The Buying Property in Italy — Expat Guide covers the full legal process step by step — including the tax checks, compliance surveys, and what you need to know about the difference between a primary residence (prima casa) and a second home when it comes to transaction taxes.

Key Takeaways

The rules in brief:

• EU/EEA citizens: No restrictions, buy freely
• Americans: Generally fine, but check your home state's rules on foreign land ownership
• British: Currently covered by reciprocity, but subject to change post-Brexit
• Australians: Protected by a bilateral treaty, can buy freely
• Canadians: Restricted in major cities since 2023; exceptions for small towns, dual citizens, and EU-citizen spouses
• Other non-EU nationals: Check MAE reciprocity registry before making any binding offer

The notaio will perform this check before the rogito, but discovering a problem at that stage puts your deposit at risk. Verify your country's status early — ideally before you sign a Proposta d'Acquisto.

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