Buying property in Italy as a Canadian
Unraveling the Complexities can a Canadian Residents Purchasing Property in Italy
Query: Is it possible for a Canadian to invest in real estate within Italy’s borders?
Despite the law, Canadians can still buy property in Italy under certain conditions.
Canadians can buy property in Italy, despite a law called the “Prohibition on the Purchase of Residential Property by Non-Canadians Act.” This law started on January 1, 2023.
Basically, the Canadian law made it harder for foreigners to buy homes in Canada. Italy is ready to impose similar restrictions on Canadians who want to invest in Italian properties.
However, Canadian law has exemptions. After passing the law, the government issued “Regulations” for more clarity on these exceptions.
Certain parts of Canadian law and regulations refer to things that are specific to the Canadian legal system. These things don’t exist in Italy or are organized differently. This complexity complicates the definition of Italy’s “mirror-image” approach.
Before taking any action, Italian authorities need to grasp how foreign laws and regulations align with Canadian law. Then, they need to figure out how these foreign norms apply to the Italian legal system.
The Italian notary (Notaio) is in charge of conducting a reciprocity assessment. Here, we delve deeper into the notary’s role in Italy concerning real estate transactions.
In complex matters, each Italian notary may have a different professional view and understanding of the law. Consequently, different notaries may propose diverse legal solutions to analogous predicaments. In this situation, we noticed big differences in how Italian notaries sell property to Canadians.
After the prohibition, we found that many Canadians wanted to invest in Italian real estate. We learned some helpful tips to increase their chances of success.
First, it’s best to talk to a legal expert who knows about international laws and buying property in Italy.
In cases where the initial advice is unfavorable, contemplating a second opinion from a more seasoned expert is prudent.
Favorable Scenarios for Canadian Real Estate Buyers in Italy
To increase the likelihood of a favorable outcome, it is advantageous to focus on less challenging scenarios. Every notary has their own perspective and approach, based on Canadian and Italian laws. Some scenarios are more likely to succeed.
If you are in special circumstances, there are interesting ways to get around Italy’s property purchase ban.
- Family and Business Ties: If you have close family or business connections in Italy, you might qualify for an exemption. If you’re married to an Italian citizen or invest in property that helps the local economy, you may be able to buy property.
- Refugee Protection: Refugees and protected individuals under the Canadian Refugee Protection Act can also feel at ease. If you have a genuine fear of persecution in your home country, this exemption may open doors to property ownership.
- Golden Visa Program: Italy’s Golden Visa Program is an exciting opportunity for investors who are not from the EU. By investing in real estate worth at least 500,000 euros, you gain a visa. This visa allows you to live, work, and study in Italy for up to five years. You can renew or change this visa to permanent residency. It allows free travel in the Schengen area.
- Rent-to-Buy Scheme: If none of the above options work for you, there is another option called the Rent-to-Buy Scheme. This common practice in Italy allows you to rent a property with an option to purchase it later. It’s a fantastic way to live in Italy while saving up for your dream property.
To improve the chances of success, it’s better to concentrate on easier situations. Each notary has their own perspective and approach, based on Canadian and Italian laws. Each case is unique, but some have more potential for success.
- The Canadian purchaser possesses a pre-January 1, 2023, accepted purchase agreement.
- The property is not classified as a residential unit in Italian zoning. It’s different from A1, A2, A3, A4, A5, A6, A7, A8, and A9.
- Despite being zoned for homes, the property doesn’t meet the requirements for people to live there.
- The property is in a small Municipality (“Comune”) with less than 10,000 people. But if it’s close to a big city, there may be a sales restriction.
- Transfers due to death, separation, divorce, or gifts are unaffected by the prohibition.
- The purchaser holds long-term Italian immigration status.
- The purchaser is a dual citizen, also possessing an EU passport.
- If your spouse or partner is an EU citizen or an Italian permanent resident, you both can get the property.
Feel free to reach out to us for a thorough discussion of your specific circumstances and objectives with a seasoned real estate attorney.
- Italian Real Estate Laws
- The Role of Notaries in Italian Real Estate Transactions
- Italian Cadastral Zoning
- Long-Term Italian Immigration Status