A recent Canadian law has everyone wondering, Can Canadians buy real estate in Italy? While 2023 has brought some restrictions and complications to the purchase process, with some exceptions in place, Canadian citizens may find they are still able to pursue their dreams of owning an idyllic Italian home.
Canadian Law Restricting Foreign Real Estate Purchases in Canada
Starting on January 1st, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act has restricted foreign individuals from purchasing residential property in certain parts of Canada. The Italian application of the legal principle of reciprocity implies similar restrictions on Canadian citizens who intend to buy property in Italy.
While the initial prohibition contained a short list of exceptions, the list was extended with the March 27th, 2023, release of the Prohibition on the Purchase of Residential Property by Non-Canadians Regulations. These ‘Regulations’ notably excluded from the prohibition any residential property located in an area of Canada that is not within a ‘Census Agglomeration’ or a ‘Census Metropolitan Area’ as described by the Statistics Canada document entitled Standard Geographical Classification (SGC) 2021.
The application of reciprocity results in a considerable portion of the Italian property market being excluded from the initial prohibition. Canadian citizens are, therefore, permitted to purchase residential properties within municipalities (a) with a population below 10,000 individuals, (b) that are not part of major metropolitan areas (with a combined population of 100,000+).
Exceptions allowing Canadians to Buy Real Estate in Italy
The prohibition is also lifted for Canadian citizens who are:
- Dual citizens holding a European Union passport;
- Permanent residents of Italy (Carta di Soggiorno holders);
- Married to (or in a civil union with) a partner who is an EU citizen or an Italian permanent resident;
- Receiving ownership of the property as the result of death, divorce, separation, or donation.
Caveats
The notaio (notary) who is in charge of the transaction has the final say on whether a property is eligible for purchase by a Canadian citizen. This means there is an element of subjectivity in the assessment. It is paramount that you select an informed and competent notary and avoid any miscommunications that might get in the way of your purchase.
Dolce Living is ready to assist you in identifying suitable properties and professionals to secure your dreams of a life in Italy. If you have any questions about the process or want us to represent you in this transaction, do not hesitate to contact us.
