We have an updated article on this topic, which you can read here: Canadian Investors in Italian Real Estate 2023
The Foreign Property Purchase Restriction Act (FPPRA) came into effect on 1st January, 2023. FPPRA introduces Canadian property investment restrictions on some types of purchases overseas. It is however still possible for Canadians to buy property in Italy under certain conditions.
The FPPRA is based on a default reciprocity rule
Because of the FPPRA, property purchase restrictions apply to non-Canadian nationals buying in Canada. Likewise, reciprocal restrictions therefore apply to Canadians, who are now restricted from purchasing certain types of property in Italy and elsewhere overseas.
What is the aim of Canadian property investment restrictions abroad?
The main reason for the introduction of the FPPRA is to address the shrinking Canadian property market. As the Canadian economy has struggled in recent years, the demand for housing has decreased. This has led to a glut of unsold properties and a decrease in property values.
In an effort to protect the Canadian property market, the government therefore introduced the FPPRA. The aim is to keep Canadians from investing their money in properties abroad, thereby keeping more money in the Canadian market. The hope is that this measure will boost the economy.
However, there has been some pushback against the law. Many Canadians feel that they should be free to invest their money as they see fit. Additionally, many Canadians feel that the FPPRA violates their rights. The law is due for review, and possible repeal, in 2025.
Despite property investment restrictions, Canadians can still buy property in Italy
As a general principle, Canadians who signed property contracts before FPPRA can complete their purchase. However, Italian Notaries are currently awaiting guidelines from the Italian Notaries Association regarding the implementation of the new law. Italian Notaries will evaluate each case of Canadian nationals buying property in Italy on an individual basis until the guidelines are in place.
Additionally, Canadians can still explore property investment opportunities in Italy through various avenues:
For instance, individuals with close family ties or business interests in Italy may qualify under certain conditions.
Refugee Protection Act:
Canadians residing in Italy temporarily under the Refugee Protection Act or with protected status are eligible to purchase property in the country.
Purchase with an Italian, EU citizen, or an Italian resident who has a Canadian spouse or partner is an option. Joint owners share equal rights and responsibilities for the property.
Diplomatic or Consular Reasons:
In some cases, foreign states may purchase property in Italy for diplomatic or consular purposes, such as providing residences for diplomatic personnel or establishing embassies or consulates.
It’s essential to note that the regulations and requirements for these options may vary. Therefore, Canadians should consult with a lawyer knowledgeable in both Canadian and Italian law, including the FPPRA, to navigate these opportunities effectively.
For over 55 years, at De Tullio Law Firm we have been providing international clients with independent legal advice. We offer services in all the major fields of Italian law. However, our particular expertise lies in real estate, residency, family law and inheritance matters. Our team of experienced lawyers has a deep understanding of international and Italian legal systems.
Our expertise in cross-border residential and commercial property transactions helps our clients navigate the complex laws and regulations surrounding property purchases and sales in Italy.
We pride ourselves on furnishing high-quality legal services to our clients and have a strong reputation for providing practical and effective solutions to their legal needs.
If you would like to talk to us about investing in Italian property, please get in touch with us.
You may also be seeking information about how to obtain an Elective Residence Visa for Italy or you might like to peruse our series of informational videos.
Get All Our FREE Guides for Foreigners Planning to Buy, Sell or Live in ItalyDownload now