Guide for Canadians Buying Property in Italy

From historic villas nestled amidst rolling Tuscan hills to chic apartments overlooking the winding canals of Venice, Italy boasts a diverse range of real estate opportunities that captivate the imagination. 

Italy's rich culture and affordability make it an attractive destination for Canadians buying property in Italy. Whether you envision a countryside villa in Tuscany, a chic apartment in Rome, or a coastal retreat along the Amalfi Coast, many options suit different lifestyles and budgets.

Beyond the allure of "la dolce vita," buying real estate in Italy can be a smart investment, a cozy European vacation home, or even a place to retire. Compared to major Canadian cities, many regions of Italy offer affordable property prices, a lower cost of living, and a strong potential for long-term value. However, purchasing real estate in a foreign country comes with unique challenges, from navigating Italy's legal system to dealing with currency exchange fluctuations.

This guide will walk you through everything you need to know about buying property in Italy as a Canadian, from legal considerations and costs to financing options and the best locations to consider.

Can Canadians buy property in Italy?

Yes, Canadians can buy property in Europe, including Italy, as there are no significant legal restrictions on foreign ownership. The country has an open real estate market, meaning Canadian buyers have the same property rights as Italian citizens. However, there are several key steps and considerations to be aware of when purchasing a home in Italy: 

Legal requirements: Canadian buyers must comply with Italian property laws and regulations. While the process is straightforward, it involves several legal steps that require careful attention. Working with a local real estate agent and lawyer who understands the Italian property market and can guide you through the process is advisable. Buyers must obtain a Codice Fiscale, which is an Italian tax identification number required for real estate transactions. An Italian bank account is not mandatory but is highly recommended to facilitate payments for taxes, utilities, and other property-related costs.

Tax obligations: Buyers should be aware of the tax implications of purchasing property in Italy. This includes property transfer taxes, registration fees, notary fees, and annual property taxes, which vary by location and property type. Capital gains tax may also apply if the property is sold within five years of purchase. Understanding tax obligations and budgeting for these expenses is essential when planning a property purchase.

Residency requirements: Canadians buying property in Italy do not need a residency permit but may require a visa for extended stays. However, if you plan to stay in Italy for an extended period or want to become a resident, you may need to apply for a residency permit through the appropriate Italian authorities.

Financing options: Canadian buyers have multiple financing options when purchasing property in Italy. Some buyers choose to finance the purchase with savings or a mortgage from a Canadian bank, while others explore mortgage options with Italian banks. It is important to compare interest rates, terms, and conditions to find the best financing solution.

Currency exchange: Fluctuations in exchange rates can impact the overall cost of buying property in Italy. Since property transactions are completed in euros (EUR), Canadians should consider the EUR/CAD exchange rate when transferring funds. Working with a trusted foreign exchange provider, such as MTFX, can help secure favourable rates and reduce conversion costs.

What’s the cost of buying a house in Italy as a Canadian?

The cost of buying a home in Italy depends on the location, property type, and market conditions. Prices can vary widely between major cities, coastal regions, and rural areas. On average:

• Apartments in major cities (Rome, Milan, Florence) – €3,000 to €7,000 per square meter
• Coastal and tourist areas (Amalfi Coast, Lake Como, Tuscany) – €4,000 to €10,000 per square meter
• Homes in smaller towns or southern regions (Sicily, Calabria, Puglia) – €1,500 to €3,000 per square meter

For those interested in buying a cheap house in Italy, southern regions like Sicily and Calabria offer lower property prices, often making them attractive options for budget-conscious buyers.

In addition to the purchase price, buyers should consider extra property costs such as transfer taxes, legal fees, and notary fees. Property transfer taxes typically range from 2% to 9%, depending on whether the home is a primary or secondary residence. Notary and registration fees can add another 1% to 2% of the purchase price. Real estate agent commissions are usually 3% to 8%, split between the buyer and seller.

Additional expenses may include maintenance, insurance, and local property taxes if you're planning to buy a vacation home or rental property, factor in management and upkeep costs. Proper budgeting will ensure a smooth property purchase and help avoid unexpected expenses.

Factors to consider when buying property in Italy

Buying property in Italy or anywhere abroad requires careful planning and research. Here are the key factors to consider to ensure a smooth purchase.

Location: Choose a location that fits your lifestyle and long-term plans. Major cities like Rome and Milan offer strong rental demand, while regions like Tuscany and Umbria provide a quieter countryside setting. Coastal areas, such as the Amalfi Coast and Sicily, attract buyers looking for scenic retreats. Consider accessibility, climate, and potential resale value when making your decision.

Budget and financing: Establish a budget that includes the purchase price, taxes, legal fees, renovations, and maintenance costs. If financing is needed, research mortgage options through Italian or Canadian lenders. Italian banks may offer mortgages to foreign buyers, but terms and requirements vary.

Legal and regulatory requirements: Ensure the property has a clear title and is legally registered. Work with a real estate lawyer to check for outstanding debts, zoning laws, and renovation restrictions. Some historical properties have strict regulations, so legal guidance is essential.

Residency and tax implications: Canadians can buy property in Italy without needing residency, but staying long-term may require a visa or residency permit. If you plan to rent the property, be aware of Italian tax obligations and short-term rental regulations.

Currency exchange and payment strategy: Since property transactions are completed in euros (EUR), exchange rate fluctuations can impact costs. Using a foreign exchange provider like MTFX can help secure better rates and reduce transfer fees, making the purchase more cost-effective.

Property condition and ongoing costs: Consider renovation expenses and check for necessary permits if buying an older home. Factor in ongoing costs such as property taxes, utilities, insurance, and potential management fees, especially if the property will be rented or left vacant for extended periods.

The benefits of owning property in Italy

Owning property in Italy has numerous advantages, from lifestyle perks to potential financial gains. Here are some key reasons why Canadians choose to buy real estate in Italy:

Lifestyle and culture: Owning property in Italy offers access to the country's rich cultural heritage, world-famous cuisine, and vibrant way of life. From historic landmarks and UNESCO World Heritage sites to picturesque landscapes and charming villages, Italy provides endless opportunities for exploration and enjoyment.

Investment potential: Is buying property in Italy a good investment? Many Canadians find Italian real estate offers strong appreciation potential, particularly in sought-after areas. Italy's property market offers potential for long-term appreciation, particularly in sought-after locations such as Rome, Florence, Venice, and the Amalfi Coast. Buying real estate in these areas can be a stable and potentially lucrative opportunity, whether for rental income or future resale.

Rental income: Many buyers rent their property to short-term holidaymakers or long-term tenants. With Italy being one of the world’s top tourist destinations, rental properties in prime locations can generate steady income to help offset ownership costs.

Lifestyle enhancement: Owning property in Italy provides the perfect getaway from the hustle and bustle of daily life. Whether it's a rustic farmhouse in Tuscany, a seaside villa on the Amalfi Coast, or a stylish apartment in Milan, having a home in Italy allows you to enjoy the relaxed Mediterranean lifestyle whenever you choose.

Residency and visa: While buying property does not automatically grant residency, it can support visa applications for extended stays. Some buyers explore Italy’s Elective Residency Visa, which allows non-EU citizens to live in Italy if they have sufficient financial means. Owning property may also be a step toward EU residency or citizenship pathways.

Best places to buy property in Italy

Italy offers a diverse range of locations for property buyers, each with unique appeal. When searching for the best place to buy property in Italy, consider factors like affordability, rental potential, and lifestyle preferences. Whether you're looking for a vibrant city, a cultural hub, or a scenic coastal retreat, these destinations are among the top choices:

1. Rome

As Italy’s capital, Rome is a city that blends ancient history with modern living. Iconic landmarks like the Colosseum, Vatican City, and Trevi Fountain make it a top destination for both residents and tourists. Property buyers can choose from historic apartments in the city center, modern flats in lively districts, or spacious villas in suburban neighbourhoods. With ongoing infrastructure improvements and increasing demand, Rome remains a strong choice for buyers looking for both lifestyle and long-term value.

2. Florence

Located in the heart of Tuscany, Florence is famous for its Renaissance architecture, world-class museums, and charming streets lined with boutiques and cafés. Property buyers can find elegant apartments in historic palazzos, townhouses with stunning views, and countryside villas surrounded by vineyards and olive groves. The city’s strong tourism market also makes it attractive for buyers interested in rental income.

3. Milan

Milan is Italy’s financial and fashion capital, offering a dynamic urban lifestyle and a thriving business environment. Buyers can explore modern apartments in the city center, luxury penthouses with skyline views, and elegant historic villas in upscale neighbourhoods like Brera and Porta Nuova. Its proximity to the Alps and northern lakes, along with excellent public transport, makes Milan a great choice for professionals, investors, and those looking for a stylish city home.

4. Venice

Known as the "City of Canals," Venice is a UNESCO World Heritage site famous for its romantic waterways, grand palaces, and unique architecture. Property buyers can find charming canal-side apartments, townhouses with private gardens, and waterfront palazzos with stunning views. Due to strict property regulations and high demand, real estate in Venice is limited, making it an exclusive and potentially valuable investment.

5. Naples

Set along the scenic Bay of Naples, this city offers historic charm, rich culture, and world-renowned cuisine. Buyers can choose from UNESCO-listed apartments in the historic center, waterfront homes with sea views, and luxury villas in the upscale neighbourhoods of Posillipo and Vomero. Naples is also more affordable than northern cities, making it an appealing option for buyers looking for a vibrant and budget-friendly coastal lifestyle.

6. Liguria

Liguria is located on the northwestern coast and is home to the Italian Riviera, including stunning seaside towns like Cinque Terre, Portofino, and Sanremo. Known for its mild climate, scenic coastline, and relaxed Mediterranean atmosphere, Liguria is ideal for those looking for a vacation home or a seaside retreat. Properties range from cliffside villas with breathtaking views to elegant apartments in historic fishing villages.

7. Palermo

As the capital of Sicily, Palermo offers a unique mix of Mediterranean culture, history, and affordability. Buyers can find historic apartments in the city center, sea-view villas along the coast, and countryside estates surrounded by citrus groves. Sicily’s lower cost of living and slower pace of life make Palermo an appealing option for those looking for an authentic Italian experience at a more affordable price.

What do I need when buying property in Italy as a Canadian?

To purchase property in Italy, Canadians need a Codice Fiscale, proof of funds, and legal assistance. Buying property in Italy as a Canadian requires meeting specific legal and financial requirements. Here’s what you’ll need to prepare for a smooth purchasing process:

Codice Fiscale (Italian tax identification number): A Codice Fiscale is required for any real estate transaction in Italy. This tax identification number is used for signing contracts, paying property taxes, and opening an Italian bank account. Canadians can obtain one through the Italian Revenue Agency (Agenzia delle Entrate) or at an Italian consulate in Canada.

Valid passport: A valid passport is essential for identification when signing legal documents related to your property purchase. If you plan to stay in Italy for extended periods, you may also need a visa or residency permit.

Proof of funds: Buyers must provide proof of funds to demonstrate financial ability to purchase property. This may include bank statements, mortgage pre-approval, or financial documentation showing you can cover the purchase price, closing costs, and additional expenses like property taxes and maintenance fees.

Real estate agent and legal assistance: Working with a real estate agent experienced in assisting foreign buyers can simplify the process. Hiring an Italian real estate lawyer (avvocato) who can review contracts, verify property ownership, and ensure compliance with Italian laws is highly recommended. A notary (notaio) is required by law to finalize the property transaction.

Italian bank account: While not legally required, having an Italian bank account makes it easier to pay property-related expenses such as taxes, utilities, and mortgage payments. Some sellers and service providers may also require payments from a local account.

Cross-border payment solution: Since the purchase will be made in euros (EUR), currency exchange rates can impact the total cost. Using a trusted currency exchange provider like MTFX allows you to secure the best CAD to EUR rates, avoid excessive fees, and ensure smooth international transfers when making deposits or final payments.

How to buy property in Italy as a Canadian?

Wondering how to buy real estate in Italy? The process includes legal checks, financing options, and working with a real estate professional. Buying property in Italy as a Canadian requires careful planning and preparation. Understanding the process and working with the right professionals can help ensure a smooth and successful transaction.

Step 1 - Research and planning

Start by researching the Italian property market, pricing trends, and legal requirements for foreign buyers. Determine your budget, preferred location, and property specifications, considering factors like property type, amenities, and potential rental income. Familiarize yourself with Italy’s property laws, taxes, and residency requirements for non-EU citizens.

Step 2 - Work with professionals

Hiring experienced professionals will simplify the buying process. Consider enlisting:

• A real estate agent to help you find suitable properties and negotiate the best deal.
• A real estate lawyer to review contracts, conduct due diligence, and ensure legal compliance.
• A notary (notaio) to officially finalize the property transaction.
• A currency exchange provider like MTFX to secure the best exchange rates for international payments.

Step 3 - Property search and negotiation

Work with your real estate agent to find properties that match your needs and schedule viewings in person or virtually. Once you've found the right property, negotiate the purchase price and terms with the seller. Sign a preliminary sales agreement (compromesso) to secure the property and outline the conditions of the sale, including any contingencies. A deposit, typically 10-20% of the purchase price, is usually required at this stage.

Step 4 - Legal checks and financing

Before finalizing the sale, conduct a legal due diligence check to verify the title deed, ownership history, land registry records, and any existing debts or legal issues. If financing is needed, explore mortgage options with Italian banks or lenders. Your lawyer can assist with the legal aspects and ensure there are no surprises.

Step 5 - Finalizing the purchase

On the agreed completion date, both parties will sign the official transfer deed (atto di vendita) in the presence of a notary (notaio), who ensures all legal requirements are met. You will need to provide:

• Valid identification (passport)
• Codice Fiscale (Italian tax ID number)
• Proof of funds or mortgage approval
• Final payment and transaction fees

Once the deed is signed and the necessary taxes and fees are paid, ownership of the property is officially transferred to you.

By following these steps and working with the right experts, Canadian buyers can successfully purchase property in Italy while avoiding common pitfalls.

Living in Italy as a Canadian: Key considerations

Moving to Italy from Canada requires understanding visa options, residency permits, taxation, and healthcare. Here's what you need to know:

Residency and visa

Canadians can stay in Italy visa-free for up to 90 days within a 180-day period. A long-term visa or residency permit (permesso di soggiorno) is required for longer stays. Common options include the elective residency visa, which is ideal for retirees or those with passive income, the work visa for those with a job offer in Italy, and the investor visa for individuals making a significant financial investment in the country. Residency permits must be renewed periodically, depending on the type of visa.

Cost of living

The cost of living in Italy varies depending on the region. Major cities like Rome, Milan, and Florence tend to be more expensive, particularly when it comes to rent, dining, and entertainment. In contrast, smaller towns and southern regions like Sicily and Puglia offer a more affordable lifestyle. On average, a single person can expect to spend between €1,500 and €3,000 per month, depending on location and lifestyle choices. While groceries, public transport, and healthcare are generally cheaper than in Canada, luxury goods and private services can be costly.

Healthcare

Italy has a universal healthcare system known as the Servizio Sanitario Nazionale (SSN), which provides high-quality medical care at relatively low costs. Residents can access public healthcare after registering and paying a small fee. Non-residents and short-term visitors must rely on private healthcare or travel insurance. Many expatriates choose to supplement public healthcare with private health insurance, which allows access to English-speaking doctors and reduces wait times in public hospitals.

Taxes

Canadians who own property or earn income in Italy may be subject to several taxes. The IMU (property tax) is paid annually by property owners, while income tax applies if you earn money in Italy. Additionally, capital gains tax may be required if you sell your property within five years of purchase. Fortunately, Canada and Italy have a tax treaty, which can help Canadians avoid double taxation. Consulting a tax expert is recommended to ensure compliance with both countries' tax regulations.

Safety and security

Italy is generally a safe country, with low violent crime rates, particularly in smaller towns and rural areas. However, in major cities like Rome, Milan, and Naples, pickpocketing and petty theft can be common in tourist areas. To stay safe, it’s advisable to be cautious in crowded places, avoid displaying valuables openly, and learn basic Italian to communicate in emergencies.

Transportation

Italy has an efficient and well-connected transportation system, making it easy to get around without a car. High-speed trains connect major cities such as Rome, Milan, Florence, Naples, and Venice, while regional trains and buses provide access to smaller towns and coastal regions like Liguria and Palermo. Major cities like Rome, Milan, and Naples have metro systems, while Venice relies on boats and vaporettos for transportation. While driving is an option, especially in the countryside, roads can be narrow, and parking in city centers is often limited. Many Canadians living in Italy rely on public transportation for daily commutes and rent or buy a car for travel outside major urban areas.

Why does the EUR/CAD exchange rate matter?

The EUR/CAD exchange rate plays a crucial role when transferring money from Canada to Italy for your property purchase. Even small fluctuations in the EUR/CAD exchange rate can significantly impact the final amount you pay.

Tracking the exchange rate allows you to maximize your purchasing power and reduce costs. Using MTFX's live rate calculator, you can monitor currency trends and lock in a favourable rate through EUR/CAD rate alerts before completing your transaction. This ensures that your international transfer is cost-effective and helps you avoid unexpected expenses due to market fluctuations.

Quick tips for Canadians buying real estate in Italy

• Work with professionals: Hire a real estate agent, lawyer, and notary to guide you through the process and ensure legal compliance.
• Get your Codice Fiscale early: This Italian tax identification number is required for buying property and handling financial transactions.
• Open an Italian bank account: While not mandatory, it simplifies payments for taxes, utilities, and other expenses.
• Budget for additional costs: Factor in property transfer taxes, legal fees, notary costs, and potential renovations.
• Understand residency rules: Buying a property does not automatically grant residency but can support a visa application.
• Verify property details: Conduct legal due diligence to confirm ownership, debts, and land registry records before finalizing the purchase.
• Use a currency exchange provider: Exchange rate fluctuations can impact costs. MTFX offers competitive rates to help you save on international transfers.
• Consider rental potential: If renting out your property, research local rental laws, permits, and tax obligations.

These steps can help avoid common pitfalls and ensure a smooth property purchase in Italy.

Save money on your property investment with MTFX exchange rates

Buying property in Italy? With MTFX’s competitive exchange rates and low transfer fees, you can save money on international payments. Whether you're making a one-time purchase or setting up regular transfers, MTFX ensures you get the best value with secure and efficient transactions.

Register your MTFX account today and enjoy seamless, cost-effective payments on your Italian property—all with just a few clicks. 
 

FAQs

1. Can Canadians buy property in Italy?

Yes, Canadians can legally purchase property in Italy with no restrictions. However, you will need an Italian tax identification number (Codice Fiscale) and should work with a notary and lawyer to ensure a smooth transaction.

2. What is the step-by-step process for buying property in Italy?

Buying property in Italy as a foreigner includes researching the market, securing financing, and working with a real estate agent and lawyer. After finding a property, buyers sign a preliminary sales agreement (compromesso) and pay a deposit. A notary (notaio) finalizes the transaction by signing the official transfer deed (atto di vendita) and registering the new ownership.

3. What are the most popular regions and areas to buy property in Italy?

Popular regions include Rome, Florence, Milan, Venice, Naples, Liguria, and Palermo. Rome offers historical charm, while Florence and Milan are known for culture and business. Venice is ideal for those looking for a unique investment, while Naples, Liguria, and Palermo provide coastal living with varying price points.

4. Do I need to live in Italy to own property there?

No, residency is not required to own property in Italy. However, Canadians who plan to stay for more than 90 days within a 180-day period must apply for a visa or residency permit.

5. How much are closing costs when buying property in Italy?

Closing costs typically range from 7-10% of the property price, including notary fees, property transfer taxes, legal fees, and agent commissions.

6. Can I get a mortgage in Italy as a Canadian?

Yes, some Italian banks offer mortgages to foreign buyers, but requirements may vary. Many Canadians choose to finance their purchase through Canadian banks or pay in full using savings.

7. What are the ongoing costs of owning property in Italy?

If applicable, ongoing expenses include annual property taxes (IMU), utility bills, insurance, maintenance costs, and homeowners' association fees.

8. Can I rent out my property in Italy?

Yes, but rental laws vary by region. If you plan to rent short-term, you may need to register your property and comply with local tax regulations.

9. How does the EUR/CAD exchange rate affect my property purchase?

Exchange rate fluctuations can impact the final cost of your property. Using a foreign exchange provider like MTFX helps secure better rates and lower fees on international transfers.

10. How long does it take to buy property in Italy?

The process typically takes 2-3 months from signing the preliminary contract to finalizing the sale, though this may vary depending on legal and financial factors.

11. Does owning property in Italy give me residency?

No, property ownership alone does not grant residency, but it can support a visa or residency permit application, such as the elective residency visa for retirees.

12. What happens if I want to sell my property in Italy?

If you sell within five years of purchase, you may be subject to capital gains tax. Additional costs include agent commissions and legal fees.