Home Buyers guide to Italy

Buying property in Italy as a Canadian citizen: 2025 Guide

Italy’s rich history, stunning landscapes, and vibrant culture make it an attractive destination for Canadian citizens looking to buy a property. Whether you’re searching for a vacation home, a retirement haven, or a safe investment, understanding the rules of purchasing real estate in Italy is crucial.

This guide addresses the top frequently asked questions (FAQs) to help Canadian buyers in navigating the Italian property market, incorporating the latest legislative updates.

1. Can Canadian citizens legally purchase property in Italy?

Yes, Canadian citizens can legally purchase property in Italy, but restrictions now apply as a result of reciprocity with Canada’s “Prohibition on the Purchase of Residential Property by Non-Canadians Act,” effective January 1, 2023. These restrictions align with the limitations Canada imposes on foreign buyers. However, Canadian citizens may still qualify to buy property if they meet specific exceptions.

2. What are the exceptions that allow Canadians to buy property in Italy?

Canadian citizens must meet at least one of the following exceptions to purchase property in Italy:

  • The property is located in a municipality (“Comune”) with fewer than 10,000 residents, unless near a major metropolitan area, where restrictions may apply.
  • The purchase involves transfers by death, separation, divorce, or gift, which are not subject to the ban.
  • The buyer holds long-term Italian immigration status.
  • The buyer is a dual citizen holding an EU passport in addition to Canadian citizenship.
  • The buyer is purchasing the property with a spouse or civil union partner who is an EU citizen or an Italian permanent resident.

If none of these exceptions apply, purchasing residential property in Italy may be restricted.

3. Where can Canadians buy property in Italy?

Canadian citizens can purchase property in municipalities (“Comuni”) with fewer than 10,000 residents. However, restrictions may still apply if the property is located near a major metropolitan area. It’s essential to confirm the location’s eligibility with a real estate professional before proceeding.

4. How does the property purchase process work in Italy?

Buying a property in Italy is a highly regulated and formal process, with distinct contractual standards and negotiation practices. It typically involves:

  • Offer and Acceptance: A formal and binding agreement between buyer and seller.
  • Preliminary Contract (“Compromesso”): A more detailes binding contract outlining all terms of sale.
  • Final Deed (“Atto/Rogito Notarile”): Signed in front of an Italian Notary, at which point the balance of the payment is made, the keys are handed over, and the deed is registered in the Public/Land Registry.

For a detailed step-by-step guide, visit our Buying Guide to learn everything you need to know about purchasing a property in Italy.

5. Are there residency requirements for Canadian property owners in Italy?

Owning property in Italy does not automatically grant residency. Canadian citizens can stay in Italy for up to 90 days within a 180-day period without a visa. For longer stays, a visa or residency permit is required. Common options include:

  • Elective Residency Visa: Ideal for retirees looking to enjoy the Italian lifestyle full-time.
  • Work or Study Visa: For individuals relocating to Italy for employment or education.

If you’re a remote worker, Italy’s Digital Nomad Visa offers an exciting opportunity to live and work in the country while enjoying its breathtaking scenery. Learn more in our blog: Italy’s New Digital Nomad Visa: A Gateway to La Dolce Vita.

6. What financing options are available for Canadian buyers?

Canadian buyers have several financing options:

  • Italian Mortgages: Some Italian banks offer mortgages to non-residents, though terms may be more stringent and may require a higher down payment. Understanding the local mortgage system is crucial, and working with an experienced broker can make the process smoother. To dive deeper into the process, read our blog: Getting a Mortgage in Italy: A Comprehensive Guide.
  • Canadian Financing: Buyers can secure financing through Canadian lenders, such as home equity loans or cross-border mortgage services.
  • Currency Exchange Considerations: Exchange rate fluctuations can impact the cost of purchasing and maintaining a property. Working with a reputable currency exchange provider can help secure favorable rates and reduce financial risks.

Conclusion

Buying property in Italy as a Canadian citizen is an exciting and rewarding venture, offering you the chance to enjoy “la dolce vita” in one of the world’s most beautiful countries. Liguria, often referred to as the Italian Riviera, stands out as an exceptional destination for property investment.

Why choose West Liguria?
West Liguria offers a unique combination of stunning coastal scenery, historic towns, and a mild Mediterranean climate. The region is home to glamorous seaside towns such as Sanremo and Bordighera, and charming inland areas dotted with olive groves and vineyards. Its strategic location, bordering France, allows easy access to Monaco, the French Riviera, and major European cities.

The region is conveniently located near Nice International Airport (NCE), which provides direct flights to Canada, making it an ideal choice for Canadians seeking easy connectivity between their homes in Italy and North America.

For those seeking a second home, retirement haven, or investment property, West Liguria provides excellent options, from luxurious villas with sea views to quaint townhouses and modern apartments. Its culinary delights, vibrant culture, and strong community make it a perfect destination to call home.

With decades of experience in Liguria’s real estate market, LiguriaHomes Casamare is your trusted partner in finding the perfect property in Liguria. Our expertise, local knowledge, and personalized service ensure a smooth and stress-free buying experience.

Start your journey today by exploring our listings or contacting our team for tailored advice. Let us help you make your dream of owning property in Italy a reality!

Italy’s New Digital Nomad Visa: A Gateway to La Dolce Vita

Effective April 4, 2024, Italy has introduced a new digital nomad visa, opening doors for remote workers from outside the European Union to live and work in the country. This visa is designed for highly skilled professionals who can work remotely, offering them the opportunity to enjoy Italy’s rich culture, beautiful landscapes, and world-renowned lifestyle.

To qualify, applicants must meet specific income requirements, have health insurance, and be employed outside of Italy. This initiative is part of Italy’s broader efforts to attract international talent and revitalize its economy.

Key Details of the Digital Nomad Visa:

Eligibility: The visa is designed for highly-skilled professionals, including freelancers (“digital nomads”) and employees (“remote workers”), who can work remotely using technology.

Skills and Education: Applicants must have a university degree (minimum three years), an accredited professional license, or significant professional experience. Some consulates may require the education to align with the work being performed.

Work Experience: At least six months of relevant work experience is required, with up to five years for those without a degree.

Work Contract: Remote workers need to provide evidence of an employment contract or a binding job offer that requires high-level skills. Freelancers may need to provide proof of contracts or client engagements.

Criminal Background Affidavit: Remote workers must submit an affidavit from their employer confirming no convictions related to specific immigration crimes. While a criminal background check for the applicant is not explicitly required, some consulates might ask for it.

Annual Income: Applicants must demonstrate an annual income of at least EUR 24,789. The income should ideally be related to remote work, though requirements may vary by consulate.

Housing: Evidence of accommodation in Italy is required, which could be a lease agreement or proof of ownership. Some consulates may accept a hotel reservation or a letter of hospitality.

Health Insurance: Applicants must have medical insurance covering treatment and hospitalization in Italy. Alternatively, an affidavit committing to obtain insurance upon arrival may be accepted.

Visa Duration and Renewal: The visa is valid for one year, with the option to renew it without reapplying, once in Italy.

Where to Apply: Applications must be submitted at the Italian Consulate responsible for the applicant’s area of residency.

This visa presents a unique opportunity for digital nomads and remote workers to experience life in Italy while maintaining their professional careers.

If you’re considering relocating to Italy under this new visa, it’s essential to prepare thoroughly to ensure that you meet all the requirements and understand the implications of living and working abroad. With its unparalleled lifestyle offerings, West Liguria stands out as a premier destination for digital nomads.

New 2024 Rules for Special Tax Regimes in Italy

Italy continues to be a prime destination for high-net-worth individuals (HNWI) and international professionals, thanks to its attractive tax regimes. However, recent changes in 2024 have introduced new rules that potential expatriates should consider. This article highlights the significant updates to the “Flat Tax for Wealthy Foreigners” and the “Inbound Workers Regime,” both of which have undergone substantial revisions this year.

  1. Changes to the Flat Tax for Wealthy Foreigners (HNWI) New Residents
    Effective from August 10, 2024, Italy has implemented important changes to the “Flat Tax for Wealthy Foreigners” regime, which was originally designed to attract HNWI to Italy by offering a simplified and advantageous tax structure.

Key Changes:

  • Increased Flat Tax Amount: The most notable change is the increase in the flat tax rate from €100,000 to €200,000 per annum for foreign-sourced income. This adjustment applies to individuals transferring their tax residence to Italy after August 10, 2024. Additionally, the option to include family members under this regime is maintained, with an extra flat tax of €25,000 per family member.
  • Grandfathering Clause: Individuals who transferred their residence to Italy before August 10, 2024, are not affected by the new legislation. This applies regardless of whether they are already tax residents in Italy for 2024 or whether they have opted for the Flat Tax Regime. These individuals will continue to benefit from the original flat tax provisions, ensuring that those who planned their relocation under the previous regime are not disadvantaged by the new rules.

These changes make the regime less affordable for new entrants but preserve benefits for those already in the system, ensuring Italy remains a competitive option for those seeking tax efficiency coupled with a luxurious lifestyle.

  1. Updates to the Inbound Workers Regime
    Starting January 1, 2024, the “Inbound Workers Regime” has been significantly revised to broaden its appeal and enhance its benefits for international professionals and executives moving to Italy.

New Eligibility Requirements:

  • Non-Resident Status: Taxpayers must have been non-residents of Italy for at least three years (previously two years) before transferring their tax residence to Italy.
  • Commitment to Stay and Work: Individuals must commit to residing in Italy for at least four years (previously two years) and working primarily within the Italian territory.
  • High-Level Qualification: Eligible individuals must possess a high-level qualification or specialization as defined by legislative decrees 108/2012 and 206/2007.

Benefits of the Regime:

  • Income Reduction: Qualified individuals can benefit from a 50% reduction in taxable income for up to five fiscal years, with a yearly income limit of €600,000.
  • Enhanced Reduction for Families: For taxpayers who transfer their residency with a dependent child or a newborn or adopted minor, the income reduction increases to 60%, with the same annual limit of €600,000.

Conclusion

The 2024 updates to Italy’s special tax regimes underscore the country’s strategic efforts to attract a diverse range of international talents and high-net-worth individuals. For those considering relocating to Italy, whether you are a high-net-worth individual seeking the fiscal advantages of the revised Flat Tax regime or a specialized professional aiming to benefit from the updated Inbound Workers Regime, these changes present a unique blend of opportunities and considerations.

Italy’s evolving tax landscape continues to offer compelling incentives for those willing to invest in the country’s vibrant economy and luxurious lifestyle. The Flat Tax rate for new residents positions Italy as an appealing destination for those looking to optimize their tax obligations while enjoying a high standard of living. Similarly, the enhanced benefits for specialized professionals under the Inbound Workers Regime provide a robust framework for career growth, making Italy an attractive option for top-tier talent and international companies seeking to relocate employees.

At LiguriaHomes Casamare, we are committed to assisting our clients in navigating these new tax landscapes and making informed decisions about their relocation and investment strategies. Our deep understanding of both the local real estate market and Italy’s tax regime changes allows us to provide tailored advice that aligns with your financial goals and lifestyle preferences.

Whether you are planning to invest in Italy’s stunning properties or exploring the tax benefits of becoming a resident, we are here to guide you every step of the way. Reach out to us today to discuss how these 2024 tax regime changes could impact your plans and discover how we can help you make the most of what Italy has to offer. If you have any questions or comments about these favorable tax regimes in Italy, please do not hesitate to contact us. We would be happy to connect you with our Tax Advisor and provide you with more detailed information tailored to your needs.

Matteo Scandolera 
matteo@liguriahomes.com

Getting a Mortgage in Italy: a Comprehensive Guide

How to Obtain a Mortgage for Property in Italy: Expert Advice

Italy’s allure as a destination for purchasing property extends beyond its scenic landscapes and historic charm. However, navigating the mortgage landscape in Italy can be complex, especially for international buyers. This guide aims to provide a detailed overview of obtaining a mortgage in Italy, drawing on expert insights and integrating essential information for non-residents.

The Mortgage Approval Process

The process of securing a mortgage in Italy involves several steps and considerations. Understanding these can help prospective buyers streamline their efforts and increase their chances of success.

1. Duration for Loan Approval

The loan approval procedure for international investors typically matches the timeline for Italian buyers. However, if the process takes longer, it may be beneficial to seek assistance from another bank or advisor to avoid unnecessary delays.

2. Maximum Loan Amount

For foreign customers, the maximum loan amount, or Loan to Value (LTV), usually does not exceed 60% of the property’s purchase price or appraised value, whichever is lower. In some cases, this can be as low as 50%. Therefore, buyers should be prepared to provide at least 40-50% of the property value as a deposit.

3. Additional Costs

When applying for a mortgage, consider the following additional costs:

Continue reading Getting a Mortgage in Italy: a Comprehensive Guide →

IMU: Property Tax in Italy

Understanding IMU: The only Property Tax in Italy

Italy’s property tax, known as Imposta Municipale Unica (IMU), is a crucial aspect for homeowners, including both residents and non-residents. This tax applies to various types of properties and has specific guidelines regarding who pays, how much is paid, and the payment process.

What is IMU?

IMU is a municipal tax levied on the ownership of real estate properties in Italy, excluding primary residences unless they are classified as luxury homes. It was introduced to consolidate several existing property taxes and simplify the taxation process.

Who Has to Pay?

IMU is mandatory for:

  • Owners of secondary homes (second homes).
  • Owners of primary luxury homes (classified under categories A1, A8, and A9).
  • Owners of commercial properties.
  • Landowners, including those owning agricultural land, with some exemptions for small independent farmers and professional agricultural entrepreneurs.

How Much Do I Have to Pay?

The IMU amount is calculated based on the cadastral income (rendita catastale) of the property – NOT on the commercial price of the property – which is increased by 5% for residential properties and 25% for agricultural land. The resulting amount is then multiplied by specific coefficients depending on the property type:

  • Residential properties (A1-A11): 160
  • Storage units and attics (C2): 80
  • Garages (C6): 65
  • Canopies (C7): 55
  • Offices (A10): 135
  • Industrial buildings and hotels (D1-D4, D6-D10): 60
  • Stores (C1): 55

The standard IMU rate is 0.76%, but municipalities can adjust this rate between 0.46% and 1.06%.

Example Calculation
Continue reading IMU: Property Tax in Italy →

2023 Real Estate Market Insight and Forecast in West Liguria, Italy

Insightful Dynamics and Trends in West Liguria’s Real Estate Sector: Overview

From 2015 to 2023, the real estate landscape in West Liguria, Italy, displayed a compelling evolution in transaction dynamics, marked by a significant interplay between Italian and foreign buyers, and an increasing draw towards the area’s prime real estate, according to Matteo Scandolera, Managing Director of LiguraHomes Casamare.

Initially, the West Liguria market presented a balanced appeal to both Italian and international clients. However, there has been a notable shift occurred over time, with a steady increase in international transactions strengthening West Liguria’s growing position on the global stage.

At times out performing the rest of Italy in terms of proportion of international sales, Scandolera notes: “This rise speaks volumes about West Liguria’s desirability, driven by its lifestyle, culture, and investment potential. As the market has evolved, a stabilization in transaction distribution between Italian and foreign buyers emerged, reflecting a matured appeal across diverse demographics.”

Real Estate Market trend in Liguria

Most recently, investment has been seen in new and improved Marina’s along the Italian Riviera coast. Premium marina operator D-Marin took over two new marinas, Marina degli Aregai, one of the largest in the Liguria with 961 berths and Marina di San Lorenzo with 268 berths. Both marinas have addition attractions, including restaurants and hotel.

In January 2024, it was announced that Marina Development Corporation (MDC), which is at the helm of the brand new Marina Cala del Forte in Ventimiglia, is partnering with Chastworth Schools to operate and manage the Borgo del Forte Campus, a large purpose-built international educational and sports campus.

Simultaneously, the redevelopment of San Remo’s old marina area is underway, promising to redefine the city’s waterfront. Porto Vecchio revitalization will include enhancing public spaces, improving marina facilities, and introducing commercial and recreational amenities.

“Such developments are designed to invigorate the area, making it a more attractive destination for residents and visitors alike, creating a positive impact on property values and investment opportunities”, Scandolera comments.

Continue reading 2023 Real Estate Market Insight and Forecast in West Liguria, Italy →

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