Can an Australian citizen buy property in Italy?

Buying Property in Italy

Depending on the outcome of the preliminary legal assessment, Australian citizens may be eligible to acquire apartments, villas, holiday homes, commercial premises, offices, land and other real estate rights in Italy. Eligibility must not be presumed for any particular transaction merely because the purchaser holds an Australian passport.

Certain Australian citizens who lawfully reside in Italy and hold a qualifying residence permit, for example for employment or family reasons, may be exempt from the reciprocity assessment under Italian immigration law. A tourist visa or registration as a resident in Italy does not, by itself, establish such an exemption; the precise immigration documentation must be reviewed.

The legal position requires particular attention when a purchaser who is not exempt from reciprocity intends to acquire an existing home. The fact that a property will be restored, renovated or made more energy efficient does not, on its own, resolve any question concerning the purchaser’s legal eligibility.

As with every real estate transaction in Italy, the Italian Notary verifies ownership, reviews the chain of title, examines the relevant cadastral and planning documentation, checks mortgages and other encumbrances and ensures compliance with applicable tax and anti-money laundering rules. Agricultural land may also be subject to pre-emption rights and land-use restrictions.

The Australian Foreign Investment System

Australia has a detailed system for reviewing acquisitions of Australian real estate by foreign investors. Its rules generally direct foreign residential investment towards new housing and, from 1 April 2025 to 30 June 2029, generally restrict foreign acquisitions of established dwellings, subject to limited exceptions.

These Australian rules do not directly prohibit an Australian citizen from purchasing a property in Italy. They are nevertheless relevant to the assessment of reciprocity under Italian law, particularly when the transaction concerns an existing residential property.

The relationship between the bilateral Agreement, its express reservations and the Australian restrictions has given rise to differing legal interpretations. Accordingly, neither the existence of the Agreement nor a general statement about reciprocity should be treated as conclusive without considering the specific transaction.

Buying Through a Company

In some circumstances, an acquisition through a company incorporated in Italy may be an alternative worth considering. Depending on the proposed activity and ownership structure, an Italian limited liability company (S.r.l.) or, where consistent with its permitted non-commercial purpose, an Italian società semplice may be considered.

An Italian company has a legal position distinct from that of its Australian shareholders. This distinction may be relevant when assessing the company’s ability to acquire real estate in Italy. However, the Australian investor’s ability to establish or participate in the company, the genuine purpose of the entity, its activities and the nature of the property transaction all require separate legal assessment.

A company structure must not be treated as an automatic means of overcoming a restriction affecting an individual purchaser. Where an existing Italian company is proposed as purchaser, its constitutional documents, powers, corporate purpose and actual circumstances must also be examined.

A company incorporated under Australian law must be considered separately: it is not equivalent, for reciprocity purposes, to an Italian company simply because it intends to acquire property in Italy.

Corporate ownership may entail different formation, administration and tax costs, as well as different consequences for personal use of the property and any future disposal. The appropriate structure should therefore be determined before contracts are signed, after individual notarial and tax advice.

Marital Property Regime

The Australian legal system does not provide for an automatic community property regime equivalent to the Italian statutory community of property solely as a consequence of marriage.

In general, spouses may own assets separately in their own names. However, in the event of separation or divorce, Australian courts may make orders concerning family assets under the Family Law Act 1975, according to the applicable circumstances. Spouses may also have entered into financial agreements regulating their property arrangements.

When a married Australian citizen purchases property in Italy, the Italian Notary examines the applicable matrimonial property law, the spouses’ circumstances and any relevant agreements. Citizenship alone may not determine the law governing the couple’s property relations in an international case.

Powers of Attorney Executed in Australia

If a purchaser cannot attend the signing in person, representation by a duly authorised attorney may be possible.

A power of attorney executed in Australia must meet the requirements applicable to the intended Italian notarial deed. Before accepting it, the Italian Notary verifies the document’s form, the identity and capacity of the person granting the authority, the powers conferred and any required Apostille and translation.

The proposed form of power of attorney should be agreed with the Italian Notary before it is executed in Australia.

Documents Issued in Australia

Australia is a party to the Hague Convention of 5 October 1961 abolishing the requirement of legalisation for foreign public documents.

Consequently, Australian public documents intended for use in Italy will commonly require an Apostille, depending on their nature and intended use. The Italian Notary will confirm which documents and formalities are required for the particular transaction.

Translation of Documents

Documents issued in Australia for use in an Italian notarial transaction generally require an appropriate Italian translation, subject to the requirements and any applicable exceptions in the individual case.

Where language assistance or an interpreter is needed for the notarial deed itself, the arrangements should be agreed with the Italian Notary in advance.

Estate Planning and Cross-Border Successions

Australian citizens may acquire Italian property for family use, retirement or investment. Where assets, family members or potential heirs are located in more than one country, cross-border succession planning deserves particular attention.

The applicable succession law, any will or choice of law, inheritance taxes and the practical administration of assets in different jurisdictions should be assessed in light of the individual situation. Early planning can reduce the risk of later uncertainty.

Tax Considerations

Australian citizenship does not, by itself, create a special Italian tax regime for a property purchase. The applicable transfer taxes and any available relief depend on the property, the parties, the type of transaction and the relevant statutory conditions.

Purchasing through an Italian company may produce tax results materially different from those of a personal acquisition. In particular, tax reliefs designed for qualifying individual home buyers cannot be assumed to apply to a company.

Where appropriate, Italian and Australian tax advice should be coordinated before selecting the ownership structure.

Need Advice Before Buying?

Our office assists Australian clients with Italian property transactions. The first step is to examine whether the proposed acquisition is legally available in the purchaser’s individual circumstances.

We recommend obtaining a specific notarial assessment before signing a binding preliminary contract or paying a non-refundable deposit. The review may include immigration documentation, the type and intended use of the property, the applicability of the Italy–Australia Agreement, reciprocity issues and, where suitable, a possible acquisition through an Italian company.

Where the legal position is uncertain, further verification or a written opinion from the competent authorities may be required before the transaction can proceed.

Conclusion

Australian citizens are not subject to a single rule that guarantees, or categorically excludes, every property purchase in Italy. The correct answer depends on the purchaser’s personal position and the characteristics of the intended acquisition.

An eligible residence status may provide a direct route to a personal purchase. In other cases, the reciprocity framework requires careful examination, especially for existing residential properties. Acquisition through an appropriately structured Italian company may be a further possibility, subject to separate legal and tax review.

Early consultation with an Italian Notary is essential to determine whether, and through which lawful structure, the proposed transaction can proceed.