Can a Finnish citizen buy property in Italy?

Buying Property in Italy

Finnish citizens may freely acquire apartments, villas, luxury properties, commercial premises, offices, warehouses, development land, agricultural land and other real estate rights recognised under Italian law.

Before completion, the Italian Notary carries out a comprehensive legal review of the transaction. This includes verifying ownership of the property, checking the continuity of title, reviewing cadastral and planning compliance, identifying mortgages or other encumbrances, confirming the applicable tax treatment and ensuring compliance with Italian anti-money laundering legislation.

Where agricultural land is involved, the ordinary Italian rules governing agricultural pre-emption rights and planning restrictions continue to apply.

Buying Through a Finnish Company

Companies incorporated under Finnish law may also acquire real estate or corporate interests in Italy.

Before completing the transaction, the Italian Notary will verify the company's legal existence, constitutional documents, the powers of its authorised representatives, the beneficial ownership structure where required by law and the documentation relating to the origin of the funds used for the investment.

For certain projects, establishing an Italian company may also represent an appropriate alternative, depending on the investor's objectives.

Marital Property Regime

Under Finnish law, each spouse generally remains the owner of assets registered in his or her own name during the marriage.

However, unless otherwise agreed through a marital agreement, Finnish law provides for a system of marital rights that may entitle each spouse to an equalisation of assets upon the dissolution of the marriage.

Because this system differs from both the Italian community of property regime and a strict separation of property regime, the applicable matrimonial property rules should always be assessed individually.

Where international elements are involved, such as multiple nationalities, changes of habitual residence or a choice of applicable law, the Italian Notary will determine the governing matrimonial property regime in accordance with the relevant rules of private international law and, where applicable, Regulation (EU) 2016/1103.

Marital Agreements

Finnish spouses may enter into a marital agreement modifying or excluding the statutory marital property rights.

If such an agreement exists, its legal effects should be carefully assessed before the purchase takes place, as it may significantly affect ownership rights.

Powers of Attorney Executed in Finland

If a purchaser cannot travel to Italy, the transaction may generally be completed through a power of attorney.

Powers of attorney executed in Finland may be used for Italian notarial transactions provided that they comply with the applicable legal requirements.

Before relying on such a document, the Italian Notary will verify the identity of the principal, the formal validity of the power of attorney, the authority that authenticated it, the scope of the powers granted and its suitability for the intended transaction.

Finnish Public Documents

As Finland is a Member State of the European Union, many public documents relating to civil status benefit from the simplified circulation rules established by Regulation (EU) 2016/1191.

For the categories covered by that Regulation, legalisation or Apostille is generally not required.

However, these simplifications do not automatically extend to powers of attorney or to documents intended to produce legal effects within the Italian land registration system. Each document should therefore be reviewed individually by the Italian Notary.

Translation of Documents

Documents issued in Finland that are intended to be used in connection with an Italian notarial deed may need to be accompanied by an appropriate Italian translation, depending on their nature and intended use.

Before completion, the Italian Notary will determine which documents require translation and verify that names, personal details and legal terminology are consistent throughout the documentation.

Cross-Border Successions

When an estate involves Finnish citizens or assets located in Italy, Regulation (EU) No. 650/2012 on international successions may become relevant.

The law governing the succession depends on the circumstances of the individual case, including the deceased's habitual residence and any valid choice of law made during his or her lifetime.

Obtaining legal advice before the succession procedure begins is often advisable in order to avoid uncertainty.

Tax Considerations

Finnish citizenship does not create any special tax regime for purchasing property in Italy.

The ordinary provisions of Italian tax law apply, including any reliefs or incentives available where the statutory conditions are satisfied.

The taxation applicable to the transaction will depend on factors such as the nature of the property, the purchaser's circumstances and the characteristics of the acquisition.

How an Italian Notary Can Help

Buying property abroad often involves unfamiliar legal systems, foreign documentation and cross-border legal issues.

An Italian Notary can assist Finnish clients throughout the entire process by reviewing foreign documents, verifying the applicable matrimonial property regime, checking powers of attorney and ensuring that every stage of the transaction complies with Italian law.

Final Remarks

For Finnish citizens, purchasing property in Italy is generally straightforward and is not affected by nationality-based restrictions.

Nevertheless, every international transaction deserves careful legal planning. Particular attention should be given to the applicable matrimonial property regime, the possible existence of marital agreements and the correct use of foreign documentation.

Seeking professional advice before signing a reservation agreement, preliminary contract or deed of sale is often the best way to ensure that the transaction proceeds smoothly and with full legal certainty.