Can an Israeli citizen buy property in Italy?

Buying Property in Italy

Israeli citizens may generally acquire apartments, villas, country houses, 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 an Israeli Company

Companies incorporated under Israeli 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 complex international structures or significant cross-border investments, additional documentation may be required.

Marital Property Regime

The matrimonial property regime is an important aspect of any cross-border real estate transaction involving Israeli citizens.

Under Israeli law, the financial relationship between spouses is primarily governed by the Spouses Property Relations Law, although particular situations may also be influenced by religious law or specific agreements entered into by the spouses.

As a general rule, each spouse remains the owner of assets held in his or her own name during the marriage. Upon dissolution of the marriage, however, a balancing mechanism may apply in relation to the spouses' accumulated assets, unless a different arrangement has been agreed.

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.

For this reason, nationality alone is never sufficient to determine ownership rights between spouses.

Marital Agreements

Israeli spouses may enter into agreements regulating their property relations.

If such an agreement exists, its legal effects should be carefully assessed before the purchase takes place, as it may significantly affect ownership rights and should therefore be examined together with the rest of the transaction documentation.

Powers of Attorney Executed in Israel

If a purchaser cannot travel to Italy, it is generally possible to complete the transaction through a power of attorney.

Powers of attorney executed in Israel 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 before which it was executed, the scope of the powers granted and its suitability for the intended transaction.

Israeli Public Documents

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

Accordingly, documents intended for use in Italy must comply with the applicable formal requirements, including the Apostille where required by law.

The Italian Notary will review each document individually to ensure that it can be validly used within the Italian legal system.

Translation of Documents

Documents issued in Israel that are intended to be used in connection with an Italian notarial deed will generally need to be accompanied by an appropriate Italian translation.

Particular attention should be paid to the transliteration of names from Hebrew into the Latin alphabet, as discrepancies between passports, civil status certificates and other official documents may create practical difficulties.

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

Cross-Border Successions

When an estate involves Israeli citizens or assets located in Italy, the applicable law will depend on the circumstances of the individual case and the relevant rules of private international law.

The deceased's habitual residence, nationality and any valid choice of law may all be relevant factors.

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

Tax Considerations

Israeli 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 Israeli 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 Israeli citizens, purchasing property in Italy is generally straightforward thanks to the reciprocity recognised between the two countries.

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 preparation 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.