Buying Property in Italy as a Canadian Citizen: Understanding the Principle of Reciprocity

LT Immobili & Design 23 July 2026

Canada has restricted the purchase of residential properties by foreign buyers to help curb real estate speculation. In this article, we will explore, in simple terms, the principle of reciprocity and what it means for Canadian citizens who wish to purchase a property in Italy.

In recent years, Canada has experienced one of the fastest increases in residential property prices among Western countries.

Cities such as Toronto, Vancouver, and Montreal have seen significant growth in home values, making it increasingly difficult for many Canadian families to purchase their first home.

According to the Canadian Government, one of the factors contributing to this trend was the growing presence of foreign investors in the residential property market.

For this reason, on 1 January 2023, legislation came into force restricting the purchase of residential properties by individuals who are neither Canadian citizens nor permanent residents.

Initially introduced as a temporary two-year measure, the legislation has since been extended until 1 January 2027.

The Government’s objective was not to discourage international investment altogether, but rather to help ease pressure on housing prices and make home ownership more accessible to Canadian citizens.

In other words, the policy sought to reaffirm a simple principle: a home should first and foremost be a place to live, not merely a financial investment.

This is a question we are being asked with increasing frequency by Canadian clients interested in purchasing property in Italy.

The answer, however, is not as straightforward as it may seem.

The fact that Canada has introduced restrictions on foreign buyers does not automatically mean that Canadian citizens are prevented from purchasing property in Italy.

To understand why, it is important to become familiar with one of the key principles of Italian law.

For citizens of countries outside the European Union, Italian law generally applies what is known as the principle of reciprocity.

Simply put, this principle provides that a foreign national may exercise certain civil rights in Italy if Italian citizens are granted equivalent rights in that person’s home country.

In practice, however, the matter is more complex than it first appears.

The assessment is not limited to comparing national laws. It may also take into account international agreements, bilateral treaties, and other legal provisions that could affect a foreign citizen’s right to purchase real estate in Italy.

For this reason, there is no universal answer that applies to every situation.

Each case should be assessed individually.

We have already explored this topic when discussing property purchases in Italy by Swiss citizens. Although the legal framework differs in several respects, it provides a useful comparison for understanding how the principle of reciprocity may apply depending on the buyer’s country of citizenship

It may seem logical to assume that, because Canada has restricted foreign purchases of residential property, Canadian citizens would face similar restrictions when buying property in Italy.

In reality, this is not the case.

Canadian legislation is an internal housing policy designed specifically for the Canadian real estate market.

Whether a Canadian citizen may purchase property in Italy depends on Italian legislation, any applicable international agreements, and the buyer’s individual legal status.

For this reason, every transaction should be evaluated on its own merits.

When a Canadian citizen purchases property in Italy, it is generally the Italian notary who verifies that all legal requirements have been satisfied before the final deed of sale is executed.

This verification protects both buyer and seller and is one of the reasons why Italian property transactions are considered particularly secure.

For this reason, it is always advisable to clarify these legal aspects before signing a purchase offer.

Carrying out these checks at an early stage helps avoid unnecessary delays or complications later in the transaction.

There are several situations in which the principle of reciprocity carries less significance or different legal rules may apply.

These include:

• Canadian citizens who also hold Italian citizenship;
• Canadian citizens who also hold citizenship of another European Union Member State;
• non-EU citizens legally residing in Italy under specific residence permits provided by Italian law.

A particularly common situation involves Canadians of Italian descent.

Many are descendants of Italian emigrants and have either already obtained—or may be entitled to obtain—Italian citizenship by descent (jure sanguinis).

In such cases, the purchase follows the same legal framework applicable to Italian citizens.

Buying property in Italy while living abroad also involves a number of practical considerations.

These include obtaining an Italian tax code (Codice Fiscale), reviewing planning and cadastral documentation, assessing the tax implications of the purchase, arranging financing where necessary, and preparing all documentation required for completion.

Careful planning makes the entire purchasing process considerably smoother and helps avoid unnecessary delays.

Over recent years we have witnessed a growing interest from Canadian buyers in the Italian real estate market.

This trend is by no means limited to Canada. In recent years, we have seen growing interest from buyers across the world looking to purchase property in Italy. We explored this evolution in greater detail in our article on the growing presence of international buyers in the Versilia real estate market.

Some are looking for a second home where they can spend part of the year.

Others wish to reconnect with their Italian heritage.

Many simply see Italy as a long-term lifestyle or investment opportunity.

Every buyer has a different story.

And that is precisely why every transaction deserves an individual approach.

Every piece of legislation reflects a broader vision of the property market.

Canada’s decision demonstrates how, at certain moments, governments may intervene to balance investment, housing affordability and the right of their citizens to own a home.

This does not automatically mean, however, that Canadian citizens cannot purchase property in Italy.

International real estate transactions should always be assessed individually, taking into account the principle of reciprocity, any applicable international agreements and the buyer’s specific legal circumstances.

From our experience, legal compliance is only the beginning of the journey.

Behind every purchase lies a personal story.

Some buyers are returning to the country of their ancestors.

Others dream of spending part of the year immersed in the Italian lifestyle.

Others are building a long-term investment or planning a new chapter of their lives.

At LT Immobili & Design, we believe that assisting international clients means far more than simply guiding them through the closing process.

It means offering clear advice, careful planning and professional support from the very first conversation, ensuring that every client can move forward with confidence, knowing that experienced professionals are overseeing every stage of their Italian property purchase.

Understanding why international buyers choose Italy also means understanding what today’s buyers are truly looking for. We explored this topic in our article on what homebuyers are really looking for in today’s real estate market.