Guide for Canadians Buying Real Estate Property in Italy

Discover what you need to know as a Canadian before putting your investment eggs into Italy's real estate basket.

Buying overseas property in Europe is a big and exciting step, especially in Italy, where you can find $1 houses. Italy also has other options if you want to put down some real money in a more stunning location. 

In any case, there are plenty of reasons to want to own Italian property. Canadians with a taste for the "finer things" or la dolce vita will appreciate the top-notch art, architecture, cities, cuisine, wine and fashion Italy offers.

Fortunately, Italy is generally a "no-restrictions" country, though you still need to know how buying a house in Italy as a Canadian works. Use this guide to know what to do when in Rome, Milan, Naples or wherever you choose to buy your dream home.

Why are property investments in Italy so alluring?

Italy's enchanting coastline is along the Mediterranean sea. The Southern European country is home to Rome's Vatican City, the highest number of world heritage sites¹ and it's where pizza was invented in Naples. 

Here are more reasons why Italy regularly catches the interest of Canadian property buyers.

• You can buy property in Italy for €1. Italy's real estate market has generated a big buzz with homes for sale for just 1 EUR². However, you must note these are typically abandoned homes in less popular areas that require a lot of renovation.
• Italy's housing market is booming. Italy's real estate market³ is bouncing back and you can buy cheaply today and cash in later as the growth rate continues to climb.
• Homeownership levels are high. The homeownership rate⁴ in Italy is over 70%, which shows how favorable the housing market is.
• Canada and Italy have a strong relationship. As a Canadian, you may be a non-EU citizen, but Canada and Italy have a two-way investment relationship⁵. The reciprocal conditions mean Canadians can generally buy Italian property with no restrictions.
• Italy has many alluring attractions. There's a reason why Italy is highly romanticized and attracts many Italophiles. It offers many fascinating attractions, including great food and wine, a long history, a rich culture and beautiful views. Italy has something to offer for foreigners, whether you're investing in a noble villa in the Italian vineyard countryside or settling for one of the classically beautiful touristic cities.

3 essential steps to purchasing property in Italy

There are three main local processes you have to navigate when buying a property in Italy.

• Step 1 – Submit a written bid. You must fill in a form called "Proposta d'acquisto" to formally communicate your bid price and pay a deposit or down payment.
• Step 2 – Sign a preliminary contract. The preliminary contract is also known as the Compromesso, a written and stamped document registered in the Land Registry.
• Step 3 – The final act. This formal act, the conveyance or "Rogito," requires the assistance of the Notary Public as mandated by law. This is where legal ownership is transferred.

The "bid - compromesso - final act" is a simplified version of the buying process. In reality, there may be additional steps involved, such as:

• Getting your finances in order. Keep in mind that getting a mortgage from an Italian bank might not be the easiest thing. You might have better luck with an international bank based both in Canada and Italy that offers mortgages.
• Finding your dream property. The process is much easier if you engage a trusted agency or agent or check popular property websites in Italy. It's also best to get qualified advice from a lawyer and travel to inspect the property in person before buying.
• Making the payment. Once your tax ID is in place and your offer is accepted, you may need to find the best way to send money to Italy from Canada. Be sure to factor in all costs, including notary fees, realtor fees, survey or site inspection costs, legal fees, and government taxes.

Why does the EUR/CAD exchange rate matter?

Are you sending money from Canada to Italy for your property payment? Then, it's essential to pay attention to the EUR/CAD exchange rate to ensure it's in your favor before posting your transaction.

If the exchange rate is not competitive, your property will be more expensive than it really is. Hence, considering the exchange rate when dealing with large payment amounts or regular monthly payments is crucial to avoid potential losses of thousands of dollars. 

The best thing is to track the currency exchange rate with MTFX's live rate calculator. Then, you can confirm that the exchange rate is working in your favor and confidently initiate your transfer.

Where to find the best exchange rates?

Not all foreign exchange rates are alike. Some can add value to your transaction, while others hurt your pocket. If you want a better exchange rate, your best bet is to opt for a currency exchange specialist. That's because banks don't exactly have a reputation for offering competitive exchange rates. 

Going to the bank also means high transaction fees and additional charges, which increases the cost of your overseas property payment. 

In contrast, a currency specialist like MTFX offers exchange rates 3-5% lower. For instance, this would translate to an astonishing difference of $25,000 if you were to buy a property worth $500,000. This is the most cost-effective option whenever you need to send CAD to EUR.

Skip the bank and pay online with MTFX

You can make online international property payments using MTFX's 24/7 secure platform. This convenient platform provides access to a user-friendly foreign transaction service. You can issue a money transfer no matter where you are without going to the bank while enjoying quick processing times (24-48 hours) and reliable and safe transfers.

Additionally, you can rely on a currency exchange specialist to walk you through the process or use the wide range of available FX tools like currency charts to streamline payments. Life is so much easier when you can move your money abroad whenever you need to without involving the bank.

Save money on your property investment with MTFX exchange rates

If you're purchasing property in Italy, you have one less thing to worry about with MTFX's competitive exchange rates and low transfer fees. You can get the best value from your international transfers, whether you're making a once-off payment or setting up regular transfers.

MTFX offers you a cost-effective, fast and highly efficient way of sending money online to Italy from Canada.

Register your account with MTFX and make payments on your Italian property in just a few clicks.

Buy property in Italy – FAQs

Can Canadians buy property in Italy?

Yes, you can. Canadian citizens have no restrictions on buying property in Italy.

What's the Italian property market like?

Italy's property market ⁶is generally said to be steady at the moment, which is excellent news if you're looking for a safe investment.

Do I become a citizen if I buy property in Italy?

Canadians and non-residents may have no restrictions when buying a property in Italy. However, homeownership doesn't come with residency or citizenship rights. So, you'll have to apply for residency via the required routes.

What are some of the most popular places for Canadians to buy property in Italy?

According to Property Guides⁷, the best places to buy property in Italy include Costa Smeralda, Sardinia, Florence, Tuscany, Italian Lakes, Lombardy and Cefalù, Sicily.

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 Sources

1. Most UNESCO World Heritage sites
2. 1 Euro Houses – Cheap Houses in Italy
3. Italy’s housing market is bouncing back
4. Italy Home Ownership Rate
5. Canada-Italy relations
6. Italy’s housing market remains stable
7. 12 best places to buy a holiday home in Italy