Is it possible for an Australian citizen to purchase a home in Italy? To answer this question, often a source of doubt and uncertainty, it is necessary to start by examining the reciprocity requirement between the two countries.
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The reciprocity requirement between Italy and Australia
Under Italian law, foreign nationals may purchase real estate in Italy only if a condition of reciprocity exists—meaning that Italian citizens must enjoy the same rights in the foreign national’s country of origin (Art. 16 of the Preliminary Provisions to the Italian Civil Code).
As far as Australia is concerned, its government has historically imposed restrictions on foreign nationals (particularly non-residents) purchasing existing residential properties, with the aim of directing foreign investment toward new construction.
It is therefore not surprising that, as of February 16, 2025, the Foreign Investment Review Board (FIRB) introduced a temporary general ban on the purchase of existing residential properties by non-resident foreigners, with some exceptions.
At first glance, this might suggest that the reciprocity condition is not met, and that Australian citizens should therefore be excluded from purchasing existing real estate in Italy.
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The Bilateral Investment Treaty
However, the situation is quite different. A Bilateral Investment Treaty (BIT) between Italy and Australia, signed in Canberra in 1967, expressly provides in Article 28 that citizens of each State may acquire, own, and dispose of real estate in the other country under the same conditions as local citizens.
The law ratifying and implementing the treaty—Presidential Decree No. 1430 of December 9, 1970—constitutes a lex specialis in relation to the general rule of Article 16 of the Preliminary Provisions, with the consequence that no separate verification of reciprocity is required.
This means that, despite the Australian restrictions, in Italy the reciprocity condition is deemed fully satisfied thanks to the existence of this international treaty. This has also been confirmed by the Italian Ministry of Foreign Affairs on its “Rights and Reciprocity” portal.
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What about the Elective Residence Visa?
It is sometimes suggested, as an alternative, to apply for an Elective Residence Visa, thereby establishing residence in Italy and thus overcoming any doubts regarding reciprocity. In reality, however, this procedure is not necessary for the purchase itself: the right of an Australian citizen to buy a home in Italy is already guaranteed by law.
That said, residence may offer certain tax benefits—for example, a reduced 2% registration tax on the purchase of a primary residence, compared with the standard 9% rate.
Nevertheless, obtaining this visa requires stringent conditions (independent income, suitable accommodation already available, health insurance), which may make the process impractical in some cases.
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The role of the notary
It is also worth noting that, under Article 27 of the Italian Notarial Law (Law No. 89/1913), a notary cannot refuse to execute a deed that is lawful and not prohibited by law. In this case, since there is no legal prohibition against an Australian citizen purchasing property, the notary is obliged to proceed.
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Conclusion
In conclusion, an Australian citizen can legally purchase an existing property in Italy without the need for special permits or visas, because the reciprocity condition is considered satisfied under the 1967 Bilateral Investment Treaty.
Those wishing to establish residence in Italy may also evaluate the related tax benefits, but this is not a mandatory step in order to buy.
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