A candid conversation with immigration and real estate lawyer Michele Capecchi
By Thomas Pigeon
I must confess that I have historically considered lawyers in the same category as used car and insurance salesmen—largely overpriced, overvalued, and bringing little true benefit to my life when I engage with them. That all changed when I met Michele Capecchi.
Michele is the head of Studio Legale Capecchi in Firenze. He’s an outwardly focused zealot, dedicated to helping his impressive list of clients gain access to Italy. Whether it be citizenship, residency, or real estate acquisition, Michele, simply put, makes the impossible possible. As wondrous as life in Italy can be, and as beautiful as the images that influencers post on Instagram are, navigating the complexity of Italian bureaucracy and law solo is a good way to ensure you have a heart attack early or end up on a psychiatrist’s couch.
It didn’t take me long to find Michele, as he has a media profile higher than anyone else in his discipline. He’s a marketing machine like I’ve never experienced in the legal profession and has built a formidable brand and presence in his space. And like all great brands, his delivery exceeds expectations. I think of Michele more as a wilderness guide, ensuring you follow the right steps and take the right path so you get to your destination as quickly as possible, largely unblemished throughout the process. Beyond being my Italian lawyer, Michele has also become a dear friend, and anytime I’m in Firenze, I take the opportunity to share a glass of wine with him and tell stories.
Michele is one of those people who, while having an acutely focused business, has a broad comprehension of the world and how it works. He is a member of the Italian Bar, and his law firm was created approximately 20 years ago. Over the last 15 years, his business has evolved to be more and more focused on the expat community, giving individuals and businesses from abroad invaluable information to navigate these complicated waters as they seek access to the Italian market. His practice is not limited to residency, citizenship, and real estate but also encompasses doing business with Italian companies, licensing products, and negotiating deals with Italian suppliers.
Recently, I sat down with Michele in his historic office in central Firenze to get his perspective on Canadians attempting to buy real estate in Italy. Michele noted, “So, everything started mainly from a business perspective. I had a corporate background as a lawyer, and I noticed that there was a big gap in terms of legal support that could be given in English to foreigners who were trying to do business here in Italy. So, I started becoming the Italian lawyer helping foreigners complete whatever needed to be completed and closing deals, etc.”
One of Michele’s aces up his sleeve is his international living and work experience, which puts him in a very different league than most resident Italian lawyers. “I worked in China as a visiting lawyer in 2010 during the Expo in Shanghai at the request of a Chinese law firm. It was an incredible experience and a look at the international market—it was very populated by business opportunities. So, I stayed there for four months, then I went back a couple more times. I got my Master’s from Loyola Law School in Los Angeles in American Law and International Legal Practice in 2008-9. In the meantime, I started collaborating with the local newspaper here in Firenze, The Florentine, an English-speaking newspaper. So, I was covering the needs of the expat community, and I had a legal column. That really showed me how much need there was for a legal expert who could not only communicate in English but also understand the mentality and expectations of international clients.”
I first encountered Michele while reading an article online. As a frequent visitor to Italy, I was unaware that you could only spend 90 days in a six-month timeframe in Italy (or any of the 29 Schengen countries) without requiring a visa. I was starting to look at real estate opportunities and realized that I was in dire need of help. I laughed as I sat with Michele about my first experience buying a mobile phone in Brescia with an Italian number, only for the whole deal to crash when they asked for my Codice Fiscale. I had no idea what it was, nor how to procure one to complete the transaction. I found myself quite overwhelmed—regulations, bureaucracy—even getting a Codice Fiscale, like, “What the hell is a Codice Fiscale?”
Michele softly smiled. “For your readers, a Codice Fiscale is similar to your social security number. It’s not as secret or to be kept as safe as your social security number in Canada, but it’s an identification number given to every person when they are born in Italy. It’s not tax-related; it’s a fiscal code, a way of identifying any person as part of a transaction in Italy. If you want to register at a gym, enroll your kids in school, buy a car, sign a lease, or buy a property, you need a Codice Fiscale. From the very first moment we meet a new client, our first question is, ‘Do you have a Codice Fiscale?’ If the person is here, even on a temporary basis, maybe just visiting, we can request one for them. Some people say, ‘Hey, I have a Codice Fiscale. Do I have a visa?’ No! A Codice Fiscale is just an identification number needed for transactions.”
I asked Michele to walk me through the process of buying a house in Italy and how he, as a lawyer, can guide clients to make better, more informed decisions. “Buying a property in Italy can be a daunting process because the regulations here are based on national, state, regional, and local laws. Each of these sets up certain rules regarding zoning, building permits, and renovation restrictions. Additionally, since Italy is a very old country, certain properties are subject to historical preservation laws. If you want to buy or sell a historic building, for example, the government has the right of first refusal. Similarly, if you want to buy property in the countryside, your neighbours may have the right of first refusal for agricultural land.”
“This is where I step in and say, ‘Don’t sign anything until we know exactly what we are making the offer for.’ When properties are listed, we often know very little about whether they comply with all the national, regional, and local regulations. What we do is essentially make a bet, hoping the property is in full compliance.” This sounded ominous, but Michele soon shared the safeguards his firm puts in place.
“To mitigate risk, we involve technicians, known as Geometers, for formal property inspections. Unlike home inspectors in the United States and Canada, geometers assess the property’s legality in addition to its condition. Since many properties in Italy are 100, 200, or even 300 years old, they inspect elements such as the roof, façade, and structural integrity. They also review official records to ensure that all modifications over the past 40 years were properly authorized. If a floor plan does not match the records, the seller must rectify the discrepancies before the sale can proceed.”
…that really showed me how much need there was for a legal expert who could not only communicate in English but also understand the mentality and expectations of international clients.
— MICHELE CAPECCHI
Michele also noted that buying property in Italy does not grant residency. “This is a common misconception. Some clients assume that purchasing property automatically gives them residency, but Italy does not offer a real estate visa. Residency is a separate process requiring a visa and a permesso di soggiorno (permit to stay), which involves a lengthy application process.”
Buying property in Italy: what you need to know
I asked if you need a visa to buy a property? “No, no. If you want to use the house… Let me rephrase because otherwise, it’s confusing. People think that if they buy a property, they automatically obtain residency status. Again, as I said, these are separate matters. To be clear, acquiring a home in Italy does not grant you any immediate residency status or exempt you from the 90-day visitation rule. But to buy a home in Italy, you don’t need to be a resident or a citizen.”
I queried Michele about the “reciprocity treaty” between Canada and Italy concerning real estate acquisition for Canadian residents. “Canadians can buy a property as tourists. Up to a certain point, there is reciprocity. However, with Canada, we are now facing challenges regarding reciprocity. Due to a recent change in Canadian law limiting international buyers to towns or cities with fewer than 10,000 inhabitants, the Italian government, by virtue of reciprocity, has implemented the same restriction. This means that currently, Canadian citizens cannot purchase property in Italy in cities or towns with more than 10,000 residents. This effectively eliminates major urban centers like Rome, Florence, Milan, and even Brescia, where you own your home, Thomas. Yours is grandfathered in since you purchased it years ago, but as of today, you wouldn’t be able to buy there. That said, there are still many beautiful towns and hamlets with charming piazzas that fall within the 10,000-resident rule. A great example is Greve in Chianti or picturesque towns like Montepulciano.”
The challenges of buying historical property in Italy
One of the charms of Italy is its historical real estate, but it comes with its challenges. “The seller guarantees that you’re buying a very old building that is perfectly in compliance with all urban regulations. But that’s it!” Michele stated. “And this is typically where the Geometer steps in.” In Italy, the Geometer is part surveyor, part building inspector, and part historian. Recently, while attempting to finalize a property purchase, I was presented with what looked like antique drawings—sketches that could have been signed by Leonardo da Vinci himself. To say they were complicated would be an understatement.
“In Canada, everything is a square or a rectangle, right?” I noted. “Here, there’s a little piece here, a sub-part there, a triangle cut out across the road, with enough cadastral numbers to confuse even the best mathematician.” Michele nodded. “Yes, the role of a Geometer is essential because they are the only ones who know where to find the initial documentation. They can verify whether the past owners applied for and received all the necessary authorizations—whether they tore down a wall, added a new one, or expanded the property. If we see something that doesn’t have the proper documentation, that’s when the transaction must be put on hold.”
The right of first refusal
“A key preliminary issue that must be addressed when purchasing rural real estate is whether neighboring landowners have a right of first refusal on the property. In certain cases, if the property you intend to buy includes land classified as agricultural and exceeds specific size thresholds, and if the neighboring landowners are professional farmers, they must be formally notified by the seller of the binding offer submitted by the buyer. This notification gives them the opportunity to exercise their pre-emptive right and purchase the property under the same terms.
A buyer, or his/her lawyer should, at the time of making an offer, inquire whether any of the seller’s neighbours qualify as professional farmers. If so, the purchase offer should be structured to include a condition related to the potential exercise of the neighbours’ right of first refusal. This ensures that the transaction can proceed smoothly and without unexpected legal complications.”
Canadian citizens cannot purchase property in Italy in cities or towns with more than 10,000 residents. This effectively eliminates major urban centers like Rome, Florence, Milan, and even Brescia…”
— MICHELE CAPECCHI
“When a property is classified as having historical, artistic, architectural, or landscape value, it becomes subject to specific regulations. This means that any sale of such a property must be reported to the Ministry of Culture and other relevant territorial entities. Before completing the sale of a property listed in the registry of beni culturali (cultural heritage properties), the notarial deed must be formally notified to the Ministry of Culture. This grants the government the right to exercise its pre-emptive right, allowing it to purchase the property before it is sold to another party. The government has 60 days to respond to the formal notification of the sale, which is handled by the notary. If no response is provided (as is the case usually), the sale can proceed. During this 60-day waiting period—essentially a condition precedent—the sale buyer must wait until the period expires before taking possession of the property. Statistically, the government rarely exercises this pre-emptive right, so in most cases, it simply results in an additional waiting period where the buyers must patiently wait.”
“However, ‘fine art’ real estate properties restrictions are additionally relevant not only at the time of purchase but, live with the property in terms of limiting of any modifications that the owner can make to the property itself. To preserve historical properties, renovations inside these properties are subject to a more restrictive approval processes ensure that properties of significant cultural value remain protected and preserved for future generations.”
Navigating Italy’s Historic Real Estate Laws
So much of Italy’s beauty lies in its historic stone homes. Equally, much of the complexity in real estate transactions stems from their historical status.
“There’s very little you can do to modify these buildings,” Michele explained. “Most are between 100 and 400 years old. If you walk through a home in North America, you might think, ‘I’ll knock down this wall and move this door.’ But in Italy, you must be very careful. In fact, we have a saying: The first time you visit a property, you go alone. The second time, you bring your mom. The third time, you go with your surveyor—or your mom or wife, depending on who holds the real decision-making power.”
A visit with your own Geometer is essential—not the one provided by the seller. “The Geometer will inspect everything—walls, floors, and structure. They’ll tell you if a wall is structural and cannot be moved. Can you make the windows larger? Often, no. You can’t change the facade of a historic building. Internal changes are possible, but only if they don’t compromise structural integrity.”
The cost of buying in Italy
In Canada, the seller pays the real estate agent’s commission, but that’s different here, isn’t it? “Yes. The total commission typically ranges from 4-8%, but unlike in your home country, Thomas, the commission is split between the buyer and the seller. Like everything in life, these commissions are negotiable.”
Another major difference is the deposit. “In Canada, if you put a deposit down and wake up the next morning thinking, ‘I was only kidding—I drank too much wine,’ you don’t get it back. Here, there’s a doubling clause: If the seller decides to back out, possibly because they received what they believe to be a better offer, they must pay you double your deposit. So, if you placed a €10,000 deposit and the seller reneges, they owe you €20,000.”
Financing your dream home
Despite Italy being a great real estate opportunity, it’s not ideal for non-residents looking for financing. “Italian banks are reluctant to finance buyers who don’t permanently reside here. Often, the property alone isn’t considered sufficient collateral. If you default, the bank may take seven to ten years to repossess the home due to the slow legal system. To avoid this risk, banks only offer loans to buyers with strong financial profiles—steady income, assets, and savings. Fully collateralized loans are possible, but mortgages are nearly impossible to obtain. Be prepared to pay cash. Trust me—it’s worth it.”
The role of the notary
One last technical point: The role of the notary here is different from in Canada, right? “Yes. In Canada or the U.S., a notary is just someone who certifies signatures. In Italy, a notary is a government-appointed official responsible for transferring property titles. The notary deed is a formal, legally binding public document—usually 20-25 pages long—that ensures the property is legally compliant. If the buyer doesn’t speak Italian, they must either have a certified translation of the document or grant a power of attorney to a legal representative.”
But the binding legal agreement is in Italian, correct? “Yes. The translation is just a guide. The official contract is in Italian.”
As I left Michele’s office, walking down the historic streets of Florence, one thing was clear: I would never again approach an Italian real estate transaction without Michele Capecchi and Studio Legale Capecchi by my side. After hours of real estate talk, my head was spinning, but I knew we’d soon be seated at a perfect little trattoria, ordering a magnificent pasta dish and uncorking a fine bottle of local vino rosso. Some of life’s greatest pleasures are found in the company of intelligent, informed, and engaging people. This was one of those days.
Saluti! – VV
Note: The information in this article is for informative purposes only and should not be construed nor interpreted as a formal legal opinion
