Are foreigners allowed to invest by directly purchasing a commercial real estate asset?
There are no restrictions on foreigners investing in real estate in Italy. However, where an investment is by way of the purchase of shares in a corporate vehicle then there are certain restrictions that may be imposed by the Foreign Ministry (Ministero degli Affari Esteri). In any case the principle of reciprocity shall be met. There is no reciprocity when a foreign country places restrictions on an Italian investor who wants to establish a company in that country, since in such cases Italy applies the same limitations to the foreign citizen of that country, or to the foreign company of that country that wishes to invest in Italy. The check about the existence of treatment reciprocity shall not be carried out towards citizens of those countries with which Italy has concluded Bilateral Investment Treaties (BITs), for the matters covered by such treaties.
The issuance of a tax code may be necessary for physical persons with foreign citizenship and intending to set up a legal entity. The tax code will also be necessary if the person becomes a director of an Italian legal entity.