Lea Black arrived in Sicily on March 8, 2025 with a dream. Twenty days later, Italy changed the rules.

The Big Picture Decree Law No. 36/2025 shortened generational requirements for citizenship by descent. Applicants can now only trace ancestry to parents or grandparents, not great-grandparents. This upends plans for thousands of Americans who had invested in Italian property.

Italy's constitutional court rejected the first legal challenge this month. But another crucial case will be heard on April 14, 2026 before the Court of Cassation.

“Regulatory whiplash has left families trapped in lease agreements without citizenship status.”

Why It Matters **Kellen Matwick and his family signed a four-year lease** as part of citizenship application requirements. They now cannot work legally or obtain health insurance, but lack the finances to return to the U.S. Their hearing is scheduled for January 2027.

Italy's real estate market relies on foreign buyers. Cities like Turin, where the Matwicks settled, have seen increased demand from American expats. This immigration uncertainty could cool that trend.

Vacation properties and renovation investments many expatriates planned are now at risk. Lea Black spent $20,000 on her failed attempt, including moving costs and document preparation.

The Bottom Line Watch the April 14, 2026 hearing on the "minor issue" that could set precedents. Investors in Italian property must consider immigration stability alongside market fundamentals. This crisis shows how sudden policy shifts can turn real estate assets into liabilities overnight.