The action broadens the prohibition on the procedure within the nation to include individuals who seek it out in countries like the US or Canada where it is permitted. Lawbreakers risk a maximum sentence of two years in prison and fines of up to €1 million (£835,710).
Critics believe the bill, which was put out by the far-right ruling party in Italy, targets LGBT couples, who are prohibited from adopting or using IVF in the nation.
When a woman becomes pregnant for another couple or individual, usually because of infertility problems or because they are men in a same-sex relationship, this is known as surrogacy.
The law passed by 84 votes to 58 in Italy’s senate on Wednesday.
In a protest ahead of the vote, the law’s opponents said it made it harder for people to become parents – despite the country’s declining birth rate.
“If someone has a baby they should be given a medal”, LGBT activist Franco Grillini told the Reuters news agency at the demonstration.
“Here instead you are sent to jail… if you don’t have children in the traditional way.
“This is a monstrous law. No country in the world has such a thing.”
The move is part of the socially conservative agenda of Giorgia Meloni, Italy’s first female prime minister and leader of the Brothers of Italy party.