Italian Tax Residency Changes 2024

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Italy’s fiscal landscape recently underwent significant change with the enactment of Article 1 of Legislative Decree No. 209 on December 27, 2023, titled “Implementation of the tax reform on international taxation.” This pivotal decree ushered in Italian tax residency changes, particularly impacting existing favourable tax regimes. In this guide, we explore these changes.

Italian Tax Residency Changes Revise Residency Criteria

Effective January 1, 2024, the amended Article 2, paragraph 2, of Presidential Decree No. 917 of December 22, 1986, introduces new criteria for determining fiscal residency in Italy. Individuals are now considered fiscally resident if, for the majority of the tax period (over 183 days, fractional days included), they domicile in Italy, hold residency in Italy as per Article 43 of the Civil Code, or are physically present in Italy. This marks a significant departure from the previous criteria.

Furthermore, if individuals register at a local municipality for the majority of the tax period, authorities presume residency unless proven otherwise. It’s crucial to note that this registration is a relative legal presumption, providing an opportunity for “presumed” residents to present contrary evidence demonstrating their actual residence abroad or non-fiscal residency in Italy.

Italian Tax Residency Changes Impact Domicile Interpretation

Notably, the interpretation of domicile has undergone a paradigm shift. The exclusion of the civil code in interpreting domicile now places exclusive importance on the “place where personal and family relations primarily develop.” This legislative change establishes a clear hierarchy among the linking criteria, emphasising personal and family relationships over economic and work-related interests.

However, the reference to the civil law definition of residency under Article 43 of the Civil Code remains unchanged, creating an interesting interplay between the two criteria.

Italian Tax Residency Changes Link Criteria to Physical Presence

Starting January 1, 2024, authorities have introduced a new criterion linking physical presence within national borders for the majority of the tax period. This criterion, however, does not align with the expectations set by the Delegated Law for the tax system reform (Law No. 111 of August 9, 2023), as it does not introduce the provision for tax year fractionation, commonly known as the “split year.”

Impact on Tax Regimes

The practical implications of these legislative changes on tax regimes are paramount. Let’s delve into two significant regimes affected by these changes: the new-resident regime under Article 24-bis of Presidential Decree No. 917 of December 22, 1986, and the expatriate worker regime regulated by Legislative Decree No. 147 of September 14, 2015, modified by Article 5 of Legislative Decree No. 209 of December 27, 2023.

New-Resident Regime Changes

Article 5 of Legislative Decree No. 209 of December 27, 2023, introduces sweeping modifications to the “new-resident regime.” This regime, in its current formulation, extends tax benefits to income from dependent work, similar income, and income from self-employment produced in Italy by workers transferring their fiscal residency.

Notably, these incomes, up to a limit of six hundred thousand euros per year, now contribute 50% tax. This represents a notable reduction from the previous regime. The new-resident regime is applicable from the tax year of acquiring fiscal residency and for the four subsequent tax periods.

The New-Resident Regime is Contingent on Conditions

 

Workers must commit to fiscally residing in Italy for at least four tax periods.

Workers cannot have been fiscally resident in Italy in the three tax periods prior to their transfer.

If a worker conducts work in Italy for the same employer they worked for abroad before the transfer or for an employer within the same corporate group, they must meet the minimum foreign residency requirement:

  • Six tax periods if the worker was not previously employed in Italy by the same employer or a subject belonging to the same group.
  • If the worker was employed in Italy for the same employer or a group-affiliated employer before transferring abroad, the minimum foreign residency requirement is seven tax periods. Additionally, the worker must carry out work activities in the Italian territory for the majority of the tax period.
  • Workers must possess qualifications or specialisation as defined by Legislative Decree No. 108 of June 28, 2012, and Legislative Decree No. 206 of November 9, 2007.

Additionally, the contribution on overall income is now reduced to 40% if the worker relocates to Italy with a minor. If a child is born during the regime period, application of this benefit starts from the ongoing tax year at the time of the child’s birth. To qualify, during the regime period, the minor child must remain resident in Italy.

These new provisions will apply to individuals transferring fiscal residency to Italy starting from the 2024 tax year

Individuals who transferred their registry residence by December 31, 2023, will continue to apply the previous provisions regarding the application of the new-resident regime.

For individuals transferring registry residence to Italy in 2024, the application of the regime can extend to an additional three years if they became residential property owners, by December 31, 2023, or within twelve months prior to transferring to Italy.

The property must however be the main residence in Italy. The percentage of non-contribution income, for the additional three years, is 50%.

Increase in IVIE Tax Rate

Law No. 213 of December 29, 2023 (Budget Law 2024) introduces an increase in tax rate due on real estate held abroad (IVIE). The rate rises from the current 0.76% to 1.06%. The determination of the taxable base remains unchanged from current legislative provisions. The determination relies on whether the property is in an EU/EEA member state or an extra EU/EEA state. The revenue agency calculates the taxable base on the cadastral value, acquisition cost, or market value.

Increase in IVAFE Rate for Financial Assets Held in Privileged Tax Jurisdictions

Law No. 213 of December 29, 2023 (Budget Law 2024) also raises the rate of the tax due on financial assets (IVAFE) held in states or territories with privileged tax regimes identified by the Ministry of Economy and Finance Decree of May 4, 1999, and subsequent amendments. The rate increases from the current 0.2% to 0.4%.

IVAFE continues to apply to the value of financial products, current accounts, and savings accounts held abroad. The calculation considers the percentage of ownership in the case of joint ownership and the number of days of possession.The value of the financial asset as of December 31 of the tax year or the market value recorded at the end of the holding period in the case of intra-annual transfers represents the taxable base. In the case of current accounts, tax is payable at a fixed rate of 34.20 Euros, indexed based on the number of days of possession.

Note that Switzerland does not fall within the scope of the provision concerning the increase in the IVAFE rate. Starting from the 2024 tax year, Switzerland is no longer listed among the countries and territories in the May 4, 1999 decree. Therefore, financial assets held in Switzerland will remain subject to the 0.2% IVAFE rate.

Changes in Italian Tax Residency apply to the 2024 tax year

The changes in Italian tax residency criteria bring forth a dynamic landscape with profound implications for individuals and their tax obligations. The revised criteria not only redefine the notion of fiscal residency but also reshape the benefits and conditions associated with specific tax regimes. Navigating this new terrain requires a nuanced understanding of the amended regulations and their far-reaching consequences. As individuals and tax professionals adapt to these changes, staying informed and proactive becomes imperative in ensuring compliance and optimising financial outcomes in the evolving Italian tax framework.

Finally …

Understanding and adapting to the changes in Italian tax residency in 2024 may necessitate professional assistance. For those seeking support, the De Tullio Law Firm team, specialists in Italian and cross-border property, inheritance, and tax matters, is “right beside you”. For a free consultation on new regulations or compliance with Italian tax matters, contact us.

Italian Citizenship: An Essential Guide for Foreign Nationals

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Italian citizenship offers a plethora of opportunities, including the right to live, work, and study in Italy and across the European Union. At De Tullio Law Firm, we understand the challenges and nuances of Italian law and are dedicated to guiding our clients through each step of this intricate process. This process may seem daunting due to complex legal requirements and procedures that require meticulous adherence.

Understanding Italian Citizenship Law

Several pathways exist for acquiring Italian citizenship: by descent (jure sanguinis), through marriage (jure matrimonii), or after a period of legal residency in Italy. Each pathway entails specific requirements, documentation, and legal processes that individuals must navigate with precision and care.

 

  • By Descent: If you have Italian ancestors, you may be eligible for citizenship through jure sanguinis. This process involves proving your Italian lineage through a series of official documents and records.

  

  • Through Marriage: Spouses of Italian citizens can apply for citizenship through jure matrimonii, provided they meet certain residency requirements and have been married for a specified period.

  

  • By Residency: Non-EU nationals who have legally resided in Italy for a considerable period may also be eligible to apply for citizenship, depending on their specific circumstances.

 

Why Download Our Comprehensive Guide?

Our “2024 – Italian Citizenship Guide” is an invaluable resource. We have designed it to demystify the process of acquiring Italian citizenship. This guide covers:

– Detailed explanations of the different pathways to citizenship.

– A step-by-step overview of the application process.

– Required documentation and how to obtain it.

– Common pitfalls and how to avoid them.

– Legal nuances and recent changes in the law.

By downloading our guide, you will gain access to expert insights and practical advice. This is an essential tool for anyone considering making Italy their permanent home or looking to claim their Italian heritage.

Finally

Italian citizenship opens doors to a rich cultural heritage and a high standard of living. While the process may seem complex, with the right guidance and resources, achieving citizenship is within reach. When you choose De Tullio Law Firm, we are right beside you every step of the way.

European Professional Card for Realtors

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The European Professional Card is a groundbreaking initiative aimed at simplifying and harmonising professional qualifications within the European Union (EU). Specifically tailored for regulated professions seeking recognition, the card offers a streamlined electronic process for individuals aiming to validate their credentials in another EU country.

While in some EU countries, the European Professional Card procedure caters to various professions like nursing, pharmacy, physiotherapy, mountain guiding, and real estate agencies, its current availability in Italy extends solely to real estate agents.

The European Professional Card for Real Estate Agents: A Game-Changer

Traditionally, conducting real estate transactions across EU borders necessitated grappling with convoluted recognition protocols. However, with the advent of the European Professional Card, real estate agents now wield a potent tool to navigate these challenges with unprecedented ease and efficiency.

How the European Professional Card Empowers Real Estate Agents

The card bestows multiple benefits upon real estate agents. Principally, it grants them the liberty to operate seamlessly in any EU member state, obviating the need for cumbersome recognition procedures. Whether pursuing short-term or long-term real estate ventures, the card paves the way for expanded market access and new prospects.

Operating on the tenet of mutual recognition, the European Professional Card ensures that qualifications endorsed in one EU nation receive automatic validation elsewhere.Consequently, this mechanism fosters mobility for real estate professionals. Additionally, it enables them to transcend national borders with ease.

Navigating the Application Odyssey

Securing a European Professional Card entails an application process. Firstly, create a European Professional Card profile with your personal details and contact details.

Next, submit an application for the card. You can read the User Guide where you will find a detailed step by step guide, as well as answers to any issues you may come across during the process.

Once your application is approved, you will be notified by email and you’ll be able to generate a card in PDF format. You can then submit your application for registration using the card as proof of qualification with the regulatory authority.

Additionally, adherence to stamp duty payment requisites, as specified by regulatory authority, is imperative.

In Italy, the stamp duty must be paid by bank transfer to:
“State Budget Head VIII, Chapter 1205, art. 1”
BIC: BITAITRRENT – IBAN: IT 07Y 01000 03245 348 008 1205 01
TAX: Stamp duty – REASON FOR PAYMENT: Name Surname. Stamp duty recognition request at MISE for professional qualification.

If they do not have one, non-residents in Italy must declare their personal details instead of their tax code (codice fiscale).

Finally …

If you are a real estate agent considering expanding your services into Italy, our team at De Tullio Law Firm is here to assist you in obtaining a European Professional Card. We specialize in Italian and cross-border property, inheritance, and tax matters. Whether you require assistance with applications, tax codes, or any other aspect of the process, we are right beside you. Contact us today for a free consultation and let us help you unlock new opportunities in cross-border real estate mobility.

Buying A House in Puglia: A Guide

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If you are thinking of buying a house in the Italian region of Puglia, you’ve come to the right place. In this guide, we’ll uncover the unique charm of this hidden gem. We’ll also provide insights into its real estate market and look at the property purchasing process.

Buying A House in Puglia: Coastal Beauty and Inland Bounty

Puglia, the heel of Italy, boasts an 800-kilometer coastline along the Adriatic and Ionian Seas. From charming fishing villages to lively coastal towns, Puglia’s shores offer cliffs, golden beaches, and secluded coves.

Venturing inland, the landscape transforms into a tapestry of olive groves, vineyards, and fertile plains. Renowned for olive oil production, Puglia is a leading Italian producer. The Valle d’Itria, with rolling hills adorned by iconic trulli, adds enchantment to the terrain.

The Murge Plateau, a vast limestone highland, commands the central area of the region. In addition to its visual diversity, the Murge Plateau serves as a vital agricultural hub.

Beyond nature’s gifts, Puglia is steeped in rich historical and cultural heritage, with ancient cities like Bari, Brindisi, Taranto, and Lecce standing as testament to the region’s past.

For anyone considering buying a house in Puglia, the affordability of housing and cost of living in Puglia compared to some northern regions of Italy makes it an attractive destination. Puglia offers a high quality of life as well as a unique and inviting atmosphere.

Provinces from North to South Add Layers to Puglia’s Charm

Foggia:

Known for its expansive plains, Foggia is an agricultural heartland, featuring towns like Lucera and Troia, blending historical heritage with rural charm.

Barletta-Andria-Trani:

Formed by three historic cities, this province combines cultural richness with architectural splendor, featuring sites like the Colossus of Barletta and Castel del Monte.

Bari:

Bari, the regional capital, is both an economic hub and a cultural center, featuring historic landmarks like the Basilica di San Nicola and the Swabian Castle.

Brindisi:

This province, with its Adriatic coastal location, is rich in maritime history, offering ancient ruins in towns like Ostuni.

Taranto:

Situated on the instep of Italy’s boot, Taranto boasts ancient Greek ruins and a vibrant waterfront, serving as a gateway to both the Ionian and Adriatic coasts.

Lecce:

Lecce showcases distinctive Baroque architecture, earning it the title “Florence of the South,” while the Salento Peninsula offers sun-soaked beaches.

The Real Estate Market in Puglia

If you are thinking of buying a house in Puglia, let’s explore the diverse range of properties that make the region a strong investment opportunity.

The significance of location cannot be overstated in the Puglia real estate market. Because Puglia is a peninsula, you are never far from the sea. Towns such as Martina Franca, Ostuni and Ceglie Messapica particularly popular for their proximity to the coast. They are also clsose to international airports of Brindisi and Bari. Puglia’s accessibility, combined with a Mediterranean climate, makes it an attractive destination for both residents and tourists.

The real estate market in Puglia is thriving.  Prices are generally lower compared to northern Italy. With its slower, sunnier lifestyle, and the potential return on investment from the vibrant tourism sector, Puglia attracts buyers worldwide. Homes from Polignano a Mare to Santa Maria di Leuca generate significant interest, emphasizing the enduring appeal of Puglia’s architecture and coastal views.

The Range of Real Estate in Puglia

Puglia offers a diverse range of properties. In addition to traditional houses and villas, you will find farmhouses, known as masserie, and iconic trulli with conical roofs. Moreover, the region’s homes often boast breathtaking views of the countryside and/or the sea.

Whether you are in search of a ready-to-live-in house in Brindisi or a trullo in the Valle d’Itria for renovation, Puglia can accommodate every preference and budget. Properties in Brindisi start from around 70 – 80,000 euros. A trullo, in need of renovation, can be purchased for about 50,000 euros. Additionally, the region boasts opulent luxury homes, attracting savvy investors seeking promising returns.

The Process of Buying a House in Puglia

To navigate buying a house in Puglia safely and smoothly, it’s important to understand the main steps of purchasing property in Italy:

  1. The Reservation Offer (Proposta irrevocabile d’acquisto): Once you have identified a property you wish to purchase, you’ll need to submit a purchase offer. Before doing so, it is crucial to carefully study the property’s documentation. In particular, you need to ensure compliance with cadastral, urban planning, energy performance, and tax requirements. Protect your interests by consulting with a specialized lawyer who can review and draft your offer.
  2. The Preliminary Contract (Contratto preliminare di vendita): Upon acceptance of your offer, the next step is to negotiate and establish a sales agreement with the seller. This agreement will outline the terms of the transaction, including the price, payment terms, and any other relevant details necessary for a successful deal.
  3. The Deed of Sale (Atto di vendita): The last stage involves signing the final deed of sale. This legally transfers ownership from the seller to you as the buyer. It is important to note that Italian law requires non-Italian-speaking foreign buyers to hire an interpreter during the signing process. Again, working with a bilingual lawyer can provide significant cost savings as they can act as both a legal advisor and interpreter.

Finally…

Buying a house in Puglia can be a rewarding investment, but it requires careful consideration and adherence to legal procedures. With over 55 years of experience throughout Italy, De Tullio Law Firm can assist you every step of the way. Our team of specialized lawyers can provide expert advice, ensuring a secure and legally sound investment. In addition, we can help you with residence, inheritance and tax matters. Contact us today to start your journey towards owning a house in the captivating region of Puglia.

Healthcare in Italy: A Guide for Foreign Residents

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Its rich cultural heritage, beautiful landscapes, and exceptional lifestyle have made Italy a renowned destination. However, when it comes to healthcare, it is essential to familiarize yourself with the available options, registration processes, and potential challenges. By understanding the intricacies of the Italian healthcare system, you can make informed decisions. Therefore ensuring that you and your loved ones receive the necessary medical care while living in Italy. In this blog post, we will provide a comprehensive guide to healthcare in Italy for non-Italian citizens.

Healthcare for Non-EU Citizens

Non-EU foreign citizens with residence permits, who do not belong to countries with national health service agreements, can access the national healthcare system in Italy through various methods, depending on the purpose of their stay.

Foreign citizens who are legally present in Italy, including tourists staying for a period not exceeding 90 days, have the right to receive urgent and elective health services by paying the relevant regional fees. Most cases do not require mandatory registration with the National Health Service, except for students and au pairs. However, foreign citizens holding a valid residence permit can voluntarily enroll with the National Health Service by contacting the Local Health Authority of their registered municipality or, if not yet a resident, their actual domicile as indicated on the residence permit. This registration enables them to choose a general practitioner from the Local Health Authority Registers and earn 4 credits towards the integration agreement. Additionally, dependent family members who legally reside in Italy are also eligible for healthcare treatment.

Healthcare for EU Citizens

Citizens from European Union countries, the European Economic Area, or Switzerland who are visiting Italy for tourism are guaranteed healthcare services through the European Health Insurance Card (TEAM). This card grants them access to necessary treatments, including non-urgent care, during their stay.

For EU citizens residing in Italy for purposes other than tourism, registration with the Regional Health Service is possible by using the appropriate EU S1 forms (previously E106, E109, E120, E121 forms) issued by their country of origin. Alternatively, EU citizens who are employees under Italian employment contracts or self-employed workers subject to Italian system taxation may also be eligible for registration.

Finally..

If you are a foreign citizen residing in Italy or planning to move to Italy, understanding the healthcare system is crucial for a worry-free experience. Although the regulations and processes may seem complex, with the right guidance and support, you can navigate them successfully.

If you are planning to move to Italy De Tullio Law Firm is here to help. With over 55 years of experience, we can guide you through the legal process and ensure a smooth journey. Contact us today to learn more.

Work from Ollolai for a monthly rent of €1

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In the heart of Sardinia, a village is reimagining the concept of remote work. The picturesque village of Ollolai, in the hilly Barbagia area of Sardinia, is pioneering a new initiative. Work from Ollolai (WFO), provides individuals with the extraordinary opportunity to both live and work in Ollolai for the symbolic monthly rent of just €1.

Over the past century, Ollolai’s population has significantly decreased, dwindling from 2,250 to 1,300 residents. The village, which famously counts Arnold Schwarzenegger among its honorary citizens, sees only a handful of babies born each year.

In 2018, Ollolai followed a trend seen in many Italian towns by selling homes for the price of 1 euro to revitalize its historic district. This initiative aimed to breathe new life into the area as well as attract residents.

WFO elevates this revival. In addition, the concept aims to foster cultural exchange in a way that promises to inspire, inform, and unite communities.

A Unique Experience: Tradition Meets Innovation

Sardinia, with its serene beauty, seems to slow time itself, allowing tradition and nature to harmonize. Ollolai is the embodiment of this unique blend, where simplicity and innovation intersect.

Now, through its WFO, the village extends a warm invitation to professionals and entrepreneurs from across the globe, beckoning them to become part of its vibrant community.

Work from Ollolai: Enriching Lives

This initiative encourages participants to contribute through lectures, presentations, or projects. Experienced professionals, artists, writers, scientists, and academics can all play a role in enriching the local culture.

Cultural Exchange

Work from Ollolai goes beyond work; it’s about forging enduring connections and embracing a lifestyle rooted in community. Participants receive the gift of a distinctive cultural experience while imparting their knowledge.

Work from Ollolai: Practical Details

Under the WFO initiative, Ollolai’s town hall has allocated 20,000 euros (approximately $21,460) to host 30 remote workers from around the world, providing them with free stays in the village, one at a time, over the next two years.

Online applications for this unique opportunity are open until 31st December, 2023.

The selected participants can reside in Ollolai for up to three months at a time. This is in line with the legal maximum stay duration for non-EU nationals in Italy without a visa.

Accommodations provided consist of private houses. However, it’s important to note that these are authentic homes, not Airbnb properties or hotels.

Despite the symbolic monthly rent for the house being €1, guests are responsible for additional expenses, encompassing food, utilities, deposits, and travel.

Moreover, guests can access high-speed internet via e-SIM cards on their phones, making use of any Italian mobile network provider, thereby ensuring speeds of approximately 150Mb/s.

If you would like to discuss your situation with one of our lawyers, you can schedule a FREE consultation with us.

A Life-Changing Journey

Work from Ollolai is an opportunity to shape a community, and, in return, have your life transformed. In this remarkable village, tradition and innovation converge, while shared wisdom and cultural immersion enrich lives. It’s not just a program; instead, it’s an unforgettable journey that you won’t want to miss.

Finally …

At De Tullio Law Firm, we have been delivering exceptional legal services for over 55 years, serving clients both internationally and locally. Our commitment to quality, expertise, and professionalism has earned us an enviable reputation.

If you are interested in moving to Italy or buying an Italian property, we recommend you seek independent legal advice before committing yourself. We are here to help, please get in touch.

Italian Residency Case Study: Restoring Permanent Residency

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Mr and Mrs A are UK nationals who acquired a property in Italy back in 2010. Following the Italian property purchase, they registered their Italian residency at the comune’s registry office. 

Fast forward to 2023, and the couple initiated the permesso di soggiorno application process. This was part of the EU-UK Withdrawal Agreement arrangements designed to protect citizens’ rights as part of Brexit. Yet, discrepancies surfaced in their Italian residency paperwork.

Faced with this situation, and being unable to continue with their permesso di soggiorno application, they therefore sought legal advice from De Tullio Law Firm.

Unveiling the loss of Italian Residency

The De Tullio legal team examined the situation. We discovered that Mr and Mrs A were no longer registered as Italian residents at their local municipal registry office.

While interacting with the registry office, our legal team discovered that the office had made two unsuccessful attempts in 2021 to deliver paperwork to Mr. and Mrs. A’s registered residence. However, they were not in Italy on either occasion. The comune therefore challenged their physical presence in Italy. Subsequently, the registry office chose to revoke their Italian residency status. Despite the office’s assertion of having informed them, Mr. and Mrs. A remained completely unaware of this development.

The Legal Labyrinth of Residency in Italy

In accordance with Italian law n. 223/1989 and registry office regulations, a person can lose Italian residency status due to ‘irreperibilità’ (unavailability). In other words, a comune’s registry office can revoke Italian residency if people aren’t physically present at their registered residence during multiple verifications.

Nevertheless, the right to permanent residency acquired prior to Brexit in the EU-UK Withdrawal Agreement provides vital protection for Mr. and Mrs. A. According to Article 15, Paragraph 3 of the EU-UK Withdrawal Agreement, “Once acquired, the right of permanent residence shall be lost only through absence from the host State for a period exceeding 5 consecutive years.” This legal safeguard therefore guaranteed Mr and Mrs A’s entitlement to maintain permanent residency status, as they hadn’t been absent from Italy for a period exceeding 5 years.

Upon analysis of the EU-UK Withdrawal Agreement, it became evident that the registry office had unjustly revoked their Italian residency status. As UK citizens, they had protection. Once De Tullio lawyers confirmed this legal protection, the comune promptly reinstated residency status. This resolution ensures that the couple have retained their right to continue enjoying Italian residency.

A Cautionary Note for Non-Italian Nationals regarding Italian Residency

This case underscores the importance of comprehending regulations governing Italian residency for UK citizens post Brexit. At De Tullio Law Firm, we are always happy to assist with the complexities of Italian residency law. If you are a non-Italian national residing in Italy we strongly recommend vigilance regarding your residency status. Do not hesitate to reach out to us for expert guidance and legal support. Your peace of mind remains our utmost priority.

Canadian Investors in Italian Real Estate 2023

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In terms of international property investment, Canadian investors in Italian real estate face a complex and evolving legal terrain. This blog post builds upon a previous discussion and explores recent developments in the legal framework that directly impacts Canadian investors.

We’ll shed light on a crucial exemption to the Foreign Property Purchase Restriction Act (FPPRA), which holds the potential to significantly shape investment opportunities in Italy.

The FPPRA: A New Era in Property Investment

On January 1st, 2023, the Foreign Property Purchase Restriction Act (FPPRA) ushered in a new era for Canadians interested in acquiring Italian property. This  legislation aims to address concerns regarding the concentration of foreign-owned properties in certain regions of Canada.

Under the FPPRA, which restricts property purchases by foreign nationals in specific Canadian areas, Canadians seeking property abroad, including in Italy, face reciprocal restrictions.

A Pivotal Amendment: March 27th, 2023

However, the landscape of property investment took an unexpected turn on March 27th, 2023, with the introduction of a crucial amendment to Canada’s FPPRA. This amendment, found in section 3, paragraph 1, of the FPPRA, introduced an exemption from the property purchase restriction.

The amendment explicitly carves out certain properties from the FPPRA’s restrictions thereby offering a glimmer of hope for investors. This exemption applies to properties located outside Census Agglomerations or Census Metropolitan areas in Canada.

Defining Census Agglomerations and Census Metropolitan Areas

It’s essential to understand the definitions of Census Agglomerations (CAs) and Census Metropolitan Areas (CMAs). A CMA or CA is formed by one or more adjacent municipalities centered on a population center, known as the core.

A CMA must have a total population of at least 100,000, with 50,000 or more residing in the core. On the other hand, a CA must have a core population of at least 10,000. Adjacent municipalities must show high integration with the core in the CMA or CA, assessed from past census data.

If the population of the core of a CA declines below 10,000, the CA is retired. However, once an area becomes a CMA, it remains so even if its total population falls below 100,000. This applies even if the core population dips below 50,000. Small population centers with a population count of less than 10,000 are called fringe. All areas inside the CMA or CA that are not population centers are classified as rural areas.

Unlocking Potential for Canadian Investors in Italian Real Estate

With this exemption in mind, the door for Canadian investors in Italian real estate has opened.

We submitted the issue to the competent unit at the Italian foreign ministry. They have verified and confirmed the exclusion from the investment restrictions of residential properties located outside Census Agglomeration or a Census Metropolitan area in Italy.

The amendment allows Canadians to buy Italian properties located in areas with under 10,000 inhabitants. It therefore signals a crucial legal change and offers exciting investment prospects in Italian real estate.

The Importance of Due Diligence for Canadian Investors in Italian Real Estate

While this exemption presents an attractive prospect, it’s vital to underscore the significance of due diligence. Verifying the eligibility of a property through a lawyer and a Notary Public is fundamental to ensuring compliance with the FPPRA. Italian legal professionals can provide the necessary assurance that the property falls within the exempted category.

Finally…

To successfully navigate the intricacies of international property investment, it’s imperative to have a profound understanding of relevant laws and regulations. With over five decades of experience, De Tullio Law Firm has been consistently delivering expert legal advice to international clients. Moreover, while we offer comprehensive legal services across all domains of Italian law, our particular emphasis is on real estate, residency, family law, and inheritance matters.

We take immense pride in providing top-tier legal services to our clients. Additionally, we have a strong reputation for delivering pragmatic and efficient solutions. If you are  exploring investment opportunities in Italian real estate, don’t hesitate to get in touch with us. We are right beside you, guiding you every step of the way.

 

You may also be seeking information about how to obtain an Elective Residence Visa for Italy or you might like to peruse our series of informational videos.

Italian-American Heritage Month: Celebrating a Rich Legacy

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October holds a special significance for Italian-Americans. Moreover, it is a meaningful month for anyone who appreciates the rich cultural contributions of this vibrant community. It is officially recognized as Italian-American Heritage Month. This is a time to honor the heritage, history, and contributions of Italian-Americans to the United States. The month-long celebration not only offers an inclusive opportunity but also encourages people from diverse backgrounds to come together. The aim is to explore, appreciate and learn more about the traditions, history and culture that defines Italian-Americans.

A Historical Perspective

During the late 19th and early 20th centuries, substantial waves of Italians pursued a better life in America, resulting in approximately 4.5 million Italian immigrants arriving in the United States. Their migration marked an era of unwavering determination and resilience, profoundly shaping not just the nation’s infrastructure and economy but also its cultural development. Italian-Americans played pivotal roles in contributing significantly to the fields of arts, sciences, the legal system and politics, thereby enriching the cultural tapestry of the United States and leaving a distinct, enduring legacy.

“Turismo delle Radici” – Exploring Your Roots

In the spirit of celebrating Italian-American Heritage Month, it’s important to recognize “turismo delle radici” or “tourism of roots.” This unique tourism project is organised by the Italian government. It combines services like accommodation, culinary experiences, and guided tours with a deep understanding of family history and cultural origins for Italians residing abroad and their descendants. This connection extends to almost 80 million people worldwide, making it an integral part of the Italian-American experience. You can learn more about turismo delle radici here.

Culture and Traditions

Italian-American culture blends Old World traditions with New World influences. Within this vibrant community, many customs have been faithfully preserved. Notably, the celebration of religious festivals stands out, often featuring processions and parades. A prime example of this rich tradition is the Feast of San Gennaro, a renowned event in New York City’s Little Italy.

Moreover, food occupies a central and cherished place within Italian-American culture, leaving an indelible mark on American cuisine. Iconic dishes like pizza, pasta, and meatballs have not only become beloved staples in households across the country but are also emblematic of the fusion of culinary traditions. Beyond these classics, Italian-American culinary contributions extend further, with a wide range of regional specialties to explore.

Celebrating Italian-American Heritage Month

During Italian-American Heritage and Cultural Month, there are numerous ways to celebrate and engage with this rich heritage.

Firstly, you can explore Italian-American art by visiting museums or galleries that showcase Italian-American artists. Additionally, you can immerse yourself in the contributions of Italian-Americans to art history.

Secondly, why not embark on a culinary adventure by trying your hand at cooking Italian-American dishes or treating yourself to a meal at an Italian-American restaurant?

Thirdly, you could engage in educational activities. Perhaps attend lectures, workshops, or film screenings that explore Italian-American history and culture, all of which are available in your local community.

You might also consider immersing yourself in the festivities of Italian-American cultural events and festivals happening near you, offering you a chance to experience these traditions firsthand.

Lastly, you can actively support the Italian-American community by shopping at Italian-American-owned businesses.

De Tullio Law Firm during Italian-American Heritage Month

At De Tullio Law Firm, we frequently assist US clients with Italian heritage. This may involve assisting with the purchase of property in Italy or navigating the legal intricacies of inheriting Italian estates. We take immense pride in facilitating these enduring connections between Italian-Americans and their ancestral homeland.

Additionally, our Managing Partner, Giandomenico De Tullio, serves as a regional representative for Puglia at the American Chamber of Commerce in Italy (AmCham). This role further demonstrates our commitment to fostering strong Italian-American economic ties.

If you are in need of legal assistance with property, inheritance or business matters in Italy, please get in touch.

Italian-American Heritage and Cultural Month is a time to celebrate the enduring legacy of Italian-Americans and their contributions. It’s an opportunity for everyone to learn, appreciate, and participate in this vibrant culture. We extend our warmest wishes for a meaningful Italian-American Heritage Month.

Ferragosto in Italy: A Time of Celebration

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Ferragosto in Italy is a time of joyous festivities and a well-deserved break from the daily grind. This cherished holiday, deeply rooted in history, has become an integral part of Italian culture. As the country gears up to celebrate Ferragosto, let’s explore the traditions, closures of public offices, and how this holiday impacts services, including cross-border property transactions and inheritance matters in Italy.

A Brief History of Ferragosto

Ferragosto traces its roots back to ancient Rome when the Emperor Augustus established a festival called “Feriae Augusti” in 18 BC. The event was celebrated to honor the gods and allowed the hardworking citizens to take a much-needed break from their daily toils during the hot summer months. Over the centuries, the festival evolved and became linked to the Catholic holiday of the Assumption of Mary, which falls on August 15th.

Celebrations and Traditions

In modern times, Ferragosto is a time of merriment, relaxation, and togetherness for Italians. Families and friends gather to enjoy sumptuous feasts filled with traditional dishes which often vary across different regions. Many towns and cities organize lively parades, music festivals, and firework displays to mark the occasion. Beaches, parks, and public spaces are filled with laughter and cheer as people take advantage of the warm weather and spend time outdoors.

Public Offices and Services

During the Ferragosto period, which typically extends from the 15th of August (the day of Ferragosto) to the end of the month, Italy adopts a more laid-back approach to work. Many public offices, including government agencies and local municipalities, close their doors for a week or even two. The Italian culture deeply ingrains this custom, passing it down through generations, reflecting the importance of taking time off to recharge and enjoy life’s pleasures.

August: Italy’s Main Holiday Season

It’s important to note that Ferragosto is not an isolated event but part of a broader tradition in Italy. Italians generally consider August as the main holiday season. As the weather reaches its peak, most of the country takes advantage of the opportunity to go on vacation. Whether it’s a trip to the picturesque Italian countryside, a coastal retreat along the Amalfi coast, or exploring the historical treasures of Rome, many Italians use this time to escape the bustling cities and embrace a slower pace of life.

Impact on Property Transactions and Inheritance Matters

For those dealing with cross-border property transactions or inheritance matters in Italy, it’s crucial to be mindful of the Ferragosto holiday and the overall August slowdown. Public services, including government offices and legal institutions, might experience reduced operating hours or complete closures during this period. As a result, there may be delays in processing paperwork, obtaining necessary documents, or receiving responses to inquiries.

 

Happy Ferragosto from De Tullio Law Firm.