Homes for Sale in Milan: Legal Issues and Suburban Opportunities

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The metropolis of real estate investments

Milan ranks as the city in Europe with the highest number of real estate investments. Between 2019 and 2029, investors plan to invest about 13 billion euros in real estate in the metropolitan city of Milan, aiming to develop and transform it. This surge in activity has also created a dynamic market for homes for sale in Milan, attracting both local and international buyers eager to capitalize on the city’s growth. Munich and Amsterdam follow in second and third place, with a significant gap from Milan. Against this backdrop of major growth and investment, how do the many ongoing and upcoming construction projects fit in from a legal standpoint?

Italian urban planning and building regulations lead to various interpretations, which hinder a clear understanding of what is and isn’t allowed during major construction work. Moreover, Italy’s complex bureaucracy often causes significant difficulties for those who choose to invest in real estate. Currently, a judicial investigation has slowed down real estate development in Milan’s capital city.

The risk involved in investing without the right legal advice

The judiciary is accusing builders of having misused building permits for renovations, using them even in the case of new constructions, which differ from the original building projects. The Municipality of Milan had authorized these large building works as if they were simple renovations. The investigation started with the ‘Park Towers’ located in Via Crescenzago, near Parco Lambro, and continued with other buildings, among which one in Via Stresa, in the Maggiolina area; one in Piazza Aspromonte, located between Loreto and Città Studi; and the ‘Bosconavigli’, an innovative project in the south-west of Milan. This practice came to a halt with the opening of the public prosecutor’s investigation.

Italian law upholds the fundamental principle of legal certainty. Under this principle, any ambiguity in the interpretation of a law is unacceptable, as the consequences of misinterpretation can be severe. Even if a party is ultimately cleared of wrongdoing, a construction site halted during an investigation can result in significant losses of both time and money.

For this reason, the Italian government has taken a strong interest in the matter and is drafting the “Salva Milano” decree to address construction site closures caused by investigations and to resolve the deadlock in the city’s urban planning. While this legislation has faced significant criticism, the government’s aim is to enhance legal certainty and provide clarity to investors on how they can safely allocate their resources.

The Best Time to Invest in Homes for Sale in Milan

Despite recent events causing a drop in Milan’s real estate investments, property prices in the city continue to rise. In the city center, a small flat can reach stellar prices, while the same in the suburbs costs less. Suburban costs are also set to rise due to price trends and the 2026 Milan-Cortina Olympics.

Projections show suburban property prices in Milan rising significantly over the next ten years. A real estate investment in Milan’s suburbs is a smart and profitable opportunity.

The Importance of an Italian Real Estate Lawyer When Buying Homes for Sale in Milan

Investing profitably and lawfully requires strict adherence to Italian building rules, though it is time-and money-consuming. Italian real estate law is complex, creating uncertainties for those unfamiliar with it. Therefore, relying on specialized real estate lawyers is essential to protect investments and avoid errors.

Finally…

An Italian real estate lawyer ensures you invest safely in the market while saving time and avoiding costly mistakes. The lawyer will guide you step by step to achieve your goals and avoid risks. If considering investing in Milan’s real estate market, contact De Tullio Law Firm at info@detulliolawfirm.com to schedule a consultation.

Trusts in Italy: A Short Guide

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Understanding Trusts in Italy: A Legal Mechanism for Asset Management

A trust is a legal institution designed to separate certain assets from an individual’s personal holdings. This separation allows these assets to be entrusted to a trustee for a specific purpose, often in the interest of a beneficiary or to achieve a particular goal. Originating in Anglo-Saxon legal systems, trusts in Italy have significant differences compared to other legal frameworks. However, they gained recognition in Italy on January 1, 1992, with the ratification of the “Convention on the Law Applicable to Trusts and their Recognition,” adopted in The Hague on July 1, 1985 (law of October 16, 1989, no. 364).

Components of Trusts in Italy: Roles and Responsibilities

In a trust arrangement, three primary entities play crucial roles: the “settlor,” the “trustee,” and the “beneficiary.”

Settlor:

The settlor initiates the trust through a unilateral act, establishing its terms and conditions.

Trustee:

Often referred to as the “trustee,” this individual or entity receives the assets, assumes ownership, and manages them in the best interest of the beneficiaries.

Beneficiary:

The settlor designates the beneficiary who receives benefits from the trust’s assets as “income beneficiaries,” or ultimately inherits the assets as “capital beneficiaries” or “ultimate beneficiaries.”

The settlor or a third party names beneficiaries in the initial trust document or identifies them later. A settlor may specify a beneficiary by name or as belonging to a particular category. In some cases, settlors establish trusts without specific beneficiaries, known as “purpose trusts”. Settlors create these trusts to achieve specific charitable objectives.

Furthermore, a “protector” commonly oversees the trustee’s actions. The trust deed may require the protector to authorize certain trustee actions.

Safeguarding Assets: The Protective Role of Italian Trusts

In a trust arrangement, the segregation of assets shields them from potential creditor claims against the settlor, beneficiary, or trustee. By design, these assets become distinct from personal holdings, safeguarding them from individual financial liabilities. Only creditors specifically related to the trust can make claims against these assets.

Asset Protection and Trust Validity:

It’s crucial to understand that asset segregation is a consequence, not the primary purpose, of establishing a trust.

A valid trust must serve a recognized purpose deemed worthy of legal protection. Establishing a trust solely for asset protection reasons, without a legitimate purpose, does not meet the requirements for validity in the Italian legal system.

Trusts in Italy: Evolution of Legal Recognition

In recent years, Italy has witnessed various attempts to establish trusts solely for the purpose of shielding assets from creditors or gaining undue tax advantages. However, such trusts faced legal challenges, with numerous court rulings, including those from the Italian Supreme Court, declaring these trusts null and void or ineffective against creditors and tax authorities.

Consequently, a sense of skepticism toward trusts emerged within the Italian legal framework, viewing them as tools for evading debts or taxes.

The landscape shifted on January 1, 2017, with the enactment of Law no. 112 of June 22, 2016. This legislation expressly validated asset separation within trusts, marking a pivotal moment in the legal recognition of trusts in Italy.

Beyond its primary objective of enhancing assistance, care, and protection for individuals with severe disabilities, this law actively encourages trust establishment. Its explicit endorsement of trusts extends beyond its specific focus, dispelling any uncertainties regarding the legitimacy of this instrument within the Italian legal system.

Legal Considerations for Trusts in Italy

Despite the growing recognition of trusts in Italy, a specific regulatory framework within Italian legislation is still absent. Consequently, reliance on foreign laws becomes necessary for trust governance. The choice of applicable law holds significant implications for the functionality and validity of trusts in Italy.

Purposeful Establishment of Trusts

Understanding that trusts can only serve specific purposes, not shield assets from creditors, is vital. While asset separation naturally results from establishing a trust, it cannot solely motivate trust creation, nor can it defraud creditors or tax authorities.

Prospective trust settlors in Italy must carefully consider both the chosen law’s provisions and jurisprudence, along with the rules outlined in the Hague Convention of July 1, 1985. Additionally, they must ensure that the trust’s constitutive clauses align with Italian public order and tax regulations.

This scrutiny extends beyond trust regulation to assess the validity of the trust’s constitutive act itself, emphasizing the importance of thorough legal examination and compliance.

Deciphering Sham Trusts: Legal Implications and Standards

In the realm of trust regulation, the concept of a sham trust has evolved to tackle situations where the settlor maintains effective control over assets purportedly entrusted to a trustee, treating them as personal property. The law will consider such trusts null and void from the moment of their inception. Assets will revert to the ownership of the settlor

Mandates of the Hague Convention

The Hague Convention of July 1, 1985, explicitly mandates that for its application, assets within a trust must be under the trustee’s control, serving the interests of a beneficiary or a designated purpose (Article 2). In Italy, trust recognition hinges on the settlor effectively relinquishing control, with assets solely vested in the trustee.

While the settlor may retain certain rights or privileges, adherence to the Convention necessitates clear trustee control over the assets.

Furthermore, in many legal systems governing trusts, settlors may reserve significant powers in trust management. However, such clauses contradict the control requirement stipulated by the Hague Convention. It renders them incompatible with trusts established in Italy.

Once a trust’s constitutive act aligns with the applicable law and satisfies the Hague Convention’s rules, it must also comply with Italian public order regulations. For instance, trusts aiming to circumvent mandatory provisions of bankruptcy law or solely creating a separate estate from the settlor’s would be deemed null and void, the latter due to lack of consideration.


Scrutinizing Self-Declared Trusts: Legitimacy and Recognition

The viability of establishing a self-declared trust in Italy is subject to scrutiny. In this arrangement, the trustee and the settlor are one and the same.

Self-declared trusts are deemed legitimate in certain legal frameworks governing trusts. However, questions arise regarding their compliance with the recognition criteria outlined by the Hague Convention. In such trusts, the settlor retains complete control over the assets, albeit in the capacity of trustee. This departure from the Convention’s control requirement raises doubts about the recognition of self-declared trusts in Italy.

Case law further complicates matters by often deeming trusts illegitimate if the settlor retains control over the assets. This therefore casts doubts on the recognizability of self-declared trusts within the Italian legal system.

Tax Implications: Trusts and Revenue Agency Guidelines

It’s crucial to note that the Revenue Agency considers trusts where the settlor retains significant powers over asset administration or allocation (referred to as “interposed trusts”) as non-existent for tax purposes. Consequently, income derived from such trusts is taxed in the hands of the settlor.

Revenue Agency Guidelines:

The Revenue Agency has issued circulars providing guidance on the application of direct and indirect taxes to trusts (Circulars of August 6, 2007, No. 48, January 22, 2008, No. 3, and December 27, 2010, No. 61).

Transfer Tax:

The transfer of assets from the settlor to the trustee is subject to gift tax at a proportional rate (4%, 6%, or 8%), depending on the relationship between the settlor and the beneficiary. Additional mortgage and cadastral taxes (2% and 1%) apply to real estate transfers. However, exemptions for certain relatives and individuals with severe disabilities apply.

Exemptions for Individuals with Disabilities:

Trusts established for persons with severe disabilities benefit from exemptions from inheritance tax, gift tax, and mortgage and cadastral taxes on real estate transfers (Law No. 112 of June 22, 2016).

Income Tax Obligations:

Trusts are treated as taxpayers subject to corporate income tax, necessitating annual income tax return filings. Resident trusts require their own tax code and, if engaged in commercial activities, a VAT number.

The trustee fulfills all tax obligations of the trust. Income is attributed directly to beneficiaries in transparent trusts and taxed accordingly. Alternatively, income is taxed at the trust level in opaque trusts.

Safeguards and Limitations: Trusts and Creditor Rights

Trusts, being gratuitous acts, remain susceptible to ordinary and bankruptcy avoidance actions, prohibiting their use for defrauding creditors. Moreover, creditors harmed by a debtor’s actions that restrict disposal or transfer real or movable property registered in public records gratuitously can take legal action without requiring a prior declaratory judgment of the act’s ineffectiveness, provided they register the seizure within one year from the prejudicial act’s registration (Article 2929-bis of the Civil Code, introduced by Legislative Decree No. 83 of June 27, 2015).

Finally….

De Tullio Law Firm has over 55 years of expertise managing trusts and estate planning matters throughout Italy. Our firm is a full member of STEP, the world’s leading association for trust and estate practitioners.

If you need any advice regarding trusts in Italy, we are here to help. Please get in touch with us.

The Times: Chaz and Lucy’s Italian move, with expert advice from Giandomenico De Tullio

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“We moved to a farmhouse in Puglia for la dolce vita” is how The Times headlines the story of Chaz Oldham and Lucy Akhurst. They, the couple in the photograph, are an English couple who have chosen to make their new home in the heart of Italy, a five-bedroom farmhouse in the hills with 20 acres of land, 15 minutes’ drive from the sea and 8 minutes from Alberobello, famous for its thousand Unesco-listed trulli. This is an area already well visited by foreign tourists, especially the French, Swiss and Germans.

Chaz and Lucy’s Italian move, with expert advice from Giandomenico De Tullio

The Times article tells you their story, the proximity to the world of cinema, the moves, the inspirations, the farm in Devon, the dream of France but falling in love with Italy, and the purchase of the house with a huge roof terrace with a 360-degree view, which convinced him to buy. What truly stands out, however, is the financial potential of such a decision.

 

A brief aside on the prices of apartments in the area where Chaz and Lucy bought: at the time of their purchase (2020) the average price per square metre was €1,836, while today it is €2,374 (source: The Times), which highlights the value of investing in property in this region. Real estate in Italy, particularly in sought-after areas like Puglia, is not only a lifestyle choice but a sound financial strategy. With property values steadily increasing, the potential return on investment is significant.

 

Then there was the application to the Municipality of Monopoli for a building and renovation permit (obtained in just over a year), the hiring of Puglia Pools to build the swimming pool, the renovation of a wing of the house which – in 2025 – is estimated to yield between €1,800 and €2,400 per week. This demonstrates how renovating and renting out properties in Italy can generate consistent income, making it a lucrative option for those looking to invest in the real estate market. Moreover, the cost of living in Italy, where they now live, is a fraction of the UK, while the produce is fresh and km0.

 

The rise in property prices, coupled with the attractive rental market, shows why investing in Italian real estate, especially in regions like Puglia, is an excellent opportunity. You can find more insights at the end of The Times article, where we also provide tips for British citizens looking to purchase property and apply for residency in Italy. You can read them there or take advantage of our free preliminary consultation in the language of your choice.

 

Click on this link to choose the time that suits you best or email us at info@detulliolawfirm.com.

 

Full text of The Times’ article here: https://www.thetimes.com/article/53afb046-b3ac-4422-b7b0-02231a555480.

 

Cultural Heritage in Italy: The Legal Landscape

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Dreaming of purchasing a property in Italy? The country’s magnificent buildings, historic cities, towns, and villages make the Italian real estate market particularly enticing. However, within the heart of these charming landscapes lie historical architectural treasures, subject to legal protections. In this article, we explore the role of legislation aimed at preserving Italy’s cultural heritage.Cultural Heritage in Italy

Understanding Italy’s Cultural Heritage Legislation

Cultural assets, encompassing movable or immovable properties, benefit from State protection due to their artistic, historical, or architectural significance. Since May 1st, 2004, Italian legislation governing this matter is the code of cultural heritage and landscape (Legislative Decree January 22, 2004, n. 42).

Italian Cultural Heritage: Limitations on Immovable Properties

The code imposes restrictions on the transfer of ownership or possession, particularly concerning immovable properties. These regulations vary depending on the owner of these assets.

Notification Requirements for Italian Cultural Heritage Properties

For immovable properties owned by individuals or companies to attain cultural asset status, they must be notified by the public administration. Such notifications, documented in property registers, can be challenging to verify, primarily post the enactment of Law No. 1089 on June 1st, 1939. It is therefore crucial to ascertain the property’s ownership history to verify the existence of notifications.




Cultural Heritage in Italy

Reporting Obligations for Transfers

Any transfer of ownership or possession of cultural assets mandates filing a report with the superintendent of the asset’s location. This report, due within 30 days of property purchase or inheritance acceptance, requires comprehensive details of the involved parties, asset particulars, and transfer conditions.

Penalties for Non-compliance with Italian Cultural Heritage Law

Failure to submit the report within the stipulated period constitutes a criminal offense, leading to severe penalties. These penalties include substantial fines ranging from €1,500 to over € 75,000 and potential incarceration for up to one year.

Italian Cultural Heritage Properties

Right of First Refusal

In consideration-based transfers like sale or exchange, the State or relevant local authorities hold the right of first refusal. This right must be exercised within 60 days from report receipt, conditionally suspending the transaction until then. However, there’s no right of first refusal in inheritance, donation, division, share transfer, merger, split, or mortgage creation scenarios.

Finalization of Ownership

If the right of first refusal remains unexercised after 60 days, ownership transfers to the buyer. However, if the report is filed after the 30-day legal period, the right of first refusal must be exercised within 180 days. Until this period expires, the asset remains with the vendor.

Finally …

At De Tullio Law Firm, our expertise lies in property and inheritance matters in Italy.

If you have any inquiries regarding the transfer of cultural assets, feel free to reach out to us. We are pleased to provide you with a complimentary preliminary consultation.

Schedule your consultation. 

 

REM: Registered Electronic Mail

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Registered Electronic Mail for Businesses and the Public

In today’s digital landscape, understanding Registered Electronic Mail (REM) is crucial for both businesses and the public. This article aims to clarify REM’s significance in simplifying electronic communication and ensuring security for all stakeholders.

Understanding REM: A Pillar of Secure Communication

REM is a cornerstone in electronic communication, offering a secure and legally recognized framework for sending and receiving emails. Mandated by Regulation (EU) No. 910/2014, or “eIDAS” (electronic IDentification Authentication and Signature), REM adheres to rigorous standards, providing peace of mind for businesses and individuals.

Elevating Trust in Digital Interactions: The Role of eIDAS

At the core of REM lies the eIDAS framework, designed to instil trust in online transactions. By establishing clear guidelines and protocols, eIDAS ensures the integrity and security of electronic exchanges, fostering confidence between businesses, individuals, and governmental entities.

Demystifying SERC and SERCQ: Simplifying Electronic Delivery Services

In electronic delivery services, understanding the difference between Certified Electronic Delivery Service (SERC) and qualified certified electronic delivery service (SERCQ) is crucial. While SERC provides secure delivery, SERCQ sets higher standards, ensuring enhanced security and reliability.

Unlocking the Potential of PEC with REM

The inception of PEC in 2005 marked a significant milestone, initially serving interactions with Public Administration. Subsequent legislative changes, such as the issuance of Legislative Decree no. 185/2008, mandated corporations to disclose their Certified Electronic Mail address during registration, later extending this requirement to established companies. In 2012, freelancers were also obliged to adopt PEC, followed by all VAT number holders. Additionally, the establishment of a public directory of PEC addresses further solidified its integration into business practices.

For businesses entrenched in the traditional Certified Electronic Mail (PEC) system, the emergence of REM presents a transformative opportunity. Aligning with REM standards allows PEC to transcend its domestic confines, facilitating secure and interoperable communication throughout the European Union. This evolution promises enhanced connectivity and streamlined operations for businesses navigating cross-border interactions.

Transitioning from PEC to REM: A Strategic Imperative

Starting from the second half of 2024, the PEC will be replaced by the REM. The adaptation process to comply with the requirements of the “eIDAS” Regulation involves the evolution of existing PEC services to align with SERCQ standards mandated by the regulation.

Fortunately, for users already accustomed to PEC, transitioning to these new services is seamless. With just a few clicks, users should be able to migrate to REM-compliant services, unlocking additional benefits beyond the traditional PEC offerings. These benefits include enhanced verification of the mailbox holder’s identity and an added layer of security through two-factor authentication (2-step verification).

Empowering Businesses and Individuals

Embracing REM offers numerous benefits for businesses and the public. From heightened security to improved cross-border communication, REM empowers stakeholders to navigate the digital landscape with confidence and efficiency.

Practical Uses

REM serves a multitude of practical purposes, including:

  • Proving Time of Sending, Content, and Delivery: Registered email provides irrefutable evidence of the time of sending, content, and delivery of email communications to one or multiple recipients.
  • Risk Mitigation: It offers legal proof of notices and documents sent, providing peace of mind and protection against potential legal and financial risks.

The versatility of registered email is evident in its diverse range of applications, including:

  • Sending invoices, receipts, and proofs of payment (useful for fraud prevention).
  • Transmitting contracts, commercial agreements, termination letters, etc.
  • Protecting the authorship of proposals and projects through IP rights protection.
  • Cancelling subscriptions, contracts, policies, and services with legal certainty.
  • Facilitating GDPR notifications, policy updates, and express consent processes.
  • Handling legal notices, communications between legal professionals, demand letters, and privacy notices.
  • Managing HR communications, including notices, warnings, contracts, and policies
  • Facilitating corporate communications across departments and stakeholders.

REM as an Alternative to Registered Postal Mail

REM offers the same legal validity as conventional registered postal messages while providing numerous advantages, including speed and cost-effectiveness. It serves as a reliable alternative for legal correspondence and document exchange, ensuring secure communication and legal compliance.

Registered Electronic Mail

Finally …

REM offers peace of mind, legal validity, and efficient communication for businesses and individuals alike. By leveraging its benefits, stakeholders can mitigate risks and streamline their communication processes in an increasingly digital world.

If you need help with transitioning from a PEC to a REM account, we are here to help. For over 55 years, De Tullio Law Firm has been providing international clients with independent legal advice. We offer services in all the major fields of Italian law.

 

Squatters In Italy: The Legal Framework

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The Issue of Squatters in Italy

In Italy, the phenomenon of squatters is a complex and controversial issue. It intertwines themes of law, social policy, and public order.

Squatters are individuals who take possession of properties without the legal consent of the owner.

Obviously, this phenomenon raises significant questions about balancing the protection of private property and the right to housing. These are two fundamental principles enshrined in the Italian Constitution.

squatters right

Italian Legislation and Relevant Articles

Italian legislation addresses the issue of squatters primarily through the Criminal Code and specific laws regarding leases and illegal occupation.

  1. Criminal Code, Article 633: This article punishes anyone  who arbitrarily invades another person’s land or buildings, whether public or private, with a view to occupying them or deriving any other benefit from them, shall be punished, on complaint by the offender, by imprisonment for between one and three years and a fine of between EUR 103 and EUR 1,032.
  2. Law 27 July 1978, No. 392 (Fair Rent Act): Although not directly addressing illegal occupation, this law regulates the relationship between landlord and tenant, providing the legal framework within which property rentals must occur.

eviction of squatters

Eviction Procedures for Squatters in Italy

When someone illegally occupies an Italian property, the owner can request the authorities’ intervention to reclaim possession, although the process is not as simple as it might seem.

The standard procedure includes filing a police report, where the owner must report the illegal occupation to the competent authorities.

This report initiates criminal proceedings against the squatters and is followed by an eviction request filed by the owner with the court.

The judge, upon evaluating the situation, may issue an eviction order.

However, if minors or vulnerable individuals are involved, the situation becomes more complicated.

Dealing with Squatters in Italy: Legal Assistance

As previously mentioned, handling an illegal occupation can pose complexity and stress for both the property owner and the involved parties.

Therefore, we highly recommend property owners to seek legal assistance from a lawyer specializing in real estate.

Because of the complexity and the lengthy nature of the procedure, only a lawyer specialized in this field can provide support at various stages of the process and give their clients peace of mind.

  1. Legal Advice: Assessment of the situation and suggestions on legal actions to protect property owner rights.
  2. Drafting the Report: Assistance in drafting the report for the competent authorities, ensuring inclusion of all necessary elements.
  3. Filing the Eviction Request: Preparation and filing of the eviction request with the court, gathering the necessary evidence to support the case.
  4. Court Representation: Legal representation during hearings to ensure the process follows procedures and respect of the property owner’s rights.
  5. Execution of the Eviction Order: Coordination with the bailiff and, if necessary, with law enforcement to ensure effective execution of the eviction order.

housing right

The Right to Housing

Balancing the protection of private property and the right to housing stands as one of the most controversial aspects.

The Italian Constitution, in Article 47, enshrines the right to housing and advocates for policies facilitating access to housing.

However, finding this balance requires respecting private property.

Therefore, legislators and policymakers must address the root causes of the issue, rather than just mitigating its effects. This ensures a fairer and more inclusive society where everyone respects and protects each other’s rights.

Safeguarding Your Italian Property: Tips for Foreign Buyers Against Illegal Occupation

Foreign buyers can adopt various practical measures to prevent the illegal occupation of their properties:

Installation of Security Systems: Installing alarm systems, surveillance cameras, and reinforced doors can deter attempts at occupation. These systems can also provide evidence in case of invasion.

Professional Property Management: Entrusting property management to a local real estate agency or a reliable caretaker can ensure that the house is regularly checked and any occupation attempts are immediately reported to the competent authorities.

Neighbours and Local Community: Establishing good relationships with neighbours and engaging with the local community can enhance vigilance over the property. Neighbours can promptly alert the owner or authorities in case of suspicious movements.

Finally …

At De Tullio Law Firm, we specialize in property, inheritance, residence, and family law matters in Italy. Whether you’re considering purchasing a property anywhere in Italy or have inquiries about these legal areas, don’t hesitate to contact us. We offer a complimentary preliminary consultation to address your concerns and provide expert guidance.

Schedule your consultation. 

 info@detulliolawfirm.com

Tel +39 080 483 1785

from the UK: 0800 012 6545

from the USA and Canada: 1-855-688-5546

for more information, please visit https://detulliolawfirm.com/ 

Italian Family Law: A Short Guide

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This short guide aims to cover the key elements of Italian family law: for a more in-depth explanation, please read our comprehensive Italian Family Law Guide.

Italian Family Law GuideWhether dealing with marriage, separation, divorce, or child-related issues, you should contact an experienced Italian family law attorney. Their expertise will ensures you protect your rights and handle legal proceedings correctly.

1. Marriage and Civil Partnerships under Italian Family Law

To marry in Italy, both parties must meet specific legal requirements, including age and consent. Registration with civil authorities is necessary for legal recognition of the marriage.

Civil partnerships offer similar legal benefits to marriage and are available to both same-sex and opposite-sex couples. You must register the partnership with civil authorities to formalize the partnership.

2. Divorce and Separation

Divorce begins with the filing of a petition, which must state the grounds for divorce. Common grounds for divorce include irretrievable breakdown of the marriage, adultery, unreasonable behaviour, desertion, or separation for a specified period.

For couples not ready for divorce, a separation agreement outlines terms for living apart, including child custody, support, and property division. This agreement can later become part of divorce proceedings.

3. Child Custody and Support within Italian Family Law

Decisions regarding child custody must be in the best interests of the child, considering factors such as the child’s welfare, parental capabilities, and the child’s wishes, depending on age and maturity.

Both parents are responsible for the financial support of their children. Child support calculations consider the income of both parents, the child’s needs, and custody arrangements.

4. Spousal Support

One spouse may receive spousal support – or alimony – during or after a divorce to maintain their standard of living. The amount and duration depend on factors like the length of the marriage, each spouse’s financial situation, and contributions to the household.

5. Property Division

When it comes to property division, it’s important to understand matrimonial regimes in Italy. Italian family law mandates equitable distribution of property acquired during the marriage. This involves a fair division, considering each spouse’s contributions to the marriage and their economic circumstances.

6. Domestic Violence and Italian Family Law

Victims of domestic violence are entitled to apply for protection orders to prevent further abuse. These orders may include orders prohibiting contact, removal from the family home and being placed in sheltered accommodation.

Legal assistance is provided to help victims navigate the legal system, guaranteeing their safety and upholding their rights under Italian family law.

Finally …

Understanding Italian family law is crucial for navigating personal relationships and legal challenges. Therefore, engaging a solicitor ensures your interests are protected throughout any legal proceedings.

For more detailed information, you can refer to our comprehensive Italian Family Law Guide or contact our firm for a consultation. Additionally, we are here to provide you with the support and guidance needed to handle any family law matter with confidence.

For further information or to schedule a free consultation, please get in touch with us. Our team is dedicated to providing expert legal assistance tailored to your needs.

You may also like to read more about Italian divorce law and EU regulations.

You may also like our info videos.

Maintenance And Divorce Allowances in Italy

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How does financial support work in Italian separations and divorces?


“All are equal before the law”… except when it comes to divorce! In Italy, when a marriage ends, it is common to assume that the spouse with the highest income should pay maintenance and divorce allowances.

In simple terms, alimony or spousal support is meant to equalise the playing field when the two members of a divorcing couple have significantly different incomes.

If you are part of an international marriage or you are married to an Italian national and you are divorcing in Italy, you may have an expectation of receiving financial support. However, between 2017 and 2018, two important judgments by the Italian Supreme Court changed the rules on divorce allowances. These changes mean that it is no longer so easy to obtain alimony.

allowances

Maintenance and divorce allowances in Italy

It is important to distinguish between maintenance and divorce allowances in Italy.

Regarding maintenance. This is an allowance provided to the spouse with the lower income from the moment the spouses separate until they obtain a divorce.

The divorce allowance, on the other hand, replaces the maintenance allowance starting from the divorce ruling. It regulates property relations between former spouses for the future.

How does the maintenance allowance work?

A maintenance allowance guarantees the same standard of living for the spouse with the lowest income that s/he had when s/he was still married. The “wealthier spouse” owes a part of his/her income to the other spouse. This aims to level out economic differences between the two spouses.

The judge therefore assesses the two salaries and ensures that husband and wife can afford the same standard of living … theoretically! In reality, however, there is a series of circumstances that increase or decrease the amount of the allowance. For example, the length of the marriage or the age of the beneficiary, …

Be careful though! Not everyone is entitled to a maintenance allowance. Reasons that may trigger non-provision of a maintenance allowance include being found guilty of:

– Failure of the marriage by neglecting one of the typical duties of spouses.

– Betrayal.

– Leaving home with the intention of never returning.

– Physical abuse of the wealthier spouse.

– Neglecting the family.

However, not being in love anymore is not a reason to lose the right to a maintenance allowance. You can’t rule the heart either at the beginning or at the end of a relationship!

divorce allowance

How does the divorce allowance work?

The rules change when the judge replaces the maintenance allowance with the divorce allowance.

The purpose of a divorce allowance is not to guarantee the former spouse the same standard of living as during the marriage. As the Supreme Court specified, “alimony should not be treated as an annuity. The purpose of a divorce allowance is purely to guarantee self-sufficiency, which is essential for living decorously.”

This means that unlike what occurs with the maintenance allowance, the greater wealth of one of the spouses does not increase the divorce allowance. In essence, this means that a divorce allowance can be lower than the maintenance allowance.

What do maintenance and divorce allowances have in common?

A divorce allowance is not due to someone who has violated the rules on marriage, fidelity, cohabitation, etc.

Who can get a divorce allowance?

While a maintenance allowance is due because there is a difference in income, it is less easy to understand entitlement to a divorce allowance.

The fundamental requirement is to prove that the party who wishes to obtain it, deserves it. In particular, according to the Supreme Court, the spouse has the right to a divorce allowance if s/he is:

– Too young to find a job. For example, someone who gets married while completing a degree course.

– Too old to find a job.

– Seriously ill, disabled or unable to earn;

– Unable to work because s/he gave up his/her career to look after the family, home and children, thus allowing the other spouse to concentrate on work and increase their wealth.

An example can help us to better understand who is likely to get a divorce allowance in Italy. A housewife who has never worked because of a joint lifestyle choice between the two spouses will find it more difficult to access to the world of work. On the other hand, a woman who, despite taking care of the house and children, continued to work, perhaps settling for a part-time job, will find it easier. Whereas the former is likely to receive a divorce allowance, the latter is not.

Who is not entitled to a divorce allowance?

A spouse cannot obtain a divorce allowance if:

– She/he is young, with professional training and work experience that allow him / her to find a job even if currently unemployed;

– Did not work of his/her own will. In other words this was not due to a shared lifestyle choice agreed with the other spouse;

– After the separation, does not provide proof that s/he has looked for a job to support him/herself. Proof such as sending a CV, participating in public competitions, registering on job placement lists, …

Finally…

At De Tullio Law Firm, we often receive questions about Italian divorce law. Many people nowadays are part of a cross-cultural relationship and, for the most part it is an enriching and beautiful experience. However, it can also be difficult to manage if the relationship flounders.

When it comes to separation and divorce, it is wise to speak to experts, both for emotional and legal support. We recognise that so many issues need consideration and decisions need to be made at what is a very stressful time. If you need assistance, please don’t hesitate to contact us. We are here to help.

For more information, you may like to read our Guide to Italian Family Law

 

Child Visitation Rights in Italy: Supreme Court Ruling

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The Italian supreme court has ruled that grandchildren cannot be forced to visit grandparents if they don’t want to. The ruling, ending a 3-trial dispute, underscores the importance of considering children’s wishes in visitation matters.

FAMILY CHILDREN

The right to maintain relationships:

Since 2006, Italian family law has recognised a child’s right to maintain a meaningful relationship with their grandparents, despite a parental separation.

Grandparents also have the right to ask the court to establish whether a parent’s decision to deny them access to their grandchildren is damaging to the child’s well-being and therefore illegal.

Family tensions led to ruling on child visitation rights

In 2019, the paternal grandparents and uncle of two children took legal action in Milan. Their aim was to regain access to the minors after the parents blocked their visits due to a hostile family relationship.

The court found that the grandmother had acted aggressively towards her daughter-in-law and upset the children. Nonetheless, it still ruled in favour of the grandparents, allowing visits if supervised by a social worker. The parents appealed. However, the Milan appeal court ruled that the visits must continue and ordered the family to undergo group therapy.

Despite recognising the animosity between the grandmother and daughter-in-law, the judge warned that cutting off the grandparents could harm the children psychologically. However, the parents argued that the children did not want the visits due to family tensions.

The Italian supreme court then heard their case. The judge declared that the family could not compel the children to see their grandparents if they opposed the relationship and were over 12 with the ability to discern. The judge emphasised that the children’s welfare must be prioritised and that the family could not impose an, “unwelcome and unwanted relationship”.

FAMILY TENSIONS

Discernment in child visitation cases in Italy

“Discernimento” in Italian law involves good decision-making, especially in difficult situations. Careful consideration of facts, consequences and informed choices is necessary. In the legal context, it refers to decision-making ability and understanding of effects. Minors are considered capable of acting with discernment at 14, but in certain cases, they may be deemed so before 14. Italian law allows for legal guardians for minors lacking discernment, regardless of age.

family children

Finally …

The Italian supreme court’s ruling emphasises children’s interests and well-being as top priority. This can be hard for other family members to accept. However, the interests of children must come first. A family member cannot impose an undesired or unacceptable relationship on children over the age of 12 with discernment. Discernment means the ability to make good decisions.

At De Tullio Law Firm we provide legal advice and support in all fields of Italian law. Our particular specialties are Italian and cross border property, inheritance and family matters. If we can be of assistance, please get in touch.

You may like to read our comprehensive guide to Italian Family Law.

Our info videos may also be of interest to you.

How to Buy a House in Italy: Legal Tips

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Buying a house in Italy?

In this article, we explore the step-by-step process of buying Italian property.

From picturesque villas to seaside retreats, discover essential legal tips and insights for a safe property purchase.

Real Estate Options Across Italy

Whether you’re in the market for an apartment or a villa in prime neighborhoods of Rome, Milan, Florence, Venice, and Naples, or hidden real estate treasures in Sardinia, Tuscany, or along the scenic Amalfi Coast, Italy offers options for everyone.

Italy’s lake regions, including Lake Maggiore, Lake Como and Lake Garda boast breathtaking properties. Alternatively, explore seaside retreats in Calabria, Sicily, Liguria on the Riviera di Ponente, Sardinia’s Costa Smeralda, or coastal havens in Campania, Capri, and Ischia. In addition, there’s a wealth of beauty waiting to be discovered in smaller, lesser-known villages and small towns throughout the country.

Recent government efforts have focused on attracting foreign investment to boost the Italian property market. A range of incentives is available, such as tax breaks for first-time homebuyers and subsidies for renovation projects.

Understanding the Process of Buying a House in Italy

The process of buying a house in Italy is substantially different from many countries. To navigate it successfully, it’s essential to grasp the three main stages of the purchase process:

1. Reservation Offer: The potential buyer formalizes their intention to buy the property.
2. Preliminary Sales Agreement: The parties agree on the details of the various terms of the transaction.
3. Final Deed of Sale:  Completion of the transaction, transferring ownership from the previous owner to the new owner.

Buying a House in Italy: The Reservation Offer (or “Proposta di Acquisto”)

When a buyer identifies a property they’re interested in purchasing, the initial step involves submitting a reservation offer. This offer serves to communicate the buyer’s desire to acquire the property under predetermined conditions from the vendor. This initial action holds significant importance; upon acceptance, the offer transforms into a legally binding contract, compelling both parties to fulfill obligations in order to finalize the transaction.

Conformity and Controls in Italy

In Italy, there is no legal requirement for real estate agents to verify the legal compliance of the properties they represent. Moreover, their incentive structure may discourage full disclosure of property details to buyers, as their commission often hinges on transaction completion.

Likewise, Italian notaries typically don’t perform comprehensive urban planning and land registry conformity checks. They primarily depend on information provided by the seller.

From a legal standpoint, the responsibility falls on the potential buyer to conduct all necessary legal due diligence when buying a property in Italy.

Due Diligence: Preliminary Verification and Documentation

Prior to submitting a reservation offer, it’s imperative to conduct preliminary due diligence by examining pertinent documentation and accessing various real estate records. This process enables the potential buyer to evaluate the property’s compliance with land registry, zoning, and planning regulations. Additionally, it’s crucial to ensure the absence of mortgages, debts, or outstanding charges on the property. Simultaneously, buyers should verify that property systems, such as electrical and photovoltaic systems, comply with regulations. Additionally, they should anticipate any tax implications associated with the acquisition.

Drafting the Reservation Offer

Following preliminary due diligence findings, the prospective buyer can submit a formal reservation offer, which should be tailored to comprehensively safeguard their interests.

Many real estate agencies may suggest using a pre-printed reservation offer form. However, these generic templates often fall short in ensuring full protection for the buyer. They typically fail to accurately represent the property’s specifics such as planning and construction permits, existing mortgages, absence of a habitability certificate, energy efficiency or any third-party rights.

Moreover, they do not address the buyer’s individual circumstances such as financing arrangement needs, timelines for formalities, tax implications, and other pertinent factors related to the purchase.

If a buyer fails to include relevant conditions in the reservation offer, it will not be possible to add these to the preliminary contract in the next phase of the purchase process.

Consulting a Lawyer when Buying a House in Italy

While not mandatory, it’s commonplace for buyers to engage a lawyer’s services when buying a house in Italy.

  • The lawyer undertakes thorough due diligence to facilitate the acquisition on behalf of their client, optimizing tax and financial considerations.
  • They handle administrative procedures, including obtaining an Italian tax code.
  • After conducting due diligence, the lawyer negotiates on the buyer’s behalf, advocating for adjustments to the reservation offer terms to protect their interests.
  • They customize the reservation offer based on findings, ensuring inclusion of necessary clauses, such as addressing planning issues or mortgage cancellation.

Typically, the reservation offer is drafted bilingually (in Italian and the buyer’s language) to provide clarity on legal implications for all parties involved.

Consequences of Acceptance

Upon the vendor’s acceptance of the reservation offer, two significant outcomes unfold:

  1. the buyer pays a deposit to the seller, and
  2. the seller removes the property from the real estate market, typically for a 15-day period.

When signing the reservation offer, the purchaser remits a deposit to the vendor, which, upon finalizing the purchase, becomes partial payment of the total price. However, if the vendor declines the reservation offer, the buyer pays no deposit.

In many countries, payments like deposits, installments, or balances are commonly held in escrow. However, in Italy, such payments are directly transferred to the vendor’s bank account. This arrangement carries implications and risks for the potential buyer. If one of the parties to the transaction fails to meet conditions in the reservation offer or if either party withdraws from the transaction before the final deed of sale, the potential buyer may encounter challenges in reclaiming the deposit.

To protect this and later deposits in the event of any contingencies or disputes, notaries in Italy have the option to hold deposits in escrow or holding accounts. However, the use of such an account must be expressly stipulated as a condition in the reservation offer.

Real Estate Agency Commission

In contrast to many countries where the real estate agent’s commission is payable upon completion, Italian law mandates commission payment upon signing the reservation offer, unless explicitly stated otherwise in the reservation offer.

Buying a House in Italy: The Preliminary Sales Agreement (or “Contratto Preliminare di Compravendita”)

The contratto preliminare di vendita holds significant legal importance as it delineates the detailed terms and conditions of the sale. The buyer must carry forward terms and conditions established in the reservation offer to the preliminary contract. Additionally, the preliminary contract forms the basis for the notary public to draw up the deed of sale in the final phase of the purchase process.

Engaging Legal Assistance

Again, the estate agent may provide a standard preliminary contract. This may lack conditions relating to the buyer’s personal situation. It could ultimately result in financial loss through inability to complete the purchase or acquiring a property needing costly remedial work. Therefore, it is highly advisable for the buyer to engage the services of a lawyer to draft the preliminary contract, ensuring all details are in their best interests.

Validity of Contract Conditions

While it may be tempting to modify an existing template to cover various situations, it is crucial to note that Italian law only considers specific types of conditions as valid. Conditions that solely benefit one party, known as potestative conditions, are invalid under Italian law. For instance, a condition allowing the buyer to unilaterally terminate the agreement if the property doesn’t meet their expectations is not acceptable. However, conditions affecting both parties, such as the buyer’s ability to secure a mortgage, are valid.

Legal Implications and Deposit

If the vendor’s legal advisor drafts the preliminary contract, it’s essential that the buyer to has their own lawyer examine it. The lawyer can provide detailed advice on the legal implications before signing.

An essential legal element of the preliminary contract is the payment of a second deposit (“caparra confirmatoria”), typically at least 10% of the purchase price.

The buyer will lose their deposit if they back out of the purchase without a valid legal reason stipulated in the preliminary contract. However, if the vendor withdraws from the sale, the deposit must be refunded in full, with the buyer also having the right to pursue a claim for double the amount of the deposit through the Italian courts.

Role of the Notary and Buyer’s Legal Safeguards

In the preliminary contract, the parties also designate the date for finalizing the sale in the presence of a public notary, an official of the Italian State responsible for overseeing property transactions among other duties.

By law, notaries must remain impartial in property transactions. They cannot provide legal advice to any of the parties involved. Therefore, a notary cannot substitute a lawyer in representing the buyer’s interests, highlighting the importance of engaging an independent lawyer to ensure legal safeguards.

The notary conducts basic checks including confirming each party’s rights to buy or sell the property, conducting land registry searches for any claims or mortgages, and verifying planning permission.

Since buyers have already paid a substantial deposit before notarial checks occur, it is essential to ensure that all aspects are clear. Before committing to the preliminary contract, ensure that it includes protective conditions should issues arise during the notary’s checks.

Buying a House in Italy: The Deed of Sale (or “Rogito Notarile”)

The last step in the process of buying a house in Italy consists of completing the final deed of sale in front of a notary. The public notary usually conducts the signing of the deed of sale at their office. They read aloud and explain the Italian version of the deed in the presence of the vendor, buyer, and/or their legal representatives.

If a party to the transaction is unable to be present at the signing, they can grant power of attorney to a lawyer to represent them.

Parties to the transaction have the opportunity to read and check the deed to ensure accuracy. Having a bilingual lawyer present allows the buyer immediately address any questions or concerns.

Once all relevant parties have signed the deed, the buyer pays the balance of the purchase price to the vendor and receives the keys to the property.

It takes approximately one month, following the signing of the deed of sale, for the relevant land registry office to register the deeds of new ownership. Following  registration, the new owners receive a copy of the title deeds. If not present in Italy when the title deeds become available, the lawyer can collect them on behalf of the buyer and send them on or hold them in safekeeping.

Choice of Notary: A Privilege of the Buyer

Italian law grants the buyer the privilege of choosing the notary to establish the deed. It is advisable to avoid following the recommendations of the real estate agent or the seller on this point to prevent any conflict of interest. Opting for a notary recommended by your lawyer guarantees their level of independence and impartiality.

Interpreter and Bilingual Lawyer

Italian law mandates that any foreign buyer not fluent in Italian must obtain the assistance of an interpreter at the time of signing the deed of sale. Engaging a bilingual lawyer is thus an economical solution as they can act both as a legal advisor and an interpreter.

Finally …

Before purchasing a house in Italy, it’s essential to engage a local lawyer with expertise in property matters. You should personally select your own rather than relying on recommendations from the estate agent or vendor.

Choose a lawyer who is proficient in your language to ensure not only legal guidance but also translation services. Your lawyer should also be capable of recommending surveyors, builders, and other professional services as needed.

Additionally, you may wish to give your lawyer power of attorney in case you are unable to be present in Italy for the completion of the purchase. Entrusting this responsibility to someone with potentially conflicting interests, such as an estate agent or a friend, can pose significant risks.

Before proceeding with your property investment in Italy, consider reaching out to us for assistance. At De Tullio Law Firm, we offer comprehensive advice and support throughout your Italian property purchasing journey. With over 55 years of experience handling clients’ Italian and cross-border property, family, and inheritance matters, we are well-equipped to guide you.

Book a FREE CONSULTATION with one of our lawyers here.