Italian Law: Expert Legal Services

Navigating Italian law can be challenging, especially for foreign nationals. De Tullio Law Firm offers expert guidance on various legal matters in Italy.

With over 60 years of experience, we help clients understand and comply with Italian legal requirements. We specialize in real estate, inheritance, family law, and cross-border legal issues.

Real Estate Law

We guide clients through property transactions, ensuring all legal aspects are covered, from contracts to title transfers.

Inheritance and Succession Planning

We assist with wills, inheritance, and probate, ensuring compliance with Italian laws while minimizing tax burdens.

Family Law

De Tullio Law Firm offers expert advice on divorce, child custody, spousal support, and property division under Italian family law.

Cross-Border Legal Issues

Our team specializes in resolving international legal matters, including cross-border property, inheritance, and family law disputes.

Legal Support for Expats

We provide assistance with residency, citizenship, tax planning, and other legal matters for expatriates relocating to Italy.

 

Buying a Home in Italy: Experiences and Advice

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For many, buying a home in Italy is a dream come true. It’s also a significant financial commitment that requires careful planning and thorough research. From legal structures to taxes and inheritance laws, there are crucial factors to consider before making a purchase. If you’re serious about buying a home in Italy, think long-term. Make sure your motivations are solid, and arm yourself with reliable information. To help, we asked our clients who own property in Italy to share their best advice. Here are their insights.

We’re here to guide you through every stage of buying a home in Italy, if you would more information schedule a free consultation with us.

Understanding the Home-Buying Process in Italy

Gathering information is essential, but it must be trustworthy. Subscribe to specialist magazines, explore reputable online resources, and attend property exhibitions in Italy. However, be cautious—inaccurate or misleading advice is common. Carefully analyze the costs involved, including property taxes, utility bills, and condominium fees.

Italy is a beautiful country, and buying a home there can be straightforward and secure if you prepare properly. Engage professionals with a solid reputation to guide you through the process. In Italy, legal contracts and financial transactions occur early in the home-buying process.

Once your offer is accepted, choosing the right people to assist you is crucial. Italian law requires a notary (“Notaio”) to oversee the transaction.

The notary plays a critical role in finalizing the conveyancing process. They draft the deed of sale, perform essential property checks, and ensure that property taxes are correctly paid. Although the buyer typically selects the notary, it’s important to understand that notaries are neutral third parties and cannot offer legal advice.

Given the notary’s limited role, hiring an independent lawyer specializing in Italian property law is highly recommended. An experienced lawyer will scrutinize the contract, provide legal clarity, and help you navigate complexities like tax implications and inheritance issues. Ideally, choose a multilingual lawyer with expertise in real estate, inheritance, and tax law.

Choosing a Competent Estate Agent when Buying a Home in Italy

Italian law strictly regulates estate agents, making them a safe option for purchasing property. Nevertheless, verify that your agent is registered with the local Chamber of Commerce and carries professional indemnity insurance.

Legal documents, such as the agent’s mandate or the preliminary purchase agreement, can be risky if you’re not fluent in Italian. Never sign anything under pressure or without a full understanding. It’s wise to have a lawyer review all documents before you commit.

When transferring funds, exercise caution. Always pay through the notary or a registered estate agent who is authorized to accept payments. Avoid off-the-record cash payments, as underreporting the sale price is illegal and could lead to hefty capital gains taxes when you sell the property.

Managing the Financial Aspects

Understanding the local property market is key before making an offer. Prices vary by region, so research thoroughly using property portals and consult your estate agent for insights. An informed offer should reflect local market conditions, not assumptions based on property prices in your home country.

If you don’t speak Italian or lack experience in the market, consider working with a legal advisor. Our clients often highlight the benefits of having a knowledgeable legal team to guide them through the process. For example, De Tullio Law Firm has assisted many buyers with legal matters, market analysis, and even mortgage consultations.

In Italy, property surveys are not always standard practice, but commissioning one can be invaluable. An independent surveyor (“Geometra”) can identify structural issues, verify planning permissions, and reveal hidden costs. This information can also be leveraged to negotiate a better price.

When choosing a surveyor, prioritize independence and local expertise. A comprehensive survey should cover everything from building integrity to zoning laws and potential environmental hazards. If you’re planning renovations, consult an architect for additional insights.

Estate Planning Considerations

Italian inheritance laws are strict. By default, a portion of your estate must go to your legitimate heirs (such as children or parents). If your wishes differ, professional legal advice is essential to structure your property ownership appropriately and address inheritance tax implications.

Renovating a Property in Italy

Renovating can be rewarding but also risky. Strict regulations govern building work in Italy, and projects often require planning permission. Without professional help, what starts as a dream renovation could quickly become a financial and logistical nightmare.

If you’re considering a renovation, gather multiple quotes and create a realistic plan. Decide whether to manage the project yourself or hire specialists, including a project manager, contractor, and local craftsmen. Legal guidance is crucial when tackling complex renovations.

Buying Off-Plan in Italy: Proceed with Caution

Off-plan properties offer appealing customization options, but they also come with risks. In recent years, some unscrupulous developers have caused buyers to lose substantial funds. Protect yourself by hiring a lawyer to verify the developer’s credentials and the project’s legal status.

Before signing anything, ensure that the developer provides a bank guarantee. This guarantee protects your investment if the project is delayed or abandoned. Payment should be made in stages, with the final installment due only upon project completion. Additionally, a lawyer can insert penalty clauses to protect against delayed delivery.

Accounting for Additional Costs when Buying a Home in Italy

Beyond the purchase price, factor in extra expenses. Notary and agency fees typically total around 15% of the property’s value. If you plan to finance your purchase through a mortgage, account for related costs. Other expenses include legal fees, survey charges, and annual property taxes.

Finally…

For over 55 years, De Tullio Law Firm has supported international buyers navigating the complexities of purchasing a home in Italy. If you’re considering buying a home in Italy, we offer expert legal consultation tailored to your needs. We also provide a free preliminary call to answer your questions and outline the process. This no-obligation consultation allows us to offer personalized advice based on your circumstances. If you’re ready to take the next step in buying a home in Italy, schedule a free consultation with us. We’re here to guide you through every stage of the process and ensure your Italian property dream becomes a reality.

Buying Property in Italy as a US Citizen

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Imagine waking up to the rolling hills of Tuscany or the sparkling waters of the Amalfi Coast—all from the comfort of your own Italian home. Buying property in Italy as a US citizen is an exciting opportunity, but the process involves unique legal and bureaucratic steps that require careful navigation.

Want expert legal guidance? Contact De Tullio Law Firm for a free consultation and make your Italian property dream a reality.

In this guide, we’ll cover the key legalities, financial considerations, and essential professionals who can help you successfully purchase property in Italy.

Can a US Citizen Buy Property in Italy?

Yes! Italy allows Americans to buy property thanks to the principle of reciprocity: since Italians can buy property in the US, Americans can do the same in Italy. You can purchase as an individual or through a US-based company.

However, keep in mind that owning property in Italy does not grant you automatic residency. If you plan to stay long-term, you’ll need to apply for a visa or residency permit separately.

Understanding Italy’s Property Laws: National vs. Regional Regulations

Italian property law operates at two levels:

  • National law governs contracts, ownership rights, and the overall transaction process.
  • Regional and municipal laws regulate zoning, building permits, and urban planning rules.

This means that while the legal framework is consistent across the country, local rules can affect renovation possibilities, land use, and property modifications. Researching local regulations before purchasing is essential.

Key Professionals Involved in Buying Property in Italy

Unlike in the US, where real estate agents primarily represent the buyer or seller separately, the Italian system requires additional diligence. Here’s who can help:

  1. Real Estate Agents

Italian real estate agents often represent both the buyer and seller, which means they are not solely advocating for your best interests. To ensure unbiased advice, consider hiring an independent consultant.

  1. Real Estate Attorneys (Highly Recommended!)

While not legally required, hiring a real estate attorney can protect you from costly mistakes. An attorney can:

  • Conduct due diligence to ensure the property has no legal issues.
  • Review and draft contracts.
  • Represent you via Power of Attorney to manage the process remotely.

Choosing an English-speaking attorney experienced in Italian real estate law is a smart move for a smooth transaction.

  1. Surveyors & Architects

A surveyor (geometra) or architect will verify if the property complies with zoning laws and cadastral records. This is crucial, as unauthorized renovations could result in fines or legal issues.

  1. Notary Public (Mandatory!)

A notary (notaio) is required by law to oversee the transaction and ensure legal compliance. Their responsibilities include:

  • Verifying the seller’s legal ownership of the property.
  • Confirming there are no outstanding debts or liens.
  • Drafting and registering the deed of sale.
  • Collecting transaction taxes.

Unlike an attorney, a notary is an impartial official and does not act in the buyer’s best interest. This is why hiring an attorney is highly advisable.

  1. Mortgage Advisors (If You Need Financing)

Getting a mortgage in Italy as a foreigner can be challenging, but a mortgage advisor can help you find the best lending options and navigate the application process.

Notary vs. Attorney: What’s the Difference?

Many US buyers assume a notary serves the same role as an attorney, but this is not the case. While a notary ensures that the transaction meets legal requirements, they do not offer legal advice or negotiate on your behalf.

A real estate attorney, however, works exclusively in your best interest. They conduct thorough due diligence, uncover hidden risks, and negotiate contract terms to protect you.

For the safest and smoothest purchase, it’s best to work with both a notary and a real estate attorney.

Final Steps to Buying property in Italy as a US citizen

Once you’ve chosen your dream home and completed due diligence, the process typically follows these steps:

  1. Reservation Offer & Deposit – A preliminary agreement that removes the property from the market.
  2. Preliminary Contract (Compromesso) – A binding agreement outlining the terms of sale.
  3. Final Deed (Rogito Notarile) – The official transfer of ownership, signed in front of a notary.
  4. Registration & Taxes – The property is officially registered in your name, and taxes are paid.

Finally…

Purchasing property in Italy as a US citizen can be a rewarding experience, but it requires careful planning and professional support. By working with the right experts, you can avoid common pitfalls and confidently invest in your dream home. 

Need assistance? Contact De Tullio Law Firm today for a free consultation and expert legal guidance on your Italian property purchase.

Your Italian adventure starts now—buona fortuna!

 

International Law Firms in Italy

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Italy attracts businesses, investors, and individuals from around the world. Navigating its legal system can be complex, especially for those unfamiliar with Italian laws. International law firms in Italy provide essential guidance, ensuring compliance and protecting clients’ interests.

What Sets International Law Firms in Italy Apart?

International law firms in Italy specialize in cross-border legal matters. They offer expertise in real estate, business law, inheritance, and immigration. Their multilingual teams bridge the gap between Italian and foreign legal systems, ensuring seamless transactions.

Additionally, these firms understand the cultural and regulatory differences between Italy and other countries. This insight allows them to anticipate potential issues and provide proactive legal solutions.

Book a free consultation with our experienced legal team today and get the expert guidance you need.

Legal Expertise for Expats and Businesses

Foreign investors and expatriates face unique challenges in Italy. Property purchases, business formation, and tax compliance require in-depth legal knowledge. International law firms in Italy provide tailored solutions, simplifying these processes and avoiding costly mistakes.

Having legal professionals who understand both local and international regulations helps prevent legal disputes. Whether handling residency applications or drafting business contracts, these experts ensure clients meet all legal requirements.

Key Services Offered by De Tullio Law Firm

For 60 years, De Tullio Law Firm has been a trusted name in international legal services. Established in 1965, the firm has built a strong reputation for assisting foreign clients with their legal needs in Italy. As we celebrate our 60th anniversary, De Tullio Law Firm continues to provide expert guidance backed by decades of experience.

  • Real Estate and Property Law: Buying property in Italy? It’s not as simple as signing on the dotted line. De Tullio Law Firm ensures your transaction is legally sound, protecting you from hidden liabilities. From due diligence to contract reviews, mortgage agreements, and title transfers, they make the process smooth and risk-free.
  • Inheritance and Succession Planning: Italian inheritance laws can be a maze, especially for foreign nationals. De Tullio Law Firm provides expert guidance on wills, succession planning, and probate, ensuring compliance with Italian regulations while helping to minimize tax burdens.
  • Cross-Border Legal Matters: Whether it’s property co-ownership, international succession issues, or legal disputes across jurisdictions, De Tullio Law Firm specializes in resolving complex cross-border legal challenges efficiently.
  • Legal Support for Expats: Relocating to Italy? The firm assists with residency applications, citizenship, tax planning, and other legal matters affecting expatriates, ensuring a seamless transition.
  • Contract Law and Dispute Resolution: Whether dealing with real estate contracts, inheritance disputes, or legal claims, De Tullio Law Firm offers expert representation, working toward favorable outcomes through negotiation or litigation when necessary.

Choosing the Right International Law Firm in Italy

Selecting a reputable law firm is crucial. Look for firms with a strong track record, multilingual staff, and experience in international cases. Personalized service and clear communication make a significant difference.

It is also important to choose a firm that specializes in the specific area of law relevant to your needs. Whether you require assistance with property transactions, corporate law, or personal legal matters, a firm with specialised expertise will provide the best guidance.

Finally…

Navigating Italy’s legal system can be challenging without expert guidance. International law firms in Italy provide invaluable support, ensuring compliance and protecting clients’ interests. Whether buying property, setting up a business, or dealing with inheritance matters, legal expertise is essential for a smooth process. Seeking legal advice from professionals experienced in international law ensures that all legal matters are handled efficiently and effectively, allowing clients to focus on their personal and professional goals with confidence. 

Book a free consultation with our experienced legal team today and get the expert guidance you need.

Direct Bari to New York Flights Begin in 2025

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Starting June 3, 2025, Neos Airlines will launch its highly anticipated direct flights from Bari to New York, offering a new gateway between Southern Italy and the United States. This exciting development strengthens Puglia’s connectivity. It also opens doors to expanded tourism, business and investment opportunities as well as cultural exchanges.

Direct Bari to New York Flights: A New Era of Connectivity

Fly direct from New York to BariThe direct route between Bari’s Karol Wojtyla Airport and New York JFK will run weekly until October 15, 2025.

Operated on board the Boeing 787-9 Dreamliner, with 355 seats. The flights offer two service classes: Premium and Economy.

 

Direct flights from Bari to New York
Outbound Flight:

Departs Bari Wednesdays at 11:30 AM, arriving in New York at 1:50 PM local time.

Inbound Flight:

Leaves New York Tuesdays at 4:00 PM, landing in Bari at 8:00 AM Wednesday.

Puglia’s Strategic Leap Forward

Antonio Maria Vasile, President of Aeroporti di Puglia, emphasized the significance of this new connection, stating, “This flight is a monumental step for Puglia, marking the region’s increasing accessibility on the global stage. Moreover, it represents the beginning of an era of enhanced connectivity, where Puglia becomes a hub for international travel.” Furthermore, the Bari-New York flight is an integral part of a broader strategy aimed at positioning Puglia as a top-tier destination for international tourism and commerce. By fostering such connections, the region takes yet another crucial step toward solidifying its role on the global map.

Direct Bari to New York Flights: Why This Route Matters

The Bari-New York route is more than just a convenient flight – it’s a transformative connection fostering cultural exchange, economic growth, and community ties.

Boosting Tourism and Business

This direct connection positions Puglia as a premier destination for American tourists. Travelers can now easily explore the region’s historic towns, indulge in its culinary excellence, and relax amidst its breathtaking landscapes. For businesses, the route facilitates opportunities for trade and collaboration, strengthening economic ties between Italy and the U.S.

Puglia also presents a burgeoning real estate market for foreign investors. The ease of travel opens doors for Americans to explore opportunities in owning property – whether it’s a countryside villa, a charming townhome, or a modern coastal retreat.

Serving the Italian-American Community

With more than 18 million Italian-Americans in the United States, many with roots in Southern Italy, this flight serves as a direct bridge to rediscover heritage, reconnect with family and rekindle ties to ancestral traditions.

Strengthening Regional Development

Carlo Stradiotti, CEO of Neos, underscored the broader impact of the Bari-New York connection: “With this route, we’re not just connecting Bari to New York; we’re creating an opportunity for growth that spans leisure, business and cultural exchanges.”

Expanding Connections Between Italy and North America

The new Bari-New York route is part of a broader effort to enhance air travel links between Italy and North America. It joins Neos’ other established connections, including:

Milan Malpensa to New York: Operating three times weekly since 2021. Milan to Toronto: Introduced in April 2023. Palermo to New York: A seasonal service running from June to October.

These routes collectively strengthen Italy’s presence in the global aviation network, offering travelers greater convenience and more options to explore both regions.

Puglia’s Vision for the Future

Regional leaders are celebrating this milestone as a testament to Puglia’s strategic investments. Michele Emiliano, President of the Puglia Region, sees this as a transformative moment: “This is a dream taking flight – uniting Puglia with the world and showcasing our culture, traditions and potential.”

Beyond tourism, the flight represents a broader ambition to further develop Puglia as an economic, cultural and social hub in the Mediterranean.

What Direct Bari to New York Flights Mean for Travelers

With direct Bari-New York flights, Italian and American travelers now enjoy unique opportunities to explore vibrant destinations and cultures.

For Americans, Puglia offers enchanting olive groves, Baroque architecture, breathtaking coastlines and showcases a rich blend of history and beauty.

Meanwhile, Italians can experience New York’s dynamic energy, a vibrant hub celebrated for its art, commerce and culture.

These flights open endless possibilities for travel, connection, and inspiration.

How to Book

Tickets for the Bari-New York route are available on:

– neosair.it for Italian travelers.
– neosair.com for U.S.-based travelers.

Finally …

With direct Bari-New York flights, Italian and American travelers now enjoy unique opportunities to explore vibrant destinations and cultures.

These flights open endless possibilities for travel, connection and inspiration. Additionally, it makes the prospect of owning a piece of Puglia’s charm more accessible than ever before. Whether you envision a home nestled among the region’s iconic olive groves or a picturesque seaside retreat along the stunning Adriatic or Ionian coasts, now is an ideal time to explore the possibilities of investing in Italian property.

At De Tullio Law Firm, we specialize in Italian property, family, and inheritance law. With over 55 years of experience, we are dedicated to ensuring that Italian property purchases are both safe and legally sound. Contact us today for a free preliminary consultation, and let us guide you in turning your dream of owning Italian property into a reality. Click here to get started.

You may also like our Guide to Buying Property in Italy.

Buy a Home in Italy: New Estate Agent Fees

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A significant change is coming to the real estate market in Italy. Published in the Italian Official Gazette on December 13, 2024, Labor Law No. 203 will come into effect on January 12, 2025. This law introduces a simplified approach to handling real estate agent commissions in notarial deeds. The new law eliminates the obligation to explicitly state the amount of commissions paid to real estate agents in such deeds, offering several advantages to those who buy a home in Italy, as well as for the vendors.

Key Changes Introduced by the Law

Under the new legislation, the deed of sale must only indicate whether a mediator was involved in the negotiation. Additionally, the parties must:

  1. Provide Invoice Number: the number of the invoice issued by realtors must be quoted, but not the commission amount.
  2. Confirm Payment Compliance: the deed must confirm the payment matches the amount stated on the tax document.

This approach ensures that the transaction complies with legal requirements while reducing unnecessary administrative complexity.

Buy a Home in Italy. Changes to law on estate agent fees

Privacy Benefits for Buyers and Sellers When Buying A Home in Italy

One of the most notable benefits of the new law is the enhanced privacy it affords to buyers and sellers. By removing the obligation to disclose real estate agent commission amounts in the deed, both parties can negotiate fees with real estate agents without external or public scrutiny. This flexibility fosters more open discussions and agreements tailored to the specific needs and preferences of the parties involved.

Transparency and Traceability

While the new law removes the need to declare commission amounts in notarial deeds, it upholds transparency through the requirement of electronic invoicing. The electronic invoice obligation ensures that all payments are traceable and compliant with Italian tax laws. This measure encourages ethical behavior by all parties, including real estate agents, and reduces the likelihood of tax evasion or other financial discrepancies.

Reduction in Disputes

Removing commission details in the deed reduces disputes over agent payments, benefiting both buyers and sellers. Focusing on the invoice number and tax compliance prevents misunderstandings or conflicts over commission amounts. This streamlined approach fosters smoother transactions and greater trust among the parties involved.

A Step Forward in Simplification: Making It Easier to Buy a Home in Italy

Labor Law No. 203 is part of a broader effort to simplify administrative processes in Italy. This change advances the real estate market by making property transactions more efficient, private, and transparent. Buyers and sellers alike will benefit from reduced bureaucracy, fewer risks of contention and a clearer framework for negotiating and recording agent commissions.

The new legislation removes the obligation to indicate commission amounts but still requires providing the invoice number and tax or VAT code of the agent.
From a transparency perspective, this ensures traceable, compliant transactions.

Moreover, for buyers and sellers, not specifying commissions reduces disputes over real estate agent agent payments.

Finally …

The elimination of the commission amounts in notarial deeds marks a pivotal change in Italy’s real estate sector. By balancing privacy, transparency, and traceability, the new legislation creates a more efficient and buyer-friendly environment for property transactions. As the law comes into effect, it is expected to encourage a more trustworthy real estate market for both domestic and international buyers.

If you’re looking to buy a home in Italy, or want to sell a property, now is the perfect time to explore the benefits of this new legislation. In order to do so, expert legal guidance can be invaluable. Our team of specialized real estate lawyers is here for you with all the information and legal support you need. Contact us or book a call with our office for tailored legal advice.

Italian Budget Law 2025

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On December 28, 2024, the Italian Parliament approved the Italian Budget Law 2025, introducing a range of fiscal measures aimed at supporting families, workers, and businesses. This article highlights the most relevant provisions and their implications. Additionally, it provides an overview of the reforms and incentives that will shape Italy’s fiscal landscape in the coming years. 

Support for Household Incomes and Taxpayers

One of the cornerstone provisions of the 2025 Budget Law is the restructuring of personal income tax (IRPEF) rates. Notably, the reform streamlines the previous four-rate system into three, making the new structure as follows:

  • 23% for incomes up to €28,000;
  • 35% for incomes between €28,000 and €50,000;
  • 43% for incomes above €50,000.

Moreover, the government has expanded the “no tax” threshold to €8,500 for employees and specific income categories. Consequently, this directly reduces the tax burden on lower-income households.

To further alleviate labour costs, the law introduces new tax breaks for employees:

  • Workers earning under €20,000 annually are eligible for a non-taxable bonus ranging from 7.1% to 4.8% of their income.
  • Employees earning between €20,000 and €40,000 can receive a €1,000 allowance, which is scaled down for incomes exceeding €32,000 and phased out entirely at €40,000.

Support for Families under the Italian Budget Law 2025

The 2025 Budget Law introduces several measures to strengthen social and financial support for families.

First, the government has extended the state-backed first home loan guarantee scheme through 2027. This measure primarily benefits young couples, large families, and individuals under 36.

Additionally, consumers who purchase high-efficiency appliances can claim a 30% rebate. The rebate is capped at €100 per item or €200 for families with an ISEE below €25,000.

Furthermore, the law enhances parental leave provisions and extends subsidies for working mothers. These steps aim to promote work-life balance and support families with young children.

The Italian Budget Law 2025 Introduces Changes to Tax Deductions

For higher-income taxpayers, the law introduces caps on tax deductions.

For instance:

  • For incomes between €75,000 and €100,000, the maximum deduction is set at €14,000.
  • For incomes between €100,000 and €120,000, the cap is reduced to €8,000.

There has also been a revision in deductions for dependents. For example, the budget eliminates deductions for children over 30, except for those with disabilities. Similarly, it limits tax relief for other dependents to cohabiting relatives.

However, certain deductions remain exempt from these caps. For example, healthcare expenses, mortgage interest payments on loans contracted before December 31, 2024, and energy-efficient renovations remain unaffected.

Construction and Real Estate Incentives in the Italian Budget Law 2025

Italian Budget Law 2025The law extends and modifies tax breaks for property renovations and home improvements.

Renovation Bonus:

  • In 2025, a 50% deduction applies to primary residences, while a 36% deduction applies to other properties.
  • From 2026–2027, the rates are reduced to 36% for primary residences and 30% for other properties.

Furniture Bonus:
The 50% tax deduction on purchases of furniture and appliances related to renovations remains available in 2025. However, the spending cap is set at €5,000.

Provisions for Workers and Businesses

The Budget Law introduces several measures to promote employment and investment.

For instance, businesses can claim a 20% enhanced deduction for new permanent hires. This deduction rises to 130% for underrepresented groups such as victims of violence against women, youth, and individuals with disabilities.

Additionally, workers with children can claim tax-free fringe benefits up to €2,000 per year. Other workers have a limit of €1,000. Furthermore, relocation allowances for new hires moving over 100 kilometres are exempt from taxation for the first two years, up to €5,000 annually.

Finally, the government maintains the flat tax regime for self-employed individuals earning up to €85,000 annually. Workers can also combine this with employment or pension income up to €35,000.

Incentives for Investments and Innovation

The 2025 Budget Law includes targeted measures to stimulate economic growth.

For instance, the law introduces a reduction in the corporate tax rate of 20%. However, businesses must reinvest at least 80% of profits, with 30% allocated to investments in advanced technologies and sustainable development.

Furthermore, financial incentives aim to boost the tourism sector. These incentives focus on promoting sustainable tourism, digital transformation, and extending tourist seasons.

Additionally, small and medium enterprises (SMEs) pursuing stock market listings or acquiring strategic assets in southern Italy can claim enhanced tax credits. These credits cover advisory costs and equipment purchases.

Cryptocurrency and Capital Gains Taxation

Starting January 1, 2026, authorities will increase the tax rate on cryptocurrency transactions from 26% to 33%. Additionally, the Italian Budget Law 2025 eliminates the €2,000 exemption threshold.

However, a transitional provision allows taxpayers to revalue their crypto holdings at January 1, 2025, values by paying an 18% substitute tax.

Finally…

The 2025 Italian Budget Law underscores the government’s focus on balancing fiscal responsibility with targeted support for households, businesses, and investments. Navigating these changes can be complex. Therefore, professional guidance may be essential to ensure compliance and maximize benefits.

At De Tullio Law Firm, our team of experts in Italian and cross-border tax, property, and inheritance matters is ready to assist. Contact us today for personalized advice on how the new regulations may impact you.

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.

Digital Wills in Italy: Innovation and legislation

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Digital wills in Italy represent a groundbreaking development in estate planning. They offer an innovative solution while also introducing a range of new legal challenges.

The rapid advancement of technology has brought transformative changes to various sectors, and inheritance law is no exception. New technologies continue to reshape how we manage and plan for the future.

In this article, we examine the development of digital wills, their legal implications, and how technological advancements are revolutionizing the estate planning process.

Furthermore, we focus on Italian legislation and underscore the importance of consulting a law firm that specializes in Italian and cross-border succession matters to navigate this evolving landscape effectively.

The Evolution of Digital Wills

Digital wills represent an evolution from traditional paper wills into a more modern form.

For instance, individuals can create, store, and distribute wills via digital platforms, offering enhanced accessibility and security.

However, the legal validity of digital wills varies greatly across countries.

In many cases, legislation has not yet fully addressed all the implications of this innovation. Consequently, navigating the legal landscape of digital wills can be complex and challenging.

Italian Legislation on Wills

In Italy, the Civil Code regulates testamentary succession at book second, Title III, Articles 587 to 712.

However, the Civil Code does not explicitly allow for digital wills, which poses significant challenges for those wishing to use this medium. Key articles include:

– Article 602: This article describes the requirements for the validity of holographic wills. Specifically, the will must be handwritten, dated, and signed by the testator.

– Article 603: This article governs public wills. Notably, these wills must be drafted in the presence of a notary and two witnesses. In this case, the will must indicate place, date of drafting and time of signing, and be signed by the testator, witnesses and the notary public. 

– Article 679 to 687: This section establishes terms and conditions for the revocation of wills. Importantly, this aspect remains crucial even for digital wills.

Therefore, navigating the legal landscape of digital wills in Italy requires careful consideration of these traditional requirements.

Legal Implications of Digital Wills

The lack of specific legislation on digital wills in Italy means they might not be considered valid if they do not meet the formal requirements of paper wills. This creates significant legal uncertainties, potentially leading to disputes and difficulties in executing the testator’s wishes properly.

Transitioning to digital wills raises several key legal implications:

Firstly, authenticity and security are paramount. Ensuring that a will remains authentic and unaltered presents a primary challenge. Digital platforms must incorporate robust mechanisms for authentication and data protection.

Secondly, access and storage are critical factors for the effectiveness of digital wills. It is essential that these documents are easily accessible to executors and relevant authorities.

Lastly, laws must clearly define how digital wills can be revoked or modified. This clarity ensures that the testator’s latest wishes are always respected and implemented correctly.

Addressing these issues comprehensively is crucial as digital technologies continue to reshape estate planning practices in Italy and worldwide.

The Importance of Specialized Legal Counsel for Wills

Given the complexity and legal uncertainties associated with wills, consulting a law firm specializing in Italian succession matters is crucial. An expert lawyer can provide invaluable assistance in the following ways:

Interpretation

A lawyer can interpret existing laws, helping testators understand how current Italian laws apply and identifying potential legal risks.

Drafting

They can advise on the best methods to draft wills that comply with Italian laws, leveraging digital technologies when appropriate.

Dispute Management

A lawyer can provide legal support in managing disputes over the validity of a will, ensuring the protection of the testator’s wishes.

Therefore, engaging a knowledgeable legal advisor is essential for navigating the evolving landscape of digital wills in Italy effectively.

Finally …

Italian inheritance law is complex, which can be particularly difficult for foreigners to navigate.

To successfully understand and adhere to Italian inheritance laws, expertise and precision are essential.

At De Tullio Law Firm, we specialize in providing legal advice and support across various fields of Italian law, particularly focusing on Italian and cross-border property, inheritance, and family matters. If you require assistance, please do not hesitate to contact us.

Additionally, you may find our comprehensive guide to Italian Inheritance Law insightful and helpful.

Italian Lawyer: Essential for Buying or Selling Property in Italy

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Buying or selling property in Italy can be an exhilarating yet challenging experience. However, navigating the complex legal and bureaucratic landscape on your own can be risky. From intricate regulations to specific tax requirements, the assistance of an experienced Italian lawyer is essential in protecting your investment and ensuring a smooth transaction. Here’s how an Italian lawyer can play a crucial role in property purchases or sales in Italy.

The Vital Role of an Italian Lawyer in Property Transactions

Italian property law is complex, and even the smallest missteps can lead to costly complications. A qualified Italian lawyer provides essential expertise, safeguarding you from potential legal pitfalls and ensuring a legally sound transaction.

Conducting Thorough Due Diligence

One of the most critical steps in purchasing property in Italy is conducting due diligence. Italian lawyers are skilled in scrutinizing properties to confirm they’re free from legal issues, such as unresolved debts or ownership disputes. This in-depth investigation protects buyers from inheriting problems that may later jeopardize their investment.

Without the expertise of an Italian lawyer, buyers may overlook crucial legalities, putting themselves at risk. A lawyer ensures that you’re not purchasing a property with hidden liabilities, providing you with the confidence that your investment is secure.

Ensuring Compliance with Italian Laws and Regulations

Italian property transactions are subject to strict building codes, zoning laws, and permit requirements. An Italian lawyer will ensure that the property adheres to all relevant regulations and that necessary permits are in place. This step is vital for both residential and commercial properties, as compliance issues could otherwise lead to fines or future legal challenges.

Expert Negotiation and Contract Drafting

Negotiating and drafting a purchase contract in Italy demands specialized knowledge. Italian lawyers can facilitate smooth negotiations and help draft contracts that clearly define all terms and conditions, reducing the likelihood of misunderstandings or disputes. By having an experienced lawyer on your side, you can rest assured that every clause protects your interests.

Facilitating the Title Transfer Process

The transfer of property title in Italy is an intricate process that must adhere strictly to Italian law. Your Italian lawyer will oversee this step, managing all required documentation and ensuring a legally binding transfer from the seller to the buyer. They’ll also handle any potential complications that may arise, ensuring the process is seamless and legally compliant.

Navigating the Italian Tax System

Purchasing property in Italy involves understanding complex tax implications, which vary based on residency status and the property type. Italian lawyers offer valuable tax guidance, helping you make informed decisions and navigate Italy’s tax system with ease. This support can save you money and prevent unexpected tax liabilities.

Why a Bilingual Italian Lawyer Matters

A bilingual Italian lawyer can bridge both language and cultural barriers, ensuring that foreign clients fully understand each step of the process. From translating documents to interpreting local legal terms, having a bilingual lawyer adds an extra layer of protection, giving you clarity and peace of mind throughout the transaction.

Final Thoughts: Invest in the Security of an Italian Lawyer

In the end, hiring an Italian lawyer isn’t just advisable; it’s a smart investment in the security of your transaction. Whether buying or selling property in Italy, the guidance of a qualified lawyer will protect you from potential pitfalls and streamline the entire process.

At De Tullio Law Firm, we specialize in Italian property, family, and inheritance law, with over 55 years of experience assisting clients with Italian and cross-border matters. If you’re considering a property purchase in Italy, contact us today for a free preliminary consultation. Let us help you make your Italian property dreams a reality, safely and legally. Click here to claim a free preliminary 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.