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.

Ghost towns: Abandoned Beauty in Italy

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Italy is home to a number of ghost towns, known locally as “città fantasma”. These were once thriving communities but are now abandoned and left to the ravages of time.

These abandoned towns are not just relics of the past; they offer a unique and fascinating opportunity for tourists and potential investors alike.

abandoned town

The Allure of Abandoned Towns

Ghost towns are essentially open-air museums. They offer an immersive historical experience, providing insights into the architectural styles and cultural practices of bygone eras.

Moreover, for photographers, these towns are a dream, presenting endless opportunities to capture the haunting beauty of decay.

Especially for those with a sense of adventure, exploring these quiet, eerie streets can be a thrilling experience.

And for cultural heritage enthusiasts, visiting and investing in these towns supports efforts to preserve Italy’s rich history.

ghost towns

Ghost Towns Tourism in Italy: A New Trend

Tourism in Italy’s ghost towns is becoming increasingly popular, drawing over 1.5 million visitors annually. This surge in interest is driven by several factors.

First, there’s the allure of stepping into a place frozen in time, offering a stark contrast to the bustling modern world.

Secondly, the mystery and romance of abandoned towns captivate many, providing a unique and off-the-beaten-path travel experience.

Ghost towns such as Bussana Vecchia in Liguria, Pentedattilo in Calabria or Craco in Basilicata, attract tourists not only for their eerie beauty but also for the stories and legends that surround them.

The growing interest in sustainable and experiential travel also contributes to this trend, as travelers seek meaningful connections with history and culture.

Craco: the lost town

Among the ghost towns in Italy, Craco stands out because of its picturesque landscape.

On a guided tour along a secured itinerary, visitors can explore the ghost town of Craco. While some of the architecture still stands, much of the town is crumbling, making it too dangerous, and illegal, to visit unaccompanied.

From the town’s main street, one reaches the centre of the ghost town: on the way, one encounters several noble palaces around which the village expanded in the 15th century.

Looking out from a window of the bastion, you can admire endless meadows and the characteristic calanchi, deep furrows dug into the clay soil that make the landscape unique and evocative.

Because of its beauty, the ghost town of Craco has been included in the list of the World Monuments Found, a list of safeguarded monuments around the world.

Outside Craco’s city walls, you can admire one of the area’s religious heritages: the Franciscan convent with the Church of San Pietro Principe degli Apostoli, that dates back to 1630.

abandoned craco church

In conclusion, Craco is a true heritage of the Bel Paese, which, although abandoned, is worth maintaining and preserving as many others lost gems that characterised the italian landscape.

Property Investments in Italian Ghost Towns

Investing in properties in areas with ghost towns presents a unique opportunity to be part of a rich historical and cultural legacy.

With many of these areas boasting fewer than 10,000 inhabitants, they offer promising prospects accessible to Canadian investors.

For more details about updates to Canadian FPPRA rules, consult our resources.

However, investing in areas with abandoned towns carries inherent risks and complexities, demanding careful consideration and due diligence.

Understanding the reasons behind a town’s abandonment, assessing geological phenomena, conducting thorough property surveys and understanding legal ownership are some of the vital steps for informed decision-making and risk mitigation.

Finally …

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

If you have any inquiries regarding purchasing a property anywhere in Italy, feel free to reach out to us. We are happy to provide you with a complimentary preliminary consultation.

Schedule your 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.

Move to Italy: Get Paid to Revitalize Local Communities

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Italy’s initiative offering 1 euro homes has captured global attention. Now, there’s another enticing opportunity: getting paid to move to Italy!

Calabria, aiming to combat depopulation and rejuvenate nine villages, has offered up to 28,000 euros to those who move to these areas.

Get Paid to Move to Italy: Terms and Conditions

To qualify, applicants must be under 40 years old. Additionally, they must commit to launching a small business and relocate to Calabria within 90 days of approval. This means officially changing their residence to the selected village.

This initiative has sparked interest both within Italy and abroad. Successful candidates can expect monthly payments ranging from 800 to 1000 euros for 2 to 3 years. Alternatively, they may receive a lump sum to start their own ventures.

Innovative Initiatives to Move to Puglia

In recent years, several towns in Puglia have implemented innovative measures to attract new residents and rejuvenate communities.

For instance, Candela, known for its natural beauty and historical charm, utilized funds from the National Recovery and Resilience Plan (PNRR) to implement effective revitalization strategies.

Get paid to Move to Italy

The Case of Candela: A Model for Success in Moving to Italy

Candela offers substantial financial incentives. These include grants ranging from 800 euros for single-person households to 5,000 euros for families with over 4 members moving to the area. These funds cover rental and renovation costs, making the move financially viable for new residents. Applicants must demonstrate residency and meet specific income criteria to qualify for these incentives, ensuring sustainable community growth.

If the cash incentive is not particularly appealing to convince people to move to the village in the province of Foggia, other options are being studied.

These include discounts on electricity bills, reduced fees for kindergarten enrollment, and reductions in waste and school canteen taxes.

All of this aims to repopulate a village that risks becoming another ghost town in the southern landscape. Southern Italy’s demographic vitality is declining, making it challenging to reclaim the lost essence of life.

The Role of the PNRR

The PNRR, the National Recovery and Resilience Plan, was introduced by Italy as part of the broader EU program for post-pandemic recovery.

The plan includes investments in various areas, such as urban regeneration and the recovery of historic villages. For Puglia, the PNRR has allocated funds for the revitalization of depopulated areas and support for local communities.

The case of Candela demonstrates how the strategic use of PNRR funds can turn challenges into opportunities.

In fact, thanks to these incentives, Puglia is experiencing a new era of growth and revival, offering a replicable model for other regions of Italy.

The adoption of such measures helps preserve cultural and historical heritage. It also ensures a prosperous and sustainable future for local communities.

Move to Italy and get paid

Finally …

At De Tullio Law Firm, we specialize in property, inheritance, residence, and family law matters in Italy.

Whether you’re considering moving to Italy under its incentivized programs or navigating legal matters related to property and residency, De Tullio Law Firm offers specialized expertise. Contact us today for a complimentary consultation. Let us guide you through the process. Together, we can ensure your move to Italy is smooth and successful.

 info@detulliolawfirm.com

Tel +39 080 483 1785

from the UK: 0800 012 6545

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

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. 

 

Italian Real Estate: How to Avoiding Pitfalls when buying

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Buying Italian Real Estate should be exciting but, it can also be a complex process

The best way to protect your investment when buying Italian real estate is to engage an English-speaking Italian lawyer. Instructing an independent, English-speaking Italian lawyer could save you money and stress in the long run.

Choosing the right Italian lawyer is a very important decision. Make sure you instruct an independent English-speaking lawyer, who has experience advising international clients in relation to property purchases in Italy.

Your Italian property lawyer should:

Be independent. Make sure the lawyer is not connected in any way to the estate agent, developer or seller. An independent lawyer will exclusively look after your interests and not the interests of the estate agent or developer. You should find your own lawyer rather than taking recommendations from an estate agent or using a developer’s in-house lawyer.

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Speak English. Unless you are a fluent Italian speaker, your lawyer should be English-speaking. You need to know that when you ask a question, your lawyer can fully understand and answer in a way you fully understand. There is no point in paying for advice that you don’t understand.

Have Professional Indemnity Insurance. You should check that your lawyer has adequate insurance. Should any problems arise as a result of advice you receive, you can be certain you are covered.

Why should you instruct a lawyer if you are buying Italian real estate?

It is impossible to evaluate a property just from viewing it. By instructing a lawyer you will have a better understanding of the property and the Italian purchase process.

Your lawyer can:

Guide you through the Italian buying process and the obligations of each party.

Check the property title, carry out checks and searches on the property before you sign any paperwork, which may well have binding financial and legal implications.

Arrange structural and geological surveys.

Review the purchase contracts to ensure that everything is as it should be and that your position is protected.

Advise about any inheritance and tax issues that may affect you. This is particularly important in Italy which has rules of ‘forced heirship’.

Help you make a Will to cover your Italian property, which is advisable in planning the succession of your assets.

Assist with matters such as Italian residency, tax codes, setting up a bank account or utility contracts for a property following purchase.

What is the role of the notary who buying Italian real estate?

An Italian notary (Notaio) is a legal representation of the Italian Government. Whilst they are part of the legal profession, it is important to ensure that you do not confuse the role of your lawyer with that of a Notaio.

The role of the Notaio in Italy is to oversee the property transaction, to collect the appropriate tax on behalf of the Italian State and to register the property in the Italian Land Registry. Legally a Notaio must remain impartial in the property purchase. A Notaio cannot, therefore, act on behalf of the buyer or the seller. You should instruct your own independent Lawyer to advise you specifically in relation to your property purchase and related issues.

Do I need to give my Italian lawyer Power of Attorney?

If you are not going to be in Italy during the purchasing process, it is a good idea to provide your lawyer with a Procura Speciale – a Limited Power of Attorney. This is a legal document that gives another person authority to act on your behalf, for example, to sign a property purchase contract.

Conferring a Power of Attorney to another person gives significant power to act on your behalf. You should therefore be comfortable that you fully understand what you are agreeing to, that you are happy with the wording of the document and that your agent is competent and trustworthy.

Finally …

Buying Italian real estate is a complex matter. With our extensive knowledge and experience of Italian and international law, we provide expert conveyancing services throughout Italy. If you are purchasing an Italian property, get in touch with us for a free consultation.

 

Italian Property Law: Our Journey

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A Decade-Long Proposition

For a decade, Mario and Giovanna, our charming elderly Italian neighbors, wanted to sell us their property. The small farm includes several hectares of land, a farmhouse in decent shape, and outbuildings ranging from usable barns to near-ruins. Italian property law is a significant factor in the process, affecting both the vendors’ approach and our response.

The Appeal and the Sticking Point

While the idea of buying the adjacent property was always appealing, the asking price was just too high. Mario and Giovanna aimed to distribute the proceeds among their five grown children and cushion their final years. None of the children were interested in taking on the farm, as they all had their own properties and families elsewhere. We repeatedly turned down their offer due to the price. We suggested that a substantial reduction might pique our interest and made an offer, but they rejected it, holding out for more. Understanding Italian property law helped us navigate these negotiations, ensuring we were aware of our rights and obligations.

The Turning Point

Seven years ago, Mario and Giovanna decided they could no longer manage the farm. They moved into an apartment in town, returning to the farm to spend the summer. They preferred to avoid real estate agency fees and continued their quest for a private sale. After the pandemic, a local goat farmer made an offer, and we shared in their excitement and relief. However, the buyer needed a mortgage and couldn’t secure one, likely due to complications related to Italian property law. The situation dragged on for 18 months and eventually the sale fell through. They came back to us with a lower price, but it was still more than we wanted to pay. By then, Mario’s health was declining.

Unexpected News

One day, Giovanna called, asking us to visit them in their town apartment. We went, and inevitably, the property sale came up. We reiterated our previous offer, still shy of their expectations. Not long afterward, sadly, Mario died, and amidst the grief, the matter was set aside, unresolved.

We maintain regular contact with Giovanna. She has been a friend for many years. Our mutual affection has always been a constant. We visit her regularly for coffee and conversation. Occasionally, during these visits, the subject of the farm sale would resurface as she and her children navigated the labyrinthine Italian probate process under Italian property law.

Unexpectedly, in late December, a family delegation arrived at our house. They brought season’s greetings and the news that all the heirs, including Giovanna, had decided to accept our offer. Giovanna said Mario had always hoped we would buy the property, believing we would care for it properly.

Engaging Legal Expertise in Italian Property Law

Having made a verbal agreement to purchase the property, we immediately engaged De Tullio Law Firm, experts in Italian property law. The team initiated due diligence and contacted a surveyor and a notary.

The first thing they discovered was that according to property plans, one of the doors leading to the terrace should have been a window. This wasn’t a huge issue as post-purchase, we intend to renovate the house and we could fix that.

However, as the team looked into the paperwork, it became apparent that there were other issues with the property. All these matters explained why the goat farmer had encountered difficulties securing a mortgage.

Even minor irregularities with Italian town-planning and cadastral regulations, under Italian property law, can complicate sales and purchases, particularly when the buyer requires financing. Banks mandate full compliance with regulations.

Navigating Legal and Regulatory Challenges with Italian Property Law

Having lived in Italy for almost 20 years, we have seen expat property owners grappling with discrepancies when they come to sell properties at a later date. They often find their assets adversely affected in terms of resale value and marketability because of minor issues that were present when they first bought the properties. This underscores the importance of conducting thorough legal due diligence when purchasing a property. Italian property law is very complex. As soon as you know you want to buy a property in Italy, you should engage a property lawyer.

De Tullio Law Firm discovered a critical omission in the succession paperwork: not all buildings were accounted for in the sale. This discrepancy arose because Mario and Giovanna had failed to declare a collapsing outbuilding in the original title deed, drafted in the 1980s when they acquired the particular parcel of land from another neighbor of ours. This old outbuilding was erected prior to 1967.

Understanding Italian Property Law and Building Regulations

Italian buildings constructed before September 1967 were not subject to municipal authorization due to the absence of comprehensive national building regulations. The enactment of Law No. 765 in 1967 marked a pivotal shift in Italian property law, mandating building permits from municipal authorities and standardizing processes across Italy. Prior to this law, construction practices were governed by local customs and lacked formal oversight.

However, despite its derelict condition, the outbuilding must still be registered in both the land registry and the Nuovo Catasto Edilizio Urbano (NCEU). The latter serves as a registry for urban properties, and inclusion is a legal prerequisite for transactions such as sales or transfers of ownership under Italian property law.

In our case, updating the succession paperwork from the tax authority to include the outbuilding in the sale are imperative steps under Italian property law. Additionally, the vendors will need to rectify the original title deed to include the outbuilding. These measures will ensure legal compliance and clarity in the transaction.

Addressing Land Registry Discrepancies Under Italian Property Law

The land registry map of the property presents a concerning discrepancy: none of the buildings are accurately depicted. Rectifying this will entail updating the land registry.

Then, a neighbor has encroached on two of the land parcels included in the sale. Part of the neighbor’s house extends onto one parcel, while his garden spills over onto another.

The neighbor is a kind elderly gentleman, and we don’t want to risk boundary disputes either with him, or potentially with his heirs in the future, who might assert usucapione rights. Resolving this dilemma requires subdividing the land the neighbor is currently using as a garden and adjusting the boundary accordingly. Similarly, where the neighbor’s property encroaches onto land included in the sale, boundary lines must be redrawn.

While both sections of land will be gifted to the neighbor, the vendors must ensure that they and the neighbor have them legally registered to ensure clarity and avoid any future disputes under Italian property law.

Italian Property Law: Verifying the Internal Layout

It’s crucial to check the internal layout of the property. Although the vendors had provided their own plans, official municipal plans often differ.

The vendors had already mentioned a discrepancy with the door leading to the terrace. Would the vendors’ plans match the ones held by the local municipality’s technical department when reviewed? The team at De Tullio Law Firm investigated this using the services of a geometra.

After several weeks of waiting, the geometra received notification that the relevant file had been “misplaced” in the municipal archives. He applied to the provincial archives for a copy. Thankfully, apart from the issue with the extra door, the interior plans match the actual layout of the house.

Moving Forward with the Preliminary Contract

Despite these, and a few other issues, we asked De Tullio Law Firm to organize a preliminary contract. We wanted to secure the farm while protecting ourselves from purchasing a property that is not fully compliant with planning regulations under Italian property law.

After several iterations between the lawyers at De Tullio Law Firm and the notary, we now have a preliminary contract in place with conditions precedent that specify the remedial work required before completion, with the costs to be borne by the vendors. The deadline for completion is December 31st, providing the vendors a realistic amount of time to address all the discrepancies.

Finally …

De Tullio Law Firm extends our gratitude to our clients for sharing their journey to purchase their neighbor’s farm. Italian property law is indeed complex, and seeking legal advice is crucial to safeguard your interests and resolve issues before buying property in Italy. As this case demonstrates, what initially appeared to be a straightforward transaction revealed a number of discrepancies, highlighting the importance of due diligence.

The Office for Italian Statistics (ISTAT), estimates that approximately 20% of Italian properties are illegally built. Additionally, Italy currently faces a significant backlog of over 4 million retroactive planning applications for illegal constructions. Some estimates suggest this number could be multiplied by at least five when including properties with minor irregularities.

Despite the challenges in this case, all the issues are resolvable. We anticipate that the signing will take place by the December deadline. This case underscores the critical role of thorough legal checks in property transactions, ensuring a smooth and compliant acquisition process.

At De Tullio Law Firm, we offer personalized advice and support. With over 55 years of experience handling clients’ Italian and cross-border property, residency, family, and inheritance matters, we are right beside you.

Book a FREE CONSULTATION with one of our lawyers here.

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/