Canadian Investors: Italian Real Estate 2024

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Against the backdrop of Canada’s prolongation of its ban on foreign involvement in its real estate market, this blog post serves as an update on previous discussions, offering insights into recent developments. We aim to provide Canadian investors with an understanding of shifts in Canadian property law and explore potential investment opportunities in Italian real estate.

Canada’s recent decision to extend the Foreign Property Purchase Restriction Act (FPPRA) for an additional two years has reignited debates. Questions arise regarding the ban’s effectiveness in alleviating housing shortages and its impact on housing affordability for Canadians.

Furthermore, this decision has sparked conversations about investment prospects. Economists and real estate agents contend that foreign ownership has not been the primary driver of demand in Canada. Official data indicates a drop in foreign ownership of homes in Canada, to just 1% from 2 to 3% in 2021, according to Statistics Canada.

Foreign buyers have been implicated in driving up property prices in countries like Australia, the UK, and New Zealand. However, only Canada has taken as firm a stance in banning foreign ownership.

For Canadian investors eyeing real estate opportunities abroad, including Italy, the landscape presents questions. For example, can Canadian investors still pursue real estate investments amidst these regulatory changes?

The Impact of Italian Property Investment Laws on Canadian Investors

Because of Canada’s FPPRA, Canadian investors exploring the Italian real estate market face reciprocal arrangements in Italy.

However, an amendment to the FPPRA in 2023 offers an exemption, unlocking investment opportunities for Canadian investors exploring the Italian real estate market.

The FPPRA Amendment

An amendment introduced on March 27th, 2023, to Canada’s FPPRA, marked a significant shift in reciprocal property investment regulations.

This pivotal amendment exempts certain properties from purchase restrictions in Canada. In particular, those located outside Census Agglomerations or Census Metropolitan areas.

Unlocking Potential for Canadian Investors in Italian Real Estate

Canadian investors exploring Italian real estateWith the aforementioned exemption under the FPPRA, Canadian investors exploring Italian real estate can now seize promising prospects.

Italian properties located in areas with fewer than 10,000 inhabitants have now become accessible to Canadian buyers.
This legal change creates opportunities for Canadian investors exploring Italian real estate markets.

While the FPPRA exemption presents opportunities, due diligence remains paramount for Canadian investors venturing into Italian real estate. Verifying property eligibility through legal professionals will ensure compliance with regulations and mitigate risks.

Finally …

As Canada navigates its real estate policies, Canadian investors exploring Italian real estate have an opportunity to broaden their investment portfolios. With legal exemptions facilitating access to properties in Italy, prudent due diligence and legal guidance are essential for a successful investment venture.

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

 

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

 

Click here to read the news release from Department of Finance Canada

 

2024 Italian Real Estate Trends

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As we usher in spring, 2024 Italian real estate trends are subtly complex, painted predominantly in shades of gray. The outlook for the Italian residential housing market spans from relative stability to a slight downturn. However, uncertainties cast a shadow, intertwined with the fluctuating cost of borrowing, as highlighted in a survey by the Corriere della Sera.

The Gray Dominance: Unveiling 2024 Italian Real Estate Trends

Gray, as the dominant color in the residential market of 2024, sets the stage for a year of potential shifts. While some anticipate stability, others predict a gentle downturn. The pivotal factor here is the trajectory of the cost of money, introducing an element of unpredictability. If interest rates decrease, the consensus is not an immediate surge in sales, but rather a certainty that both sales and prices will respond if the cost of money remains static or banks tighten credit access.

Scenari Immobiliari’s Perspective

For a comprehensive understanding, Corriere della Sera sought insights from renowned real estate research firms. Scenari Immobiliari’s President, Mario Breglia, characterizes 2024 as a “year of transition.” He points out that while inflation is decreasing and economic uncertainty is subsiding, shadows persist due to the potential decline in mortgage demand amid reduced incomes. Breglia suggests that families, in response, might choose to defer property purchases until economic conditions improve.

Nomisma’s Analysis

Nomisma’s three-year forecast paints a cautious picture. While a slight recovery in property transactions is projected for 2026, 2024 could witness a substantial decline of 8.8%. The institute’s CEO, Luca Dondi, emphasizes the significance of credit access and the potential impact of a more expansive ECB policy in the coming months.

Market Trends and Predictions for 2024 Italian Real Estate

As we delve deeper into projections, a nuanced narrative unfolds. Nomisma foresees a 17.4% decrease in mortgage disbursements for 2024, coupled with a 6.8% decline in the following year. Price variations in large cities are expected to hover around +0.6%, with Milan leading at +1.4%, and the capital, Rome, at +0.6%. Despite these figures, the overall market sentiment remains cautious, with optimism tentatively deferred to 2025.

The Role of Financing in 2024 Italian Real Estate Trends: MutuiOnline.it’s Perspective

MutuiOnline.it injects a note of optimism, particularly in the financing realm. Alessio Santarelli, the platform’s DG, highlights the divergence between the ECB and the Fed’s approaches to interest rates. He suggests that this prolonged discrepancy may become untenable. However, Santarelli points to the potential for optimism, as Euribor futures indicate a decrease in variable-rate mortgages by approximately 170 basis points by year-end, potentially revitalizing the market for young buyers and those seeking larger homes.

Interpreting the Market Dynamics: Gabetti’s Take on 2024 Italian Real Estate Trends

Gabetti’s CEO, Roberto Busso, envisions a more favorable financial leverage perspective if inflation continues to decline. Nevertheless, he underscores the importance of understanding the evolving demand for a new housing model. Furthermore, Busso suggests that this model may not necessarily involve property ownership, signaling potential shifts in housing preferences.

Considering Societal Changes: Fiaip’s Perspective on 2024 Italian Real Estate Trends

Francesco La Commare, head of the Fiaip study office, highlights the evolving dynamics spurred by diminishing job security. Consequently, this shift has resulted in increased mobility and a growing demand for rentals outside major cities. Importantly, he emphasizes the crucial need for legislative responses to ensure secure leasing options for property owners in this changing landscape.

Forecasting Rental Trends: Tecnocasa’s Insights on 2024 Italian Real Estate Trends

Tecnocasa’s Fabiana Megliola anticipates a growth in rentals due to strong demand. However, she points out that the lack of supply, coupled with a resurgence in short-term rentals, may lead to an unsustainable increase in rents. The future trajectory, she suggests, depends on economic evolution, projected weak growth, inflation trends, and the confidence of businesses and consumers.

Finally …

In a market characterized by uncertainty, navigating the complexities of Italian real estate in 2024 requires careful consideration. If you’re contemplating property acquisition in Italy this year, consider consulting with De Tullio Law Firm. As experts in legal matters related to Italian property, we are right beside you to guide you through the intricacies, ensuring a safe, smooth and informed decision-making process. Get in touch with us for a free preliminary call.

Italian Golden Visa: Unlocking Opportunities

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Dreaming of a life in Italy? The Italian Investor Visa, also known as the Golden Visa is an interesting solution for non-EU citizens who choose to invest in strategic assets that benefit Italian economy and society.

In this blog post we explore eligibility, investment options, and the application process. To discuss your situation and eligibility, get in touch for a free consultation.

What is the Italian Golden Visa?

The 2017 Budget Law introduced the Italian Golden Visa. It allows foreign investors residency in Italy for 2-5 years as well as travel within Schengen countries. This initiative bolsters Italy’s economy and visa system, offering a gateway to long-term investments.

Requirements for the Golden Visa in Italy

To apply, non-EU citizens must:

– Be 18+ or a legal entity’s representative.
– Meet investment thresholds.
– Provide an Anti-Money Laundering Declaration.
– Demonstrate financial stability.

Eligibility of Family Members

Family members can obtain visas and residence permits, fostering family reunification or cohesion.

Types of Golden Visa Investments

Options include government securities, company shares, or philanthropic donations, each with specific investment criteria.

Italian law outlines the eligible investment options for the investor visa application as follows:

– Securities issued by the Italian government: Requires a minimum investment of €2,000,000.00, which must be held for at least 2 years.
– Stocks or shares of an existing capital company operating in Italy: Involves a minimum investment of €500,000.00, to be held for at least 2 years. However, if investing in an existing innovative Italian startup, the amount is reduced to €250,000.00.
– Philanthropic donation to an Italian non-profit organization: Supporting public interest projects in sectors such as culture, research, migration management, or restoration of natural/artistic resources requires a donation of at least €1,000,000.00.

Additionally:
– The applicant must demonstrate ownership and be the beneficial owner of at least €2,000,000.00 (in the case of securities) or €1,000,000.00 (for shares/stocks or philanthropic donations), which must be available and transferable to Italy.
– A written declaration committing to using the funds for eligible investments or donations within three months of entry into Italy is required.
– Sufficient resources, beyond the investment funds, must be demonstrated to cover the applicant’s living expenses during their stay in Italy, exceeding the minimum level for exemption from healthcare expenditure as per the law.

Anti-Money Laundering Declaration

Only single investments are permitted, with funds verified for legitimate origins.

Transferring Funds and Nationality Considerations

Transferring funds to Italian banks may ease the application process. Nationality doesn’t directly affect eligibility, but origins of funds may trigger scrutiny.

Additional Considerations and Investment Types

Ensure compliance with Italian law when choosing investments, whether in companies or bonds.

How to Obtain the Golden Visa in Italy

The Investor Visa falls outside the annual entry quotas set by the Italian Government, allowing applications at any time without quota restrictions.

The initial step involves applying for a Nulla Osta, available through the Ministry of Economic Development’s online portal. The application requires submission of:

– Personal details
– Passport copy
– Applicant’s CV
– Investment type indication
– Evidence of investment ownership
– Clean criminal record confirmation
– Investment description and recipient consent attestation

Following a preliminary review by the Committee’s Secretariat, the application undergoes evaluation, with the Committee typically issuing the Nulla Osta within thirty days.

Subsequently, applicants have six months to visit an Italian diplomatic mission in their home country to finalize the investor visa application. Entry into Italy is permissible within two years of visa issuance.

The investor visa grants a two-year validity period in Italy. Upon arrival, applicants must apply for a residence permit for investors at the Questura within eight days. This permit remains valid for two years from the date of entry into Italy.

Issuance and Maintenance of Residence Permit

Investors must fulfill investment commitments and maintain original investments for permit validity. Renewals and citizenship opportunities follow.

Incentives for Investments in Italy

Tax incentives and work permit options enhance the allure of Italian residency for investors and their families.

Special Italian Tax Regimes

Impatriates Regime

Designed for employees and self-employed individuals relocating their tax residency to Italy for work. Income from dependent work or self-employment in Italy is taxed at 30% for 5 years, or 10% in Southern Italy. The regime can extend for 5 more years under specific conditions, with 50% of income taxable during this period.

New Tax Regime for Resident Pensioners

Non-resident pensioners in Italy receiving foreign pensions can opt for a 7% flat tax on foreign source income if they meet certain criteria and reside in qualifying municipalities.

Special Tax Regime for High Net Worth Individuals

Available to those not tax residents in Italy for 9 out of 10 years preceding their transfer. Exempts them from applying a substitute tax to foreign income.

Italian Tax Incentives for Foreign Professors and Researchers

Offers a 90% reduction in taxable income for researchers and professors, with durations of 8, 11, or 13 years, contingent upon residency in Italy.

Finally …

To navigate the complexities of the Italian Golden Visa, expert legal counsel is essential. With over five decades of experience, De Tullio Law Firm is your trusted partner, offering personalized advice to international investors. Specializing in real estate, residency, family law, and inheritance matters, we ensure pragmatic solutions tailored to your needs. If you’re considering investment in Italian real estate, contact us today. We’re dedicated to guiding you through every step of the process with confidence and clarity.

Italian Tax Residency Changes 2024

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

Italian Tax Residency Changes Revise Residency Criteria

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

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

Italian Tax Residency Changes Impact Domicile Interpretation

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

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

Italian Tax Residency Changes Link Criteria to Physical Presence

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

Impact on Tax Regimes

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

New-Resident Regime Changes

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

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

The New-Resident Regime is Contingent on Conditions

 

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

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

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

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

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

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

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

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

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

Increase in IVIE Tax Rate

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

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

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

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

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

Changes in Italian Tax Residency apply to the 2024 tax year

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

Finally …

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

Certificate of Legitimate Status

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Italy’s real estate landscape has seen significant changes with the implementation of Law 120/2020, known as the Simplification Decree. This decree aims to streamline and simplify building procedures for public administration and reduce complexities for citizens and businesses. One notable aspect is the introduction of the Certificate of Legitimate Status, a crucial document impacting property transactions.

Understanding Tolerances in Building Regulations

The Simplification Decree integrates into the Unified Building Text DPR 380/01, specifically article 34/bis c.3. This section introduces executive tolerances, deviations from building regulations not exceeding 2%, as declared by qualified technicians. These tolerances, highlighted in paragraphs 1 and 2, aim to certify the legitimate state of properties during new applications, communications, and building notifications.

Real-life Example

To illustrate these tolerances, consider a common scenario during real estate due diligence check-ups. Parties involved, such as sellers or real estate agencies, may misinterpret the provision. For instance, an authorised 100-square-metre apartment may be measured on-site as 102 square metres due to construction adjustments. For example the  balcony may have been enclosed. While a 2% excess is permissible, intentional extensions without authorization fall outside this tolerance, necessitating restoration to original measurements.

The legislator’s intent behind these tolerances is to alleviate the workload on public administrations and reduce burdens on property owners for posthumous regularisation of minor building abuses. The criteria for non-conformity include meeting specified cases, absence of protection constraints, and no violation of urban planning or building regulations, ensuring the habitability of the property.

In cases where no building non-conformity exists, and authorization projects are unnecessary, the legislator introduces the “Certificate of Legitimate Status.” This document holds formal value, applicable for regulating real estate transactions, where a seller’s declaration of urban regularity is required.

The Role of the Certificate of Legitimate Status

To guarantee compliance and facilitate the signing of sales contracts, compliance with the land registry and urban regularity by the selling party must be declared. Alternatively, a qualified technician can swear both statements after ensuring compliance with urban and cadastral documentation.

While the Certificate of Legitimate Status is not essential for signing, it acts as an optional but crucial document. Often, sellers lack sufficient training in urban planning, making the document valuable for ensuring a balanced agreement between parties.

Challenges in Property Transactions

Many property transactions still rely on ambiguous urban declarations made by the selling party “before 67.” This legislative loophole, allowing marketability without full urban regularity guarantees, can lead to economic and legal repercussions even after signing.

The dissemination of the Certificate of Legitimate Status as a technical document is a positive step, providing an absolute guarantee and expediting real estate negotiations. Buyers are increasingly considering it essential for a smoother transition to the notarial deed.

For enhanced certainty, buyers can engage a technician to draft a conformity report. This report provides a guarantee and reassurance regarding the property purchase, further securing the deal.

Certificate of Legitimate Status: Verification by Qualified Technicians

The legitimate status of a property is determined by the enabling title that legitimised its construction and the last building intervention affecting the entire property. For older properties without a mandatory building permit, cadastral information or other probative documents determine legitimate status.

The affidavit, sworn by the appointed technician, serves as a legally certain basis for accessing tax deductions such as the 110% Superbonus or the Furniture Bonus. However, these deductions are not applicable to wholly or partially abusive properties.

Finally …

The Simplification Decree and the introduction of the Certificate of Legitimate Status have reshaped Italy’s property regulations. Buyers and sellers must navigate these changes with caution to ensure secure and transparent real estate transactions. For those seeking support in understanding and complying with these regulations, the team at De Tullio Law Firm, specialized in Italian property and inheritance matters, is happy to support you. Get in touch with us.

European Professional Card for Realtors

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

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

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

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

How the European Professional Card Empowers Real Estate Agents

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

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

Navigating the Application Odyssey

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

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

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

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

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

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

Finally …

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

G7 Summit: Puglia Gears Up

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In November 2023, Italian Premier Giorgia Meloni confirmed the G7 leader’s summit in the region of Puglia. The gathering will take place from June 13 to 15, 2024. This globally significant event will be a defining moment in global diplomacy. In this blogpost, we look into the multifaceted aspects of the G7 summit. Not only will we explore the strategic significance of Puglia as the chosen host but we will also look at the venue where world leaders will convene. Additionally, we will uncover the profound symbolic importance that the G7  leader’s summit holds against the backdrop of a fast-changing geopolitical landscape.

Puglia’s Prestigious Role in The G7 Summit

Puglia, celebrated for its breathtaking landscapes, rich historical allure, and delicious cuisine, has been chosen to host the G7 summit. This decision stands as a compelling testament to the region’s escalating prominence on the international stage. Moreover, it underscores the growing recognition of Puglia’s significance in global affairs.

Situated in the southeastern part of Italy, Puglia has served as a geographical crossroads for centuries, where Eastern and Western civilizations meet. The decision to host the G7 summit here underscores a commitment to bridging divides and fostering global cooperation.

Puglia’s Historical Roots

Nestled on the Adriatic coast of Puglia, the ancient city of Egnazia stands as a testament to the region’s historical significance. Once a thriving Messapian center on the borders with Peucezia, this ancient city played a crucial role in connecting civilizations. Its port, in ancient times, served as a pivotal point along the Via Egnatia, a vital Roman road linking the Via Appia to the Adriatic and the Aegean and the Black Sea. This historical backdrop adds a layer of depth to the choice of Puglia as the host for the G7 summit, underscoring its longstanding position as a bridge between Occidental and Oriental civilizations.

Italian Prime Minister Giorgia Meloni’s choice of Puglia therefore carries profound symbolic significance. In selecting a region with such a rich history of cultural exchange, she is actively challenging the conventional narrative of a divided world. In choosing Puglia, she is emphasizing collaboration and unity, fostering an environment that aligns with the summit’s overarching themes of global cooperation.

The Strategic Choice

Holding the G7 summit in Puglia is a strategic choice for various reasons, showcasing the region’s importance in international diplomacy and cooperation.

Puglia’s location makes it an ideal meeting point for leaders from North America, Europe, and Asia. Its accessibility by sea and air ensures smooth logistics for the attending delegations. In addition, the selection underscores the region’s potential as a pivotal hub for investment, trade, and meaningful cultural exchange.

Shaping the G7 Summit Agenda

As the G7 summit approaches, expectations are mounting regarding topics of discussion. Prime Minister Giorgia Meloni has already set the tone with a specific focus on lower-income countries, collectively recognized as the Global South. This approach aims to reshape the narrative that often polarizes nations into the West and “the rest.”

Global Challenges

The agenda for the G7 summit in Puglia is poised to encompass a spectrum of crucial global challenges. Leaders are not only set to address pressing issues concerning the situation in Ukraine and the Middle East but they will also engage in discussions revolving around the adherence to international rules. The overarching aim is to ensure economic and energy security while fostering a more equitable partnership with Africa.

China’s Belt and Road Initiative

Moreover, the summit will proactively engage in implementing the Partnership for Global Infrastructure and Investment. This is a strategic response by the G7 to counter China’s Belt and Road Initiative (BRI). In a significant alignment with G7 objectives, Italy formally communicated its decision to China in December 2023, not to renew its membership in the BRI. This decisive action effectively terminates Italy’s status as the sole G7 member associated with the initiative.

In addition, the G7 anticipates discussions to refine strategies for de-risking and diversifying approaches in economic relations with China. This proactive stance underscores the commitment of the G7 leaders to address the evolving dynamics of international economic cooperation.

The G7 Summit Countdown Begins

The luxurious Borgo Egnazia resort, midway between Bari and Brindisi, on the Adriatic coast, will play host to world leaders and delegations for this momentous occasion.

Borgo Egnazia is popular with celebrities like Madonna and the Beckhams. This, coupled with the area’s historical roots, brings both glamour and cultural richness to the summit. The chosen venue reflects the significance and prestige of the G7 gathering.

Furthermore, Premier Meloni’s personal connection to Puglia is evident. Last summer, her family holidayed at a farmhouse in Ceglie Messapica, adding a level of intimacy to the event. Georgia Meloni is commited to showcasing not only the region’s diplomatic importance but also its natural beauty and cultural richness.

Finally …

Puglia is poised to host an event that goes far beyond diplomatic discussions. The G7 leader’s summit also signifies a celebration of the region’s diverse cultural, economic, and touristic potential.

If you’re considering buying real estate in Puglia, the specialized team at De Tullio Law Firm is ready to assist. We are experts in Italian property, inheritance, residence, and tax matters. Get in touch with us.

Buying A House in Puglia: A Guide

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

Buying A House in Puglia: Coastal Beauty and Inland Bounty

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

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

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

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

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

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

Foggia:

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

Barletta-Andria-Trani:

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

Bari:

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

Brindisi:

This province, with its Adriatic coastal location, is rich in maritime history, offering ancient ruins and pristine beaches in towns like Polignano a Mare.

Taranto:

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

Lecce:

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

The Real Estate Market in Puglia

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

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

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

The Range of Real Estate in Puglia

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

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

The Process of Buying a House in Puglia

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

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

Finally…

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

Buying a House in Tuscany: A Guide

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If you’re considering buying a house in the beautiful region of Tuscany, you’ve come to the right place. At De Tullio Law Firm, we specialize in real estate transactions throughout Italy. We’re here to provide you with valuable information and guidance. In this comprehensive guide, we’ll walk you through the process of buying a house in Tuscany. Additionally, we highlight important considerations and precautions to ensure a smooth and secure investment.

Exploring the Tuscan Real Estate Market

The Tuscan real estate market continues to be highly attractive, offering opportunities for both first-time homeowners and investors. While there was a slight slowdown in transactions during the second half of 2022, overall, the market values in Tuscany have remained positive, indicating stability and potential for growth. In addition, the market has witnessed a shift in buyer preferences, with increasing interest in Tuscan villas that provide a better quality of life, including dedicated workspaces and outdoor areas like terraces or gardens.

The Process of Buying a House in Tuscany

To navigate the buying process effectively, it’s important to understand the main steps involved in acquiring a property in Tuscany:

1. The Reservation Offer (Proposta irrevocabile d’acquisto) : Once you have identified a property you wish to purchase, you’ll need to formalize your desire by submitting a purchase offer. Before doing so, it is crucial to carefully study the property’s documentation, ensuring its compliance with cadastral, urban planning, energy performance, and tax requirements. Consulting with a specialized lawyer who can review and draft the offer is highly recommended to protect your interests.

2. The Preliminary Contract (Contratto preliminare di vendita) : Upon acceptance of your offer, the next step is to negotiate and establish a sales agreement with the seller. This agreement will outline the terms of the transaction, including the price, payment terms, and any other relevant details necessary for a successful deal.

3. The Deed of Sale (Atto di vendita) : The last stage involves signing the final deed of sale, which legally transfers ownership from the seller to you as the buyer. It is important to note that Italian law requires non-Italian-speaking foreign buyers to hire an interpreter during the signing process. Working with a bilingual lawyer can provide significant cost savings as they can act as both a legal advisor and interpreter.

Precautions When Buying a House in Tuscany

While the Tuscan real estate market offers great opportunities, it is essential to be aware of potential risks and take necessary precautions. Here are two key considerations:

1. Deruralization of Properties: Many properties in Tuscany are located in agricultural areas, which may require deruralization before legally inhabiting them. Deruralization involves meeting tax and urban planning requirements, which can incur additional costs. Understanding the implications and expenses associated with deruralization is crucial before proceeding with a purchase.

2. Urban Planning Regulations: Tuscany boasts rich cultural and historical significance, coupled with seismic risks. This results in strict regulations for construction and renovation projects. Before buying a property, it is important to thoroughly check the urban planning guidelines in the area. This will ensure your intended projects align with the regulations.

Finally..

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

Italian Budget Law 2024: Property Matters

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Effective from January 1, the Italian Budget Law 2024 has ushered in a number of changes to Italian property-related matters. This blog post explores the key aspects of changes, shedding light on the implications for homeowners, landlords, and the real estate market. Read the full text of the law in the Italian Gazzetta Ufficiale.

Facilitating Homeownership: Mortgage Innovations under Italian Budget Law 2024

Taking a proactive stance to enhance homeownership accessibility in Italy, the Italian Budget Law 2024 allocates EUR 282 million to bolster the First Home Guarantee Fund. The primary objective is clear: to provide robust support to family units aspiring to step onto the property ladder. Families meeting distinct criteria, such as having three or more children under 21 and meeting specified ISEE (Equivalent Economic Situation Indicator) thresholds, now enjoy prioritized access to mortgages for their first home purchases.

However, this support comes with a critical condition. The continuity of the Fund’s guarantee is contingent on Italy maintaining economic equilibrium. This condition is designed to ensure the ongoing effectiveness of financial support while deterring potential negative impacts on the stability of the fund.

Tax Shifts in Short-Term Rentals

The Italian Budget Law 2024 triggers a recalibration in tax dynamics for short-term rentals (up to 30 days). Landlords who have opted for the flat-rate tax system over progressive income tax will witness a rise in the taxation rate for short or tourist rentals from 21% to 26%, if they allocate more than one unit to short-term rentals. Conversely, the rate decreases to 21% for incomes derived from short-term rental contracts linked to a single real estate unit identified by the taxpayer in their income tax return.

Rental management intermediaries are now mandated to play an expanded role, requiring them to withhold a 21% prepaid tax on the properties they manage. Taxation on rental income will occur during income tax return filing, inline with deadlines set by the Revenue Agency. This shift in taxation underscores the government’s concerted effort to balance revenue streams while acknowledging the pivotal role of the short-term rental market in Italy

Collaboration and Enforcement: A Unified Front Against Evasion in the Italian Budget Law 2024

Emphasizing collaboration between entities, the Italian Budget Law 2024 aims to combat contributory and tax evasion in the field of domestic work. For instance, those involved in cleaning short-term rental properties. To this end, the National Social Security Institute (INPS) and the Revenue Agency will work on achieving full interoperability, exchanging and analyzing information.

The Revenue Agency will make information they acquire available to taxpayers, using it to prepare pre-filled tax returns and notify taxpayers of any discrepancies.

Superbonus Updates: What to Expect from Italian Budget Law 2024

The Italian Budget Law 2024 introduces significant restrictions for the Superbonus, marking the culmination of extensive debate and controversy.

New provisions, effective from January 1, 2024, narrow down the scope and reduce available rates. This is primarily aimed at alleviating the state’s coffers from the excessive costs of the previous 110% Superbonus measure.

In summary, the Superbonus decreases to 70% in 2024. This will further decrease to 65% in 2025 and is now exclusively applicable to condominiums.

Main Superbonus changes for 2024

  • The 110% rate is only applicable to those who assigned their tax credit or the invoice discount for certified interventions by the end of December 2023.
  • Lower-income households, with an ISEE lower than EUR 15,000, qualify. They must have completed 60% of interventions by December 31, 2023. Compensation from the Poverty Fund aims to cover the difference between the 70% and the previous 110% incentive.
  • From January 1, 2024, the Superbonus for single-family homes no longer exists. The extension of the benefit for those who had completed at least 30% of the overall works by September 30, 2022, expired at the end of December 2023.
  • Starting January 1, 2024, the Superbonus switches to a tax credit system only, applicable to 70% of the costs incurred. In case of failing to achieve a double energy efficiency improvement (e.g., from energy efficiency class E to C), the ordinary tax regime applies at 50%.
  • Property owners who have availed of Superbonus 110% and subsequent associated incentives must file a cadastral declaration to rectify the property’s cadastral income. The budget law tasks the Revenue Agency with scrutinizing submissions to guarantee precise data adjustments in the land registry. Anticipate an increase in tax due to the augmented cadastral income for these properties.

Other related changes

  • For the Sismabonus, more stringent controls are anticipated. This aims to reserve the tax incentive exclusively for buildings genuinely damaged by seismic events.
  • The Architectural Barrier Bonus is a tax benefit related to enhancing accessibility for individuals with disabilities or the elderly. It is open to both private citizens and businesses. From January 1, tax credit transfers are available for common areas of residential condominiums. In addition, individuals with incomes below EUR 15,000 can apply for the scheme. This income limit does not apply to disabled individuals.

IMU Exemptions

Italian Budget Law 2024 introduces exemptions from the municipal property tax (IMU) for properties owned by certain categories of individuals. To qualify, you must be engaged in activities providing for the well-being, care, and support of individuals or communities. It encompasses various sectors such as health, welfare, accommodation, education, culture, sports, recreation, and scientific research. Essentially, it denotes activities that contribute to the overall betterment and support of individuals and society. To qualify for IMU exemptions, these activities cannot be of a commercial nature.

Withholding Tax on Property-related Bank Transfers and Real Estate Agency Commissions

Expect a rise from 8% to 11% in withholding tax. This is applicable to recipients of deductible charges – expenses subtracted from taxable income – and those eligible for tax deductions, such as individuals who can reduce their taxable income through specified deductions. Withholding tax extensions encompass various commission categories.

Ivie and Ivafe Increases

The 2024 Budget Law sees an increase in mini-wealth taxes on real estate and financial products held abroad by Italian residents.

It includes raising the IVIE (Imposta sul Valore degli Immobili all’Estero), tax on foreign real estate from 0.76% to 1.06%, impacting properties outside the EU or EEA.

IVAFE (Imposta sul Valore delle Attività Finanziarie detenute all’Estero), tax on financial products, bank accounts, and savings held abroad by Italian residents will double from 0.2% to 0.4%. The Budget Law only impacts assets in blacklisted countries. From January 1 2024, Switzerland is no longer on the blacklist. Consequently, the taxation of financial products held there will remain unchanged.

Notably, the increase won’t affect those under the ‘regime for new tax residents,’ exempt from monitoring and taxes on foreign assets and investments.

RAI Television Licence

The Italian Budget Law 2024 decreases the RAI television licence fee, from EUR 90.00 to EUR 70.00 per year.

Finally …

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