Italian Family Law: A Short Guide

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

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

1. Marriage and Civil Partnerships under Italian Family Law

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

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

2. Divorce and Separation

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

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

3. Child Custody and Support within Italian Family Law

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

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

4. Spousal Support

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

5. Property Division

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

6. Domestic Violence and Italian Family Law

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

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

Finally …

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

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

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

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

You may also like our info videos.

Italian Property Planning: Salva-Casa Decree

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The 2024 Salva-Casa Decree has received official approval by Italy’s Council of Ministers. The decree marks a significant step in simplifying and streamlining Italian property planning and construction regulations.

Salva-CasaItaly faces a significant backlog of over 4 million retroactive planning applications for illegal constructions. In fact, some estimates suggest multiplying this number by at least five when including properties with minor irregularities.

Even small irregularities in Italian property planning can complicate sales and purchases, especially if the buyer needs a mortgage, as banks require properties to be fully compliant. Furthermore, owners of properties with discrepancies can find this adversely affects a property’s resale value and marketability.

Salva-Casa decree therefore offers much-needed relief to homeowners and contributes to the broader goal of urban regeneration. Here’s an overview of what the decree entails, from regularization measures to changes in property use.

Italian Property Planning Changes:

The primary goal of the Salva-Casa decree is to liberate properties from rigid and fragmented regulations that hinder their marketability and, at times, block access to mortgages, subsidies, and grants.

The decree focuses on addressing less severe Italian property planning cases. In effect, targeting minor discrepancies rather than offering a broad planning amnesty, as has occasionally happened in the past.

Specifically, the decree addresses:

Formal Planning Issues:

Formal planning issues stem from interpretative uncertainties in current regulations regarding property legitimacy. These ambiguities complicate assessing compliance with urban planning standards, leading to prolonged bureaucratic procedures for property development or regularization. Clearer guidance through regulatory adjustments is needed to address these challenges efficiently.

Building Discrepancies:

Often resulting from unauthorized interventions by former owners over time.

Partial Discrepancies:

Issues that could have been resolved when they first arose but cannot be addressed now due to the “double conformity” requirement.

“Double conformity” is a rule in Italian building regulations (Article 31 of Legislative Decree No. 380/2001) that demands properties comply with both the building codes in force at the time of their construction or modification and the current building codes at the time of regularization or amnesty. This requirement often complicates the legalization of minor irregularities because changes in building codes over time can make it difficult or impossible to satisfy both sets of standards. Salva-Casa seeks to simplify this process by mitigating some of these strict requirements.

Verandas

Under the decree, the following are considered free constructions:

  • Removable Panoramic Glass Windows (VePA), including those for porches within the building.
  • Sun and Weather Protection Structures, where the main component is awnings, including pergolas attached to or adjacent to buildings, as long as they do not create permanently enclosed spaces and are not visually disruptive.

Change of Use

The decree simplifies the process for changing the use of properties, ensuring compliance with sector regulations and municipal conditions.

  • Permits the change of use within the same functional category.
  • Allows changes of use between different functional categories for residential, tourist accommodation, productive, directional, and commercial purposes within specific zones such as historic centers, consolidated residential areas, and expanding residential areas.
  • Excludes units on the first floor above ground from these simplifications.

Given the exclusion, these units could potentially face stricter regulations or more complex procedures compared to others. This could make compliance with building and urban regulations more challenging and affect their access to credit and property market value.

Silent Consent in Italian Property Planning

The Salva Casa decree also introduces a silent consent regime, a significant step towards procedural simplification. This means if the municipality does not respond within the stipulated time, an application is automatically accepted.

Additionally, the decree allows for the installation of awnings and weather protection structures under free construction rules.

This regulation aims to decongest municipal technical offices overwhelmed by thousands of applications. It includes fines proportional to the increase in property value, which can be partially used for urban recovery and regeneration projects.

Costs and Penalties

Within the framework of the 2024 Salva-Casa Decree, property owners undertaking regularization face financial implications and potential penalties. Costs for regularization expenses depend on the extent of irregularities. They range from around 1,000 to 31,000 euros.

In addition, the decree mandates financial penalties commensurate with the increase in property value resulting from regularization efforts. These penalties are equivalent to double the assessed increase in property value. For instance, the regularization of structures such as verandas or additional rooms may incur fines reaching the maximum threshold of 30,984 euros.

Prior to commencing the regularization process, property owners should seek professional advice to evaluate financial consequences and potential penalties associated with compliance under the Salva-Casa Decree.

Finally …

Understanding Italian property planning legislative changes is crucial for expatriates considering property investments, renovations or selling in Italy. Before proceeding with your Italian property project, reach out to us for assistance.

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.

 

How to Buy a House in Italy: Legal Tips

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Buying a house in Italy?

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

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

Real Estate Options Across Italy

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

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

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

Understanding the Process of Buying a House in Italy

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

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

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

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

Conformity and Controls in Italy

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

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

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

Due Diligence: Preliminary Verification and Documentation

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

Drafting the Reservation Offer

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

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

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

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

Consulting a Lawyer when Buying a House in Italy

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

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

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

Consequences of Acceptance

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

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

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

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

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

Real Estate Agency Commission

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

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

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

Engaging Legal Assistance

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

Validity of Contract Conditions

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

Legal Implications and Deposit

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

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

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

Role of the Notary and Buyer’s Legal Safeguards

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

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

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

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

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

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

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

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

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

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

Choice of Notary: A Privilege of the Buyer

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

Interpreter and Bilingual Lawyer

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

Finally …

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

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

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

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

Book a FREE CONSULTATION with one of our lawyers here.

Beautiful Italian Villages

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Italy is renowned for its breathtaking landscapes, rich history, and exquisite cuisine. While cities like Rome, Florence, and Venice often steal the spotlight, there’s a wealth of beauty waiting to be discovered in smaller, lesser-known villages and small towns. Known as “borghi” in Italian. In this blog post, we’ll take a journey through some of the most beautiful Italian villages, as rated by American tourists, and uncover the allure of these hidden gems.

The Allure of Beautiful Italian Villages:

These borghi, many with fewer than 10,000 inhabitants, offer a glimpse into a bygone era. They boast medieval charm, Renaissance squares, and magnificent Baroque palaces, all set against stunning landscapes. Perched atop hills or nestled within fortified citadels, these beautiful Italian villages have weathered the passage of time, bearing witness to centuries of history. Each alleyway and corner invites exploration, promising a different perspective. From mountains and rolling hills to the picturesque coastline, these places are enchanting.

These Beautiful Italian Villages Offer More Than Scenery and Cultural Charm:

These beautiful Italian villages provide a glimpse into a lifestyle that many dream of experiencing firsthand. For readers who may be considering buying an Italian property or moving to Italy, these villages can offer ideal settings to call home.

However, before embarking on the journey of purchasing property in Italy, it’s crucial to navigate the legal intricacies involved. Engaging a local lawyer experienced in property matters is paramount. This should be someone you choose independently, not someone recommended by the estate agent or vendor. It’s essential to select a lawyer who speaks your language fluently, ensuring clear communication and a comprehensive understanding of the legal process. Your lawyer can provide invaluable assistance, not only in legal matters but also in translation services.

Furthermore, your lawyer can recommend other professionals such as surveyors, builders, and various other professional services. Entrusting your lawyer with a power of attorney can also provide peace of mind, especially if you’re unable to attend completion in person.

Discovering Italy’s Hidden Treasures:

In total, 12 villages have been selected by Travel+Leisure, one of the foremost American magazines focussing on travel. These beautiful Italian villages, chosen by seasoned globetrotters and lifestyle experts, offer a unique glimpse into the heart and soul of Italy. While iconic cities like Florence and Rome remain perennial favorites, there’s a growing interest in exploring picturesque small towns dotting the Italian countryside.

Top 12 Beautiful Italian Villages:

 

Anghiari, Tuscany:

Situated on the hills bordering Tuscany and Umbria, Anghiari boasts a rich history and panoramic views of the Apennines.

Anghiari

Cortina d’Ampezzo, Veneto:

Known as the “Queen of the Dolomites,” Cortina offers more than just ski slopes, with its preserved town center and stunning alpine scenery.

Beautiful Italian Villages: Cortina d’Ampezza

Tropea, Calabria:

Perched on the “Coast of the Gods,” Tropea enchants with its cliffs, turquoise waters, and culinary delights.

Tropea

Norcia, Umbria:

Nestled in the Umbrian countryside, Norcia captivates with its medieval streets, panoramic vistas, and gastronomic delights.

Beautiful Italian Villages: Norcia

Palmanova, Friuli Venezia Giulia:

A star-shaped architectural marvel, Palmanova offers a journey back in time with its well-preserved Renaissance buildings.

Palmanova

Bosa, Sardinia:

On the western coast of Sardinia, Bosa charms visitors with its pastel-colored houses, ancient castle, and laid-back atmosphere.

Beautiful Italian Villages: Bosa

San Vito Lo Capo, Sicily:

This Sicilian gem boasts a stunning beach, historic charm, and a vibrant cultural scene.

San Vito Lo Capo

Treia, Marche:

Tucked away in the hills, Treia offers a medieval atmosphere and breathtaking views of the surrounding countryside.
Beautiful Italian Villages: Treia

Otranto, Puglia:

Located on the Salento peninsula in Puglia, Otranto is a condensed history of the Mediterranean, with its castle, cathedral, and scenic coastline.

Otranto

Brisighella, Emilia Romagna:

In Emilia Romagna, Brisighella enchants with its medieval architecture, panoramic views, and culinary delights.

Brisighella

Civita di Bagnoregio, Lazio:

Known as the “dying city,” Civita di Bagnoregio is a medieval marvel perched on a tuff rock, accessible only by foot.

Civita di Bagnoregio

Portovenere, Liguria:

Nestled at the eastern end of the Ligurian Riviera di Levante, Portovenere boasts colorful houses, ancient fortifications, and stunning views of the Gulf of Poets.

Beautiful Italian Villages: Portovenere

 

Finally …

Are you interested in understanding more about the process of buying and selling property in Italy? We offer a number of free resources to guide you through. De Tullio Law Firm, with over 55 years of experience in Italian and cross-border property matters, offers expert advice and guidance throughout your Italian property purchasing journey. Don’t hesitate to contact us and start your Italian property adventure on the right foot.

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

Green Homes Directive Approved

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The European Parliament recently approved the green homes directive. This marks a significant step forward in environmental sustainability within the real estate sector. It is applicable across all EU member states. The directive, aimed at reducing energy consumption and CO2 emissions, sets ambitious goals and regulations for the future. Approval of the green homes directive positions Europe as a leader in the global fight against climate change.

Green Homes Directive Approval and Implications

In a plenary session held in Strasbourg, Eurodeputies resoundingly backed the legislation negotiated with Council counterparts. This means there is now a unified approach to addressing Europe’s environmental challenges in the real estate sector. With resounding support, this approval signals a transformative shift towards sustainable development. Furthermore, the directive’s approval has far-reaching implications, not only for the European Union but also for global efforts to combat climate change. By endorsing this directive, the EU Parliament has clearly demonstrated its commitment to implementing proactive measures to mitigate the environmental impact of the real estate sector, which is a significant contributor to greenhouse gas emissions.

Achieving Milestones

The green homes directive outlines objectives, thereby establishing a clear roadmap towards enhancing energy standards. By 2030, all new residential constructions must achieve zero emissions, while public buildings are mandated to follow suit by 2028. Moreover, this directive sets the stage for achieving carbon neutrality in the entire building stock by 2050. These temporary objectives represent crucial milestones in the journey towards a greener future, serving as guideposts for member states to align their policies and practices. By setting specific targets, the directive not only incentivizes innovation and investment in sustainable building practices but also drives economic growth and job creation in the green economy.

Championing Sustainability

The green homes directive represents a crucial step towards sustainable living, thereby ensuring improved standards of living for all. Additionally, Commissioner Kadri Simson emphasizes the pivotal role of buildings in energy consumption, thereby stressing the need for comprehensive solutions to tackle environmental challenges head-on. Furthermore, the acknowledgment of progress made by key stakeholders underscores the collective commitment to addressing environmental issues and advancing sustainability. By recognizing the importance of the real estate sector in achieving climate goals, policymakers and industry leaders demonstrate their readiness to embrace change and implement innovative solutions.

Understanding the Provisions of the Green Homes Directive

The directive, initially proposed by the Commission in December 2021, underwent significant revisions to address member states’ concerns. Notably, it shifts focus from individual building requirements to national averages, thereby fostering flexibility while maintaining progress towards environmental objectives. Additionally, the directive provides a comprehensive framework for member states to develop and implement policies that promote energy efficiency and reduce carbon emissions in the built environment. By harmonizing regulations and standards across the EU, the directive facilitates collaboration and knowledge-sharing among member states, thereby driving collective action towards a common goal.

Balancing Act: Exemptions and Incentives in the Green Homes Directive

The directive provides exemptions for historical and agricultural buildings.  This therefore means that member states can define energy performance standards and renovation priorities. Moreover, financial incentives for renewable energy systems underscore the directive’s commitment to promoting sustainable practices and facilitating a smoother transition towards greener infrastructure. Additionally, these exemptions and incentives strike a delicate balance between environmental objectives and economic considerations, recognizing the need to support industries and communities affected by the transition to a low-carbon economy. Furthermore, by incentivizing investment in renewable energy and energy-efficient technologies, the directive encourages innovation and stimulates growth in green industries.

Finally …

With approval of the green homes directive, Europe stands poised to lead the way in sustainable real estate development. As implementation begins, stakeholders must seize the chance to shape a greener future. They should be guided by innovation and environmental stewardship principles.

De Tullio Law Firm is your reliable reference if you own or plan to invest in Italian property. We can guide you in understanding the challenges of the real estate market and compliance with regulations.

With our support, you can invest in the Italian real estate market with confidence and security. Get in touch with us.

You may also be interested in our article about building a house in Italy.

You may also like to watch our info videos about Italian property, inheritance and family law.

 

Italian First Home Benefits for Expatriates

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Law No. 103 of 10.08.2023, coupled with amendments to DL No. 69/2023, has ushered in significant changes to Italian first-home benefits for expatriates. This pivotal legislation not only addresses an infringement procedure initiated by the European Commission against Italy but also introduces key enhancements to the first home benefits regime.

The Innovation Introduced by DL No. 69/2023

DL No. 69/2023 addresses a critical issue flagged by the European Commission concerning first home benefits for expatriates. This decree, aptly named “Salva infrazioni” (Save Infractions), rectifies discrepancies in the application of reduced property taxes for expatriates. Now, expatriates who have resided or worked in Italy for at least five years and are transferred abroad for work reasons can enjoy reduced property tax rates when purchasing a property in Italy.

Understanding Italian First Home Benefits

Italian first-home benefits encompass a range of advantages aimed at facilitating property acquisition for expatriates. These benefits include reduced tax rates, fixed tax amounts, and VAT reductions, making property ownership in Italy more accessible and affordable.

Reduced Tax Rates: Expatriates can benefit from lower registration tax rates, alleviating the financial burden of property acquisition. Under the first home benefits scheme, taxes payable when buying property in Italy include:

For purchases from private individuals or VAT-exempt companies:

– Proportional registration tax at a rate of 2% (instead of 9%)

– Fixed mortgage tax of 50 euros

– Fixed cadastral tax of 50 euros

For purchases from companies subject to VAT:

– Reduced VAT at 4%

– Registration tax of 200 euros

– Mortgage tax of 200 euros

– Land registry tax of 200 euros

These reduced tax rates and fixed tax amounts provide transparency and predictability in property transaction costs, enhancing the appeal of property ownership in Italy for expatriates.

Eligibility Criteria for Italian First Home Benefits

To qualify for Italian first home benefits, expatriates must meet stringent eligibility criteria. These criteria include sole ownership of the property, compliance with municipal constraints, meeting residency prerequisites, and adhering to specific property categorization requirements. Moreover, only properties falling under designated cadastral categories, such as A/2, A/3, A/4, A/5, A/7, and A/11, are eligible for the benefit.

Evolution of Legislation for Italian First Home Benefits

Previous legislation provided exceptions for expatriates, particularly those relocating abroad for work. However, DL No. 69/2023 introduces a refined framework, emphasizing stricter residency and property location criteria. These changes ensure that benefits are directed towards individuals with substantial ties to Italy.

Rectification Procedures and Self-Certification

In cases where applicants fail to declare their residency status abroad at the time of purchase, rectification procedures exist. Italian citizens residing abroad can rectify their status through self-certification, as clarified by the Revenue Agency. This ensures compliance with residency prerequisites and maintains continuity in benefit entitlement.

Changes Introduced by DL No. 69/2023

DL No. 69/2023 introduces a new discipline regarding first home benefits for expatriates. This decree stipulates that individuals who transfer abroad for work reasons must have resided or carried out an activity in Italy for at least five years prior. Additionally, the property must be located in the municipality of birth or where they previously resided or conducted business.

Finally …

Understanding these legislative changes is crucial for expatriates considering property investments in Italy. With over five decades of experience, De Tullio Law Firm has been consistently delivering expert legal advice to international clients. Moreover, while we offer comprehensive legal services across all domains of Italian law, our particular emphasis is on real estate, residency, family law, and inheritance matters.

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

 

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

 

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. To find out more about these areas click here. 
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.