Italian Real Estate Law

Navigating Italian law is vital for buyers, sellers, and property owners. Our articles aim to explain the legal process and key regulations, such as:

Property Transactions
Understand the legal steps for buying or selling property, from contracts to final deeds.

Title and Ownership
Learn how to verify property titles and ensure legal ownership before purchasing.

Taxes and Fees
Get clear information on property taxes, registration fees, and other legal costs.

Foreign Buyers
Explore the specific legal requirements for non-Italian citizens purchasing property.

Disputes and Legal Protection
Know your rights and options if legal issues arise during or after a property transaction.

With expert insights, we help you navigate Italian real estate law confidently.

Valle d’Aosta: Buying Property in Italy’s Hidden Alpine Treasures

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Are you considering an investment in Valle d’Aosta? It’s an excellent decision. The region consistently attracts a steady flow of tourists, with accommodations often fully booked well in advance. Given its popularity and potential for growth, here’s how you can ensure your investment in Valle d’Aosta proves successful.

Where to Invest in Valle d’Aosta?

Courmayeur

Courmayeur is the region’s most famous area. Nestled at the foot of Mont Blanc, it offers a picturesque alpine atmosphere. As a result, this town is incredibly popular among winter sports enthusiasts worldwide. Its scenic charm includes pine forests, mountains, and glaciers.

Furthermore, Courmayeur blends international appeal with authentic alpine vibes. You’ll feel this blend in the charming shops, cozy villages, and even the accommodations. From luxury hotels to campgrounds, Courmayeur provides a range of options that honor local traditions and architecture. On average, the property price here is approximately €8,387 per square meter.

Cogne

Cogne, located at 1,500 meters, sits in the heart of the Gran Paradiso National Park. Known for its natural beauty, historic landmarks, and cultural richness, it’s undoubtedly a top spot for nature lovers. For example, you can explore Saint Ours Church, the Bishop’s Tower, or the stunning Lillaz waterfalls. Additionally, don’t miss the botanical garden Paradisia or the Roman aqueduct bridge at Pondel.

Moreover, Cogne is renowned for its handmade lace and vibrant culinary and wine heritage. Outdoor enthusiasts will also appreciate the hiking trails leading to Gran Paradiso. As for property, the average price in Cogne is approximately €3,871 per square meter.

Breuil-Cervinia

Breuil-Cervinia , a modern resort at 2,000 meters, offers year-round activities. From classic mountaineering to adrenaline-packed winter sports, its ski area connects with Valtournenche and Zermatt in Switzerland. This means you can even ski on glaciers during summer.

Built in the early 20th century, it is now a renowned international destination. The average property price in Breuil-Cervinia is about €4,523 per square meter.

Gressoney-Saint-Jean

Gressoney-Saint-Jean Situated at 1,385 meters, Gressoney-Saint-Jean boasts stunning views of the Lyskamm Glacier and Monte Rosa. With deep ties to the Walser culture, its unique architecture and traditions are well-preserved. Even Queen Margherita of Savoy favored this location for her summer holidays.

In 2017, the Italian Touring Club awarded Gressoney-Saint-Jean the Orange Flag for its excellent hospitality. The average property price here is €3,893 per square meter.

Rules for Tourist Rentals in Valle d’Aosta

Tourist rentals cater exclusively to temporary visitors, as defined by Italian law (Law 431/1998). These contracts, regulated by the Italian Civil Code, allow landlords to provide utilities like electricity and internet, but they prohibit hotel-like services such as daily cleaning or breakfast. Furthermore, the duration of these rentals can be up to three months.

While “tourist rental” and “short-term rental” are often used interchangeably, it’s important to note that they have distinct purposes. Therefore, ensure your contract clearly specifies the rental’s tourist nature to avoid potential disputes.

Crafting the Rental Contract

Tourist rental agreements differ from standard leases. They are not bound by time or rental caps, offering flexibility. A solid contract should detail:

  • Property features.
  • Rental duration.
  • Fees and security deposits.

Landlords should conduct an initial property inspection, request a deposit, and document any damages. Contracts for stays under 30 days don’t require registration unless the rental income exceeds €5,000, in which case traceable payment methods are mandatory.

Taxation

If your rental activity is occasional and short-term, you may not need to establish a business. However, renting more than four properties in a tax year classifies your activity as entrepreneurial, requiring VAT registration and enrollment in the Chamber of Commerce.

For tax purposes, tourist rentals are treated like standard leases. You can choose a 21% flat tax (“cedolare secca”) for contracts under 30 days or opt for standard taxation.

Important Considerations for buying in Valle d’Aosta

Investing in Valle d’Aosta requires careful planning due to strict urban planning and environmental regulations. These rules, designed to preserve the region’s cultural and natural heritage, must be taken into account. Therefore, before purchasing, ensure the property complies with all local and regional laws.

In addition, it’s important to note the landscape restrictions. Valle d’Aosta is Italy’s second most protected region, with 87.7% of its land under restrictions. Since 1926, over 80 decrees have limited urban development. Consequently, the Regional Heritage Office (Surintendenza) monitors compliance to safeguard the area’s landscapes.

Architectural Constraints

Architectural heritage in Valle d’Aosta is strictly protected. Properties deemed culturally significant face restrictions on modifications. The Regional Heritage Office ensures adherence to these rules, especially in historic centers.

Finally…

Investing in Valle d’Aosta’s tourist rental market can be rewarding. However, it requires a thorough understanding of local laws and regulations. At De Tullio Law Firm, we bring over 55 years of expertise in Italian property transactions. Let us help you navigate the complexities of buying and managing a rental property in Valle d’Aosta. Contact us for a Free preliminary consultation. 

 

Buying Property in Italy as a US Citizen

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

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

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

Can a US Citizen Buy Property in Italy?

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

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

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

Italian property law operates at two levels:

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

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

Key Professionals Involved in Buying Property in Italy

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

  1. Real Estate Agents

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

  1. Real Estate Attorneys (Highly Recommended!)

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

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

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

  1. Surveyors & Architects

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

  1. Notary Public (Mandatory!)

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

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

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

  1. Mortgage Advisors (If You Need Financing)

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

Notary vs. Attorney: What’s the Difference?

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

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

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

Final Steps to Buying property in Italy as a US citizen

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

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

Finally…

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

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

Your Italian adventure starts now—buona fortuna!

 

Puglia Property Investment: Finding the Best Rental Opportunities

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Sun-drenched Puglia has become a prime destination for property investments, attracting travellers seeking authentic stays and investors looking to capitalize on its thriving short-term rental market. Moreover, as interest grows, Puglia property investment is quietly emerging as one of the most sought-after opportunities in Italy.

In fact, with more visitors choosing vacation rentals over hotels, the region presents a lucrative opportunity for those eager to turn property ownership into a profitable venture. Consequently, foreign buyers are eagerly acquiring charming homes and transforming them into successful rental businesses.

Meanwhile, Puglia’s enchanting mix of history, coastline, culinary delights and culture continues to attract everyone from celebrities to adventure seekers. In this post, we’ll guide you through the best locations and, in addition, highlight key legal considerations for short-term rentals in this beautiful region of Italy.

Puglia Property Investment: Salento

Otranto

A historic seaside town with beautiful beaches and a charming old town, Otranto offers a unique combination of natural beauty and cultural heritage. On average, property prices here are €2,412 per square meter, making it an appealing option for those seeking a blend of history and coastal living.

Porto Cesareo

With its stunning beaches, such as Torre Lapillo and Punta Prosciutto, Porto Cesareo is a coastal town that draws visitors from around the world. With an average property price of €1,603 per square meter, it’s a popular destination for those looking to invest in beachside properties.

Torre dell’Orso

Famous for its crystal-clear waters and rocky cliffs, Torre dell’Orso is home to the breathtaking Grotta della Poesia. Here, property prices average €1,474 per square meter, offering an ideal opportunity for those looking for a tranquil coastal retreat.

Gallipoli

A lively coastal city boasting golden beaches and vibrant nightlife, Gallipoli is a hotspot for young tourists and a dynamic real estate market. The average property price in Gallipoli is €1,922 per square meter, reflecting its status as a popular destination.

Torre di San Giovanni

This small coastal village, welcoming over 50,000 visitors in the summer, features white sandy beaches and turquoise waters. With an average property price of €1,008 per square meter, it presents a more affordable option for buyers in search of a peaceful seaside lifestyle.

Pescoluse & Torre Pali

The “Maldives of Salento,” Pescoluse is famous for its clear waters and soft sand dunes. Torre Pali, offering a quiet seaside retreat, is located near Santa Maria di Leuca. In Salve, property prices average €1,570 per square meter, offering good value for those seeking idyllic coastal living.

Santa Maria di Leuca

A famous tourist destination, Santa Maria di Leuca is known for its breathtaking caves and monumental waterfall. With property prices averaging €1,735 per square meter, it’s a great location for those looking to invest in a charming, picturesque area.

Puglia Property Investment – Salento

Itria Valley and Puglia Property Investment

Bari

Bari, Puglia’s capital, has transformed into a vibrant cultural hub. The city showcases historic landmarks like the San Nicola Basilica and the iconic Petruzzelli Theatre, blending rich history with modern charm. Buyers can expect property prices to average €1,570 per square meter, offering strong potential for urban investments.

Polignano a Mare

Polignano a Mare, the “Pearl of the Adriatic,” impresses with dramatic cliffs and stunning sea views. Tourists flock here year-round, driving property prices to an average of €2,855 per square meter and making it a sought-after investment destination.

Monopoli

Monopoli offers a peaceful atmosphere, with whitewashed buildings, medieval fortifications, and lively nightlife. Investors find property prices averaging €2,398 per square meter, making it ideal for those seeking both tradition and vibrant coastal living.

Ostuni

Ostuni, nicknamed “The White City,” dazzles with its striking white architecture and breathtaking views from its hilltop perch. Buyers typically pay around €2,824 per square meter, attracted by the town’s unique character and scenic beauty.

Locorotondo, Cisternino, Martina Franca & Alberobello

These medieval towns charm with winding streets, historic palaces, and picturesque countryside. Property prices range from €1,338 per square meter in Locorotondo to €1,986 in Alberobello, famous for its iconic trulli houses. Investors appreciate the diverse opportunities these towns offer for authentic Puglian living.

Puglia Property Investment – Itria Valley

Legal Requirements for Tourist Rentals in Puglia

Short-term rentals in Italy are governed by the national tourism law, but they are also subject to specific regional regulations. In Puglia, the laws allow individuals to rent up to three properties as a non-business activity, making it an attractive option for smaller-scale investors. However, if you wish to rent more than three properties, you will need to register as a business and comply with additional regulations. Thus, understanding these legal distinctions is crucial to ensuring your rental operations are both compliant and profitable.

Key Regulations for Puglia Property Investments

  • Properties must meet all technical, hygiene, and safety standards.
  • A National Identification Code (CIN) is required for each rental.
  • A Certified Notification of Activity (SCIA) must be submitted, even for private rentals.
  • Rentals must have an Energy Performance Certificate (EPC) and a certificate of habitability.
  • A minimum stay of two nights is mandatory.
  • Properties must have gas and carbon monoxide detectors and fire extinguishers.
  • Owners must register guests with local authorities, even for stays under 24 hours.

Puglia Property Investment: Taxation and Rental Agreements

When investing in Puglia’s short-term rental market, it’s essential to understand the tax obligations tied to rental income. First and foremost, all rental income must be declared for tax purposes. For non-business landlords, there is the option to choose Cedolare Secca, a simplified tax regime with a fixed rate of 21% for the first property and 26% for any additional properties. This option, however, is only available under specific conditions and can offer significant tax advantages.

On the other hand, business operators engaged in rental activities on a larger scale must register for VAT. In addition to this requirement, they are obligated to follow standard taxation rules, which include regular VAT filings as well as compliance with broader fiscal regulations. Therefore, understanding your status as a landlord—whether non-business or business—is crucial to ensuring proper tax compliance.

Why Due Diligence is Crucial for Property Investments in Puglia

Before making a purchase, it’s crucial to be aware that many properties in Puglia come with legal or structural issues. To avoid potential complications, buyers should ensure that the property is fully compliant with urban planning laws as well as possessing the necessary permits. In addition, the property needs to meet safety standards. Without proper compliance, renting the property will not be possible, which can significantly impact your investment plans.

Furthermore, attempting to legalize a non-compliant property can be both complex and expensive. Therefore, conducting thorough due diligence before finalizing any transaction is essential. By doing so, you can safeguard your investment and ensure a smoother path to generating rental income.

Finally…

If you’re considering a Puglia property investment, it’s essential to have expert guidance throughout the process. With over 55 years of experience, our real estate lawyers specialize in assisting clients with property transactions in Italy. From conducting thorough legal checks to drafting and reviewing contracts, we ensure every step is handled with care, providing you with peace of mind. So, whether you’re a first-time buyer or an experienced investor, we’re here to help. Get in touch for a free consultation and let us guide you toward a successful investment in this beautiful region.

Buying Property in Italy as an American

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Buying property in Italy as an American is an exciting opportunity to embrace la dolce vita. However, navigating the process can be challenging, especially when faced with unfamiliar legal and bureaucratic systems. Without the right guidance, the journey can feel overwhelming.

The Italian and American conveyancing processes differ in several key ways, but these differences shouldn’t discourage prospective buyers. With the right information, purchasing a home in Il Bel Paese can be a smooth and rewarding process.

In this article, we’ll break down the essential steps, highlight the key differences between the Italian and American property-buying processes, and provide practical insights to help you make informed decisions.

Which law regulates real estate transactions in Italy, national or regional law?

In Italy, national law governs the process of purchasing and selling real estate, ensuring a uniform legal framework across the country.

However, each region enforces its own urban planning regulations, making every transaction unique.

While Italian civil law regulates the contractual aspects of a property purchase, regional and municipal rules dictate the technical requirements a property must meet.

Is it possible to buy property in Italy as an American, or do I need to be an Italian citizen?

Having an American passport is all you need to buy property in Italy as an American. Italian law follows the principle of reciprocity, meaning that if Italian citizens can purchase property in a particular country, then citizens of that country – such as the U.S. – can buy property in Italy under the same conditions.

As an American, you can purchase property in Italy either as a private individual or through a U.S.-based company.

Who are the mandatory and recommended professionals in an Italian property transaction?

While not mandatory, when buying property in Italy as an American there are several professionals that can be involved in the Italian conveyancing process, offering valuable support:

1. Real Estate Agents

When searching for a property online, buyers typically interact with real estate agents first. However, their role in Italy differs significantly from their U.S. counterparts. Unlike in the U.S., where buyers and sellers each have their own agent, Italy has a single real estate agent representing both parties. The agent is hired by the seller to market the property but also facilitates the transaction for the buyer. This means that unless the buyer hires an independent advisor, no professional will be solely committed to protecting their interests.

2. Real Estate Attorneys

Though not required by law, hiring a real estate attorney is highly advisable. Their role includes:

  • Conducting thorough legal due diligence, ensuring the property complies with zoning laws, has the necessary permits, and holds a valid certificate of habitability.
  • Drafting a reservation offer, an initial agreement outlining the buyer’s and seller’s commitments.
  • Preparing the preliminary contract, a legally binding agreement between both parties before the final sale.
  • Representing the buyer at the final deed signing through a Power of Attorney, eliminating the need for the buyer to travel to Italy.

If hiring an attorney, ensure they are fluent in English to provide accurate translations of legal documents, preventing misunderstandings.

3. Surveyors or Architects

A surveyor or architect can verify that the property complies with urban planning and cadastral regulations, helping to prevent costly legal issues after purchase. For example, if a previous owner made unauthorized structural changes – such as expanding a terrace or adding a room without proper permits – the new owner could face fines or even be required to demolish the additions. Similarly, if the property’s official records don’t match its actual layout, it could lead to delays in obtaining utilities, unexpected tax reassessments, or legal disputes. A thorough assessment by a qualified professional ensures that the property is legally compliant before finalizing the purchase.

4. Mortgage Advisors

For buyers seeking a mortgage in Italy, working with a mortgage advisor can simplify the process and help secure the best financing options.

By assembling the right team of professionals, American buyers can confidently navigate the Italian real estate market and ensure a smooth property transaction.

The only mandatory professional in an Italian property transaction is a notary public. As an impartial public official, the notary ensures that the transaction complies with Italian law. Their responsibilities include drafting and authenticating the deed of sale, verifying that the seller has the legal right to transfer ownership, and identifying any encumbrances or liens on the property. Additionally, the notary is legally required to collect property transaction taxes on behalf of the Italian State.

What’s the difference between the Notary public’s due diligence and the real estate attorney’s due diligence?

In the U.S., real estate transactions typically involve attorneys who safeguard their client’s interests throughout the process. In Italy, however, hiring a real estate attorney is not mandatory although it is highly recommended, especially for foreign buyers unfamiliar with the country’s legal framework.

A notary public plays a crucial role in Italian property transactions. As an impartial third party working for the Italian State, the notary ensures that the transaction complies with Italian law. However, by law, notaries cannot advocate for either the buyer or the seller. Their due diligence is limited to verifying that the property is free of liens or encumbrances.

By contrast, a real estate attorney, selected and hired by you, works solely in your best interests and conducts thorough, independent due diligence. Beyond checking for liens, an attorney can assess potential legal or financial risks, investigate the property’s legal status, and uncover hidden clauses that may put the buyer at a disadvantage. Before signing a preliminary contract, an attorney can review terms and conditions, ensure they align with the buyer’s expectations, and negotiate amendments if needed.

For non-Italian buyers, combining the expertise of both a real estate attorney and a notary public provides a strong layer of protection, safeguarding both the investment’s quality and the buyer’s peace of mind.

Finally …

If you’re wondering how achievable buying property in Italy as an American is, understanding the Italian conveyancing process is essential.

Schedule a consultation or contact us today to learn how we can support you with buying property in Italy as an American.

By doing so, you’ll protect your interests and ensure a smooth, worry-free experience!

Renting out Italian Property: A Guide for Property Owners

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Renting out your Italian property can help you earn extra income and offset the costs of owning a holiday home. However, you should consider some crucial factors before jumping into this venture to ensure a successful and stress-free experience.

Our blog post will outline key points to keep in mind, helping you navigate the process with confidence and ease.

Renting out Italian Property: Buying The Right Property

If you’re considering buying a property to rent out, it’s essential to keep in mind what potential renters are seeking. Location is a critical factor, as well as the number of bedrooms, bathrooms, and amenities like a pool or garden. However, it’s equally vital to understand the local rental market and what kind of properties are in demand.

When choosing a property, consider its proximity to key attractions such as beaches, public transportation, and popular restaurants or shopping districts. Moreover, ensure that the property has sufficient space and amenities to accommodate potential renters’ needs.

To make a wise investment, it’s essential to research the local market to determine what type of properties are most in demand. Consider the local rental rates, vacancy rates, and any emerging trends that may impact the demand for rental properties.

By keeping these factors in mind, you can make an informed decision when buying a property to rent out, maximizing your investment and attracting high-quality renters.

Upkeep

Maintaining the appearance of your Italian rental property is essential to attract guests and ensure their satisfaction during their stay. Keeping the property clean and well-maintained, as well as ensuring that all amenities are in good working order, is crucial to provide a comfortable and safe environment for your guests.

Regular cleaning and maintenance of the property, including deep cleaning and upkeep of outdoor areas, are essential to ensure the property remains attractive and inviting to potential renters. Additionally, ensuring that all appliances, fixtures, and equipment are in working order is crucial to provide a hassle-free and comfortable experience for your guests.

If something breaks or needs repair, it’s essential to address the issue promptly to minimize any inconvenience for your guests. Regular inspections and preventative maintenance can help identify potential issues before they become major problems and prevent costly repairs in the future.

By prioritizing the appearance and maintenance of your rental property, you can provide a positive experience for your guests and optimize your rental income by attracting repeat business and positive reviews.

Renting out Italian Property: Management

When renting out your Italian property, it’s essential to have reliable external assistance to ensure that your guests have a pleasant and safe stay. If you’re unable to be present to manage cleaning and maintenance, it’s best to enlist the services of a reputable company or a trustworthy individual in the area who can take care of these tasks on your behalf.

In addition, it’s important to have a designated individual who can welcome guests, show them around the property and provide them with keys. This person should be easily accessible to attend to guests’ needs and emergencies or resolve any urgent issues, such as gas or water supply interruptions or power failures. They should also be able to provide information about the local area, including recommendations for restaurants, activities, and attractions.

By having a reliable team in place, you can ensure that your rental property is well-managed and your guests are well-cared for, resulting in positive feedback and repeat business. Moreover, a trustworthy team can provide you with peace of mind, knowing that your property is in good hands, even when you’re unable to be present.

Renting out Italian Property: Tax Matters

Holiday rental owners in Italy previously evaded taxes by not declaring their rental income to the authorities. The government recently took steps to combat this issue by introducing the “Regime fiscale delle locazioni brevi”. This tax applies to informal B&Bs and private individuals renting out their residential properties through online portals such as Airbnb, Essentialitaly.co.uk, Vrbo.com and other platforms.

The new legislation aims to level the playing field for hotels and ensure fair taxation. Property owners should be aware of their tax obligations and seek professional advice to avoid penalties.

Cedolare secca system

The “Cedolare secca” taxation scheme applies to short-term rental income generated through online platforms in Italy. The scheme deducts a 21% tax from the rental income when the rented house is one, but homeowners must pay taxes on income not paid through the portal. If the houses for rent are more than one, the deduction applied is 26% from the rental income.

Income tax rates are 23% on earnings below € 28,000. To address tax evasion, the Ministry of Tourism is considering introducing identification codes for each rental property. It is advisable to seek professional guidance regarding compliance and the complexities of Italian tax regulations.

When Rental Becomes A Commercial Business

In Italy, if you rent out more than four holiday properties, you become classified as a professional landlord by the State. As a professional landlord, you are required to register with the local authority and chamber of commerce and comply with all relevant safety regulations.

Additionally, you must charge Value Added Tax (VAT) on your rental income, which means you will need to obtain an Italian VAT number and register for VAT.

It is also important to note that if the rental period exceeds 30 days, you must register the contract with the local tax office. This is a legal requirement that must be adhered to, and failure to comply may result in penalties and fines. Therefore, it is essential to ensure that you meet all necessary registration and compliance when renting out your property in Italy.

To ensure that you are meeting all legal requirements, you should seek professional advice from a qualified tax consultant or a legal professional. They can guide you through the process and provide assistance with all the necessary registrations and compliance requirements.

Registration And Tourist Tax

When hosting holiday rentals, it’s important to be aware of the local regulations concerning guest registration and tourist taxes. Depending on the city, you may need to notify the local authority of each guest’s arrival and submit a monthly list of all guests.

Additionally, you will need to pay the tourist tax, also known as “tassa di soggiorno,” to the local authority and/or province via bank transfer. To avoid any potential penalties or legal issues, it’s crucial to familiarize yourself with the specific rules and procedures in your area.

Renting out Italian Property: Insurance

If you are renting out your Italian property, it’s crucial to protect yourself and your investment by taking out a comprehensive insurance policy. Unexpected events like flood damage, theft, or other emergencies can disrupt your guests’ stay and cause significant financial loss. With a good holiday home insurance policy, you can quickly and easily resolve these issues and minimize any disruption to your business.

Your insurance policy should provide coverage for public liability, protecting you against any legal claims that may arise from accidents or injuries that occur on your property. Additionally, your policy should cover your property even when it’s not occupied, ensuring protection against damage caused by natural disasters or other unforeseen events.

When choosing an insurance policy, it’s important to carefully review the terms and conditions. Some policies may exclude certain types of damage or may not cover you if you are renting out the property on a short-term basis. Moreover, it’s crucial to ensure that your policy provides liability coverage for any potential issues that may arise from renting out your property to guests.

You may also want to consider getting cover for loss of rent or income in case your property becomes unavailable due to unforeseen circumstances.

Finally …

Overall, renting out your Italian property can be a great way to earn extra income while enjoying the benefits of owning a beautiful home in Italy. However, it’s important to understand the legal and tax implications of renting out your property, as well as to take the necessary steps to ensure that your property is well-maintained and properly insured. With the right planning and preparation, you can successfully rent out your Italian property and enjoy the rewards of being a holiday rental property owner.

De Tullio Law Firm provides international clients with independent legal advice. We offer services in all the major fields of Italian Law, with particular expertise in real estate, residency, family law and inheritance matters. If you are thinking of renting out your Italian property or are thinking of buying a rent to let property in Italy, why not get in touch with us to discuss your project? We are happy to offer you a free, no obligation, preliminary consultation.

You may also be interested in our article about Applying A Power of Attorney.

Direct Bari to New York Flights Begin in 2025

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

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

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

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

 

Direct flights from Bari to New York
Outbound Flight:

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

Inbound Flight:

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

Puglia’s Strategic Leap Forward

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

Direct Bari to New York Flights: Why This Route Matters

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

Boosting Tourism and Business

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

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

Serving the Italian-American Community

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

Strengthening Regional Development

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

Expanding Connections Between Italy and North America

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

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

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

Puglia’s Vision for the Future

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

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

What Direct Bari to New York Flights Mean for Travelers

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

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

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

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

How to Book

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

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

Finally …

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

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

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

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

Buy a Home in Italy: New Estate Agent Fees

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

Key Changes Introduced by the Law

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

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

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

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

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

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

Transparency and Traceability

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

Reduction in Disputes

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

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

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

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

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

Finally …

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

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

Usucapione in Italy

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Usucapione, deeply rooted in ancient Roman principles, is immensely important for individuals considering real estate investments in Italy.

Essentially, it signifies property ownership through prolonged possession, a concept deeply embedded in Italian property law.

Understanding Usucapione is crucial for prospective buyers as it directly impacts property rights and ownership dynamics. Without a comprehensive grasp of Usucapione and its implications, buyers risk encountering legal complexities, disputes, and potential challenges to their property ownership. Therefore, gaining a thorough understanding of Usucapione and its various types—Ordinary, Special, and Abbreviated—is essential for making informed decisions and ensuring a smooth real estate transaction process in Italy.

Understanding Usucapione

Usucapione, derived from Latin “usucapio” meaning “acquisition by use,” embodies the legal doctrine allowing individuals to claim ownership of property through prolonged and uninterrupted possession. Rooted in the principle of adverse possession, Usucapione balances the rights of property owners with those of  who have utilized or occupied the property over an extended period.

There are four types of usucapione recognized in the Italian legal system — Ordinary, Special, Special – Abbreviated and Abbreviated – and to understand them is essential for making informed decisions and ensuring a smooth real estate transaction process in Italy.

Furthermore, it represents an “original ownership”, which means that through Usucapione, one can be declared owner of the property without the need for a sales contract, will, or voluntary transfer by the owner. 

The Five Requirements of Usucapione in Italy

To successfully claim Italian Usucapione property rights, adverse possessors must meet five fundamental requirements:

  1. Actual Possession:

The possessor must physically occupy the property in question.

  1. Open and Notorious Use:

The possession must be visible and obvious to anyone who might have an interest in the property.

  1. Exclusive Possession:

The possessor must exercise control over the property to the exclusion of others.

  1. Hostile Possession:

The possession must be without the permission of the true owner but not under force or hostility.

  1. Continuous and Uninterrupted Use:

The possessor must use the property continuously and without interruption for the required period.

Usucapione

Ordinary Usucapione in Italy

Under Article 1158 of the Civil Code, ordinary Usucapione serves as a potent mechanism for property acquisition, obviating the requirement for formal agreements or voluntary transfers. In the case of immovable assets such as buildings and land, ordinary Usucapione becomes operable after a continuous possession period of 20 years. Subsequently, the possessor can secure ownership through a civil court judgment obtained via a lawsuit against the owner. This legal decision has a retroactive effect, dating back to the initiation of the twenty-year possession term.

Example: A family occupies a piece of land adjacent to their property for over two decades without any formal agreement. Subsequently, they file a lawsuit against the previous owner, and the court awards them ownership based on ordinary Usucapione.

Special Usucapione for Rural Land

Special Usucapione offers a tailored approach to property ownership, specifically designed for rural land with attached buildings in mountainous municipalities. Governed by Article 1159-bis of the Civil Code, this variant enables ownership acquisition following 15 years of uninterrupted possession. Notably, it applies exclusively to rural areas with attached buildings in municipalities where at least 80 per cent of the terrain lies 600 meters above sea level.

Example: A farmer residing in mountainous terrain, cultivating the land and utilizing the attached farmhouse for 15 years without interruption. As per special Usucapione, the farmer gains ownership of the property due to prolonged possession.

Special – abbreviated Usucapione for Rural Land

In paragraph two, the same article 1159-bis regulates another particular type of usucapione, called “special abbreviated”. In this case, the possessor has purchased a small rural land with an attached building, in good faith, from someone erroneously claiming ownership on the property. In this case, due to the requisite of the good faith, the possessor will gain legal ownership of the property after 5 years of uninterrupted possession.

Example: An individual purchases a property from a farmer residing for generations in the same mountainous terrain, without being the rightful owner. Since the purchaser and the seller were both in good faith, the purchaser gains legal ownership of the asset after five years of continuous possession, thanks to special abbreviated usucapione.

Abbreviated Usucapione in Italy

Abbreviated Usucapione accelerates property acquisition through adverse possession, condensing the possession period to a mere ten years. It is also governed by Article 1159 of the Civil Code. Unlike its counterparts, this mechanism applies when a possessor, acting in good faith, acquires property from someone erroneously claiming ownership. The ten-year countdown for abbreviated Usucapione in Italy begins upon transcription of the acquisition deed in the property registers.

Example: An individual purchases a property from someone holding a valid title but not the rightful owner, and after ten years of continuous possession, gains ownership through abbreviated Usucapione.

Finally …

For those considering property acquisition in Italy, grasping the nuances of Usucapione is paramount for informed decision-making and risk mitigation. Here’s a breakdown of essential factors:

  1. Thorough Due Diligence:

Prospective buyers must conduct extensive research to ensure the absence of ongoing Usucapione claims or disputes. This entails scrutinizing ownership history, verifying title deeds, land registry maps and seeking counsel from legal experts to evaluate potential risks.

  1. Seeking Legal Advice:

Engaging qualified professionals well-versed in Italian property law, including Usucapione regulations, is advisable. Legal experts offer invaluable guidance on navigating complexities, clarifying rights, and obligations.

  1. Meticulous Documentation:

Proper documentation of all property transactions, including sale contracts, deeds, and registration with relevant authorities, is imperative. This establishes a transparent chain of ownership, averting future disputes.

  1. Risk Assessment:

Evaluating Usucapione risks based on factors such as property location, history, and prior usage is essential. Properties in rural areas or with extended occupancy may be more susceptible to Usucapione claims.

  1. Negotiation Strategy:

Buyers should incorporate Usucapione considerations into negotiation tactics. Sellers may offer assurances or concessions to mitigate risks and ensure smoother transactions.

For comprehensive legal assistance, De Tullio Law Firm, with over 55 years of expertise in cross-border property, inheritance, and family law are right beside you all the way. Contact us for a free preliminary consultation, explore our comprehensive buying guide and informational videos on Italian property law for further insights.

Homes for Sale in Milan: Legal Issues and Suburban Opportunities

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The metropolis of real estate investments

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

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

The risk involved in investing without the right legal advice

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

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

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

The Best Time to Invest in Homes for Sale in Milan

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

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

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

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

Finally…

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

Ghost towns: Abandoned Beauty in Italy

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

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

abandoned town

The Allure of Abandoned Towns

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

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

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

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

ghost towns

Ghost Towns Tourism in Italy: A New Trend

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

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

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

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

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

Craco: the lost town

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

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

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

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

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

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

abandoned craco church

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

Property Investments in Italian Ghost Towns

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

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

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

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

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

Finally …

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

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

Schedule your consultation.