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. 

 

Italian Lawyer: Essential for Buying or Selling Property in Italy

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

The Vital Role of an Italian Lawyer in Property Transactions

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

Conducting Thorough Due Diligence

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

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

Ensuring Compliance with Italian Laws and Regulations

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

Expert Negotiation and Contract Drafting

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

Facilitating the Title Transfer Process

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

Navigating the Italian Tax System

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

Why a Bilingual Italian Lawyer Matters

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

Final Thoughts: Invest in the Security of an Italian Lawyer

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

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

Trusts in Italy: A Short Guide

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Understanding Trusts in Italy: A Legal Mechanism for Asset Management

A trust is a legal institution designed to separate certain assets from an individual’s personal holdings. This separation allows these assets to be entrusted to a trustee for a specific purpose, often in the interest of a beneficiary or to achieve a particular goal. Originating in Anglo-Saxon legal systems, trusts in Italy have significant differences compared to other legal frameworks. However, they gained recognition in Italy on January 1, 1992, with the ratification of the “Convention on the Law Applicable to Trusts and their Recognition,” adopted in The Hague on July 1, 1985 (law of October 16, 1989, no. 364).

Components of Trusts in Italy: Roles and Responsibilities

In a trust arrangement, three primary entities play crucial roles: the “settlor,” the “trustee,” and the “beneficiary.”

Settlor:

The settlor initiates the trust through a unilateral act, establishing its terms and conditions.

Trustee:

Often referred to as the “trustee,” this individual or entity receives the assets, assumes ownership, and manages them in the best interest of the beneficiaries.

Beneficiary:

The settlor designates the beneficiary who receives benefits from the trust’s assets as “income beneficiaries,” or ultimately inherits the assets as “capital beneficiaries” or “ultimate beneficiaries.”

The settlor or a third party names beneficiaries in the initial trust document or identifies them later. A settlor may specify a beneficiary by name or as belonging to a particular category. In some cases, settlors establish trusts without specific beneficiaries, known as “purpose trusts”. Settlors create these trusts to achieve specific charitable objectives.

Furthermore, a “protector” commonly oversees the trustee’s actions. The trust deed may require the protector to authorize certain trustee actions.

Safeguarding Assets: The Protective Role of Italian Trusts

In a trust arrangement, the segregation of assets shields them from potential creditor claims against the settlor, beneficiary, or trustee. By design, these assets become distinct from personal holdings, safeguarding them from individual financial liabilities. Only creditors specifically related to the trust can make claims against these assets.

Asset Protection and Trust Validity:

It’s crucial to understand that asset segregation is a consequence, not the primary purpose, of establishing a trust.

A valid trust must serve a recognized purpose deemed worthy of legal protection. Establishing a trust solely for asset protection reasons, without a legitimate purpose, does not meet the requirements for validity in the Italian legal system.

Trusts in Italy: Evolution of Legal Recognition

In recent years, Italy has witnessed various attempts to establish trusts solely for the purpose of shielding assets from creditors or gaining undue tax advantages. However, such trusts faced legal challenges, with numerous court rulings, including those from the Italian Supreme Court, declaring these trusts null and void or ineffective against creditors and tax authorities.

Consequently, a sense of skepticism toward trusts emerged within the Italian legal framework, viewing them as tools for evading debts or taxes.

The landscape shifted on January 1, 2017, with the enactment of Law no. 112 of June 22, 2016. This legislation expressly validated asset separation within trusts, marking a pivotal moment in the legal recognition of trusts in Italy.

Beyond its primary objective of enhancing assistance, care, and protection for individuals with severe disabilities, this law actively encourages trust establishment. Its explicit endorsement of trusts extends beyond its specific focus, dispelling any uncertainties regarding the legitimacy of this instrument within the Italian legal system.

Legal Considerations for Trusts in Italy

Despite the growing recognition of trusts in Italy, a specific regulatory framework within Italian legislation is still absent. Consequently, reliance on foreign laws becomes necessary for trust governance. The choice of applicable law holds significant implications for the functionality and validity of trusts in Italy.

Purposeful Establishment of Trusts

Understanding that trusts can only serve specific purposes, not shield assets from creditors, is vital. While asset separation naturally results from establishing a trust, it cannot solely motivate trust creation, nor can it defraud creditors or tax authorities.

Prospective trust settlors in Italy must carefully consider both the chosen law’s provisions and jurisprudence, along with the rules outlined in the Hague Convention of July 1, 1985. Additionally, they must ensure that the trust’s constitutive clauses align with Italian public order and tax regulations.

This scrutiny extends beyond trust regulation to assess the validity of the trust’s constitutive act itself, emphasizing the importance of thorough legal examination and compliance.

Deciphering Sham Trusts: Legal Implications and Standards

In the realm of trust regulation, the concept of a sham trust has evolved to tackle situations where the settlor maintains effective control over assets purportedly entrusted to a trustee, treating them as personal property. The law will consider such trusts null and void from the moment of their inception. Assets will revert to the ownership of the settlor

Mandates of the Hague Convention

The Hague Convention of July 1, 1985, explicitly mandates that for its application, assets within a trust must be under the trustee’s control, serving the interests of a beneficiary or a designated purpose (Article 2). In Italy, trust recognition hinges on the settlor effectively relinquishing control, with assets solely vested in the trustee.

While the settlor may retain certain rights or privileges, adherence to the Convention necessitates clear trustee control over the assets.

Furthermore, in many legal systems governing trusts, settlors may reserve significant powers in trust management. However, such clauses contradict the control requirement stipulated by the Hague Convention. It renders them incompatible with trusts established in Italy.

Once a trust’s constitutive act aligns with the applicable law and satisfies the Hague Convention’s rules, it must also comply with Italian public order regulations. For instance, trusts aiming to circumvent mandatory provisions of bankruptcy law or solely creating a separate estate from the settlor’s would be deemed null and void, the latter due to lack of consideration.


Scrutinizing Self-Declared Trusts: Legitimacy and Recognition

The viability of establishing a self-declared trust in Italy is subject to scrutiny. In this arrangement, the trustee and the settlor are one and the same.

Self-declared trusts are deemed legitimate in certain legal frameworks governing trusts. However, questions arise regarding their compliance with the recognition criteria outlined by the Hague Convention. In such trusts, the settlor retains complete control over the assets, albeit in the capacity of trustee. This departure from the Convention’s control requirement raises doubts about the recognition of self-declared trusts in Italy.

Case law further complicates matters by often deeming trusts illegitimate if the settlor retains control over the assets. This therefore casts doubts on the recognizability of self-declared trusts within the Italian legal system.

Tax Implications: Trusts and Revenue Agency Guidelines

It’s crucial to note that the Revenue Agency considers trusts where the settlor retains significant powers over asset administration or allocation (referred to as “interposed trusts”) as non-existent for tax purposes. Consequently, income derived from such trusts is taxed in the hands of the settlor.

Revenue Agency Guidelines:

The Revenue Agency has issued circulars providing guidance on the application of direct and indirect taxes to trusts (Circulars of August 6, 2007, No. 48, January 22, 2008, No. 3, and December 27, 2010, No. 61).

Transfer Tax:

The transfer of assets from the settlor to the trustee is subject to gift tax at a proportional rate (4%, 6%, or 8%), depending on the relationship between the settlor and the beneficiary. Additional mortgage and cadastral taxes (2% and 1%) apply to real estate transfers. However, exemptions for certain relatives and individuals with severe disabilities apply.

Exemptions for Individuals with Disabilities:

Trusts established for persons with severe disabilities benefit from exemptions from inheritance tax, gift tax, and mortgage and cadastral taxes on real estate transfers (Law No. 112 of June 22, 2016).

Income Tax Obligations:

Trusts are treated as taxpayers subject to corporate income tax, necessitating annual income tax return filings. Resident trusts require their own tax code and, if engaged in commercial activities, a VAT number.

The trustee fulfills all tax obligations of the trust. Income is attributed directly to beneficiaries in transparent trusts and taxed accordingly. Alternatively, income is taxed at the trust level in opaque trusts.

Safeguards and Limitations: Trusts and Creditor Rights

Trusts, being gratuitous acts, remain susceptible to ordinary and bankruptcy avoidance actions, prohibiting their use for defrauding creditors. Moreover, creditors harmed by a debtor’s actions that restrict disposal or transfer real or movable property registered in public records gratuitously can take legal action without requiring a prior declaratory judgment of the act’s ineffectiveness, provided they register the seizure within one year from the prejudicial act’s registration (Article 2929-bis of the Civil Code, introduced by Legislative Decree No. 83 of June 27, 2015).

Finally….

De Tullio Law Firm has over 55 years of expertise managing trusts and estate planning matters throughout Italy. Our firm is a full member of STEP, the world’s leading association for trust and estate practitioners.

If you need any advice regarding trusts in Italy, we are here to help. Please get in touch with us.

Move to Italy: Get Paid to Revitalize Local Communities

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

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

Get Paid to Move to Italy: Terms and Conditions

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

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

Innovative Initiatives to Move to Puglia

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

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

Get paid to Move to Italy

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

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

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

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

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

The Role of the PNRR

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

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

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

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

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

Move to Italy and get paid

Finally …

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

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

 info@detulliolawfirm.com

Tel +39 080 483 1785

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