Buying A House in Puglia: A Guide

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

Buying A House in Puglia: Coastal Beauty and Inland Bounty

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

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

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

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

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

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

Foggia:

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

Barletta-Andria-Trani:

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

Bari:

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

Brindisi:

This province, with its Adriatic coastal location, is rich in maritime history, offering ancient ruins in towns like Ostuni.

Taranto:

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

Lecce:

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

The Real Estate Market in Puglia

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

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

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

The Range of Real Estate in Puglia

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

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

The Process of Buying a House in Puglia

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

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

Finally…

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

Buying a House in Tuscany: A Guide

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

Exploring the Tuscan Real Estate Market

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

The Process of Buying a House in Tuscany

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

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

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

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

Precautions When Buying a House in Tuscany

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

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

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

Finally..

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

Italian Budget Law 2024: Property Matters

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

Facilitating Homeownership: Mortgage Innovations under Italian Budget Law 2024

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

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

Tax Shifts in Short-Term Rentals

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

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

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

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

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

Superbonus Updates: What to Expect from Italian Budget Law 2024

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

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

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

Main Superbonus changes for 2024

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

Other related changes

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

IMU Exemptions

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

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

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

Ivie and Ivafe Increases

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

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

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

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

RAI Television Licence

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

Finally …

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

Canadian Investors in Italian Real Estate 2023

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In terms of international property investment, Canadian investors in Italian real estate face a complex and evolving legal terrain. This blog post builds upon a previous discussion and explores recent developments in the legal framework that directly impacts Canadian investors.

We’ll shed light on a crucial exemption to the Foreign Property Purchase Restriction Act (FPPRA), which holds the potential to significantly shape investment opportunities in Italy.

The FPPRA: A New Era in Property Investment

On January 1st, 2023, the Foreign Property Purchase Restriction Act (FPPRA) ushered in a new era for Canadians interested in acquiring Italian property. This  legislation aims to address concerns regarding the concentration of foreign-owned properties in certain regions of Canada.

Under the FPPRA, which restricts property purchases by foreign nationals in specific Canadian areas, Canadians seeking property abroad, including in Italy, face reciprocal restrictions.

A Pivotal Amendment: March 27th, 2023

However, the landscape of property investment took an unexpected turn on March 27th, 2023, with the introduction of a crucial amendment to Canada’s FPPRA. This amendment, found in section 3, paragraph 1, of the FPPRA, introduced an exemption from the property purchase restriction.

The amendment explicitly carves out certain properties from the FPPRA’s restrictions thereby offering a glimmer of hope for investors. This exemption applies to properties located outside Census Agglomerations or Census Metropolitan areas in Canada.

Defining Census Agglomerations and Census Metropolitan Areas

It’s essential to understand the definitions of Census Agglomerations (CAs) and Census Metropolitan Areas (CMAs). A CMA or CA is formed by one or more adjacent municipalities centered on a population center, known as the core.

A CMA must have a total population of at least 100,000, with 50,000 or more residing in the core. On the other hand, a CA must have a core population of at least 10,000. Adjacent municipalities must show high integration with the core in the CMA or CA, assessed from past census data.

If the population of the core of a CA declines below 10,000, the CA is retired. However, once an area becomes a CMA, it remains so even if its total population falls below 100,000. This applies even if the core population dips below 50,000. Small population centers with a population count of less than 10,000 are called fringe. All areas inside the CMA or CA that are not population centers are classified as rural areas.

Unlocking Potential for Canadian Investors in Italian Real Estate

With this exemption in mind, the door for Canadian investors in Italian real estate has opened.

We submitted the issue to the competent unit at the Italian foreign ministry. They have verified and confirmed the exclusion from the investment restrictions of residential properties located outside Census Agglomeration or a Census Metropolitan area in Italy.

The amendment allows Canadians to buy Italian properties located in areas with under 10,000 inhabitants. It therefore signals a crucial legal change and offers exciting investment prospects in Italian real estate.

The Importance of Due Diligence for Canadian Investors in Italian Real Estate

While this exemption presents an attractive prospect, it’s vital to underscore the significance of due diligence. Verifying the eligibility of a property through a lawyer and a Notary Public is fundamental to ensuring compliance with the FPPRA. Italian legal professionals can provide the necessary assurance that the property falls within the exempted category.

Finally…

To successfully navigate the intricacies of international property investment, it’s imperative to have a profound understanding of relevant laws and regulations. With over five decades of experience, De Tullio Law Firm has been consistently delivering expert legal advice to international clients. Moreover, while we offer comprehensive legal services across all domains of Italian law, our particular emphasis is on real estate, residency, family law, and inheritance matters.

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

 

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

Real Estate in Italy: 2023 Opportunities

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How much does it cost to buy real estate in Italy?

The average price of buying real estate in Italy ranges from EUR 1,929 to EUR 2,520 per square meter.

Italian real estate prices are higher in the larger cities, especially Milan and Rome. In Milan, the average price of residential property in October 2022 was EUR 3,994 per square meter.

Homes in southern Italian cities are much more affordable, with prices per square meter ranging from EUR 1,300 to EUR 1,700.

An overview of the development of the Italian real estate market

The ISTAT House Price Index (HPI) measures the evolution of market prices of all residential properties purchased by households (apartments, single-family houses, terraced houses, etc.), both new and existing properties, whether purchased for owner-occupation or as an investment.

According to ISTAT HPI data for 2022, Italian housing prices experienced a significant recovery in the first quarter of 2022. This recovery started before the COVID pandemic in 2020,but has stalled recently.

Although prices are still only at mid-2013 levels and far from the 2011 peak, homeowners are earning a good return on the price they paid.

ISTAT HOUSE PRICE INDEX (HPI) Q1 2010 – Q3 2022 (Index, 2010=100) (a)

(a) The choice of 2010 as the base year is entirely due to graphical reasons. The data for Q3 2022 are preliminary.

The increase was driven by new home prices, which rose 5%, albeit at a slightly slower pace than in the previous quarter (Q4 2021) (5.3%), while the recovery for existing homes was slightly slower.

The number of homes sold increased by 12% compared to 2021. Preliminary estimates indicate that HPI decreased 1.0% in Q3 2022 compared to Q2 2022 and increased 3.0% compared to the same quarter in 2021.

On average, home prices increased 4.2% in the first three quarters of 2022 compared to the same period in 2021, with new home prices increasing 6.6% and existing home prices increasing 3.7%.

Signs of weakness in 2023 create potential opportunities for investors in the real estate market in Italy.

Real estate prices in Italy still remain some of the lowest among European Union member states – despite the price recovery since the 2020 slump related to the COVID 19 crisis.

Uncertainty about inflation as a result of the war between Russia and Ukraine, the deterioration in household purchasing power, the steady rise in energy prices and construction materials and costs, and the ECB’s quite aggressive interest rate policy are just some of the challenges facing investors. Some analysts believe that Italy’s HPI could see a modest increase in 2023. Other analysts predict that house prices could fall. None expect a house price crash. Analysts’ predictions about the real estate market can be wrong. Before investing, you should always do your own research.

If you want to buy, build or renovate a property in Italy, there’s a great deal of paperwork involved. Many real estate buyers from abroad are not familiar with the technical and legal aspects of this process.

Investing in a property in any country is a major financial undertaking for most people, and it is crucial that your investment is secured. Just as you would seek professional help in your own country, it is also important to seek professional help in Italy. An experienced Italian real estate lawyer has contacts with trusted, independent experts such as surveyors, architects and contractors, and can advise and guide you through your real estate project.

Finally …

As a general rule, it is wise to familiarise yourself with the legal framework regulating international property sales.

For over 55 years, De Tullio Law Firm has been providing international clients with independent legal advice throughout Italy. We are specialists in cross border property, inheritance and family law.

If you would like further information about buying an Italian property, we are here to help. We can guide you through the whole process or even organise the whole process on your behalf. Get in touch with us for a Free preliminary consultation.

Italian Beaches: New Legal Reforms for Concessions

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Italian beaches are renowned for their stunning beauty, stretching along a 7,500 km coastline and dotted with approximately 12,000 privately-owned beach concessions that collectively employ around 300,000 seasonal workers. However, in the past, the assignment of licenses for Italian beaches has been opaque and concession licenses have automatically renewed. As a result, the EU has requested that Italy comply with Directives regarding competition rules.

The Italian beach concession industry generates an estimated 15 billion euros in annual revenue, with the average price for two sunbeds and a parasol per day being 100 euros. Interestingly, the majority of concessions – roughly 30,000 organizations – are managed privately.

In light of legal changes that come into effect in January 2024, all concession owners will need to reapply for licenses through public tenders. This significant reform presents an opportunity for overseas investors with strong liquidity to benefit from investing in Italian beach concessions.

Italian Beaches: Investment Opportunities

Anyone interested in operating a business on Italian beaches should be aware of these legal changes, and should therefore prepare to participate in a fair and transparent selection process.

The EU Court of Justice has issued a ruling that requires businesses to undergo a fair and transparent selection process instead of automatically renewing their beach concessions. The EU Court of Justice made this decision after hearing a case involving the Italian Competition and Market Authority and the municipality of Ginosa (Taranto, Puglia).

To clarify the matter, the Luxembourg authorities interpreted Italian law that allowed for the automatic extension of beach concessions and confirmed the validity, binding nature, and direct effect of the EU Directive on services in the internal market, also known as the Bolkestein Directive. In December 2020, the municipality of Ginosa faced opposition from the Italian Competition Authority (AGCM) when they automatically extended concessions based on national regulations. The Court ruled that EU provisions apply “to all concessions for the occupation of the maritime domain” and that Member States must use “objective, non-discriminatory, transparent, and proportionate parameters” when assessing the scarcity of natural resources available for bidding.

EU Court: Impartial Selection Process Mandated for Italian Beaches

The EU Court ruling mandates that Member States must apply an impartial and transparent selection process for assigning concessions. It prohibits them from automatically renewing beach concession licenses. The ruling makes it clear that these obligations are unconditional and requires national judges and administrative authorities, including municipalities, to apply European provisions while eliminating non-compliant national legal norms.

Finally …

De Tullio Law Firm specializes in providing legal services for cross-border residential and commercial property transactions throughout Italy. To assist potential investors in navigating the Italian beaches tendering process, we have created a dedicated beach concession team. Our experts possess extensive legal, linguistic, tax, and financial expertise, offering a one-stop-shop solution for investors.

If you’re considering property ventures in Italy, exploring Italian beach concessions could be an interesting investment. Italian beaches offer a unique opportunity to lease a highly desirable, profitable slice of Italian real estate, and may represent a solid return on investment. Contact De Tullio Law Firm today to learn more about how our team can help you navigate the process of acquiring an Italian beach concession.

For more details about legal changes to Italian beach concessions, you may like to read this European Parliament study.

House in Italy: Online Registration of Preliminary Contracts

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Buying a house in Italy?

The preliminary contract is a crucial document when buying a house in Italy, as it outlines the specific terms and conditions of the transaction.

It is often necessary to carry over the terms and conditions from the reservation offer to the preliminary contract. Moreover, the notary public will use the preliminary contract, or “contratto preliminare di vendita” to prepare the deed of sale during the final stage of the purchase process.

Fortunately, buying a house in Italy has recently become easier. On March 7, 2023, the Italian Revenue Agency launched an online system that allows buyers to register their preliminary contract of sale. Prior to 7 March 2023, registering a preliminary contract entailed visiting a local tax office, within 30 days from the date of signing. The new online development removes the need to visit the tax office. In effect, it simplifies the registration process, saving buyers and sellers both time and effort.

Why register a preliminary contract when buying a house in Italy?

In Italy, it is not mandatory to register the preliminary contract with the Revenue Agency. However, it is recommended to do so. Registering the preliminary contract can be done either by the buyer or the seller. The registration of the preliminary contract can be helpful for several reasons:

Legal protection

Registering the preliminary contract provides legal protection to both the buyer and the seller. It establishes a written record of the agreement between the parties, which can help prevent disputes and misunderstandings later on.

Prevents double-selling

Registration of the preliminary contract can help prevent the seller from selling the property to another buyer. This is because the registration creates a public record that the property is under contract, which can be viewed by anyone.

Avoids disputes

Registering the preliminary contract can help avoid disputes between the parties, as it provides evidence of the terms and conditions agreed upon by both parties. If a dispute arises, either party can use the registered contract as evidence in court to support their position.

Protects the buyer’s rights

Registering the preliminary contract can protect the buyer’s rights in case of any issues that may arise during the sale process. For example, if the seller fails to transfer ownership of the property, the buyer can use the registered contract as evidence of their right to the property.

Clarifies the sales process

Registering the preliminary contract can help clarify the sales process for both parties. It sets out the terms and conditions of the sale, including the agreed purchase price, payment terms, and deadline for completion of the sale. This can help ensure a smooth and transparent transaction for both parties.

Buying a house in Italy: registering the Preliminary contract online

The new online service makes it possible to send the preliminary contract registration request for a house in Italy directly from your computer. It will also allow you to attach all the necessary documentation, including the preliminary contract and any plans relating to the property. Since there is no need to submit hard copies of the documents, the registration process will be faster and more efficient.

To register online, you will have to log in through the required procedure in the new RAP service. The new format facilitates the registration process and ensures that users submit all the necessary information correctly.

How to use the online service

The new form requires that the user indicate the necessary data and attach a signed copy of the contract along with any other relevant documents, including private deeds, inventories, maps, plans, and drawings.

Once the user enters the required information, the system will automatically calculate the stamp duty and registration fee, which the user can directly pay online.

Finally …

If you are thinking about buying an Italian property, why not talk to us? De Tullio Law Firm can advise and guide you throughout your Italian property purchasing journey. We have over 55 years of experience working with clients on their Italian and cross border property, family and inheritance matters. Get in touch.

 

You may also be interested in Buying property in Italy.

 

Energy-Efficient Buildings: The Future of Real Estate in Italy

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A European Green Deal: The EU’s Commitment to a Carbon Neutral Continent

Europe is facing an existential threat from climate change and environmental degradation. To address this, the European Green Deal aims to transform the EU into a modern, resource-efficient, and competitive economy. In March 2023, the European Parliament approved a package of regulations proposed by the European Union aimed at promoting the renovation of existing buildings and the construction of new highly energy-efficient buildings.

This package of regulations for energy-efficient buildings and retrofits of existing properties, aims to improve sustainability of real estate assets in Europe, including Italy, over the next twenty years.

A Move Towards Energy-Efficient Buildings

Buildings in the EU territory are responsible for 40% of energy consumption and 36% of greenhouse gas emissions.

The European Parliament aims to achieve zero emissions by 2050. To reach this goal, the EU will need to reduce greenhouse gas emissions, combat climate change, and decrease the EU’s reliance on fossil fuel imports.

Design of Energy-Efficient Buildings

From January 1st, 2021, building design regulations require both public and private buildings to adhere to nearly zero energy consumption (nZEB), in compliance with Art. 5 of D.L. 63/2013, converted into Law no. 90/2013.

nZEB buildings consume minimal energy, owing to their energy-efficient building envelope and the use of predominantly renewable energy sources.

A building envelope is the physical barrier between the interior and exterior of a building. It includes all the components that make up the outer shell of a building, such as walls, roofs, floors, doors, windows, and insulation. The building envelope plays a critical role in regulating the indoor environment, including the control of heat, light, and sound, as well as the protection against moisture, air infiltration, and environmental elements such as wind and rain. The design and construction of the building envelope are therefore crucial to ensuring the energy efficiency and sustainability of a building.

Energy Classes and Retrofits

Buildings, including residential and non-residential ones, with certain exceptions, must achieve specific energy classes according to the European Directive. The proposed deadlines of 2030 and 2033 to reach energy class E and D, respectively, are fast approaching.

To comply with the EU’s requirements for energy-efficient buildings, it is crucial to understand the retrofitting works that can improve a property’s energy class and its actual energy demand.

The Italian Legal Framework for Energy-Efficient Buildings

The European Directive is not directly binding and applicable in individual member states. However, Italy has a legal framework that already provides for energy retrofitting, including tax incentives and subsidized financing.

The Italian government has put forward various measures to encourage the transition to a low-carbon economy, including the National Energy and Climate Plan (PNIEC) and the Building Decree (DM 01/2021). These initiatives aim to encourage the spread of high energy efficiency standards and low environmental impact.

The Importance of Energy Retrofitting

The European Directive on energy efficiency in buildings sets ambitious targets for reducing energy consumption and greenhouse gas emissions.

To achieve these targets, significant investment in energy retrofitting is necessary, which upgrades the energy performance of existing buildings through measures such as insulation, window and door replacement, heating and cooling system upgrades, and installing renewable energy technologies like solar panels.

Energy retrofitting of existing property plays a crucial role in reducing the environmental impact of buildings, which are responsible for a significant share of energy consumption and greenhouse gas emissions in the European Union.

Benefits of Energy Retrofitting

Energy retrofitting offers a range of benefits, both for building owners and for society as a whole. For building owners, energy retrofitting can lead to lower energy bills, increased comfort and wellbeing, and higher property values.

For society as a whole, energy retrofitting can help to create jobs and stimulate economic growth, reduce energy imports, improve energy security, and reduce air pollution.

In addition, energy retrofitting can contribute to the development of smart cities and communities, which use digital technologies and innovative solutions to optimize energy use and reduce emissions. Smart cities and communities can help to create more livable and sustainable urban environments, while also providing opportunities for innovation and economic development.

Challenges of Energy Retrofitting

While energy retrofitting offers numerous advantages, it also poses notable challenges, particularly when it comes to older buildings. These structures were not initially designed with energy efficiency in mind. This can make retrofitting a difficult and expensive process. Furthermore, retrofitting can be disruptive to occupants, and may entail alterations to the building’s appearance or layout, making it a complex undertaking.

To overcome these challenges, it is important to work with experienced professionals who can help to identify the most effective retrofitting strategies and technologies for each building. This may involve a combination of technical, financial, and legal expertise, as well as close collaboration with building owners, occupants, and other stakeholders.

Finally …

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

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

Can Canadians buy Property in Italy?

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We have an updated article on this topic, which you can read here: Canadian Investors in Italian Real Estate 2023

If you are wondering whether Canadians can buy property in Italy, this article is for you. The Foreign Property Purchase Restriction Act (FPPRA) came into effect on 1st January, 2023. FPPRA introduces Canadian property investment restrictions on some types of purchases overseas. It is however still possible for Canadians to buy property in Italy under certain conditions.

 

If you would like to talk to us about investing in Italian property, please get in touch with us.

The FPPRA is based on a default reciprocity rule

Because of the Foreign Property Purchase Restriction Act, property purchase restrictions apply to non-Canadian nationals buying in Canada. Likewise, reciprocal restrictions therefore apply to Canadians, who are now restricted from purchasing certain types of property in Italy and elsewhere overseas.

What is the aim of Canadian property investment restrictions abroad?

The main reason for the introduction of the FPPRA is to address the shrinking Canadian property market. As the Canadian economy has struggled in recent years, the demand for housing has decreased. This has led to a glut of unsold properties and a decrease in property values.

In an effort to protect the Canadian property market, the government therefore introduced the FPPRA. The aim is to keep Canadians from investing their money in properties abroad, thereby keeping more money in the Canadian market. The hope is that this measure will boost the economy.

However, there has been some pushback against the law. Many Canadians feel that they should be free to invest their money as they see fit. Additionally, many Canadians feel that the FPPRA violates their rights. The law is due for review, and possible repeal, in 2025.

Despite property investment restrictions, Canadians can still buy property in Italy

As a general principle, Canadians who signed property contracts before FPPRA can complete their purchase. However, Italian Notaries are currently awaiting guidelines from the Italian Notaries Association regarding the implementation of the new law. Italian Notaries will evaluate each case of Canadian nationals buying property in Italy on an individual basis until the guidelines are in place.

Additionally, Canadians can still explore property investment opportunities in Italy through various avenues:

Special Circumstances:

For instance, individuals with close family ties or business interests in Italy may qualify under certain conditions.

Refugee Protection Act:

Canadians residing in Italy temporarily under the Refugee Protection Act or with protected status are eligible to purchase property in the country.

Joint Ownership:

Purchase with an Italian, EU citizen, or an Italian resident who has a Canadian spouse or partner is an option. Joint owners share equal rights and responsibilities for the property.

Diplomatic or Consular Reasons:

In some cases, foreign states may purchase property in Italy for diplomatic or consular purposes, such as providing residences for diplomatic personnel or establishing embassies or consulates.

It’s essential to note that the regulations and requirements for these options may vary. Therefore, Canadians should consult with a lawyer knowledgeable in both Canadian and Italian law, including the FPPRA, to navigate these opportunities effectively.

Finally …

For over 55 years, at De Tullio Law Firm we have been providing international clients with independent legal advice. We offer services in all the major fields of Italian law. However, our particular expertise lies in real estate, residency, family law and inheritance matters. Our team of experienced lawyers has a deep understanding of international and Italian legal systems.

Our expertise in cross-border residential and commercial property transactions helps our clients navigate the complex laws and regulations surrounding property purchases and sales in Italy.

We pride ourselves on furnishing high-quality legal services to our clients and have a strong reputation for providing practical and effective solutions to their legal needs.

 

We offer a free preliminary call to address your questions and provide insights tailored to your specific situation. The consultation is entirely free of charge and serves as an opportunity for us to offer guidance based on your unique needs and circumstances.

To schedule a convenient time for our discussion, you may use the booking link provided here: https://calendly.com/detulliolaw/15min.

 

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

Translating legal documents for Italian Property Transactions

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Make sure you fully understand documents before you sign them

Translating legal documents is a highly specialised field. It demands not only legal experience but linguistic expertise.

In the event of any issues or litigation, the Italian version of contracts will always prevail. So it’s crucial to ensure that you understand every document thoroughly before you sign it.

Italian versions of legal documents prevail

All legal documents relating to Italian property real estate transactions need to go through a notary public (notaio).

The role of a notary is to oversee the sale and purchase, draw up the deed of sale and authenticate the transaction. In addition, the notary collects tax related to the transaction.

As Italian law is applicable to property sales in Italy, documents must be in Italian, independent of the nationality of the parties.

Many buyers from abroad prefer to have a version of documents in their own language. In fact, if buyers are not fluent in the Italian language, it is a legal requirement to have the deed of sale translated. A translator will also need to attend the signing of the deed of sale.

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The Italian property buying process

The process of buying a property in Italy is different to many other parts of the world. Firstly, the  buyer makes an offer on the property. If accepted, the buyer and vendor sign a Reservation Offer and the buyer puts down a small deposit. Secondly, if you decide to proceed with the purchase, the buyer and vendor sign a Preliminary Contract. At this point, the buyer puts down a further deposit, usually a minimum of 10% of the sale price. Thirdly, the parties sign the Deed of Sale. At completion, the balance of the sales price, along with other costs and taxes are payable.

It is important that parties to the transaction appreciate the implications of each of these steps. Deposits can be very difficult to get back and you may incur penalties if you back out of the sale. It is essential to ensure that your contracts stipulate certain terms and conditions.

Everything you sign during the purchase process has legal and financial implications

As purchasers, whether you are about to sign a  proposta irrevocabile d’acquisto (Reservation Offer), a  contratto preliminare di vendita (Preliminary Contract) or the atto di vendita (Deed of Sale), or any other property-related document. Everything that you sign sets out legal and financial terms pertaining to your Italian property purchase.

Translating legal documents

Many real estate agents use standard forms for contracts. The type of form where you fill in the blanks. Often, estate agents provide a translation of these. While the translation can of course be useful in gaining an overview, Italian legal language is technical, ritualistic, archaic and complex. These standard form translations are seldom completely accurate and can even be misleading.

We have managed a number of cases where buyers have been caught out by aspects of “boilerplate translations” relating to their Italian property purchases.

When signing the deed of sale, in the presence of a public notary, Italian law requires that a translator is present if purchasers are not fluent Italian speakers.

Our advice is to make sure that anyone you use for translating legal documents is qualified. Not only from a linguistic point of view but also in terms of legal knowledge. It is also important that you choose someone who does not have a vested interest in the transaction.

Finally …

Although it is not a legal requirement in Italy to engage a lawyer (avvocato), most experts advise that you seek independent legal advice before signing any paperwork. One of the main reasons for engaging your own lawyer is to safeguard your interests through the inclusion of any conditional clauses in contracts.

If you need any support or advice regarding a property transaction in Italy or translating legal documents, please get in touch. The De Tullio Law Firm team of lawyers, translators and professionals are here to help.

You may also be interested in Celebrating over 55 years of experience at De Tullio Law Firm.