Certificate of Legitimate Status

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

Understanding Tolerances in Building Regulations

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

Real-life Example

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

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

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

The Role of the Certificate of Legitimate Status

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

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

Challenges in Property Transactions

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

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

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

Certificate of Legitimate Status: Verification by Qualified Technicians

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

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

Finally …

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

European Professional Card for Realtors

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

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

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

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

How the European Professional Card Empowers Real Estate Agents

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

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

Navigating the Application Odyssey

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

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

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

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

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

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

Finally …

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

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.

Italian Residency Case Study: Restoring Permanent Residency

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Mr and Mrs A are UK nationals who acquired a property in Italy back in 2010. Following the Italian property purchase, they registered their Italian residency at the comune’s registry office. 

Fast forward to 2023, and the couple initiated the permesso di soggiorno application process. This was part of the EU-UK Withdrawal Agreement arrangements designed to protect citizens’ rights as part of Brexit. Yet, discrepancies surfaced in their Italian residency paperwork.

Faced with this situation, and being unable to continue with their permesso di soggiorno application, they therefore sought legal advice from De Tullio Law Firm.

Unveiling the loss of Italian Residency

The De Tullio legal team examined the situation. We discovered that Mr and Mrs A were no longer registered as Italian residents at their local municipal registry office.

While interacting with the registry office, our legal team discovered that the office had made two unsuccessful attempts in 2021 to deliver paperwork to Mr. and Mrs. A’s registered residence. However, they were not in Italy on either occasion. The comune therefore challenged their physical presence in Italy. Subsequently, the registry office chose to revoke their Italian residency status. Despite the office’s assertion of having informed them, Mr. and Mrs. A remained completely unaware of this development.

The Legal Labyrinth of Residency in Italy

In accordance with Italian law n. 223/1989 and registry office regulations, a person can lose Italian residency status due to ‘irreperibilità’ (unavailability). In other words, a comune’s registry office can revoke Italian residency if people aren’t physically present at their registered residence during multiple verifications.

Nevertheless, the right to permanent residency acquired prior to Brexit in the EU-UK Withdrawal Agreement provides vital protection for Mr. and Mrs. A. According to Article 15, Paragraph 3 of the EU-UK Withdrawal Agreement, “Once acquired, the right of permanent residence shall be lost only through absence from the host State for a period exceeding 5 consecutive years.” This legal safeguard therefore guaranteed Mr and Mrs A’s entitlement to maintain permanent residency status, as they hadn’t been absent from Italy for a period exceeding 5 years.

Upon analysis of the EU-UK Withdrawal Agreement, it became evident that the registry office had unjustly revoked their Italian residency status. As UK citizens, they had protection. Once De Tullio lawyers confirmed this legal protection, the comune promptly reinstated residency status. This resolution ensures that the couple have retained their right to continue enjoying Italian residency.

A Cautionary Note for Non-Italian Nationals regarding Italian Residency

This case underscores the importance of comprehending regulations governing Italian residency for UK citizens post Brexit. At De Tullio Law Firm, we are always happy to assist with the complexities of Italian residency law. If you are a non-Italian national residing in Italy we strongly recommend vigilance regarding your residency status. Do not hesitate to reach out to us for expert guidance and legal support. Your peace of mind remains our utmost priority.

Italian Citizenship by Descent – Jus Sanguinis

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Introduction to Jus Sanguinis and Italian Citizenship

Jus sanguinis is a Latin term that means “right of blood.” In the context of Italian nationality law, jus sanguinis refers to the principle that individuals can acquire Italian citizenship by descent from an Italian ancestor. Italy is one of several countries that follow the principle of jus sanguinis, which means that if you have Italian ancestry, you may be eligible for Italian citizenship.

Requirements for Italian Citizenship by Descent

To be eligible for Italian citizenship by descent, you need to meet certain requirements. First, you need to have an Italian ancestor who was alive and an Italian citizen at the time of your birth. This can be your parent, grandparent, or even a great-grandparent.

Second, you need to be able to prove your Italian ancestry through birth certificates, marriage certificates, and other official documents. This can sometimes be a challenging process, especially if your ancestor was born a long time ago, but there are resources available to help you with this.

Changes in Italian Citizenship by Descent Law

The Italian law on citizenship through jus sanguinis has undergone a few changes over the years, so it is important to determine which law applies to your case. The law that is currently in effect is the one that entered into force on August 15, 1992.

Restrictions and Requirements for Italian Citizenship by Descent

For example, if you are seeking citizenship through a great-grandparent, you must demonstrate that none of the ancestors in the chain of transmission ever renounced their Italian citizenship. Additionally, the transmission of Italian citizenship cannot have been interrupted by the acquisition of foreign citizenship prior to the birth of the person seeking citizenship.

It is important to note that if your ancestor became a citizen of another country before your parent/grandparent’s birth, you may not be eligible for Italian citizenship. This can complicate the process of obtaining Italian citizenship through jus sanguinis, but it is still possible in some cases.

Another important requirement is that the person seeking citizenship through jus sanguinis must not have renounced their right to Italian citizenship. This can happen if an ancestor naturalized in another country and renounced their Italian citizenship, or if a person obtained citizenship in another country and renounced their Italian citizenship in the process.

The Application Process for Italian Citizenship by Descent

If you are eligible for Italian citizenship by descent, you will need to go through a formal application process. This can be done at an Italian embassy or consulate, or through the Italian Ministry of Foreign Affairs if you are living outside of Italy.

Dual Citizenship and Its Advantages

One important thing to note is that Italy recognizes dual citizenship, which means that if you are already a citizen of another country, you can still become an Italian citizen without giving up your existing citizenship. This can be a major advantage for people who want to maintain ties to both countries.

Backlog of Applications

In recent years, there has been an increasing interest among people of Italian descent in obtaining Italian citizenship. This has led to a backlog of applications, and the process can sometimes take several years. However, if you are eligible, it is definitely worth considering, as it can open up many new opportunities for you and your family.

Renouncing Italian citizenship

Renunciation of citizenship is a serious decision that should not be taken lightly, as it can have significant consequences, including the loss of certain rights and privileges. In general, Italian citizens who renounce their citizenship are no longer considered Italian citizens. As such, they lose all the rights and privileges of Italian citizenship.

In order to renounce Italian citizenship, you must be at least 18 years old and have another citizenship or be eligible to obtain one. You must also have resided in another country for at least 12 months, or for a longer period if required by the country in which you reside.

The process for renouncing Italian citizenship varies depending on your situation. If you are living in Italy, you must submit your request to the local civil registry office. If you are living outside of Italy, you can submit your request to the Italian embassy or consulate in your country of residence.

It is important to note that renouncing Italian citizenship can have significant consequences, particularly if you have family ties or property in Italy. For example, if you renounce your Italian citizenship, you may lose the right to own property in Italy or inherit property from Italian relatives. You may also lose access to Italian healthcare and other social services. Additionally, individuals who renounce their Italian citizenship may be subject to certain financial obligations, such as the payment of outstanding taxes to the Italian government.

Finally …

Jus sanguinis offers Italian descendants a relatively simple way to gain Italian citizenship. However, it’s essential to consider the long-term consequences of becoming a citizen.

Partnering with a specialist lawyer can assist individuals in navigating the complicated legal and administrative procedures associated with jus sanguinis. With over 55 years of experience in supporting foreign nationals to obtain Italian citizenship, De Tullio Law Firm is here to help. Please contact us if you require assistance or wish to discuss your situation.

You may also like to read about applying for an elective residence visa. We also have a series of info videos that you may like to watch.

 

Best places to live in Italy: Top 5 cities

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Italian cities with the highest quality of life

The well-known business newspaper “Il Sole 24 Ore” has been studying the quality of life in Italian cities and provinces every year since 1991.

The study’s 90 indicators are grouped into six macro categories: Prosperity & Consumption, Economy & Employment, Justice & Security, Demographic Development, Environment & Services, and Culture & Leisure. In this article we cover the best places to live in Italy according to the 2022 data. 

Best places to live in Italy

These are the top five Italian cities with the highest quality of life in 2022:

1. Bologna

The fifth time on the winner’s podium, the capital of Emilia-Romagna scores in many respects, especially in education, healthcare and innovation. One of Europe’s top universities is located here. And with a population of about 390,000, Bologna is definitely a (small) big city with corresponding cultural and recreational offerings, but without the chaos of the metropolises of Rome and Milan. The only minus point: in terms of safety, Bologna only occupies one of the lower ranks, even though it has caught up somewhat in this regard over the past year.

2. Bolzano

South Tyrol’s beautiful capital regularly occupies one of the first places, thanks to top marks in pretty much all categories. In addition, there is the tremendous recreational appeal due to its geographic location. Overall, as in previous years, the provinces of the Trentino-Alto Adige region are among the top performers in terms of quality of life.

3. & 4. Florence and Siena

Undisputedly two of the most beautiful cities in the world. But also in terms of quality of life, Florence and Siena stand out.

To the surprise of many, Florence has clearly made up ground recently. Since 2003, the city had no longer occupied one of the top ranks. Together with Pisa (10th place), Florence and Siena make Tuscany a particularly interesting region for people looking to buy real estate. Florence occupies first place for culture and leisure, and sixth place for its environment, while Siena ranks fourth and second, respectively. Florence fares worst in the area of security and crime prevention. Siena does much better here, but is further behind in the economy and employment category.

5. Trento

The largest city in the Trentino-Alto Adige region impresses with its enormous recreational value. And not only thanks to the Dolomites right on its doorstep. There is a particularly rich range of sports opportunities here, as well as a strong presence of start-up companies so that Trento ranks second nationally in this category behind the economic metropolis of Milan.

Finally

Although these are considered some of the best places to live in Italy, the country’s rich heritage, magnificent buildings, cities steeped in history and regions with landscapes are as sublime as they are varied. One could say there is no ‘bad’ place to live n Italy.

However, to non-professionals, Italian legal matters when investing in a propert in Italy can be confusing and scary. Get in touch with us to arrange your FREE consultation in your chosen language at a time to suit you.

Whether you need assistance with your property project in Italy or you need to arrange an inheritance, the team at De Tullio Law Firm will help you understand the processes and the pitfalls. Let us answer your questions and remove the worry of making costly and time consuming mistakes.

For over 55 years, we have been providing legal services to clients at an international and local level, gaining an enviable reputation for quality, expertise, and professionalism.

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.

 

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.