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These articles are your go-to resource for comprehensive advice on buying a home or moving to Italy, featuring general advice, engaging Q&A sessions with our former clients, and general advice.
The Times: Chaz and Lucy’s Italian move, with expert advice from Giandomenico De Tullio
“We moved to a farmhouse in Puglia for la dolce vita” is how The Times headlines the story of Chaz Oldham and Lucy Akhurst. They, the couple in the photograph, are an English couple who have chosen to make their new home in the heart of Italy, a five-bedroom farmhouse in the hills with 20 acres of land, 15 minutes’ drive from the sea and 8 minutes from Alberobello, famous for its thousand Unesco-listed trulli. This is an area already well visited by foreign tourists, especially the French, Swiss and Germans.
The Times article tells you their story, the proximity to the world of cinema, the moves, the inspirations, the farm in Devon, the dream of France but falling in love with Italy, and the purchase of the house with a huge roof terrace with a 360-degree view, which convinced him to buy. What truly stands out, however, is the financial potential of such a decision.
A brief aside on the prices of apartments in the area where Chaz and Lucy bought: at the time of their purchase (2020) the average price per square metre was €1,836, while today it is €2,374 (source: The Times), which highlights the value of investing in property in this region. Real estate in Italy, particularly in sought-after areas like Puglia, is not only a lifestyle choice but a sound financial strategy. With property values steadily increasing, the potential return on investment is significant.
Then there was the application to the Municipality of Monopoli for a building and renovation permit (obtained in just over a year), the hiring of Puglia Pools to build the swimming pool, the renovation of a wing of the house which – in 2025 – is estimated to yield between €1,800 and €2,400 per week. This demonstrates how renovating and renting out properties in Italy can generate consistent income, making it a lucrative option for those looking to invest in the real estate market. Moreover, the cost of living in Italy, where they now live, is a fraction of the UK, while the produce is fresh and km0.
The rise in property prices, coupled with the attractive rental market, shows why investing in Italian real estate, especially in regions like Puglia, is an excellent opportunity. You can find more insights at the end of The Times article, where we also provide tips for British citizens looking to purchase property and apply for residency in Italy. You can read them there or take advantage of our free preliminary consultation in the language of your choice.
Click on this link to choose the time that suits you best or email us at info@detulliolawfirm.com.
Full text of The Times’ article here: https://www.thetimes.com/article/53afb046-b3ac-4422-b7b0-02231a555480.
Cultural Heritage in Italy: The Legal Landscape
Dreaming of purchasing a property in Italy? The country’s magnificent buildings, historic cities, towns, and villages make the Italian real estate market particularly enticing. However, within the heart of these charming landscapes lie historical architectural treasures, subject to legal protections. In this article, we explore the role of legislation aimed at preserving Italy’s cultural heritage.
Understanding Italy’s Cultural Heritage Legislation
Cultural assets, encompassing movable or immovable properties, benefit from State protection due to their artistic, historical, or architectural significance. Since May 1st, 2004, Italian legislation governing this matter is the code of cultural heritage and landscape (Legislative Decree January 22, 2004, n. 42).
Italian Cultural Heritage: Limitations on Immovable Properties
The code imposes restrictions on the transfer of ownership or possession, particularly concerning immovable properties. These regulations vary depending on the owner of these assets.
Notification Requirements for Italian Cultural Heritage Properties
For immovable properties owned by individuals or companies to attain cultural asset status, they must be notified by the public administration. Such notifications, documented in property registers, can be challenging to verify, primarily post the enactment of Law No. 1089 on June 1st, 1939. It is therefore crucial to ascertain the property’s ownership history to verify the existence of notifications.
Reporting Obligations for Transfers
Any transfer of ownership or possession of cultural assets mandates filing a report with the superintendent of the asset’s location. This report, due within 30 days of property purchase or inheritance acceptance, requires comprehensive details of the involved parties, asset particulars, and transfer conditions.
Penalties for Non-compliance with Italian Cultural Heritage Law
Failure to submit the report within the stipulated period constitutes a criminal offense, leading to severe penalties. These penalties include substantial fines ranging from €1,500 to over € 75,000 and potential incarceration for up to one year.
Right of First Refusal
In consideration-based transfers like sale or exchange, the State or relevant local authorities hold the right of first refusal. This right must be exercised within 60 days from report receipt, conditionally suspending the transaction until then. However, there’s no right of first refusal in inheritance, donation, division, share transfer, merger, split, or mortgage creation scenarios.
Finalization of Ownership
If the right of first refusal remains unexercised after 60 days, ownership transfers to the buyer. However, if the report is filed after the 30-day legal period, the right of first refusal must be exercised within 180 days. Until this period expires, the asset remains with the vendor.
Finally …
At De Tullio Law Firm, our expertise lies in property and inheritance matters in Italy.
If you have any inquiries regarding the transfer of cultural assets, feel free to reach out to us. We are pleased to provide you with a complimentary preliminary consultation.
Rental Contracts in Italy
Renting a property in Italy entails navigating a complex landscape of legal obligations and procedural steps to establish a fair and transparent relationship between landlords and tenants. Consequently, a comprehensive understanding of the Italian rental contract process is indispensable, whether for residential or commercial purposes.
This guide aims to provide a detailed overview of the various types of rental contracts available, their distinct characteristics, essential legal requirements, as well as the rights and responsibilities they entail for both parties. Additionally, it explores effective methods for resolving disputes, ensuring that all aspects of the rental process in Italy are approached with clarity and compliance.
Types of Rental Contracts in Italy
Italy offers several types of rental contracts:
Free Market Contract:
These are the most common type of rental contracts in Italy. They typically last four years with the possibility of automatic renewal for a further four years.
The rent and other contractual terms are freely negotiable between the landlord and tenant.
Agreed Rental Contract:
These contracts last three years with a two-year extension. Homeowners and tenant associations set the rents, often resulting in lower rates than free market contracts.
Transitional Contract:
These contracts meet short-term rental needs, ranging from 1 to 18 months.
Additionally, they are non-renewable and require a stated reason due to their short-term nature.
Student Tenancy Contract:
These contracts cater specifically to university students and last from six months to three years, aligning with their study schedules.
Rental Contracts in Italy: Characteristics
A typical rental contract in Italy should include the following:
1. Parties Involved:
Clearly identifies the landlord and tenant(s) including full personal information.
2. Property Description:
Provides a detailed description of the rental property, including the furniture and accessories.
3. Duration:
Specifies the start and end dates of the rental period and any renewal terms.
4. Rent and Payment Terms:
Agrees on the rent amount, payment frequency (usually monthly), and accepted payment methods.
5. Security Deposit:
Typically, this is equivalent to two months’ rent, held as security against damage or unpaid rent.
6. Maintenance Responsibilities:
Clearly defines maintenance and repair responsibilities, distinguishing between minor and major repairs.
7. Termination Conditions:
Outlines the conditions under which either party may terminate the rental contract, including notice periods and penalties for early termination.
Legal Requirements for Rental Contracts in Italy
Several legal requirements must be met to validate rental contracts in Italy. First, all rental contracts must be in writing and signed by both parties. Additionally, contracts lasting more than 30 days must be registered with the Inland Revenue (Agenzia delle Entrate) within 30 days of signing, with the registration fee typically shared between the landlord and tenant.
Moreover, landlords are obligated to declare rental income and pay applicable taxes, while tenants may benefit from tax deductions on rental payments under specific conditions.
In terms of rights and responsibilities, both landlords and tenants have distinct obligations under Italian law. Landlords must ensure the property is habitable, meeting safety standards, and they must perform major repairs and maintenance. They must also respect the tenant’s right to privacy and peaceful enjoyment of the property.
Tenants, on the other hand, are responsible for paying rent and agreed fees punctually, maintaining the property in good condition, and undertaking minor repairs as needed. It is essential for tenants to comply with the terms of the contract and refrain from using the property for unauthorized purposes. These legal frameworks help establish clear guidelines and promote a harmonious rental relationship in Italy.
Dispute Resolution
Resolving disputes between landlords and tenants regarding Italian rental contracts involves various channels, each tailored to different circumstances and preferences.
Negotiation
Initially, parties can engage in negotiation, where landlords and tenants directly discuss and resolve issues. For example, they might negotiate adjustments to the rent to account for maintenance responsibilities or agree on a revised schedule for property inspections.
Mediation
Mediation offers a structured approach with the assistance of a neutral third party. This process helps clarify misunderstandings and facilitates compromises that satisfy both parties. An example includes using a mediator to resolve disagreements over the interpretation of lease terms regarding property usage or responsibilities for repairs.
Legal Action
If informal methods fail to yield a resolution, parties can pursue legal action through the local Rent Tribunal. This step becomes necessary when there is a significant disagreement over lease termination conditions or disputes regarding security deposit refunds. The Rent Tribunal serves as a formal venue where both parties can present their cases, and decisions are made based on Italian rental laws and regulations.
These options ensure that disputes are addressed promptly and fairly, thereby promoting a harmonious landlord-tenant relationship and upholding legal standards in the rental process in Italy.
Finally …
We understand that renting a property in Italy can be confusing and involves legal risks. If you plan to rent an Italian property, always seek legal advice beforehand.
With over 55 years of experience in Italian property law, at De Tullio Law Firm we are specialists in negotiating rental contracts, drafting bilingual versions tailored to your needs and facilitating communication between property owners and tenants. Additionally, we offer comprehensive support in managing legal obligations and effectively resolving disputes.
Moreover, if you are considering letting your Italian property, we offer comprehensive services to ensure a secure and smooth process.
If you need further clarification regarding property rental or letting, or wish to discuss your situation, please contact us for a free consultation. We are here to help.
You may also like to read about buy to rent in Italy.
Buying a House in Umbria: A Guide
Are you considering buying a house in Umbria? In this article, we’ll look into the this region of Italy. From its cultural richness to its stunning landscapes, we’ll explore what makes Umbria a true gem. Additionally, we’ll offer valuable insights into its real estate market and guide you through the property acquisition process.
Buying a House in Umbria: Discovering this Italian Region
Located in the heart of Italy, Umbria exudes enormous charm. Its rolling hills, medieval villages, and vibrant cultural legacy define its allure. Aptly dubbed the “Green Heart of Italy,” with its lush vineyards and olive orchards. In essence, Umbria offers an idyllic retreat for nature lovers and those in search of tranquillity.
Historical cities like Perugia and Assisi abound with artistic and architectural treasures, echoing the region’s rich significance in Italian history. With its clifftop location, Orvieto offers breathtaking panoramic views and is home to a magnificent Gothic cathedral. Gubbio captivates with its impeccably preserved medieval ambiance, labyrinthine cobblestone streets, and a palatial legacy tracing back to the 14th century. Moreover, the delectable local cuisine and vibrant traditional festivals make Umbria an irresistible destination for those seeking to invest in a home in the heart of Italy.
However, Umbria’s appeal extends beyond its geography. Its real estate market, with prices averaging lower than in neighboring regions like Tuscany, is enticing investors. Amidst rising tourism and slightly declining property prices, many are opting to invest in Umbria’s real estate market. Renowned tourist destinations like Spoleto, Terni, and Todi further bolster its attractiveness, drawing thousands of visitors annually.
While investing in Umbria for a buy-to-let vacation home, bed & breakfast, or guesthouse can be a profitable venture, the region’s property market and procedures are unique. It’s therefore essential to understand these nuances before signing any paperwork.
Buying a House in Umbria: Legal Compliance
If you’ve come across a property you like in Umbria it’s essential to verify if its present condition aligns with its legal status as documented in the land registry and that it complies with urban planning permits.
Ensuring the continuity of property titles and confirming the absence of third-party rights are also crucial steps. Take the time to thoroughly assess these aspects to ensure everything meets your expectations and requirements.
Be cautious! Despite assurances from the real estate agent or seller, the property may be non-compliant.
Unlike other Italian regions, in Umbria, vendors aren’t obligated to provide buyers with a compliance report. Yet, this document is crucial for ensuring the property’s legal integrity, certifying urban and cadastral compliance. Known as “Relazione di rispondenza edilizia e conformità catastale” in Italian, it should be produced and signed by an authorized individual in the technical department at the local municipality.
Therefore, the risks of buying a non-compliant house are automatically higher in Umbria. It is common for the property’s actual condition, as recorded in the land registry, not to match that approved within urban planning permits.
Due to economic and administrative reasons, work is often carried out without permission in Italy. Identifying lack of permits and defects within a house can be difficult without first conducting a thorough analysis of property-related documentation.
Buyer’s Responsibilities in Umbria
Upon acquiring the property, the buyer assumes financial, civil, and criminal liability for any non-compliances. Obtaining retroactive permission to rectify issues may prove difficult or impractical. Even if it is possible, securing retroactive permissions can be time-consuming and expensive. Additionally, minor compliance issues could hinder obtaining new building permits or engaging in rental activities.
Precautions Regarding Access and Easements
In some cases, access to the desired property may involve traversing a path situated on a neighbor’s land. In such instances, meticulous contract drafting is vital to secure the transfer of rights-of-way. Additionally, parts of the land for sale might be utilized by others. To ensure a secure purchase in Umbria, it’s crucial to identify all access rights and easements to fully comprehend their terms before committing to any agreements.
Seismic Risks in Umbria
Umbria, being in a seismic region of Italy, poses risks like earthquakes and landslides. Before buying property in Umbria, it’s crucial to assess these risks. It’s wise to engage a surveyor for a full geological and structural evaluation of the property to ensure occupant safety.
Finally …
While real estate agents and sellers aren’t obliged to ensure property compliance or provide compliance reports, notaries conduct basic checks. However, by law, the responsibility for legal verification rests with the potential buyer. Conducting due diligence when buying a house in Umbria is crucial to avoid assuming liability for pre-existing defects.
Conducting due diligence can be a complex and time-consuming process, requiring a deep understanding of Italian law and administrative procedures. It’s common practice to enlist the services of a specialized real estate lawyer to manage this task on your behalf. A lawyer will oversee the entire procedure, including verifying documentation (urban, cadastral, zoning, mortgage, energy, habitability, etc.), drafting necessary contracts, handling administrative formalities, and accompanying you to the notary on the day of signing the deed.
The notary, an official of the Italian State is responsible for overseeing property transactions among other duties. By law, notaries must remain impartial in property transactions. They cannot provide legal advice to any of the parties involved. Therefore, a notary cannot substitute a lawyer in representing the buyer’s interests.
Buying a house in Umbria can yield significant rewards, yet it necessitates meticulous attention and adherence to legal protocols. Drawing upon more than 55 years of expertise across Italy, De Tullio Law Firm can guide you through the entire process. Our team of expert lawyers offers tailored advice, guaranteeing a secure and legally compliant investment. Book a free call today to embark on your path to owning a home in the captivating Umbria region.
You may also be interested in our guide to buying property in Puglia.
How to Buy a House in Italy: Legal Tips
Buying a house in Italy?
In this article, we explore the step-by-step process of buying Italian property.
From picturesque villas to seaside retreats, discover essential legal tips and insights for a safe property purchase.
Real Estate Options Across Italy
Whether you’re in the market for an apartment or a villa in prime neighborhoods of Rome, Milan, Florence, Venice, and Naples, or hidden real estate treasures in Sardinia, Tuscany, or along the scenic Amalfi Coast, Italy offers options for everyone.
Italy’s lake regions, including Lake Maggiore, Lake Como and Lake Garda boast breathtaking properties. Alternatively, explore seaside retreats in Calabria, Sicily, Liguria on the Riviera di Ponente, Sardinia’s Costa Smeralda, or coastal havens in Campania, Capri, and Ischia. In addition, there’s a wealth of beauty waiting to be discovered in smaller, lesser-known villages and small towns throughout the country.
Recent government efforts have focused on attracting foreign investment to boost the Italian property market. A range of incentives is available, such as tax breaks for first-time homebuyers and subsidies for renovation projects.
Understanding the Process of Buying a House in Italy
The process of buying a house in Italy is substantially different from many countries. To navigate it successfully, it’s essential to grasp the three main stages of the purchase process:
1. Reservation Offer: The potential buyer formalizes their intention to buy the property.
2. Preliminary Sales Agreement: The parties agree on the details of the various terms of the transaction.
3. Final Deed of Sale: Completion of the transaction, transferring ownership from the previous owner to the new owner.
Buying a House in Italy: The Reservation Offer (or “Proposta di Acquisto”)
When a buyer identifies a property they’re interested in purchasing, the initial step involves submitting a reservation offer. This offer serves to communicate the buyer’s desire to acquire the property under predetermined conditions from the vendor. This initial action holds significant importance; upon acceptance, the offer transforms into a legally binding contract, compelling both parties to fulfill obligations in order to finalize the transaction.
Conformity and Controls in Italy
In Italy, there is no legal requirement for real estate agents to verify the legal compliance of the properties they represent. Moreover, their incentive structure may discourage full disclosure of property details to buyers, as their commission often hinges on transaction completion.
Likewise, Italian notaries typically don’t perform comprehensive urban planning and land registry conformity checks. They primarily depend on information provided by the seller.
From a legal standpoint, the responsibility falls on the potential buyer to conduct all necessary legal due diligence when buying a property in Italy.
Due Diligence: Preliminary Verification and Documentation
Prior to submitting a reservation offer, it’s imperative to conduct preliminary due diligence by examining pertinent documentation and accessing various real estate records. This process enables the potential buyer to evaluate the property’s compliance with land registry, zoning, and planning regulations. Additionally, it’s crucial to ensure the absence of mortgages, debts, or outstanding charges on the property. Simultaneously, buyers should verify that property systems, such as electrical and photovoltaic systems, comply with regulations. Additionally, they should anticipate any tax implications associated with the acquisition.
Drafting the Reservation Offer
Following preliminary due diligence findings, the prospective buyer can submit a formal reservation offer, which should be tailored to comprehensively safeguard their interests.
Many real estate agencies may suggest using a pre-printed reservation offer form. However, these generic templates often fall short in ensuring full protection for the buyer. They typically fail to accurately represent the property’s specifics such as planning and construction permits, existing mortgages, absence of a habitability certificate, energy efficiency or any third-party rights.
Moreover, they do not address the buyer’s individual circumstances such as financing arrangement needs, timelines for formalities, tax implications, and other pertinent factors related to the purchase.
If a buyer fails to include relevant conditions in the reservation offer, it will not be possible to add these to the preliminary contract in the next phase of the purchase process.
Consulting a Lawyer when Buying a House in Italy
While not mandatory, it’s commonplace for buyers to engage a lawyer’s services when buying a house in Italy.
- The lawyer undertakes thorough due diligence to facilitate the acquisition on behalf of their client, optimizing tax and financial considerations.
- They handle administrative procedures, including obtaining an Italian tax code.
- After conducting due diligence, the lawyer negotiates on the buyer’s behalf, advocating for adjustments to the reservation offer terms to protect their interests.
- They customize the reservation offer based on findings, ensuring inclusion of necessary clauses, such as addressing planning issues or mortgage cancellation.
Typically, the reservation offer is drafted bilingually (in Italian and the buyer’s language) to provide clarity on legal implications for all parties involved.
Consequences of Acceptance
Upon the vendor’s acceptance of the reservation offer, two significant outcomes unfold:
- the buyer pays a deposit to the seller, and
- the seller removes the property from the real estate market, typically for a 15-day period.
When signing the reservation offer, the purchaser remits a deposit to the vendor, which, upon finalizing the purchase, becomes partial payment of the total price. However, if the vendor declines the reservation offer, the buyer pays no deposit.
In many countries, payments like deposits, installments, or balances are commonly held in escrow. However, in Italy, such payments are directly transferred to the vendor’s bank account. This arrangement carries implications and risks for the potential buyer. If one of the parties to the transaction fails to meet conditions in the reservation offer or if either party withdraws from the transaction before the final deed of sale, the potential buyer may encounter challenges in reclaiming the deposit.
To protect this and later deposits in the event of any contingencies or disputes, notaries in Italy have the option to hold deposits in escrow or holding accounts. However, the use of such an account must be expressly stipulated as a condition in the reservation offer.
Real Estate Agency Commission
In contrast to many countries where the real estate agent’s commission is payable upon completion, Italian law mandates commission payment upon signing the reservation offer, unless explicitly stated otherwise in the reservation offer.
Buying a House in Italy: The Preliminary Sales Agreement (or “Contratto Preliminare di Compravendita”)
The contratto preliminare di vendita holds significant legal importance as it delineates the detailed terms and conditions of the sale. The buyer must carry forward terms and conditions established in the reservation offer to the preliminary contract. Additionally, the preliminary contract forms the basis for the notary public to draw up the deed of sale in the final phase of the purchase process.
Engaging Legal Assistance
Again, the estate agent may provide a standard preliminary contract. This may lack conditions relating to the buyer’s personal situation. It could ultimately result in financial loss through inability to complete the purchase or acquiring a property needing costly remedial work. Therefore, it is highly advisable for the buyer to engage the services of a lawyer to draft the preliminary contract, ensuring all details are in their best interests.
Validity of Contract Conditions
While it may be tempting to modify an existing template to cover various situations, it is crucial to note that Italian law only considers specific types of conditions as valid. Conditions that solely benefit one party, known as potestative conditions, are invalid under Italian law. For instance, a condition allowing the buyer to unilaterally terminate the agreement if the property doesn’t meet their expectations is not acceptable. However, conditions affecting both parties, such as the buyer’s ability to secure a mortgage, are valid.
Legal Implications and Deposit
If the vendor’s legal advisor drafts the preliminary contract, it’s essential that the buyer to has their own lawyer examine it. The lawyer can provide detailed advice on the legal implications before signing.
An essential legal element of the preliminary contract is the payment of a second deposit (“caparra confirmatoria”), typically at least 10% of the purchase price.
The buyer will lose their deposit if they back out of the purchase without a valid legal reason stipulated in the preliminary contract. However, if the vendor withdraws from the sale, the deposit must be refunded in full, with the buyer also having the right to pursue a claim for double the amount of the deposit through the Italian courts.
Role of the Notary and Buyer’s Legal Safeguards
In the preliminary contract, the parties also designate the date for finalizing the sale in the presence of a public notary, an official of the Italian State responsible for overseeing property transactions among other duties.
By law, notaries must remain impartial in property transactions. They cannot provide legal advice to any of the parties involved. Therefore, a notary cannot substitute a lawyer in representing the buyer’s interests, highlighting the importance of engaging an independent lawyer to ensure legal safeguards.
The notary conducts basic checks including confirming each party’s rights to buy or sell the property, conducting land registry searches for any claims or mortgages, and verifying planning permission.
Since buyers have already paid a substantial deposit before notarial checks occur, it is essential to ensure that all aspects are clear. Before committing to the preliminary contract, ensure that it includes protective conditions should issues arise during the notary’s checks.
Buying a House in Italy: The Deed of Sale (or “Rogito Notarile”)
The last step in the process of buying a house in Italy consists of completing the final deed of sale in front of a notary. The public notary usually conducts the signing of the deed of sale at their office. They read aloud and explain the Italian version of the deed in the presence of the vendor, buyer, and/or their legal representatives.
If a party to the transaction is unable to be present at the signing, they can grant power of attorney to a lawyer to represent them.
Parties to the transaction have the opportunity to read and check the deed to ensure accuracy. Having a bilingual lawyer present allows the buyer immediately address any questions or concerns.
Once all relevant parties have signed the deed, the buyer pays the balance of the purchase price to the vendor and receives the keys to the property.
It takes approximately one month, following the signing of the deed of sale, for the relevant land registry office to register the deeds of new ownership. Following registration, the new owners receive a copy of the title deeds. If not present in Italy when the title deeds become available, the lawyer can collect them on behalf of the buyer and send them on or hold them in safekeeping.
Choice of Notary: A Privilege of the Buyer
Italian law grants the buyer the privilege of choosing the notary to establish the deed. It is advisable to avoid following the recommendations of the real estate agent or the seller on this point to prevent any conflict of interest. Opting for a notary recommended by your lawyer guarantees their level of independence and impartiality.
Interpreter and Bilingual Lawyer
Italian law mandates that any foreign buyer not fluent in Italian must obtain the assistance of an interpreter at the time of signing the deed of sale. Engaging a bilingual lawyer is thus an economical solution as they can act both as a legal advisor and an interpreter.
Finally …
Before purchasing a house in Italy, it’s essential to engage a local lawyer with expertise in property matters. You should personally select your own rather than relying on recommendations from the estate agent or vendor.
Choose a lawyer who is proficient in your language to ensure not only legal guidance but also translation services. Your lawyer should also be capable of recommending surveyors, builders, and other professional services as needed.
Additionally, you may wish to give your lawyer power of attorney in case you are unable to be present in Italy for the completion of the purchase. Entrusting this responsibility to someone with potentially conflicting interests, such as an estate agent or a friend, can pose significant risks.
Before proceeding with your property investment in Italy, consider reaching out to us for assistance. At De Tullio Law Firm, we offer comprehensive advice and support throughout your Italian property purchasing journey. With over 55 years of experience handling clients’ Italian and cross-border property, family, and inheritance matters, we are well-equipped to guide you.
Book a FREE CONSULTATION with one of our lawyers here.
Italian First Home Benefits for Expatriates
Law No. 103 of 10.08.2023, coupled with amendments to DL No. 69/2023, has ushered in significant changes to Italian first-home benefits for expatriates. This pivotal legislation not only addresses an infringement procedure initiated by the European Commission against Italy but also introduces key enhancements to the first home benefits regime.
The Innovation Introduced by DL No. 69/2023
DL No. 69/2023 addresses a critical issue flagged by the European Commission concerning first home benefits for expatriates. This decree, aptly named “Salva infrazioni” (Save Infractions), rectifies discrepancies in the application of reduced property taxes for expatriates. Now, expatriates who have resided or worked in Italy for at least five years and are transferred abroad for work reasons can enjoy reduced property tax rates when purchasing a property in Italy.
Understanding Italian First Home Benefits
Italian first-home benefits encompass a range of advantages aimed at facilitating property acquisition for expatriates. These benefits include reduced tax rates, fixed tax amounts, and VAT reductions, making property ownership in Italy more accessible and affordable.
Reduced Tax Rates: Expatriates can benefit from lower registration tax rates, alleviating the financial burden of property acquisition. Under the first home benefits scheme, taxes payable when buying property in Italy include:
For purchases from private individuals or VAT-exempt companies:
– Proportional registration tax at a rate of 2% (instead of 9%)
– Fixed mortgage tax of 50 euros
– Fixed cadastral tax of 50 euros
For purchases from companies subject to VAT:
– Reduced VAT at 4%
– Registration tax of 200 euros
– Mortgage tax of 200 euros
– Land registry tax of 200 euros
These reduced tax rates and fixed tax amounts provide transparency and predictability in property transaction costs, enhancing the appeal of property ownership in Italy for expatriates.
Eligibility Criteria for Italian First Home Benefits
To qualify for Italian first home benefits, expatriates must meet stringent eligibility criteria. These criteria include sole ownership of the property, compliance with municipal constraints, meeting residency prerequisites, and adhering to specific property categorization requirements. Moreover, only properties falling under designated cadastral categories, such as A/2, A/3, A/4, A/5, A/7, and A/11, are eligible for the benefit.
Evolution of Legislation for Italian First Home Benefits
Previous legislation provided exceptions for expatriates, particularly those relocating abroad for work. However, DL No. 69/2023 introduces a refined framework, emphasizing stricter residency and property location criteria. These changes ensure that benefits are directed towards individuals with substantial ties to Italy.
Rectification Procedures and Self-Certification
In cases where applicants fail to declare their residency status abroad at the time of purchase, rectification procedures exist. Italian citizens residing abroad can rectify their status through self-certification, as clarified by the Revenue Agency. This ensures compliance with residency prerequisites and maintains continuity in benefit entitlement.
Changes Introduced by DL No. 69/2023
DL No. 69/2023 introduces a new discipline regarding first home benefits for expatriates. This decree stipulates that individuals who transfer abroad for work reasons must have resided or carried out an activity in Italy for at least five years prior. Additionally, the property must be located in the municipality of birth or where they previously resided or conducted business.
Finally …
Understanding these legislative changes is crucial for expatriates considering property investments in Italy. With over five decades of experience, De Tullio Law Firm has been consistently delivering expert legal advice to international clients. Moreover, while we offer comprehensive legal services across all domains of Italian law, our particular emphasis is on real estate, residency, family law, and inheritance matters.
We take immense pride in providing personalized legal services to our clients. Additionally, we have a strong reputation for delivering pragmatic and efficient solutions. If you are exploring investment opportunities in Italian real estate, don’t hesitate to get in touch with us. We are right beside you, guiding you every step of the way.
You may also be seeking information about how to obtain an Elective Residence Visa for Italy or you might like to peruse our series of informational videos.
Digital Nomads in Italy: A Short Guide
In a world shaped by remote work and the digital nomad lifestyle, Italy has taken a pioneering step to adapt to this evolving labor trend. As part of the “Decreto Sostegni Ter” legislation, the decree of 29 February 2024, published in the ‘Gazzetta Ufficiale’ on April 4, 2024, represents a significant milestone in Italy’s efforts to regulate the influx of individuals from non-EU countries seeking opportunities as digital nomads in Italy.
Through collaboration between key ministries including the Ministry of Foreign Affairs, International Cooperation, Tourism, and Labor and Social Policies, the decree aims to provide clarity and structure in navigating the expansion of digital nomadism in Italy.
The decree aims to integrate digital nomads and remote workers into the Italian landscape while enhancing the nation’s competitiveness in the global job market. By establishing clear procedures and requirements, it simplifies the process for individuals eager to tap into Italy’s rich culture, quality of life and thriving business environment while working remotely.
Understanding the Categories: Defining Digital Nomads and Remote Workers
Distinguishing between two categories, namely “digital nomads” and “remote workers,” the decree acknowledges the diversity within the remote work sphere.
Digital nomads are self-employed, whereas remote workers maintain an employer relationship while operating outside traditional office setups.
Advantages of Italy’s Digital Nomad Visa
Extended Stay with Renewal Option: Enjoy a one-year residency in Italy, with the option to extend your stay.
Family: This visa permits you to bring your immediate family members with you.
Reliable Connectivity: Italy boasts reliable internet connections across most urban areas and even smaller towns, ensuring robust remote work opportunities.
Schengen Area Access: Holders of this visa can freely travel within the Schengen Area, granting visa-free access to other EU countries.
Unrestricted Permits: Italy’s Digital Nomad Visa isn’t bound by annual quotas typical of some work visas, potentially making it a more accessible choice.
Potential Residency Route: While not a direct pathway to permanent residency, this visa serves as an initial step towards establishing long-term roots in Italy.
Eligibility Criteria for Italy’s Digital Nomad Visa
To qualify for Italy’s Digital Nomad Visa, you must satisfy the following conditions:
Non-EU Citizenship: This visa is exclusively designed for individuals residing outside the European Union.
Highly Qualified Remote Worker: The program targets “highly qualified” remote workers. While official job criteria are yet to be released by Italian authorities, a diverse range of professions, including experienced tech professionals and online entrepreneurs, are likely eligible.
Remote Work Arrangement: Your work must be conducted remotely, whether for a company, clients, or your own business located outside of Italy.
Minimum Income Requirement: Applicants must demonstrate a monthly income surpassing €2,335, equivalent to approximately €28,000 annually. This criterion is based on a minimum threshold of three times the Italian national minimum wage.
Health Insurance Coverage: Comprehensive health insurance valid in Italy is a mandatory requirement.
Clean Criminal Record: Similar to most visa programs, applicants are required to present a clean criminal background check.
How to Apply for Italy’s Digital Nomad Visa:
Gather Required Documents
Before starting your application, ensure you have all necessary documents:
Valid Passport: Ensure your passport remains valid for at least three months beyond your intended stay in Italy and contains a minimum of two blank pages.
Passport-Sized Photos: Typically, provide two recent, color passport-sized photographs adhering to specific size and quality standards.
Proof of Employment: Present either contracts with clients outside of Italy demonstrating ongoing work or a letter from your employer (registered outside of Italy) verifying your remote work status.
Proof of Income: Furnish bank statements, tax returns, or other documentation demonstrating compliance with Italy’s minimum income requirement, approximately €28,000 annually.
Health Insurance: Secure comprehensive health insurance coverage valid in Italy for the duration of your stay.
Proof of Accommodation in Italy: Submit a rental agreement, hotel reservation, or equivalent documentation confirming suitable lodging arrangements within Italy.
Criminal Background Check: Provide a clean criminal record certificate from your home country or country of residence, as per the visa requirements.
Schedule a Visit to the Italian Consulate
Once you have gathered all your paperwork, schedule an in-person appointment at the nearest Italian consulate in your country of residence. During your visit, you’ll complete the official visa application, submit your documents, and pay the visa fee – typically around $125.
Await Approval
After submitting your application, anticipate a waiting period of several weeks to a few months to receive a response regarding your visa approval status.
Obtain Your Official Residence Permit
Upon visa approval, you have 8 days following your arrival in Italy to apply for a residence permit, known as a permesso di soggiorno. Obtain a “Yellow Kit” from any post office, complete the enclosed forms, and return the kit to the post office. They will manage the submission process to the appropriate authorities. Subsequently, authorities will schedule you for fingerprinting and other necessary checks to facilitate the issuance of your permit.
Cost of Italy’s Digital Nomad Visa
The comprehensive cost of Italy’s Digital Nomad Visa is subject to further clarification by Italian authorities. However, here’s a breakdown relying on the currently available information:
Application Fee:
Anticipate a standard non-refundable application processing fee. While the exact fee for the Digital Nomad Visa is yet to be specified, it could align with other Italian visa application fees, typically around $125.
Residence Permit Fee:
Upon successful application, there may be an additional fee for the issuance of the residence permit itself.
Administrative Fees:
Factor in supplementary expenses for document translation, notarization, and potential postal charges associated with submitting your application.
Social Security and Tax Matters
Importantly, the decree also addresses the complexities of social security compliance for digital nomads in Italy. This aspect will depend either on bilateral social security agreements or adherence to Italian legislation, contingent upon existing agreements between Italy and the nomad’s country of origin.
Furthermore, upon obtaining a residence permit, digital nomads will receive an Italian tax code and must apply for a VAT number. The Revenue Agency and local police headquarters (Questura) will oversee adherence to Italian tax regulations.
Seizing the Moment: Your Path to Professional Fulfillment
Italy’s proactive approach to embracing digital nomads underscores its commitment to fostering innovation and inclusivity in the contemporary workforce. By providing a clear framework for entry and stay, the decree not only attracts top talent but also nurtures a dynamic ecosystem conducive to professional growth and cultural exchange among digital nomads in Italy.
As Italy solidifies its position as a global hub for digital nomads, the Decree of 29 February 2024 epitomizes its forward-thinking strategy in navigating the complexities of the digital age. With its fusion of tradition and innovation, Italy beckons those seeking professional fulfillment amidst the splendor of its timeless landscapes and hospitable communities, offering an ideal setting for digital nomads in Italy.
Finally …
If you’re considering Italy as your digital nomad destination or require expert guidance on navigating Italian bureaucracy as digital nomads in Italy, don’t hesitate to schedule a free consultation with one of our legal experts at De Tullio Law Firm. From securing residence permits to navigating tax regulations, our team offers comprehensive support at every stage of your journey.
Canadian Investors: Italian Real Estate 2024
Against the backdrop of Canada’s prolongation of its ban on foreign involvement in its real estate market, this blog post serves as an update on previous discussions, offering insights into recent developments. We aim to provide Canadian investors with an understanding of shifts in Canadian property law and explore potential investment opportunities in Italian real estate.
Canada’s recent decision to extend the Foreign Property Purchase Restriction Act (FPPRA) for an additional two years has reignited debates. Questions arise regarding the ban’s effectiveness in alleviating housing shortages and its impact on housing affordability for Canadians.
Furthermore, this decision has sparked conversations about investment prospects. Economists and real estate agents contend that foreign ownership has not been the primary driver of demand in Canada. Official data indicates a drop in foreign ownership of homes in Canada, to just 1% from 2 to 3% in 2021, according to Statistics Canada.
Foreign buyers have been implicated in driving up property prices in countries like Australia, the UK, and New Zealand. However, only Canada has taken as firm a stance in banning foreign ownership.
For Canadian investors eyeing real estate opportunities abroad, including Italy, the landscape presents questions. For example, can Canadian investors still pursue real estate investments amidst these regulatory changes?
The Impact of Italian Property Investment Laws on Canadian Investors
Because of Canada’s FPPRA, Canadian investors exploring the Italian real estate market face reciprocal arrangements in Italy.
However, an amendment to the FPPRA in 2023 offers an exemption, unlocking investment opportunities for Canadian investors exploring the Italian real estate market.
The FPPRA Amendment
An amendment introduced on March 27th, 2023, to Canada’s FPPRA, marked a significant shift in reciprocal property investment regulations.
This pivotal amendment exempts certain properties from purchase restrictions in Canada. In particular, those located outside Census Agglomerations or Census Metropolitan areas.
Unlocking Potential for Canadian Investors in Italian Real Estate
With the aforementioned exemption under the FPPRA, Canadian investors exploring Italian real estate can now seize promising prospects.
Italian properties located in areas with fewer than 10,000 inhabitants have now become accessible to Canadian buyers. To find out more about these areas click here.
This legal change creates opportunities for Canadian investors exploring Italian real estate markets.
While the FPPRA exemption presents opportunities, due diligence remains paramount for Canadian investors venturing into Italian real estate. Verifying property eligibility through legal professionals will ensure compliance with regulations and mitigate risks.
Finally …
As Canada navigates its real estate policies, Canadian investors exploring Italian real estate have an opportunity to broaden their investment portfolios. With legal exemptions facilitating access to properties in Italy, prudent due diligence and legal guidance are essential for a successful investment venture.
At De Tullio Law Firm, we take immense pride in providing top-tier legal services to our clients. Additionally, we have a strong reputation for delivering pragmatic and efficient solutions. If you are looking to buy Italian real estate, don’t hesitate to get in touch with us. We are right beside you, guiding you every step of the way.
You may also be seeking information about how to obtain an Elective Residence Visa for Italy or you might like to peruse our series of informational videos.
Click here to read the news release from Department of Finance Canada
2024 Italian Real Estate Trends
As we usher in spring, 2024 Italian real estate trends are subtly complex, painted predominantly in shades of gray. The outlook for the Italian residential housing market spans from relative stability to a slight downturn. However, uncertainties cast a shadow, intertwined with the fluctuating cost of borrowing, as highlighted in a survey by the Corriere della Sera.
The Gray Dominance: Unveiling 2024 Italian Real Estate Trends
Gray, as the dominant color in the residential market of 2024, sets the stage for a year of potential shifts. While some anticipate stability, others predict a gentle downturn. The pivotal factor here is the trajectory of the cost of money, introducing an element of unpredictability. If interest rates decrease, the consensus is not an immediate surge in sales, but rather a certainty that both sales and prices will respond if the cost of money remains static or banks tighten credit access.
Scenari Immobiliari’s Perspective
For a comprehensive understanding, Corriere della Sera sought insights from renowned real estate research firms. Scenari Immobiliari’s President, Mario Breglia, characterizes 2024 as a “year of transition.” He points out that while inflation is decreasing and economic uncertainty is subsiding, shadows persist due to the potential decline in mortgage demand amid reduced incomes. Breglia suggests that families, in response, might choose to defer property purchases until economic conditions improve.
Nomisma’s Analysis
Nomisma’s three-year forecast paints a cautious picture. While a slight recovery in property transactions is projected for 2026, 2024 could witness a substantial decline of 8.8%. The institute’s CEO, Luca Dondi, emphasizes the significance of credit access and the potential impact of a more expansive ECB policy in the coming months.
Market Trends and Predictions for 2024 Italian Real Estate
As we delve deeper into projections, a nuanced narrative unfolds. Nomisma foresees a 17.4% decrease in mortgage disbursements for 2024, coupled with a 6.8% decline in the following year. Price variations in large cities are expected to hover around +0.6%, with Milan leading at +1.4%, and the capital, Rome, at +0.6%. Despite these figures, the overall market sentiment remains cautious, with optimism tentatively deferred to 2025.
The Role of Financing in 2024 Italian Real Estate Trends: MutuiOnline.it’s Perspective
MutuiOnline.it injects a note of optimism, particularly in the financing realm. Alessio Santarelli, the platform’s DG, highlights the divergence between the ECB and the Fed’s approaches to interest rates. He suggests that this prolonged discrepancy may become untenable. However, Santarelli points to the potential for optimism, as Euribor futures indicate a decrease in variable-rate mortgages by approximately 170 basis points by year-end, potentially revitalizing the market for young buyers and those seeking larger homes.
Interpreting the Market Dynamics: Gabetti’s Take on 2024 Italian Real Estate Trends
Gabetti’s CEO, Roberto Busso, envisions a more favorable financial leverage perspective if inflation continues to decline. Nevertheless, he underscores the importance of understanding the evolving demand for a new housing model. Furthermore, Busso suggests that this model may not necessarily involve property ownership, signaling potential shifts in housing preferences.
Considering Societal Changes: Fiaip’s Perspective on 2024 Italian Real Estate Trends
Francesco La Commare, head of the Fiaip study office, highlights the evolving dynamics spurred by diminishing job security. Consequently, this shift has resulted in increased mobility and a growing demand for rentals outside major cities. Importantly, he emphasizes the crucial need for legislative responses to ensure secure leasing options for property owners in this changing landscape.
Forecasting Rental Trends: Tecnocasa’s Insights on 2024 Italian Real Estate Trends
Tecnocasa’s Fabiana Megliola anticipates a growth in rentals due to strong demand. However, she points out that the lack of supply, coupled with a resurgence in short-term rentals, may lead to an unsustainable increase in rents. The future trajectory, she suggests, depends on economic evolution, projected weak growth, inflation trends, and the confidence of businesses and consumers.
Finally …
In a market characterized by uncertainty, navigating the complexities of Italian real estate in 2024 requires careful consideration. If you’re contemplating property acquisition in Italy this year, consider consulting with De Tullio Law Firm. As experts in legal matters related to Italian property, we are right beside you to guide you through the intricacies, ensuring a safe, smooth and informed decision-making process. Get in touch with us for a free preliminary call.
