ITALY Law and Practice Contributed by: Guido Alberto Inzaghi, Ivana Magistrelli, Silvia Gnocco and Gabriele Paladini, SI – Studio Inzaghi
Zoning and spatial planning are primarily implemented at the municipal level through local planning instru - ments (such as the municipal master plan), which regulate land use, development parameters and urban planning standards. Municipal planning instruments must comply with regional legislation and higher-rank - ing territorial plans, including regional and provincial planning frameworks. Regional authorities typically supervise the adoption of municipal planning instruments and may require amendments to ensure consistency with the applica - ble regional planning framework. The design, appearance and construction methods of buildings are mainly regulated by national legislation and technical standards, while additional requirements may be set out in municipal building regulations. Municipalities are the primary authorities responsi - ble for administering planning and building controls, including issuing building permits and supervising con - struction works. Where specific constraints apply (for example, landscape, cultural heritage, environmental or hydrogeological restrictions), additional approvals may be required from the competent authorities. 4.2 Development Process, Challenges and Enforcement Development rights are obtained through the rel - evant building title, depending on the nature of the works. The main procedures are the building permit ( Permesso di Costruire ) issued by the municipality and simplified procedures based on Certified Notices of Commencement of Works (SCIA) for less significant interventions. In some cases, the applicable planning instruments require the prior approval of implementation plans or the execution of planning agreements with the munici - pality, regulating aspects such as urbanisation works, public infrastructure and the transfer of land for public use. Third parties with a legitimate interest – such as neighbouring property owners – may challenge plan - ning decisions or building titles before the Regional
Administrative Courts (TAR). Judgments may be fur - ther appealed before the Council of State. Municipalities are responsible for enforcing planning and building regulations. Where unlawful works are carried out, the authorities may order the suspen - sion of works, the demolition of illegal structures or the restoration of the lawful status of the property. Administrative sanctions may apply and (in certain circumstances) unlawful construction may also result in criminal liability under Italian planning and building legislation. In specific cases provided by law, develop - ers may apply for post-factum regularisation proce - dures for building irregularities. 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Real estate investments in Italy are mainly carried out through one or more of the following investment vehi - cles or a combination of them. Companies Real estate companies are SPVs carrying out the pur - chase/sale, management, leasing and building of real estate assets and they are generally formed as limited liability companies ( società a responsabilità limitata or S.R.L.) or joint stock companies ( società per azioni or S.P.A.) and are usually not listed on an exchange (although there are a few exceptions). REIFs REIFs are undertakings for collective investments and alternative investment funds (AIFs) pursuant to the Directive 2011/61/EU (the “AIFMD Directive”). REIFs must be managed by authorised Italian man - agers (SGR) or alternatively by EU managers (AIFM) under the freedom to provide services regime (man - agement passport) or by establishing an Italian branch. REIFs must invest at least two-thirds of their assets into real estate assets (including rights in rem on these assets, equity interests in real estate companies and units of other REIFs). The remaining third may be invested in listed or non-listed financial instruments.
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