ITALY Law and Practice Contributed by: Guido Alberto Inzaghi, Ivana Magistrelli, Silvia Gnocco and Gabriele Paladini, SI – Studio Inzaghi
2. Sale and Purchase 2.1 Categories of Property Rights The categories of property rights that can be acquired are as follows: • absolute freehold or full ownership ( piena pro- prietà ) – the right to fully enjoy and dispose of the property; • right to build or surface right ( diritto di super- ficie ) – the surface right is either the right to build on a third party’s property and, sub - sequently, to purchase the property of the building built, or the right to sell the existing building separately from the land itself; • beneficial interest ( diritto di usufrutto ) – the right to enjoy a third party’s real estate for a specific (and limited) period of time; • right of use ( diritto d’uso e di abitazione ) – the right to use real estate in order to meet the needs of the person holding the right and those of their immediate family; and • long lease ( diritto di enfiteusi ) – the right to enjoy a property owned by a third party, simi - lar to those granted to a full owner. Standard Italian transactions refer to sale and purchase or absolute freehold/full ownership. 2.2 Laws Applicable to Transfer of Title The Italian Civil Code governs the transfer of title, along with tax, zoning/planning and cadas - tral regulations. 2.3 Effecting Lawful and Proper Transfer of Title A deed transferring a real estate asset shall be in writing and executed before an Italian notary, who has the duty to authenticate it. Preliminary sale and purchase agreements shall take the same form as the final deed and therefore must be made in writing.
campaigns, of which only 27 were in equity. The remainder was financed by lending. Within Italy, Lombardy emerged as the clear leader in real estate crowdfunding activity, accounting for 42% of total projects (Milan alone Italy is undergoing a broad tax reform, includ - ing changes affecting VAT on real estate trans - actions, particularly for residential properties. These changes are driven by Law 111/2023, which empowers the government to reform the tax system. The Budget Law 2024 introduces, inter alia, spe - cific measures for short leases. Landlords can now choose a flat tax rate of 26% under the “ Cedolare Secca ” tax regime in lieu of income tax and related surcharges, as well as registra - tion taxes on the lease. The “ Cedolare Secca ” tax regime is a distinct taxation framework char - acterised by a flat-rate tax, offering an alterna - tive to standard income tax ( Imposta sui redditi delle persone fisiche, IRPEF) applied to rental income. accounted for 21% of projects). 1.3 Proposals for Reform For those declaring income from short leases related to a single unit, the tax rate stands at 21%. Law 111/2023 also opens the door for extending the “ Cedolare Secca ” regime to non-residential properties. This would allow landlords of com - mercial or professional spaces to potentially benefit from the flat tax system.
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