ITALY Law and Practice Contributed by: Guido Alberto Inzaghi, Ivana Magistrelli, Silvia Gnocco and Gabriele Paladini, SI – Studio Inzaghi
6.2 Types of Commercial Leases The Tenancy Law regulates leases concerning offices, retail properties and hotels. 6.3 Regulation of Rents or Lease Terms The parties are free to determine rent amounts. Italian laws set a minimum term for leases (see 6.4 Typical Terms of a Lease ) and the parties can freely fix the term in longer-term leases. 6.4 Typical Terms of a Lease The Tenancy Law provides for fixed minimum terms for non-residential leases of six years for office/retail properties and nine years for hotel properties. Temporary leases can be entered into on the basis of certain objective reasons. In longer-term leases, the parties can agree on a different term. The Italian Civil Code provides for a maximum lease term of 30 years. The lease automatically renews upon the expiry of the initial period, unless either party gives notice not to renew at least 12 months prior to the expiry term or 18 months prior to the expiry term in the case of hotels. A residential lease has a fixed/minimum term of four years. Upon the expiry of the initial term, the lease automatically renews for another four years, unless the parties agree otherwise. The Italian Civil Code distinguishes between ordinary and extraordinary maintenance works and tenants are generally only responsible for ordinary maintenance. However, parties can deviate from this principle. The frequency of rent payments can be freely agreed between the parties.
activities to be carried out. On average, costs range from EUR10,000 to EUR20,000 for both types of company. Auditors’ costs will be added. 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time
Italian law recognises: • property leases; and • business leases. Property Leases
A property lease concerns non-residential prop - erties (eg, office, retail and hotel) and residential properties. Property leases are mainly regulated by the Italian Civil Code, Law No 392/1978 (in relation to non-residential properties) and Law No 431/1998 (in relation to residential proper - ties). The Tenancy Law on non-residential properties was amended on 11 November 2014, allowing the parties to freely negotiate the terms and conditions of a lease if the lease provides for an annual rent higher than EUR250,000 and the building does not have historical value (so-called large leases). Business Leases A business lease covers “going concern” or a business ( ramo d’azienda or azienda ) that might include a property. In this case, the lease is only regulated by certain provisions of the Italian Civil Code, so the parties are granted wider freedom to negotiate the terms and conditions of the lease.
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