Italian real estate investment, pros and cons

The Italian economy is historically fluctuating. Sometimes, it undergoes a depression that can last more than a century. For instance, the Italian economy was perhaps Europe’s most prosperous during the Renaissance. Then, European nations started colonization of Africa, Asia and America, becoming richer and richer. Micro-states or cities in the peninsula (Italy became a nation only in 1861) weren’t neither big nor powerful enough to colonize. So a certain economic decadence began, because European nations became more competitive than the small states in the peninsula that is nowadays Italy. Nevertheless, there sure were decades, like the 80s and the 90s,  when the Italian real estate became and stayed really expensive, compared to European real estate in general. Generally speaking, Italy often offers interesting opportunities for real estate investors. The pros of investing in Italy Italy’s incredible cultural and artistic heritage is a sort of insurance against excessive devaluation of the Italian housing market. Indeed Italy will always draw tourists by the millions, and investors by the thousands. World renowned artists as Sting own secondary residences in Italy. The same can be said for the sweet, temperate climate and its beautiful natural landscape, so various and rich. Idem for wine (in 2015 Italy was the first exporter in the world) and food. Italian population is huge compared to the habitable land. These guarantees quite stable prices for real estate, since the demand for housing is never sluggish. Italians care much for their homes. Normally, they are well-built and well decorated. Italian excellence for design and architecture is worldwide recognized. The 2008 recession has weakened both Italian banks and families. This has brought down real estate prices, to a level never seen in the last 50 years. Real estate prices in Italy have bottomed, they are more likely to recover than decrease further. Many Italians live abroad, which renders Italian legislation, is not favorable, at least not disadvantageous for foreign residents altogether. Traditionally, Italians like and welcome foreigners. They Italian style and way of living has many fans worldwide, you might as well become one of them. The cons of investing in Italy Italian legislation can be complicated, you’d better take advantage of legal counsel if you are to invest in Italy. Italy’s infrastructures, motorways, roads, Internet, phone and railway networks are not as performant as in Germany, France, Netherlands or northern European countries. Traffic jams are frequent in big cities. Driving can be slow. The peninsula, because of its geographical situation, is not so well-connected with the rest of Europe. The Alps are quite a barrier if you follow to Italy by car or train. Nevertheless, airports are numerous and flights frequent and often cheap. Conclusion Italy is always been a remarkable country. Its charme is evident and solidly established. Investing in Italy can hardly be a waste. The profitability of a real estate investment in Italy oftentimes depends on the economic conjuncture. Sometimes prices skyrocket, but now they are historically quite low. So…

Lower property taxes likely to improve Italian real estate market

In 2016, the Italian government lowers property taxes in order to boost the real estate market IMU (Imposta Municipale Propria) and TASI (Tassa sui Servizi Indivisibili) are abolished for principal residences Practically, only residents in Italy will benefit from this abolition. Therefore, these two taxes will remain unchanged for secondary residences. For luxury houses and castles, IMU will get a reduction. Owners of those luxury properties will pay a flat rate of four per thousand and receive a standard deduction of €200. Since the four per thousand is calculated on the cadastral value of the property, which is always considerably lower than the actual value, oftentimes sometimes more than 60% lower. There is also a 25% discount on IMU for the foreign residents who have rented their house in Italy, provided that the contract complies with the minimum and maximum rents set by local authorities. Asfor the garbage fee, TARI, please reade below: “TARI: who should pay”. Property purchase taxes are quite reasonable for principal residences Purchase from private owner or from Non-VAT Registered   |   Purchase from VAT Registered   Principal Residence   Second Home   Principal Residence   Second Home Stamp Duty 2% 9% €20 €200 Land Registry €50 €50 €200 €200 Cadastral €50 €50 €200 €200 VAT 4% 10%* IMU, TASI, TARI: property taxes for Italians who reside abroad Many Italians who own real estate in our country but are resident abroad and the rules for the application of the IMU, TASI and TARI abroad are different. If, on the one hand are exempt from paying IMU from 1 January 2015, on the other they are still required to pay the tax on services and the indivisible municipal waste, albeit reduced to a third. IMU for Italians living abroad: exemption Many, in fact, are th Italians living permanently abroad who own a property in Italy. As for the IMU it has been established, with effect from 1 January 2015, that is considered to be directly used as a main residence one housing unit owned through ownership or usufruct in Italy,by Italian citizens not resident in the State and members of the Italian residents to Anagrafe ‘abroad (AIRE), provided that is not leased or given on loan for use. (Decree Law no. 47 of 28 March 2014, converted into Law 23 May 2014 n. 80). Essentially it means that Italian citizens living abroad and the owners of a property used as a principal residence do not pay the IMU. Always provided that the property is not luxury / fine (cadastral categories A1, A8 and A9), otherwise the IMU must be paid even if to a lesser extent, with the application of a rate of between 2 and 6 per thousand. TASI: liable for payment Matters are different when it relates to the TARI and TASI. Recall that this is the direct tax to finance the cost for indivisible services that offer the municipalities (public lighting, road safety, etc.) and is applied to all properties. Taxable for TASI are the owners of the houses but also those who hold, in any capacity, the property, so even tenants in case of lease for residential purposes. In particular, those who hold the property are required to pay a share of the TASI between 10% and 30% and the remaining burden on the owner. To determine the minimum and maximum is the duty the Municipality. TARI: who should pay Introduced as the TASI by 1 January 2014, the TARI is the new garbage fee. Taxable for TARI are all those in local and uncovered areas used in any capacity, located in the municipality. Are exempt from the TARI all those areas that do not produce waste, a condition due to non-usability of the premises and areas (e.g. because the house does not have the minimum requirements of habitability, as they lack the electricity connections, Water and Sanitation). Each municipality, in the Regulations of the garbage fee, may establish exemptions and reduction of TARI (e.g. failure to provide the service of waste management, service interruptions management and collection of waste that may cause damage to the community and to ‘environment, not continuous use of the property, property occupied by a single person). TARI and for Italians TASI living abroad: payment reduction to 1/3 As for Italian citizens who live permanently abroad, even if already retired in the countries of residence, owners of a property in Italy, on the one hand they completely discount the IMU, on the other must pay both TASI that TARI. However, they can still benefit from a tax reduction equal to 1/3. So if the amount calculated under ordinary TASI, amounts to EUR 300, Italian citizens not residents will pay 100 Euros. And if the property is luxurious or fine? Given the silence of the provision, it follows that the reduction in one-third of TASI and TARI can apply even if the property treated as a principal residence of the non-resident, is classified in cadastral categories A1, A8 and A9.

Survey: the Italian real estate keeps on improving

The evolution of the Fiups Index (real estate operators sentiment) from 01/2012 to 08/2015 The Fiups is an acronym for Federimmobiliare, University of Parma and Source Group and is a graphical representation of sentiment. The index is produced by Sorgente Group. The Sentiment is a survey from a qualitative group, aimed at identifying the expectations expressed by the various sectors of the real estate in the 12 months to follow. It’s a projection of market sentiment in its main actors, a panel of around 200 operators in the real estate market, an evaluation that seeks to measure the expectations of real estate, on a quarterly basis. The answers provided in 14 major questions that comprise the estate Sentiment questionnaire, are the basis for the calculation. The operators respondents of the survey belong to the following main areas: trade, development, property, facility, design, evaluation, consulting, real estate finance, as well as numerous specialized professionals in the sector (engineers, architects, surveyors, notaries). Scientific coordinator of the project is Professor Claudio Cacciamani, flanked by Professor Federica Ielasi, while current operational coordinators are Dr. Sonia Peron and Dr. Lara Maini, of the Department of Economics of the University of Parma. The index highlights an increase from 19.21 (relative to the first quarter 2015) to 20.05 (August 2015), confirming a growth trend of confidence which started from the beginning of 2012. The responses by the operators of the panel highlight how a sentiment of growth and improvement in the economy by the operators of the panel is absolutely consolidating. This will insert the point of departure from the surveys of the past … and it’s expected that in the next 12 months answers given by the operators of the panel will underscore a sentiment of improved perspectives in the economy. The latest survey above reveals a more positive attitude of the operators, which is increasingly pushing not only to price stability, but also to moderate growth. All sectors seem to take advantage of this new vision, with the exception of industrial buildings. A stand out are hotels and commercial properties, which reflect the current economic recovery tangibly perceived by the operators of the panel.

The Italian real estate market catches up

Italy finally in the top ten of European real estate investors This is what immediately catches your eye when you see the report “Emerging trends in real estate europe 2016” published by PriceWaterhouseCoopers (PwC) and the Urban Land Institute (ULI). Italy then at the top thanks to the entry of Milan among the top ten European destinations for international operators, namely the eighth: four steps ahead compared to the previous year. Milan real estate’s on a hot streak This was possible thanks to the 4 billion euros invested in Milan at the turn of the last three months of 2014 and the first nine months of 2015. In particular Milan expectations are even greater growth in the year, so much so that it is expected that the real estate market of the city will be the second most vibrant in Europe in 2016. The most dynamic areas, after the boom of Porta Nuova, should be those close to Central Station and the district of City Life. Foreign investment on the real estate market in Rome As in Rome, the capital is on the 25th place in the rankings but is now ninth when you consider the amount of investment expected in the year. Here, the market is more difficult because of smaller dimensions: the problem, is the presence of poor quality product, but also the high level of fragmentation and less transparency. The residential market, is likely to remain the most dynamic especially if the approach is also extended to sub-sectors such as houses for students and healthcare. Foreign real estate investment in Europe, Berlin shines At the top of the ranking of Europe’s most interesting cities for operators remains Berlin, as it was last year. In second place was another German city, Hamburg, followed by Dublin, Madrid, Copenhagen, Birmingham and Lisbon. After the eighth Milan and Amsterdam we finally still find a German city, Monaco. Paris outside the top ten, however, due to domestic economic problems, most notably the unemployment rate. But to suffer the most will be Russia (especially until it is not clear what will happen in terms of economic sanctions, according to the report) and Turkey, for the known current events.

National Geographic Traveler Magazine

National Geographic Traveler Magazine Announces Its 2014 Best of the World List Features the 21 Best Trips to Take in 2014 November 21, 2013 Limestone dwellings, or trulli, in Puglia, Italy WASHINGTON (Nov. 21, 2013)—National Geographic Traveler magazine today announced its annual Best of the World list, featuring 20 destinations plus a bonus readers’ choice destination to visit in 2014. The list reflects what’s authentic, culturally rich, sustainable and superlative in the world of travel today. The destinations are featured in the December 2013/January 2014 issue of Traveler magazine, available on newsstands Dec. 3, and online at travel.nationalgeographic.com/travel/best-trips-2014/. “Our annual Best of the World list doesn’t reflect hot spots drawn from celebrity sightings or travel statistics,” said Keith Bellows, editor in chief of National Geographic Traveler magazine. “It reflects the expertise and experience of National Geographic Travel’s huge network of global travel experts. If you want to explore places worth visiting now, this is a great place to start.” The destinations featured in the 2014 Best of the World list are (in alphabetical order): Alentejo, Portugal Arbil, Iraq Bolaven Plateau, Laos Cacao Trail, Ecuador Cape Verde Cathar Country, France Córdoba, Argentina Derawan Islands, Indonesia (readers’ choice) Guyana John Muir Trail, Scotland Liechtenstein Nahanni National Park, Canada New Orleans, Louisiana Northern Territory, Australia Nyungwe National Park, Rwanda Puglia, Italy Ranthambore National Park, India Riga, Latvia Rocky Mountain National Park, Colorado Sarajevo, Bosnia and Herzegovina Sochi, Russia National Geographic Traveler magazine’s global community of writers, editors and explorers selected 20 of the destinations, and for the first time a readers’ choice submission was also included. To see photographs and learn more about each destination, visittravel.nationalgeographic.com/travel/best-trips-2014/. Press images are available at the FTP site:http://press.nationalgeographic.com/downloads/Megan H/2014_Best_of_the_World username:  press | password:  press About National Geographic Travel National Geographic Travel is the travel arm of the National Geographic Society, one of the world’s largest nonprofit scientific and educational organizations, founded in 1888. National Geographic Travel creates meaningful and engaging travel content and experiences through National Geographic Traveler magazine; National Geographic Expeditions; travel books; maps; apps; digital media; and travel photography programs. National Geographic Traveler (eight issues per year) is the world’s most widely read travel magazine and has 14 international editions. It is available by subscription, on newsstands in the United States and Canada, and digitally for tablets. National Geographic Expeditions, the travel program of the Society, offers a variety of unique travel experiences led by top experts to more than 60 destinations across all seven continents. Travel opportunities include family and student expeditions, active adventures, private jet trips and voyages on the six expedition ships in the National Geographic-Lindblad fleet, as well as photography workshops, expeditions and seminars. The National Geographic Travel digital group offers inspiring and authoritative digital travel and adventure content such as trip ideas, photo galleries, blogs and apps. National Geographic Travel Books bring readers curated travel advice and inspiration. Follow National Geographic Travel on Twitter, Facebook and Instagram

Why Puglia trumps Tuscany — and where to buy

Why Puglia trumps Tuscany — and where to buy Italy’s sun-drenched heel is cheaper, warmer and less touristy than the traditional favourite, with turquoise waters and a hint of Greece about it Liz Rowlinson Published: 1 June 2014 Comment (0) Print Puglia, Italy’s sun-drenched heel, has long been a well-kept secret. Jutting into the translucent turquoise waters of the Adriatic and Ionian seas, it is a region of breathtaking seascapes and silvery carpets of olive groves, of whitewashed hilltop towns and locals hawking plump vine-ripened tomatoes and homemade olive oil in the noisy bustle of the weekly markets.

The New York Times about Lecce, south Italy

By SETH SHERWOOD AUGUST 8, 2013 Thanks to dozens of mostly Baroque-era churches packing its maze of narrow streets, Lecce, the “Florence of the South,” dazzles with elaborately carved facades and interiors that erupt with symphonies of angels, cherubs, saints, saviors and Madonnas. But this small gem in Italy’s heel is far from a haven of monkish abstemiousness. A capital of southern Italian cooking, the city brims with rustic restaurants serving the hearty peasant cuisine and robust red wines of the Puglia (Apulia in English) region. Throw in a buzzing bar scene and nearby beaches of sun-bronzed bodies and you have a city fit for holy men and hedonists alike. FRIDAY 5 p.m. 1. History and Coffee During the Roman era, some 20,000 spectators would fill the stone seats of the arcaded amphitheater in what is now Piazza Sant’Oronzo. Today the locals tend to congregate on the lively outdoor terrace of Caffè Alvino on the Piazza Sant’Oronzo, which sits alongside the partly excavated ruins and other landmarks from Lecce’s past. Sit back, order a Lecce specialty called caffè in ghiaccio con latte di mandorla (espresso with ice and almond milk) and admire the majestic stone Sedile — a former town hall and armory built in the late 16th century — and the soaring stone pillar topped by a statue of the city’s patron saint, St. Oronzo, from the Baroque period. Slide Show | Scenes From Italy’s Heel Take a stroll around Lecce, a historical town in the Puglia region. 7 p.m. 2. Champion Chiselers No, you’re not hallucinating. With the frenzied crowdedness of a Hieronymus Bosch painting and the intensity of a fever dream, the colonnaded, multitiered and ornately sculptured exterior of Basilica di Santa Croce on Via Umberto, just north of Piazza Sant’Oronzo, bursts exuberantly with hundreds of finely detailed forms. Pacing lions, howling dragons, cross-bearing angels, undersea creatures, turbaned Turks, topless women, urns, scrolls, shells, birds, horses, heralds, shells and flowers fill the facade of Lecce’s iconic church, completed in 1695 after work by three generations of architects and artisans. 8 p.m. 3. Salt of the Earth Trattoria di Nonna Tetti restaurant on the Piazzetta Regina Maria keeps things simple. The décor is a humble amalgam of rough stone, tiles and wood. The culinary components are equally rustic, as befits a restaurant specializing in cucina povera, the “poor people’s food” that has traditionally made up the local diet and is now gaining favor among foodies for its authentic salt-of-the-earth flavors and healthy Mediterranean ingredients. Representatives include fava beans in oil with chicory and a gooey, crunchy, starchy, garlicky gut-filler called ciceri e tria, which blends fried and boiled pasta and cooked chickpeas. Italian classics round out the menu, from caprese and mozzarella antipasti to a spongy tiramisù. A meal for two, without wine, costs around 50 euros, or $65 at $1.30 to the euro. THE NEW YORK TIMES 10 p.m. 4. Start Your Wining Wine bars have sprouted in bunches on Via Umberto I, north of the Basilica di Santa Croce. As night falls, grad student types and young professionals fill their stone-vaulted interiors and spill onto crowded sidewalk tables. Decorated with books, artworks and shelves of wine bottles, boho-cool Vineria Santa Cruz has a lengthy wine list that includes a regional primitivo (similar to zinfandel) from the Tenute di Eméra winery that’s deep, dark, dry and tannic (5 euros a glass). Nearby at Shui, the buttery-yellow paint job and suspended contemporary lighting create a medieval-modern ambience in the stone chapel-like interior. Salice from the Cantele winery (4 euros a glass), made from the negroamaro grape, is acidic and juicy. SATURDAY 10 a.m. 5. Go for Baroque No street in Lecce oozes Baroque extravagance like Via Libertini. Enter the southwestern gate to the city’s historic core, the 18th-century Porta Rudiae, and pop into the Basilica di San Giovanni Battista. Completed in 1728, the church is a soaring, light-flooded expanse ringed by high windows and packed with stunningly detailed carvings of cherubs, wreaths and more. The richly decorated pulpit is flanked by twisting spiral columns and chiseled scenes of the Apocalypse. Farther up Via Libertini on the same side, the 17th-century Chiesa di Santa Teresa has a restrained neo-Classical facade and an interior containing macabre artworks, from an emaciated statue of Jesus writhing in a glass-box coffin to a painting of Salome with the head of St. John. The stunning finale appears in Piazza del Duomo. Alongside a tall, tapering bell tower, the city’s 17th-century cathedral (cattedraledilecce.it) is another highly chiseled edifice that houses stained-glass windows, a coffered wood-and-gilt ceiling and a Greek marble altar decorated with lapis lazuli. Noon 6. Deli Cafe by the Duomo Tucked next to Piazza del Duomo, Doppiozero is a hip, modern, delicatessen-style restaurant amid the time-fissured buildings. Under a jazzy soundtrack, convivial groups fill long communal tables illuminated by abstract arty lamps made from half-melted glass bottles. One wall is stacked with pastas, olive oils and wines for takeout; the other is lined by a deli counter showcasing fresh cheeses (Gorgonzola, pecorino, scimudin) and cured meats (salami, speck and coppa) that get sliced into made-to-order combo platters. Also worthwhile are the bite-size meatballs in zesty tomato-onion sauce and the roast beef crostini with horseradish mayonnaise. Lunch for two is 30 to 40 euros. 2 p.m. 7. The Big Sleep Lecce residents love their siesta, and from 2 to 5 p.m., shops close, squares empty and the great snooze ensues. Don’t succumb. Across from the entrance to the 16th-century Castello di Carlo V, catch the No. 32 bus at 2 p.m. sharp (it runs infrequently; 39-0832-340-898) and get off in the seaside town of San Cataldo, about six miles away. South from the lighthouse, the palm-lined boardwalk overlooks craggy promontories and sandy beaches of bright green-blue water that make scenic spots for a stroll, picnic, tryst, tan or splash. 6 p.m. 8. Retail Revival Footsteps and voices return to Lecce’s streets and shops at the end of the afternoon. Boutiques for local goods beckon near

Italian Succession Law

Italian  Succession Law   Succession law in Italy is provided for by the Civil Code. It disciplines two main types of succession: 1) inter vivos and 2) mortis causa. The first disciplines the acquisition of rights or property between living persons (natural and artificial) the second the acquisition of rights or property by inheritance under the laws of descent[i] and distribution[ii]. It is of interest of this article to TREAT about the second type of succession the mortis causa, the after death succession.   Italian Succession law, or inheritance law, provides for: testate succession, in the presence of a valid Will or Testament and legal succession, established by law, that occurs in the absence of a will or a valid will. The two types of successions are regulated by principles that interrelate and interfere with each other, trying to determine legal certainty and, at the same time, disciplining as many outcomes as the living cases of inheritance.   Testate succession. The testate succession is based on the valid will, or testament: “the legal expression of an individual’s wishes about the disposition of his or her property after death; esp., a document by which a person directs his or her estate to be distributed upon death”[iii]. For the Italian law the testament is a revocable act that allows the testable to dispose of all it’s assets or of part of them upon death (art 587 c.c.). The Italian law requires the person disposing of it’s estate to have the capacity to make a will (testable), explicitly excluding the persons that have not reached the legal age, the sound mind or have made a testament with a diminished capacity, even if temporary or transitory. The testament must be written, it can be handwritten (testamento olografo) or written with the form of notary public act – art. 601-608 c.c.-. The will disposing of rights and properties in the handwritten form must by law entirely be written by hand, dated and signed by the testable in a way that it clearly allows to attribute it to the person disposing of his estate. The date of the handwritten testament must indicate the day, the month and the year. The testament expressed in front of the Italian notary public is considered to be public and requires the presence of two witnesses. The testable declares his will before the notary public, that provides with the writing and, successively, reading of the testament to the testable and the witnesses. The testament must indicate the place, the date and the hour of delivery to and the signature of the testable, the notary and the witnesses.   Legal succession. The Italian legal succession is based on two main principles: one operating on the guarantee that, in absence of a valid will, the estates of a decedent will be devolved to lineal heirs, collateral heirs and, if missing, the State, with the purpose to guaranteeing certainty to the entitlement of rights and property; and on the other side, another operates to guarantee that lineal heirs, collateral heirs receive a legal portion (legittima) of the estate of the decedent. Therefore, the Italian law gives relevance to the will of a decedent and then, if missing, to the legal succession (or intestacy), BUT the legal succession has the power to interfere with and modify the testamentary succession if the legal portion (legittima) for forced heirs[iv] is not respected by the distribution operated through the will. [i]     Descent law [ii]    Distribution law [iii]  Black’s law dictionary, St. Paul, USA, West Publishing, 2011: – Will – 2) “the legal expression of an individual’s wishes about the disposition of his or her property after death; esp., a document by which a person directs his or her estate to be distributed upon death”. [iv]   Black’s law dictionary, St. Paul, USA, West Publishing, 2011: – Forced heir – “A person whom the testator or donor cannot disinherit because the law reserves a part of the estate for that person”.