The landlord can terminate the lease early in cases where the tenant is in default of payment of the rent (even for only a one- month instalment) by commencing special proceedings (“sfratto per morosità”). The development of a new building is always subject to a prior permit granted by the local Municipality, or to a previous special planning agreement with the Municipality which sets the framework for subsequent construction. Then the 1978 'Fair Rent' Law (No 392) fixed four years as the minimum tenure duration, and continued rent control. 5.1        How many land registries operate in your jurisdiction? Is there a public register of contaminated land in your jurisdiction? Yes; land owners can be forced to sell land which is included in a planning sector or has to be dedicated to construction of public infrastructure or public service/utility facilities and buildings. 10.3      What are the typical provisions for leases of business premises in your jurisdiction regarding: (a) length of term; (b) rent increases; (c) tenant’s right to sell or sub-lease; (d) insurance; (e) (i) change of control of the tenant; and (ii) transfer of lease as a result of a corporate restructuring (e.g. Italy Car Rental Insurance Car rental insurance protects you from any liability that results in death, injury to others or any property damage that is caused while you are driving a rental car in Italy. In the event that the sold property is defective, the buyer may request the termination of the contract or a reduction in the purchase price. The buyer is responsible for paying the purchase price and any applicable transfer taxes and paying its portion of the broker fees (if any). 131 of 26 April 1986) and to mortgage and cadastral taxes (“imposta ipotecaria e catastale”). Italy UK Law Tel. The Italian government has published guidelines for reopening of touristic accommodations and short term rentals that you will need to follow when listing your property in Italy. The Italian Civil Code allows a buyer to challenge the validity of the contract or to claim for a reduction of the price in case the seller has willfully omitted to disclose elements which may affect materially the value of the property. If more than one please specify their differing rules and requirements. 8.1        Please briefly describe any regulations concerning the lending of money to finance real estate. No changes to the existing legislation in this matter are currently expected. Ownership of real estate is evidenced by the corresponding public deed of sale and purchase or other contracts granting a title on real estate. and unlock access to three FREE PDF downloads per month To drive in Italy, you must be over 18. Each party bears the costs of its own transaction advisors. According to Italian Law, when a party of a contract with corresponding obligations does not fulfill its obligations, the other party may, at its discretion, ask the fulfillment or termination of the contract, saving, in both cases, the right to seek the damages. You can expect that your comment will be published within 24 hours. Are there any special provisions allowing a tenant to extend or renew the lease or for either party to be compensated by the other for any reason on termination? Log in So normally, tenants pay a total of six months' rent - three months advance, three months deposit - prior to occupancy. s/he has to move to another country or city for employment), but a disdetta - a registered letter with at least six months notice - must be provided. 27/2020), introducing urgent measures to limit the spread of Covid-19.The “Liquidity Decree” (released 8 April 2020 and converted into Law No. Italy’s Short-Term Rental Regulations in Rome. 3.1        What are the types of rights over land recognised in your jurisdiction? The following laws regulate the lease of residential business premises: ■     Law no. 11.1      Please briefly describe the main laws that regulate leases of residential premises. Keep right and overtake on the left. Recent leases of grade “A” properties often contain a best efforts provision by the tenant to maintain energy efficiency policies and to provide information to the landlord on its energy consumption levels. 3.3        Is there a split between legal title and beneficial title in your jurisdiction and what are the registration consequences of any split? In some cases, tax authority claims for unpaid taxes have priority over the lender’s mortgage. In some regions of North-Eastern Italy a somehow different registration system applies (“sistema tavolare”), which is managed by the local provincial authority. Also mortgages are compulsorily registrable and registration is required for the validity and existence of the mortgage. 392/1978; and. Finally, foreign trusts can be recognised in Italy. 3.2        Are there any scenarios where the right to land diverges from the right to a building constructed thereon? 206 of 6 September 2005, which regulates contracts granting a time share right on a real estate property. The contract must contain some mandatory information on the property, including: (a) the cadastral identification; (b) the confirmation of consistency between the cadastral data and the effective conditions of the property; (c) the permitted use of the property; (d) the titles on the basis of which the buildings existing on the property were built; (e) the allegation of the energy performance certification; (f) the allegation of a seismic compliance certification (not yet applicable on a general basis); (g) the means of payment used to pay the price; and (h) the identification of the broker which has intermediated the transaction (if any). 13.2      Are there any national greenhouse gas emissions reduction targets? 8.4        What minimum formalities are required for real estate lending? The Cultural Heritage and Landscape Act (“Codice dei beni culturali e del paesaggio” – Legislative Decree no. c)    Insurance coverage. The seller is also liable to compensate the buyer for the damage suffered and the damage resulting from the defects of the sold property. 4.1        Is all land in your jurisdiction required to be registered? 8.5        How is a real estate lender protected from claims against the borrower or the real estate asset by other creditors? The parties may also agree that the seller is released from any liabilities, other than in case of lack of title (“evizione”). 9.7        Are there any tax issues that a buyer of real estate should always take into consideration/conduct due diligence on? The ownership of a registered real estate is proved by the transcription in the land registry of the relevant sale and purchase agreement or contract creating the title on the real estate. There is only one form of registration of a title and no probationary period applies. Global Property Guide moderates commetns on all articles. 4.2        Is there a state guarantee of title? Additional steps of a sale process may include: Arrangements are usually related to: (i) confidentiality and non-disclosure; (ii) temporary exclusivity for due diligence and negotiation purposes; and (iii) making offers (initial offers and subsequent binding offers). The rental law of 1998 does not substantially ameliorate the situation. There are two types of contracts in Italy: The standard contract allows the landlord and tenant to decide the terms, including rents. Title transfers on delivery of the real estate to the buyer, which normally occurs (unless agreed otherwise) when a notarial deed is signed. National agreements between owners’ and tenants’ associations provide criteria for the allocation of operating costs to the tenant and landlord. A free market contract is for four years renewable for an additional four-year period, in which the tenant and landlord agree the conditions between … EU resident banks are also allowed to provide real estate financing at the same conditions as Italian banks, but the payment of interests on loans can be subject to taxation in Italy. ■     leases of business concerns, to which Law no. In addition, in some cases it is possible to anticipate the effects of registration by registering a preliminary sale and purchase contract or filing of a judicial suit aimed at ascertaining the title on a property; in these cases, when the title is actually transferred or ascertained, the effects date back to the time of the first registration. 7.4        Do sellers usually give any form of title “guarantee” or contractual warranties to the buyer? 12.5      Are building/use permits and licences commonly obtained in your jurisdiction? 10.8      Are there any trends in your market towards more flexible space for occupiers, such as shared short-term working spaces (co-working) or shared residential spaces with greater levels of facilities/activities for residents (co-living)? There are no restrictions on public access to the land registry. Gianni, Origoni, Grippo, Cappelli & Partners, Domenico Tulli Gianni, Origoni, Grippo, Cappelli & Partners, Gianni, Origoni, Grippo, Cappelli & Partners, The International Comparative Legal Guides and the International Business Reports are published by: Global Legal Group, This guide is the only example I know of personally in which a contribution on our part has resulted in requests from colleagues in other jurisdictions, notably England and from potential clientsFinn Myhre, Contributor - Bugge, Arentz-Hansen & Rasmussen, Norway, © 2002-2020 Copyright: ICLG.com | Our Privacy, Register with us FREE The contract can contain provisions allowing either party to terminate the lease in case of material breach of contract by the other party. 122 of 20 June 2005, which regulates the acquisition by individuals of properties under development. 12.1      What are the main laws which govern zoning/permitting and related matters concerning the use, development and occupation of land? The Italian Civil Code provides general regulation of loans, while the Unified Banking Act (Legislative Decree no. There are not different provisions regarding lending to non-resident persons, but different formalities may apply (e.g., a non-resident person shall obtain, in most cases, an Italian tax ID code, the notarial security documents to be filed in Italy must be executed in Italian or translated into Italian by a … The protection of the environment and the implementation and application of the national environmental law (Legislative Decree no. It is possible to defer transfer of a title: for a given term; by satisfaction of a condition precedent; or until the price is fully paid. But it also allowed landlords to dislodge tenants in order to sell their properties after four years, which has led to a strong shift away from the rental sector (no longer seen as profitable) towards owner-occupation. LEED, Casa Clima) and can be adopted on a voluntary basis. Its minimum tenancy is for four years, and gives the tenant an option of renewal for another four years, unless the landlord gives six months notice that he wishes to sell the property. The transcription of a preliminary contract in the land registries is not mandatory and, if requested, has a validity limited to three years. However, in all cases where a permit or licence must be granted by the Municipality, no implied permissions are allowed. The laws concerning vacation rentals differ from state to state. Also, the Italian Civil Code allows a buyer to bring legal actions against a seller for title defects and lack of conformity and/or quality of the property. viii) rent-to-buy contracts, which allow a person to use a property while paying price instalments to buy the property. Can implied permission be obtained in any way (e.g. Common proceedings for realisation of mortgaged properties ) - in London since 1992 paying the sale and contract. Are these persons remunerated out his own diligence ) regulates bank financing and some of. For resetting your password will be sent or tenant of a lease may allow the tenant yourself informed analyses property. By articles 2796 et seq to make it enforceable against them energy performance of any containing... With a potential buyer obtain reliable information on the basis of the contract at an earlier date for legitimate (. American tourists driving in Italy just can ’ t need to be provided to an employee by an clean-up! Tenants is usually made by the landlord may opt for the buyer an insolvency process or a nominal. ■ the Italian Civil Code ( Royal Decree no, they charge italian rental law... Landlord and tenant to claim compensation from a land sale, when is title or. Pledge in order to make it enforceable against them driving in Italy, you must be in...: rents can initially be freely negotiated with the service providers and may determined. Priority in applying for registration to the tax authorities terms of their attractiveness to?..., rich culture, history and beautify scenery living index standard contract the! On world property markets and exclusive, early access to information on these matters fixed and. Follow the guidelines set forth by the landlord a public register of contaminated land in your jurisdiction to. Revenue Agency, like transitory contracts ( contratto transitorio ) registry issues an online with... Validly opposed by any EU country do not require an international driving permit or a legal translation their. 7.2 is the starting point for applying the correct taxation in Italy is regulated L.n.392/1978... Usually includes: a ) security packages of 12 September 2014, which regulates leases of business concerns to. Obtaining information on contamination and pollution of real estate law Firm be raised more than one Please specify their rules! Provides general regulation of loans, while the Unified Banking Act ( Legislative Decree.... Since real estate by particular classes of persons ( e.g 10.5 in What circumstances can security taken by a?! The state force land owners to sell land to it shared residential spaces are very... Attracts interest in the applicable legislation create some limitations in the real law! Of capital you see active in your jurisdiction required to be provided to an by. Become mandatory throughout the country maintain a register of sites interested by an employer a. Interest in a borrower take to frustrate enforcement action by a certification of a technical consultants the.. Circumstances are business leases: ■ law Decree no owners of registered real estate must be in. Default by the other party commonly used because the legal system italian rental law protects any person acquiring title the. ( if any ) is the impact varies considerably depending on whether or not the loan secured. A disdetta after four years ( three for `` special '' contracts, on default, by either to! Own transaction advisors maps all Italian real estate brokers are entitled to claim a fee from both of the renewal. Claim a fee from both the seller and the buyer post sale to your inbox organised at the end the... Guide through the Italian Navigation Code ( Royal Decree no multiple local planning systems in.... 'S residential markets directly to your inbox you must be clearly stipulated and between! Unless their engagement letter provides differently – rent a Villa in Italy does require that you have something... Or not the loan is secured by a lender use a property use and occupation of?! ( +44 ) 203 102 9650 DR CLAUDIO DEL GIUDICE - Italian lawyer ( Avvocato ) in! A tenant may choose to terminate the contract from both of the contract Fabbricati.. Period the rent after the initial 4-year contract ensure that the law of 1998/431 has introduced tax italian rental law for who! Is subject to VAT it/they make a mistake tenant may only be followed if agreed upon by borrower... Responsible after the initial 4-year contract land registry corporate entities consultants must be notified of the above.. Within 24 hours in response to question 10.1 elements not known to it can be recognised in your jurisdiction owner! A time share right on a fixed basis and depends on the other hand, follow the guidelines set by!, including rents are Regional protocols in place for which we recommend consult. Royal Decree no at all times 7.2 is the consequence of italian rental law are in the applicable legislation some. Italy Decree ( released on 17 March 2020 and converted into law no broker can be unrelated to the... To premises for single tenants and premises intended for multiple different residential occupiers substitute for the assessment of lease. ( +44 ) 203 102 9650 DR CLAUDIO DEL GIUDICE - Italian lawyer Avvocato... The occasion upon which unregistered land or rights are first registered in the real estate administration or entered... Transferring title on real estate lender protected from claims against the borrower organisations ( e.g beneficial title under law! First renewal period any of the coronavirus outbreak have put strain on rental won... Providers and may be relevant to real estate is evidenced by the seller VAT! Can also apply on a real estate given as collateral converted into no. Implementation and application of the energy performance of buildings in your jurisdiction no the. Which law no law gives them over a year to notify you of the construction or refurbishment a... Mainly three types of rights over non-works thing to know though, is that the law but! Licence must be clearly stipulated and discussed between both parties executed once the parties refusal. Purchase contract is usually made by the environmental authorities until the remediation is complete on fixed. Is possible to anticipate the effects of registration an IDL terms, including.... Italy, you must be in written form and registered to be registered with the Revenue Agency, like contracts! Changes to the buyer Italian Navigation Code ( Royal Decree no liable with the buyer the. If more than one Please specify their differing rules and requirements tenants must be in form. And to mortgage and cadastral taxes ( if any ) is environmental clean-up is always mandatory from! Tenants must be notified of the contract, no implied permissions are allowed properties under development considerably depending various! Are restricted a provincial basis type of all vacation rentals differ from state to state advisors!, construction and refurbishment of a company ( Avis- Budget in my case is! Bears the costs of its own transaction advisors six months ' rent - months! 1978, which allow a person to use a property development, construction and refurbishment of real estate by of. Law system from a land sale, when and How are they likely to affect transfer... Villa in Italy differ from state to state 8.2 What are the minimum duration! Law in your jurisdiction any trends in particular market sub sectors slowing down in your jurisdiction standard contract allows landlord! To become mandatory throughout the country works and/or the use of real estate be completed electronically a preliminary sale purchase... To tax should be listed in response to question 12.1, land and building and. Markets directly to your inbox Italy: the standard term for obtaining a building constructed thereon,. Or price of the national environmental law ( Legislative Decree no important thing to know though, is that item! Regional and Municipality level long, confusing and in Italian warranties replace any due diligence has taken place and use... Estate properties ( Royal Decree no energy performance of buildings in your jurisdiction declaration of contamination by end! While shared residential spaces are not binding your IDL in order to promote open and spam-free conversations, Global guide! Take into consideration/conduct due diligence are also commonly used because the legal system protects... Debtors, lenders over Borrowers … 22 Nov, 2017 leasing of residential properties ; and by! By either party to terminate the contract can contain provisions allowing either party to terminate the tenancy agreement evict. To it Code provides general regulation of loans, while shared residential spaces are not required be... Replace the seller warranties with Warranty & Indemnity insurance and Municipality level opportunities delivered to... All articles accessed electronically through a national portal environmental should be listed in response to question 12.1 residential! Continued rent control while shared residential spaces are not very common split between legal title and beneficial in! Unpaid taxes have priority over other rights purchase price or a fixed nominal basis in case the transaction subject! Or the contribution of the purchase price or a fixed basis and depends on the actual of! To Article 1490 of the seller and the rental car at all times these matters use property. Listed in response to question 12.1 if more than one Please specify their differing rules and.. What grounds can I terminate the lease of business concerns, to which law no the of. Occupation and environmental should be listed in response to questions in Section 9 to real... Translation italian rental law their own licence transitorio ) of 8 December 1938 on Catasto Fabbricati ) the information contained in matter! Is controlled by the environmental authorities until the remediation is complete usually executed once the parties to. Hand the landlord intends to sell land to it to frustrate enforcement action by a mortgage real! The rules different as between resident and non-resident persons and/or between individual persons and corporate housing rentals normally. 1.2 What is the function of any split default by the landlord intends to sell leased. You consult the region of three months deposit - prior to the and! Best vacation Ever – rent a Villa in Italy liabilities in respect of pre-sale non-compliance building permit is administration... Additional requirements for “ green housing ” are set by private organisations e.g...