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Legislative package Sblocca Italia: numerous changes since September 2014

13 October 2014

On September 13, 2014 the legislative package “Sblocca Italia”, which was passed by the government under Prime Minister Matteo Renzi, came into force. In addition to a variety of measures towards the digitalization of Italy, the simplification of bureaucratic procedures in general and the revival of production sites, the package contains various new regulations for the building sector and important changes to the Italian tenancy law

Extension of tax benefit “Ecobonus”

“Ecobonus” – a tax benefit for reconstruction works on properties in order to reduce energy consumption – should have been cut from 65 % to 50 % by the end of this year. However, it was decided to extend “Ecobonus” by another year until December 31, 2015! For more information click here.

Extension of extraordinary maintenance

As of now the partition or the joining together of two apartments comes under extraordinary maintenance works on properties. Even though the living space of the individual apartments can differ after these alterations, the total volume as well as the purpose must remain the same. The advantage is that from now on a simple notification of the start of construction works (SCIA) to the local building authorities is sufficient. One no longer has to wait for an explicit building permission on the part of the locals authorities in order to start construction works.

New regulations for lease-purchase arrangements

So far not much importance has been attached to contracts concerning lease-purchase arrangements due to their rather not-binding form. Now, however, due to an amendment of the law these contracts get a more binding character similar to a preliminary contract. In future, the proprietor is obliged to keep to his sale-promise at the end of the contract. Otherwise he has to pay the tenant/buyer all rental income so far received, interest included. The other way round the tenant, who does not fulfil the contract, loses every claim to the rent paid up to now. We will soon provide further information concerning lease-purchase arrangements in Italy!

20 % tax relief on the purchase of property for long-term leases

Private persons, who invest into Italian property between 2014 and 2017 in order to rent out these properties immediately after their purchase for at least 8 years, can deduct 20 % of the sales price stated in the sales contract on condition that the new or renovated property is purchased directly from a building contractor. New buildings on one’s own ground also come under this regulation provided they are constructed by external companies.

The property has to be in accordance with energy class A or B and has to be classed as residential property (except for luxury properties of the building categories A1, A8 and A9) and must be rented out for at least 8 years in one piece within 6 months after the purchase or the conclusion of the building works. In case the contract is prematurely terminated through no fault of the landlord, he can still claim tax benefits if a new tenancy lease is signed within a year. Careful however: the tenant must not be a first-degree relative and the amount of the rental cost must be within a certain legal frame.

It is possible to buy several properties, the subsidy cap, however, is 300.000 euros, which results in a maximum tax deduction of 60.000 euros, which is spread out equally over 8 years.

New regulations for lease deductions

In case landlord and tenant should agree on lower rents during the term of lease, the registration of the new contract is exempt from the registration fee and the revenue stamp.

“Demolition bonus” for companies

Building companies, which acquire properties in low energy classes, pay a set land transfer tax of 600 euros, provided the renovated property is resold within 5 years after the conclusion of building works and the property now comes into energy classes A or B.

Further news regarding italian legislation