LED Taxand summarizes hereinafter the main tax news regarding Italian real estate for the fourth quarter of the year 2021.

Case Law – EU Court of Justice, Judgement 16 December 2021, joined Cases C-478/19 and C-479/19. Transfer tax reduction applicable also to foreign open-ended real estate funds.

According to art. 35, paragraph 10-ter, Law Decree no. 223/2006, transfer taxes are reduced by half in case of sales/purchases of commercial real estate assets made by Italian closed-ended real estate funds. The EU Court of Justice stated that such provision represents a restriction on free movement of capital. Therefore, this favourable tax treatment must apply also to foreign open-ended real estate funds. The applicability of this beneficial provision to foreign closed-ended real estate funds has been confirmed by the First-Degree Tax Court of Milan, decision no. 5952/2018.

2022 Budget Law, art. 1, par. 718 – Extension of the SIIQ/SIINQ regime

Article 1, paragraph 718, of Law no. 234 of 2021 (2022 Budget Law), amended the conditions under which it is possible for a SIINQ (Non-listed Real Estate Investment Company) to apply the special tax regime available for SIIQ (Listed Real Estate Investment Companies). The amendments apply from 1 January 2022.

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