New tax changes on gifting of real estate by 2024

Italian real estate remains a major source of tax revenue. The Budget Law, which is pending approval in Parliament, confirms that when inheriting real estate, the first heir is the State, which must provide civil services. With the exception of some revisions in other areas (flat tax rate and superbonus), the 2024 budget of almost 28 billion euros seems finally ready. The first real action of the Meloni government provides for some changes regarding real estate donations.

How much are real estate gifts and inheritances worth? In 2022, real estate in Italy increased by 1% in just one year, from over 736''Thousands of properties compared to 2021. 88% of homes and properties are owned by individuals, especially properties registered in categories A and C. According to updated estimates, there are 35.5 million residential properties in Italy. The total cadastral value is more than 38 billion euros, almost double the usual budget. This is a goldmine that, not coincidentally, divides the political class into supporters and opponents of the introduction of a property tax. Among the most debated taxes is the tax on gifts of real estate, from which the Financial Service plans to generate new resources in the financial plan for 2024. In 2022, almost 213 thousand real estate gifts were registered in Italy, which represents a significant part of''of this Italian heritage.

What will change for real estate gifts in 2024?

This debate is also heavily focused on gifts of real estate, a thriving market closely tied to'The 'phenomenon of population ageing, which in Italy is quite pronounced. In fact, many inherited houses belong to the old generations, grandmothers and parents of the population, currently the most active. This is a huge inheritance that, on the one hand, provides the new generation with a safe home. On the other hand, it can become a legacy from which to generate income or create a new economy, hospitality and commercial enterprises and more.

The third legacy, of course, is the state, which can derive valuable resources from these assets to provide services. This chapter has been restored in the 2024 financial plan developed at Palazzo Chigi. The draft budget to be approved,''provides for some changes in this sensitive area of gifts and inheritance. The government intends to unblock the market with some measures. Here is a summary of what will change: the return of gifted property (the third party who acquired it will not have to return it); the inheritance of houses and properties (heirs of legacies that have been refused to them and who find themselves aggrieved will be able to claim monetary compensation from the recipient); the sale of gifted property (the government is proposing a review of lands and participations with an alternative tax to reduce the tax pressure on possible capital gains and unblock the market for 'legitimate inheritance shares'). According to some analysts, these are more likely to be temporary''s decisions, in anticipation of a more structural reform that could determine the future of this important economy in Italian real estate.