Freehold and leasehold in Italy IVIE

11/12/2012 - 06:22

This link in para 8 indicates there is the concept of "freehold" and "leasehold" here in Italy, does anyone know if this is the case and how you tell? Also does anyone know if it is true that IVIE will only apply to leasehold houses in the UK?


I read this stuff somewhere else, and considered that it had to be a bad translation or some other misapprehension, so I ignored it. So I looked at the circular from the agenzia (the relevant para I have posted below, in Italian). What (IMO) the circular is saying is that if you ''own'' a leasehold property (in, for example, the UK), then you, as the leaseholder (enjoying the rights of your leasehold property) are liable for the IVIE, rather than the freeholder being liable for this tax. That is all. It does NOT say that if you are the freeholder (and enjoying the rights of your property ownership) that you are free of this tax. IMO the intention of this paragraph in the circular is quite clear (and is as I have stated above). However, that doesn't mean that some clever lawyer will try and make it mean what you would perhaps like it to mean!   "Ad esempio, si rileva che per gli immobili situati in Paesi di common law può sussistere sia un diritto di proprietà fondiaria assoluta - “freehold” - che un diritto al possesso dei beni - “leasehold”. Quest’ultimo dà diritto al possesso di beni immobili, disgiuntamente alla proprietà, solitamente per un periodo di tempo molto elevato, dietro il pagamento di un corrispettivo. Considerato che tale istituto presenta maggiori analogie con i diritti reali come disciplinati dall’ordinamento italiano (in particolare, con l’usufrutto), piuttosto che con il diritto di locazione, si ritiene che in tal caso sono tenuti al pagamento dell’imposta in questione i titolari di tale diritto e non anche i titolari della proprietà fondiaria assoluta.

I didn't say anybody had got it wrong, it was just not very clearly expressed!  From the phrasing of the circular from the Italian tax office it seems clear that this notion of a long term leasehold property is not familiar in Italian law - hopefully Ram will come in on this becuse he will be more solid.

Well Ill try - but leasehold as far as I am aware doesnt exist in Italy, certainly not in then UK sense.  The only way it could possibly exist is if there is an owner of the suolo on which you have your house - but it would be a very rare occurrence, and probably extinct by now.   It can happen with terraces for example.  You have your terrace on the roof of your neighbour, and he owns the suolo and gives you a right to use it for a terrace for a fee or by usufrutto   However, for a whole house it would be very very strange and probably impossible.