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Client Alert

New Provisions to the Taxation of Real Estate Funds in Italy

August 04, 2008

Bernadette Accili and Roberto Cornetta

The new bill for the budget law for the year 2009, passed on June 25, 2008, introduced significant amendments to the taxation of real estate funds in Italy.

The new provisions, if approved by the Parliament as proposed by the Government, will significantly hinder the taxation of closely held real estate funds and of Italian investors. Therefore, it is likely that some investors will dispose of their units and that some funds will be forced to sell some of their portfolio properties, thus opening new opportunities for foreign investors in the Italian real estate market.

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