The draft of 2024 Budget Law provides a tax relevant amendment to the current tax regime of the constitution of real property rights on immovable properties from natural persons not subject to VAT.
Current regulatory provision, tax practice, and case law
In the current tax framework, art. 9, par. 5 of Italian Tax Code (hereinafter, ITC) equates to onerous transfers also the deeds having as their object the constitution or transfer of real property rights, among which are included the usufruct right and surface right.
In the event that the constitution or transfer of the real property right is carried out by a no-VAT subject, “other income”, according to art. 67 of ITC, arises for that subject.