FAQ

1. Why Choose Studio Molinaro Real Estate?

Studio Molinaro Real Estate was established in 2008, building on the extensive experience of its founder, Gianluca Molinaro, in property valuation and real estate transaction management.

The founder's decision to establish an independent real estate consultancy rather than join a franchise network reflects his commitment to developing a distinctive professional identity, where brokerage and advisory services are founded on expertise, integrity and professional ethics.

Clients benefit from a single dedicated point of contact who takes personal responsibility for their requirements, establishing a relationship of mutual trust designed to last over time.

Today, Studio Molinaro RE is an established real estate brokerage firm specialising in the sale and leasing of commercial real estate assets, as well as the sale, letting and management of prestigious residential properties.

Located on Via del Babuino, in Rome's historic city centre, Studio Molinaro RE is a trusted point of reference for clients seeking to purchase property or invest in one of the capital's most exclusive neighbourhoods.

2. What Is My Property Worth?

A property's market value is determined through a professional appraisal, primarily based on an analysis of comparable property transactions recorded within the relevant geographical area.

The valuation takes into account a range of factors:

Property location;
Floor area;
Floor level;
Orientation and exposure;
Interior condition;
Outdoor spaces, including balconies, terraces, courtyards and gardens;
Ancillary facilities, including parking spaces, garages and cellars;
Overall condition and maintenance of the building;
Surrounding neighbourhood and environment;
Accessibility and integration within the urban infrastructure, including transport links and access to essential services and amenities.

A professional property valuation requires a thorough on-site inspection, the preparation of a detailed technical property report and an expert assessment based on the sale prices of comparable properties with similar characteristics in the same geographical area.

3. What Documents Are Required to Sell a Property?

The documentation required for a property sale includes the documents necessary to verify the identities of the parties involved in the transaction (seller and buyer), as well as the legal, cadastral and planning status of the property being sold.

Generally, the following documents are required:

Valid identification documents for all parties to the transaction;
Extracts from the birth certificates of the contracting parties;
Extract from the marriage certificate, where applicable, to establish the relevant matrimonial property regime;
Extract from the death certificate in cases involving inheritance;
Power of attorney authorising the sale, where applicable;
Original building permit or a declaration confirming that the property was constructed before 1 September 1967;
Urban Planning and Zoning Certificate (Certificato di Destinazione Urbanistica – CDU) for transactions involving land exceeding 5,000 square metres;
Title deed or proof of ownership, including a deed of sale, inheritance deed, deed of gift, exchange deed or court-issued transfer order following a judicial property auction;
Relevant building permits and planning authorisations for any construction or renovation work carried out;
Certificate confirming the property's lawful building and planning status, where applicable;
Mortgage Registry and Cadastral Searches (Visure Ipotecarie e Catastali);
Digitised cadastral floor plan;
Certificate of Habitability or Certified Notification of Usability (Segnalazione Certificata di Agibilità – SCA);
Certificates of compliance for electrical, plumbing and other building installations, where applicable;
Energy Performance Certificate (Attestato di Prestazione Energetica – APE);
Condominium clearance statement confirming that all outstanding service charges have been settled by the seller;
Building documentation file, where available;
Condominium regulations.

4. What Is the Difference Between Net Usable Floor Area and Commercial Floor Area?

Net usable floor area refers to the internal and external surface area of a property that is effectively available for use.

It excludes the space occupied by internal partition walls, external perimeter walls and structural load-bearing walls.

Net usable floor area is used as a reference for calculating the taxable basis of the Italian waste collection tax (TARI) and, in the residential rental market, for determining rent under regulated-rent tenancy agreements.

Commercial floor area, on the other hand, includes both internal and external areas, taking into account internal and perimeter walls and applying specific weighting coefficients to different parts of the property.

Commercial floor area is indicated in cadastral records under the property's registered floor area and serves as a key reference for determining its market value.

5. What Are the Eligibility Requirements for First-Home Purchase Tax Relief?

Italy's First-Home Purchase Tax Relief (Agevolazioni Prima Casa) allows qualifying buyers to benefit from reduced taxes when purchasing a residential property.

The tax benefits include:

Registration Tax: 2% when purchasing from a private seller, or 4% VAT where the transaction is subject to VAT;
Cadastral Tax: a fixed amount of €50 when purchasing from a private seller, or €200 where the transaction is subject to VAT;
Mortgage Registration Tax: a fixed amount of €50 when purchasing from a private seller, or €200 where the transaction is subject to VAT.

Any taxes already paid upon signing the preliminary sale and purchase agreement are deducted from the final tax liability.

To qualify for these benefits, several conditions must be met:

The transaction must involve the transfer of ownership, whether for consideration or without consideration, or the establishment of bare ownership, usufruct, rights of use or rights of habitation;
The property must not be classified as a luxury property and must fall within cadastral categories A/2, A/3, A/4, A/5, A/6, A/7 or A/11, including qualifying appurtenances in categories C/2, C/6 and C/7;
The property must be located in the municipality where the buyer resides, intends to establish residence within 18 months of purchase, or carries out their professional activity;
The buyer must declare in the notarial deed that they do not own, either wholly or partially, including under a matrimonial community property regime, another residential property anywhere in Italy previously purchased by themselves or their spouse using first-home tax benefits;
The buyer must declare that they do not hold exclusive or joint ownership with their spouse of another residential property in the same municipality, including rights of bare ownership, usufruct, use or habitation.

First-home purchase tax relief may also apply where the buyer already owns a dwelling that is objectively unsuitable, due to its size or characteristics, to meet the housing needs of the buyer and their family.

Individuals who sell a property originally purchased with first-home tax benefits and acquire another qualifying property within one year, even if construction has not yet been completed, may be entitled to a tax credit.

The tax credit is equal to the registration tax or VAT paid on the original qualifying purchase, but cannot exceed the registration tax or VAT payable on the subsequent purchase.

The credit is non-refundable but may be offset against the registration tax due on the second purchase, provided that the buyer informs the notary when executing the deed.

Alternatively, the tax credit may be used:

To offset registration, mortgage and cadastral taxes payable on inheritance, gifts, deeds and declarations submitted after the tax credit was acquired, subject to the ordinary ten-year limitation period;
To offset social security contributions or withholding taxes;
To reduce personal income tax payable under the tax return submitted following the new property purchase.

Where the tax liability is insufficient to absorb the full credit, the unused portion may be offset against eligible taxes arising from subsequent transactions.

If the second purchase is subject to VAT, the tax credit cannot be applied directly upon execution of the notarial deed and must instead be used through one of the alternative methods outlined above.

The tax credit is not available in the following circumstances:

The second purchase does not meet the requirements for first-home tax relief;
The original property was purchased under the standard tax regime without first-home benefits;
The property sold was acquired through inheritance or donation;
The transaction involves the sale of a garage purchased as an appurtenance under first-home benefits and the subsequent purchase of another garage under the same benefits within one year.

COVID-19 Emergency Provisions

In response to the COVID-19 emergency, the Italian Liquidity Decree (Decreto Liquidità) suspended certain statutory deadlines relating to first-home tax benefits and the associated tax credit.

The suspension applied to the period from 23 February 2020 to 31 December 2020 and concerned:

The 18-month deadline for transferring residence to the municipality where the purchased property is located;
The 12-month deadline for selling a previously owned residential property in order to qualify for first-home tax benefits on a new purchase.

According to the original provisions referenced, these deadlines were scheduled to resume on 1 January 2022.

The suspension also concerned certain tax obligations relating to registration tax, VAT, mortgage registration taxes and cadastral tax in inheritance and gift transactions.

6. What Tax Benefits Are Available to First-Time Buyers Under 36?

The Under-36 First-Home Purchase Tax Relief (Agevolazioni Prima Casa Under 36), introduced by the Italian Sostegni-bis Decree, was designed for buyers who had not yet turned 36 during the calendar year in which the notarial deed was executed and whose annual ISEE (Equivalent Economic Situation Indicator) did not exceed €40,000.

The relief applies to transactions involving the transfer or establishment of ownership rights, bare ownership, usufruct, rights of use or rights of habitation, provided that the property qualifies as a first home. Eligible ancillary properties are also included.

Qualifying transactions are exempt from:

Registration Tax;
Mortgage Registration Tax;
Cadastral Tax.

However, stamp duty, mortgage registry fees and special cadastral charges remain payable.

The benefits do not apply to preliminary sale and purchase agreements.

Where the transaction is subject to VAT, eligible buyers are entitled to a tax credit equal to the VAT paid on the property purchase.

This tax credit may be:

Offset against registration, mortgage and cadastral taxes, as well as inheritance and gift taxes payable on subsequent deeds and declarations;
Used to reduce personal income tax payable under the tax return submitted after the purchase;
Offset against other eligible tax liabilities using the Italian F24 tax payment form.

The tax credit is non-refundable.

Mortgage loans granted for the purchase, construction or renovation of qualifying residential properties are exempt from the substitute tax ordinarily levied at 0.25%, which replaces registration tax, stamp duty, mortgage and cadastral taxes and government concession fees.

To qualify, the borrower must declare compliance with the eligibility requirements in the loan agreement or in an attached declaration.

Under the original provisions referenced, these benefits applied to deeds executed between 26 May 2021 and 30 June 2022.

The First-Home Mortgage Solidarity Fund, established under the Italian Cura Italia Decree to assist borrowers experiencing financial difficulties in meeting mortgage repayments, was extended until 31 December 2021.

7. What Property Renovation and Building Tax Incentives Are Available?

The Italian 2021 Budget Law introduced several categories of tax incentives for building renovation and improvement works.

These incentives were designed to achieve three main objectives:

Improve and enhance the quality and value of real estate assets;
Optimise property investments;
Provide taxpayers with financial benefits through tax relief.

The incentives described in the original legislation are divided into six main categories:

Renovation Tax Relief (Bonus Ristrutturazioni): tax incentives for qualifying property renovation and refurbishment works;
Seismic Improvement Tax Relief (Sismabonus): incentives for structural reinforcement and earthquake risk reduction;
Furniture and Appliance Tax Relief (Bonus Mobili): incentives for the purchase of qualifying furniture and household appliances;
Energy Efficiency Tax Relief (Ecobonus): incentives for works aimed at improving the energy performance of buildings;
Building Façade Renovation Tax Relief (Bonus Facciate): incentives for the restoration and refurbishment of external building façades;
110% Superbonus (Superbonus 110%): an enhanced tax incentive for qualifying energy efficiency and seismic improvement works.

For each category of intervention, Italian legislation establishes the eligible beneficiaries, qualifying works and applicable tax relief rates.

8. What Types of Residential Tenancy Agreements Are Available in Italy?

Residential tenancy agreements in Italy are governed by Law No. 431/1998 and are divided into two main categories.

Free-Market Residential Tenancy Agreements (4+4)

Under a free-market tenancy agreement (Contratto a Canone Libero), the rent is freely negotiated between the landlord and tenant according to prevailing market conditions.

These agreements generally have an initial duration of four years, with a further four-year renewal period, subject to the applicable statutory provisions.

Regulated-Rent Residential Tenancy Agreements (3+2)

Under a regulated-rent tenancy agreement (Contratto a Canone Concordato), the rent is determined according to parameters established by local agreements between representative landlords' associations and tenants' organisations.

These agreements have a minimum initial duration of three years.

At the end of the initial term, if the parties do not agree on renewal, the agreement is automatically extended by law for a further two years, subject to the applicable statutory conditions.

9. What Is the Cedolare Secca Flat-Rate Tax Regime?

The Cedolare Secca is an optional flat-rate taxation regime applicable to certain types of rental income in Italy, allowing eligible landlords to benefit from a simplified and potentially more favourable tax treatment.

Landlords may opt for this regime when registering the tenancy agreement or, in the case of multi-year agreements, in subsequent tax years.

As a general rule, rental income subject to the Cedolare Secca regime:

Is excluded from the taxpayer's aggregate taxable income and does not affect the progressive rates of Italian personal income tax (IRPEF);
Cannot benefit from deductible expenses or tax deductions applied directly against the rental income or the flat-rate tax itself;
Must nevertheless be taken into account when assessing eligibility for certain tax deductions, allowances and benefits, including ISEE calculations and the determination of whether a family member qualifies as a tax dependent.

Under this regime, rental income is taxed separately from the landlord's other income.

The tax rate is generally:

10% for qualifying regulated-rent tenancy agreements (Canone Concordato);
21% for free-market tenancy agreements (Canone Libero).

The taxable base is the full rental income received, without deductions.

By opting for the Cedolare Secca regime, the landlord is exempt, for the duration of the option, from ordinary personal income tax (IRPEF) and the related regional and municipal surtaxes on the rental income generated by the property.

The regime also replaces registration tax and stamp duty ordinarily payable on the tenancy agreement, including those arising upon termination or renewal.

However, it does not replace registration tax in cases involving the assignment of a tenancy agreement.

Italian legislation establishes both subjective and objective eligibility requirements.

Subjective Requirements

The landlord, or landlords, must be acting as private individuals and must not enter into the agreement in the course of a business, trade or professional activity.

Objective Requirements

The tenancy must concern residential properties and their qualifying appurtenances falling within cadastral categories A/1 to A/11, excluding category A/10, which covers offices and private professional studios.

The Cedolare Secca regime may apply to:

Agreements entered into with public bodies or private non-commercial organisations, provided that the residential use of the property is expressly stated in the contract;
Tenancy agreements entered into with housing cooperatives or non-profit organisations, provided that the properties are subsequently sublet, including to university students;
Short-term residential tenancy agreements with a duration not exceeding 30 days.

The regime does not apply to:

Agreements concluded with tenants acting in the course of business or self-employment, regardless of whether the property is subsequently used to accommodate employees or collaborators, according to the interpretation of the Italian Revenue Agency;
Agreements entered into by partnerships, limited companies and commercial or non-commercial entities acting as landlords;
Tenancy agreements concerning properties used for business purposes;
Subletting agreements.

Where a landlord opts for the Cedolare Secca regime, the right to request rent increases or adjustments is suspended for the entire period during which the option remains in force.

10. How Has COVID-19 Affected the Real Estate Market?

Like every sector of the economy, the real estate industry was significantly affected by the COVID-19 pandemic.

Despite the initial decline in both the number and overall value of property transactions, encouraging signs of recovery emerged approximately 18 months after the onset of the pandemic.

Market trends revealed substantial changes in residential property preferences.

Demand increasingly shifted towards properties offering additional rooms, outdoor spaces and greater flexibility for home working.

Buyers began favouring suburban locations over city centres, seeking a healthier lifestyle and improved living conditions.

Interest also grew considerably in properties located outside major urban areas, including detached villas, traditional country estates and rural farmhouses.

In the commercial property sector, traditional office environments were increasingly redesigned into flexible shared workspaces, incorporating social distancing measures and drawing inspiration from co-working models.

The adoption of shared facilities and services also enabled businesses to reduce operating costs.

The logistics sector experienced significant growth, driven by the rapid expansion of digital platforms and e-commerce.

Real estate market analyses conducted during this period indicated that the pandemic accelerated the transition towards greater environmental and energy sustainability.

Examples include the development of luxury residential complexes featuring rooftop gardens, landscaped communal areas and dedicated fitness facilities, alongside innovative co-housing projects.

Supported in part by investments allocated under Italy's National Recovery and Resilience Plan (Piano Nazionale di Ripresa e Resilienza – PNRR), aimed at promoting urban transformation and the regeneration of major metropolitan areas, the real estate sector continues to evolve.

Real estate remains a major driver of the global economy, capable of attracting substantial investment and generating significant returns.