Italian Court of Cassation issues rulings on property and tax

The Italian Court of Cassation has issued two significant rulings regarding property rights and taxation within residential buildings.

In a ruling concerning condominium management, the Court confirmed that transforming a common roof into a private terrace constitutes an unlawful deprivation of shared possession. Even if the renovations have valid building permits and municipal authorization, the court ruled that such actions can be contested by other residents. The decision (sentence no. 15515 of May 21, 2026) mandates the removal of private terraces in cases where they infringe upon the collective rights of the condominium members.

In a separate matter regarding IMU property tax, the Court addressed whether spouses owning separate units within the same building qualify for primary residence exemptions. Following the precedent set by the Constitutional Court in 2022, the Cassation (ordinance no. 25004 of September 4, 2026) emphasized that the tax benefit depends on the individual possessor's habitual residence and domicile. The court ruled that if a taxpayer resides in an owned property, they are entitled to the exemption, regardless of whether a spouse owns a separate unit in the same building.