Italian Courts Clarify Rules on Building Demolition, Condono Requests and Tax Treatment

The Court of Appeal in Sicily (TAR Sicilia) ruled that filing a request for building regularisation (condono) does not authorise any further construction, alteration or expansion of the illegal structure. Any work carried out after the request inherits the illegality of the original building and may be subject to demolition, as confirmed by the court’s decision in case no. 1264/2026.

The Italian Supreme Court (Cassazione) also ruled that the sale of a building earmarked for demolition cannot be re‑characterised as the sale of developable land for capital‑gains tax purposes. The tax treatment must reflect the objective nature of the property at the moment of the transaction; the buyer’s intention to demolish and rebuild is irrelevant for tax assessment. Both judgments reinforce the principle that illegal constructions cannot be fragmented or regularised through subsequent actions or tax re‑classification.