Italy: Property transfers between spouses preserve tax benefits

Italian jurisprudence provides protections for individuals managing real estate assets during marital separation. According to Cassation ruling n. 22023/2017, transferring property between spouses is not classified as speculative selling.

This distinction is crucial because the sale of a primary residence within five years of purchase typically requires the repayment of tax benefits unless a new home is purchased within one year. However, if the transfer is part of a formal separation agreement intended to manage family assets rather than generate profit, the ‘first home’ tax benefits are preserved. Additionally, the assumption of a mortgage by one spouse is considered a neutral act that does not trigger additional tax obligations from the Revenue Agency.