Italy Supreme Court clarifies cadastral unit rules for building bonuses

The Italian Supreme Court (Cassazione) has clarified that the presence of shared spaces, such as a common corridor or staircase, does not automatically mean two separate apartments must be treated as a single cadastral unit. According to ordinance n. 17627/2021, the determination of a real estate unit must be based on its functional and economic autonomy.

This distinction is critical for taxpayers utilizing building bonuses, as the maximum allowable expenditure for many tax incentives is calculated based on the number of real estate units. If the Revenue Agency (Agenzia delle Entrate) reclassifies two separate apartments as one unit, the spending limit for deductions could be halved, potentially resulting in significant financial losses for property owners.