The student housing industry grows in Italy
The student housing industry grows in Italy: it’s a real estate investment opportunity The student housing industry is mature throughout continental Europe: France, Germany, Ireland, Italy, the Netherlands and Spain are the six main markets identified for sustained growth over the next 10 years. Main trends in the student housing sector in Europe The real estate sector, which sees the student as a resource, is growing rapidly in Europe. Among the European markets, where the market is ripe and ready for sustained growth, there is also Italy, flanked by other countries of the old continent, such as France, Germany, Ireland, Netherlands and Spain. Housing for university students in European markets outside the UK is a real estate investment that is attracting more and more, especially institutional funds, private equity and established market players who want to diversify their portfolio In new markets. An interesting fact that drives interest in investment in this real estate sector is tied to the school curriculum entirely in English in countries where English is not the main language: the offer has gone from the 500 courses available 10 Years ago to the 6000 university courses of the current year. For example at the University of Ancona, in the picture above, there are several courses in English. This means that Italian universities are able to obtain an ever larger share of the international student market, currently dominated by the United States and the United Kingdom. Another fact to bear in mind in order to understand the interest in the university housing sector, is the rapid increase in the student population that requires quality accommodation. Such strong demand will only encourage more competition, so the number of international students worldwide is expected to reach 7 million worldwide by 2020, up from 4.1 million in 2014, with growing expectations for quality accommodations.
Italy’s fiscal offer to woo rich foreigners: a €100 k flat rate
A new flat-rate tax: EUR 100 000 and you have finished with the Italian IRS (fisc) The Italian government has created a flat tax to invite the wealthy foreigners to set up residence in Italy. It may be extended to members of the family, to which it applies a replacement fee of € 25,000 MILAN – Pay the flat rate tax of EUR 100,000 per year to obtain a kind of balance on all accounts with the Italian tax authorities: this is the offer for foreigners who wish to transfer their tax residence in Italy, a “tax base” – a replacement tax – on income earned abroad. The measure had been introduced since the last law of stability and is used just to attract “wealthy individuals”. A choice that many have also interpreted as a lever to try to divert towards the peninsula, and especially towards Milan, professionals with big salaries who will be forced to leave London after the divorce with Brussels, or Brexit. The advantage of the single tax – to be paid in one solution – you can even extend it to family members, a flat rate of € 25,000 will be applied. The option for the 2017 fiscal period must be exercised before September 30, 2018. Once the green light (even via silence / consent) is received, the neo-resident alien will see his flat rate tax recognized for the next fifteen years. The main requirement for access is to not have been resident in Italy for at least nine of the last ten years: a way to avoid the back and forth to take advantage of this flat rate tax. Brexit, Italy tries to alienate the foreign managers: “Come to Milan, to pay little taxes” How to exercise the option. Taxpayers can join the new scheme when filing an income tax return related to the tax period in which they were transferred to the tax residence in Italy or in the immediate wake. Prior to this, they must apply to the central income assessment. The application may be delivered by hand, by registered mail with acknowledgment of receipt or by electronic notification, using certified mail. The foreign person must indicate: Personal data and, if already granted, the tax code, in addition to his domicile in Italy, if he is already resident; Non-resident status in Italy for a period of at least nine tax years in the 10 years preceding the beginning of the option; The jurisdiction or jurisdictions in which the person had the last fiscal domicile before exercising the option; States or territories for which it intends to exercise the option of not using the substitute tax. A “checklist” is also required, which among other things is used to examine the state of no tax residence in at least nine out of ten tax years before entering the flat tax. Members of the family may benefit Again the tax agency states that the flat-rate scheme can be extended to one or more family members in possession of the requirements by a specific indication related to the tax period in which the family has moved tax residence in Italy or Income tax return. In this case, the replacement tax is equal to € 25,000 for each of the family to which the effects of the same option are extended. When apply The option must be exercised within the deadline for the filing of income tax returns, even if the questionnaire has not yet been answered by the tax authorities. The application can be filed even if the terms to declare residence in Italy have not yet run. The option is tacitly renewed from year to year, whereas the effects cease, in all cases, after fifteen years. A lump sum for paying taxes Payment of the replacement tax, in the amount of 100,000 euros, must be made in a lump sum, for each tax period, on the due date for payment of the balance of income tax.
Real estate prices in Italy in February 2017, a bargain
Map of real estate prices in Italy The map shows the prices quoted for houses, apartments and in general residential property in Italy. These are the average prices of the properties listed on the site Immobiliare.it, probably the main site of classifieds real estate in Italy, the reference period is February 2017. In February, the price per square meter for property sales was highest in the Val d’Aosta region compared to the rest of Italy. On average, in fact, the cost of a property for sale in the Val d’Aosta area per square meter amounted to € 3286. On the contrary, for a property for sale in the charming region Calabria, the price is only € 1,066 per square meter, the lowest value of the whole of Italy. Why a second home in southern Italy is a soundly profitable and enjoyable investment If we consider that in Calabria, Apulia (Puglia) and southern Italy in general, that is to say, south of Rome, the prices per square meter for an apartment with a sea view or even few meters from the beach can cost less than € 1000 per square meter, one can quickly understand that it is a profitable investment in an awesome place. Indeed, the beaches are beautiful, the sea is beautiful, the food very tasty and inexpensive, the people friendly and welcoming, the airports quite handy, with cheap highways. Ask your friends who have been on holiday in southern Italy, they will tell you. Price of rental properties As for rental properties, the highest average price was detected in the region of Sardinia with a price per square meter of € 12.15 per month. The lowest average price of rental housing was in the Calabria region, with only € 4.58 per month per square meter, the lowest value at the national level.
I plan to continue working with Marco in the future!
Living in New York I was very fortunate to correspond with Marco Magaraggia concerning possible purchase of a home in Puglia .Being a long distance situation, Marco was more than forth giving with advice on the Italian legal requirements. He worked with Italian realtors and home owner and was in constant touch with me with results and information. It gave me comfort in knowing he had my best interest in mind and followed through with every question I had during all the correspondence. I would highly recommend working with his law firm . I plan to continue working with Marco in the future. Patricia New York patricialaltrella@gmail.com
The Italian industrial production keeps moving up
Strong increase in the turnover of Italian industry in December 2016 y/o/y After the positive data on industrial production aired last week again positive signals from the Italian industry. On average, in 2016, turnover recorded a slight increase in value (+ 0.2%), which was more pronounced in terms of volume in the manufacturing sector alone (+ 1.2%). In December 2016, adjusted for calendar effects (the number of days worked was 20 days compared to December 21, 2015), total income increased over one year by 9.4%, with an increase of 8.2 % In the domestic market and 11.8% in the foreign market. Industry, jump in sales in December: + 2.6% compared to November Positive signals from Istat data. Well, even orders are up 2.8% from the previous month. This is the third consecutive increase. The increase in sales was much higher in foreign markets (+ 5.4%) than in the domestic market (+ 1.1%). Orders recorded, however, show an increase in the domestic market (+ 6.8%) and a decrease in the foreign market (-2.6%). Political instability is a problem, but they will solve it In Italy, the difficulty of governing the country is almost a habit that leads to many changes and resignations in governments. Nevertheless, I believe that there are enough moderate political forces in favor of effective reforms so that the recovery can be consolidated and Italy can attract foreign investment.
Beautiful cities of Italy – a collection for your pleasure – video
This video of Italian cities portrays a collection of the best places, monuments, churches and landscapes of this marvellous peninsula. Charming cities are to be found all over Italy, with an awesome display of artistic masterpieces. Architecture is also astounding, witnessing deep and widespread cultural and human values. Such a treasure portends the unshackable strenght of any investment in Italy, be it real estate or business. As you can see, most artworks belong to the 16th and 17th centuries. Indeed, the period of the Renaissance was the most prosperous for Italy. Nevertheless Italy wasn’t a nation, but there were many small kingdoms. There went unable to colonize as other stronger European nations did. Therefore Spain, France, Austria and the other European nations became much stronger than Italy and started to dominate it economically, politically and culturally. Italy became poorer, its cities, like Florence and Venice or Pisa, once very advanced economically and technologically, started a period of slow but continuos decadence. Nowadays Italy taps from its great artistic talent to be world leader for industrial and fashion design, offering many business investment opportunities, thanks to small but creative companies. Real estate in Italy is also of great value, being harmoniously embedded in beautiful, artistic cities, towns and villages.
Exemplary case of a small Italian family business: Massimo Bottura
“Massimo Bottura, the owner of the restaurant Osteria Francescana, is an exemplary case of running a small Italian family business. His career is at the crossroads between entrepreneurship, culture and technology and is an example for the spread of Italian culture and the development of Made in Italy at the international level. The leader of Modena – three Michelin stars and world number one in the best 50 ranking – now receives an honorary degree in business administration in the Aula Magna of St. Lucia in Bologna, with a focus on the ethics of business, and of entrepreneurship. Bottura is the chef who invented the Ambrosiano Refectory in the months of the Milan Expo (an adventure that has also become a film), the experience borrowed by other cities, with the participation of the best chefs on the planet. “Before the summer, we will open a refectory in London, in the heart of Chelsea. Alain Ducasse and Adrià have already joined. And then we go to Berlin. How much does it cost to eat in your “social” canteens? “In London, you will spend 50 cents for a soup, 30 for vegetables: this is obviously symbolic, we should not give them a gift. In Brazil, you pay nothing, the money is collected by renting spaces, welcoming and bright. Hosting people in need should not be associated with second-class places, in fact. It does not want to be charity, it is the restoration of dignity. ” A major difference. “Fundamentally, I would say. It is like the call, to take the best products made in prison workshops. Charity is a task to be done in silence. You put your hand in your pocket and give. Here the concept is different: it comes down to cultural projects, which must be communicated. We must relate those who work with and for prisoners, support those who seek to get back into the game through work. Improve talent, ability, passion. Our cooks are loyal to our craftsmen, but no one prevents us from supporting a “social” supplier if it is able to withstand the competition of the market in terms of quality “. Today cooks are worth more than the sum of their recipes. We can make a difference because we are listened to. If international politics turn to the worst, there are many people who are fighting in silence. We must exploit this fruitful period, I think people realized that we can not lock ourselves in our little corner and that the slogan must be “sharing” Assigning an honorary degree to a cook is not so common “They also came from Harvard to understand how we operate in the shop. I want to call it “the shop”, because there is a place for education, culture, agriculture, tourism, social support. The new food tourism alters the local economy, I’ve never seen so many foreigners in Modena … We have two thousand applications for internships. They come here, and also absorb the culture of sustainability, the prohibition of waste, respect for the work of farmers.” – said Mr. Bottura.
Italy first in Europe for companies led by CEOs under 35
Young Italians dub German peers in terms of new business initiatives. There are in Italy 600,000 companies with a CEO under 35. With a pace of new openings of 325 a day, in the first nine months of 2016. Boom in the South, in the retail trade and agriculture There is a sector in which Italy is first in Europe. More than twice as France and Germany: business conducted by a CEO under 35. They are 600 000 in all, with a positive balance of 50,000. Record set in the first nine months of this year, at the rate of 325 openings per day. Young Italians in short, are the most resourceful when it comes to embarking on new business. Especially in the South and in the retail trade. And with a great return of interest for agriculture. For those who want to do business in Italy, you have to know how to interact with small companies, which will necessarily be suppliers or customers. First, if a small company or made a quote, have to ask them all to follow up the quotes provide for billing, because the smaller the Italian company, and the more one tends not to charge a portion of its turnover Then, be aware that small Italian companies are quite dynamic and can become loyal partners, both as a supplier and as a customer. So it is essential to establish good relationships with my family that normally runs the business, based on mutual trust. The advice of an Italian business lawyer is all the more valuable as the laws that regulate business activity in Italy are sometimes a bit tortuous, and commercial practices can be sometimes surprising for newcomers. 2015 EUROSTAT DATA FOR SMEs (in thousands) Member State of the EU total of SMEs CEOs under 40 % of CEOs under 40 Italy 3.838,70 1.155,10 30,09% UK 2.962,10 990,1 33,43% Poland 2.772,60 988,2 35,64% Germany 2.414,90 511,4 21,18% Romania 2.370,60 902,2 38,06% Spain 2.243,50 691,1 30,80% France 2.041,90 568,9 27,86% Greece 990,7 287,1 28,98% Netherlands 786,7 234,8 29,85% Czech Republic 655,8 201,2 30,68% Portugal 592,2 93,9 15,86% Austria 395,5 95,5 24,15% Belgium 377,4 122,5 32,46% Hungary 333,4 91,4 27,41% Sweden 326,9 78,2 23,92% Slovakia 279,3 119,3 42,71% Finland 274,7 74,6 27,16% Bulgaria 248,7 76,2 30,64% Ireland 227,2 52,6 23,15% Croatia 184,2 47 25,52% Young Italians who create companies, reveal that young companies are 9.8% of Italian SMEs and almost one third of new openings in 2016. This result apparently contrasts with 67% of those under 34 still at home with mom and dad, the highest percentage in Europe after Slovakia. family as a gym. “the family in Italy is a landmark because it has the resources to better withstand the crisis, but it is also a widespread entrepreneurship garrison,” reasons the president of Coldiretti (Italian farmers’ union) Roberto Moncalvo. “in many cases it is a gym and a springboard to enable young people to express their creativity.” And indeed family businesses in Italy skim 60% in the stock market and 90% in sectors such as agriculture. Commerce and agriculture favorite But what are the the areas of interest under 35? On 90,000 new businesses opened between January and September this year (while 40,000 closed), 11 000 are in the field retail trade, 7,569 in agriculture and livestock, over 7000 specialized in construction, 4,717 in catering and 2,882 in personal services. From the territorial point of view, the South won (34,334), followed by North West (21,611), Center (18,064) and North East (almost 14,000). Small is beautiful Italy is at the top in Europe for the high number of small and very small companies (and pulverization is not always an advantage): 3.8 million against 2.9 million in the UK, 2.7 million in Poland, 2.4 million in Germany, 2.2 million in Spain and just over 2 million in France. But of the nearly 4 million of Italian SMEs, 30% is driven by under 40, compared to 33% of London, 35% of Warsaw, only 21% of Berlin, 28% of Paris and as Madrid. First-generation farmers Many new entries are recorded in the agricultural sector. According to an analysis Coldiretti / IXE, half of the first-generation farmers (who come from other sectors or from different family experiences) has graduated, 57% did innovation, 74% are proud of the work done and the 78% are happier than before. Among other things, the farms of young people possess an upper surface of more than 54% of the average, a higher turnover of 75% and 50% employed for business more. Tax-breaks for hiring The 2016 budget bill also provides for the exemption of social security contributions of 100% for recruitment of young farmers under 40 for the first three years. And then 66% and 50% for the fourth and fifth year.
Tourism: Italy continues to woo huge crowds
Euromonitor ranking of the most visited cities by international guests Hong Kong, the most visited, Rome 14th, London is second Asia continues to dominate, but the British capital returns second, to the detriment of the city-state. Italy out of the top ten, but with encouraging signs of growth. But it is a partial picture and a bit ‘misleading, because the boom in tourism in the Far East, although real, is largely the product of a geographical proximity, huge population and economic growth that allows for the first time a new Asian middle class to travel for tourism and business. The semi-state Chinese city, now associated with the People’s Republic, it is also often visited like a transit destination, in order to fly to other destinations in Asia or Australia. A more truthful regard on the list indicates that London moved up to second place in the world and remains the first in Europe, in fact maintaining the status of number one tourist destination in the world and Italy, without having any single city in the ” top 10 “, has four among the top 100 – the “usual jewels”, Rome, Milan, Venice and Florence – collectively overcoming several other nations of the earth. If the “big four” were considered as a single entity, and in a way they are because the average tourist visits them in order, one after another, then this “Italian tour” would be the second most visited destination in the world, with nearly 25 million visitors per year, behind only Hong Kongs, if not the absolute number one, since the Chinese city is just one more step rather than a point of arrival. Tourism, the most visited cities in the world, Hong Kong won, Rome first among Italian cities The crown should therefore be in Hong Kong for the sixth consecutive year, with 27 million 700 thousand visitors, 8 percent more than last year, the prolonged effect of the boom in China and in general throughout the Far East: a region full of relatively contiguous megacities, a piece of the world in which live – about 3,.5 billion people, half of humanity. So it is not surprising that Hong Kong continues to be the most visited place of the globe, not least because, stresses the analysis of Euromonitor, statistics indicate that many of these visitors come to Hong Kong, maybe from Beijing or Shanghai to spend a week- end and then fly to Australia, America or Europe. They follow in the order, to complete the “top 5”, Singapore (17 million visitors), Bangkok (16 million) and Paris (14 million and 900 thousand), but each with a decline in attendance over last year; and New York is in eighth place (12 million) but visits are up. Of all the 100 cities, Asian ones represent a third of the total, and six of the top ten. China and the United States dominate the rankings with seven city each. Italian cities do remarkably well Rome is the fourteenth, with 8 million 700 thousand visitors, followed by Milan (24th with 6 million), Venice (30th with over 5 million) and Florence (40th with more than 4,000,000), all four experiencing growth compared to 2013. says Wouter Geerts, travel analyst at Euromonitor: “Italy has no city among the top ten most visited of the planet, but if taken together its four city in the ranking make it one of the most popular destinations in the world.” Agrees Angelo Rossini, Italian analyst at Euromonitor: “Our country has a strong potential for further growth in the coming years, thanks to art, shopping, catering and lifestyle, the four factors that are now the engines of world tourism. Improve direct flights, facilitate the granting of visas, and increase promotion in emerging markets, particularly in Asia, and you could certainly bring more benefits to Italy. ” Yet another reason making real estate investing in Italy all the more attractive.
Italian labour market improves thanks to Jobs Act
The reform introduced by Renzi’s government has improved employment and economy, albeit slightly Interim results on the field of the reform introduced by the Renzi government – it will take time, allowing the polls, to fully assess the structural effects – tell a two-faced reality: in early 2015, when started the reduction in contributions for new hires, the rate of occupancy was 55.9 percent and that of unemployed to 12.3 percent. Today – as they said the day before yesterday to Istat – Italians who work have risen to 57.3% and those without a job fell to 11.9 percent. Around the beautiful country 417,000 employees have been added. Something moved in the right direction, one might say at first glance, thanks to the timid economic recovery. But the result of the Jobs Act is actually a cocktail of lights and shadows: in November 2016 – and it is good news – there was 409,000 permanent contracts more than in early 2015. Too bad that young people have not benefited. The generational divide The generational divide indeed, complicit rigidities of Fornero law that extended the retirement age, has expanded: in 23 months, the number of over fifty to work in Italy has increased by 690,000 units. The new posts for youngsters between 14 and 25 were however only 36,000. More than 500,000 of our fellow citizens, and even here there is to celebrate, are back on track to seek employment. And, discordant note, layoffs jumped by 32%, facilitated – critics say – the weakening of Article 18, which makes layoffs much more difficult. Here in detail how and what has changed in the labor market in Italy in the era of the Jobs Act: REBATES HAVE WORKED WELL Hiring savings of more than 8,000 euro of contributions made to run businesses have increased the the number of permanent workers in 2015, closed with activations up 56% in 2014. In December of that year, before the relief rebates where reduced to 40%, it has seen a historic passing of stable activation of certain ones. The last photo of Istat (the sadistic office of the government) portrays 14.9 million permanent employees (last November), up sharply from 14.5 million in March 2015, when the Jobs Act became effective. But behind these positive numbers lie two weaknesses. Out of a hundred permanent contracts in 2015, only 9.5% can be classified in full as new jobs. They are workers who were never registered in the INPS (the Italian Social Security) archives as autonomous or professionals, nor have ever been the subject of mandatory reports (started, stopped, extended, transformed) since 2009. The de-casualization is admittedly welcome, but then likely to fade with the loss of tax relief and a lack of sustained economic growth in recent months, the temporary hires have returned to grow at much greater rate, while with the weakening of the economic advantage of hiring the boom of stable contracts was off. OK FOR ALL THE OVER 50 The over fifty workers are the ones that come out better from the first two years of the Jobs Act. The statistic – obviously – is a bit distorted by the effect of the Law Fornero, which raised the retirement age. The numbers are nevertheless very significant: from January 2015 to November 2016 employed workers over 50 increased by 690,000 units. Like saying that every day nearly 1,000 places were added. The reform of the Renzi government labor market, in this case, has had a marginal impact, given that the trend is a photocopy of that of 2013-2014, when in two years, workers with more than 50 years had grown to 721mila units. The unemployment rate for this age group puts Italy almost at the German level of excellence. In November last year we were at 5.6%, the lowest since 2012, half a point less than in January 2015. RECRUITMENT STAGNATES FOR YOUNGSTERS The effect of the Jobs Act is almost nil for young people between 15 and 24 years. From January 2015 to November 2016 the employed in this age group grew by only 36,000 units. And in 2016, with the reduction of rebates, new posts were only 5,000. It must be said, nevertheless, that since 2004 the annual balance for those under 24 was always negative and the unemployment rate fell in two years from 40.9% to 39.4%. Even the Observatory of Labour Consultants certifies that young people (as well as women and graduates) are those that have benefited most from the increase in stable employment. In recent months, however, the youth labor market has gone back into reverse. In April, the number of employed persons in this age group had risen for the first time in 2013 to more than a million people. Since then, however, 38,000 jobs were burnt. Things are not good even for 25-34 year olds: in 2015 unemployment for them has fallen from 18.4% to 17.2%. In November, the index had already risen to 18.9%, and since the Jobs Act have been burnt over 130,000 jobs. THE OPINION OF ENTERPRISES The new protections against dismissal (based in fact on compensation) are, according to the investment bank Barclays Bank, appreciable because companies know exactly how much can cost them to part with a worker, without waiting for the discretion of a court. HSBC Bank International recalls that the OECD credits the Jobs Act of a beneficial effect on GDP of 0.6 percentage points in five years. But it also recognizes how the companies themselves attribute two-thirds of new hires to contribution savings. A spent drug, except for a few limited cases.