Pension for divorce: the revolution of the Supreme Court

Divorce and separation: the criterion to be checked for the award of maintenance is autonomy and not the standard of living Thus, the Italian Supreme Court (Cassazione) in the judgment. 11504/17: “Support for divorce should not be given to those who are economically independent. In other words, to those who have incomes, assets, the real ability and opportunity to work and the stable availability of a home.” The Supreme Court establishes new standards for divorce verification: The criterion of independence or economic autonomy, and not the standard of living that they enjoyed during marriage, were to be used to award spousal support to whom needs it. Marriage ceases to be “a definitive economic arrangement”: to marry, says the Court, it is an “act of freedom and personal responsibility”. The Supreme Court rendered Judgment 11504, concerning a divorce between a former minister and an entrepreneur. The Supreme Court ruled that depriving the ex-wife of the former minister of the right to maintenance does not depend on the fact that she is supposed to have a sufficient income but on the fact that now times have changed and we must “go beyond the heritage concept of marriage understood as a final arrangement”. Indeed, “marriage” is now widely shared in social behavior as an act of personal freedom and responsibility, as well as a place of affection and communion of life, as such dissolvable. It must therefore be considered – concludes the Supreme Court – that there is no protected configurable legal interest of the former spouse to maintain the standard of living that he/she had during the marriage “. The Supreme Court has surpassed the previous consolidated jurisprudence, stating the independence and economic autonomy of the ex-partner who needs it as a parameter of the alimony. The Court has ruled that the standard of living that spouses enjoy during marriage is no longer a criterion to determinate the allowance of spousal support . “If it is determined – as can be read in the judgment  – that the applicant is financially independent or can be so, that right must not be recognized . This judgment is against a principle enshrined in 1970 by Law 898, which introduced the divorce in Italy. So this earthquake is a case law approach consistent with the guidelines of other European countries, where allowance of the alimony in case of divorce depends essentially on pacts before marriage.

Resolving a contract for non-performance in Italy

Non-fulfillment of obligations of a party leads to resolution of contract in Italy Termination of Contract for Non-Performance This is the case where the contract, at the request or initiative of the performing party, is resolved because of the non-performance of the obligations of the other party. It should be noted that, for a contract for which the main services are to be performed in Italy, the Italian contract law (lex loci) applies. The assumption is regulated in article 1453 of the Italian Civil Code. It responds to legal logic and reasons of common sense. Often, the resolution takes place amicably. In the event of a dispute, it’s better to rely on the services of an Italian lawyer, so as to properly apply Italian contract law. The assumption is regulated in article 1453 of the Italian Civil Code. It responds to legal logic and reasons of common sense. It is clear that if one party has fulfilled its obligations, it expects the other to do the same; faced with the persistent failure of one party, the other has two choices: 1. require performance of the obligations of the other party resulting from the contract; 2. terminate the contract. If the execution of the other party is still possible, the party who has already executed will still have an interest in its execution, but if the persistent incapacity causes him to lose confidence in the other party or In the case of an exception, the party having already executed may ask the judge to terminate the contract. However, this power of choice is not without limits. Article 1453 establishes a principle according to which: If you have requested the execution, you can still request the resolution, but if the resolution has been requested, then it is no longer possible to require the execution. Contrary to what happens in cases of nullity and cancellation of the contract, the resolution for non-performance is possible even if originally the contract had been concluded validly and was free from any defect. The types of contract resolution for non-performance indicated by the code are three: Termination for non-performance The first type of resolution is determined by the failure of one of the parties (which should not have little importance, as regards the diligent party’s interest, under art. 1455 CC). The non-defaulting party has the possibility to choose between the request for execution or the termination of the contract. In essence, the person who has fulfilled these obligations, in the event of default by the other party, may judicially bring two different types of actions: one aimed at obtaining satisfaction (see: action for performance of the contract) or another seeking to terminate his contract with a simultaneous claim for damages. There is also an alternative: a written notice can be given to the defaulting party, to comply within a reasonable time (which may not be less than fifteen days unless the parties otherwise agree or unless, taking into account the nature of the contract or according to usages, this appears a less appropriate term). This is a summation that, once this period has passed without success, the contract will be considered as definitively resolved. Unless the deadline expires, the contract is automatically terminated (without further activation by the diligent contracting party). With respect to effects, the termination of the contract for infringement shall have retroactive effect between the parties, with the exception of contracts for continuous or repeated performance, for which the effect of the resolution does not cover services already performed. Although it was expressly agreed, the resolution does not affect the rights acquired by third parties, subject to the effects of the transcription of the request for a resolution (see Article 1458 of the Civil Code). Let us summarize the characteristics of the failure that leads to the resolution. 1. must be attributable to a party; 2. must be relevant. On the second point, in fact, art. 1455 provides that: The contract cannot be resolved if the failure of one of the parties is of little importance in the interest of the other party. Termination of the contract for failure to perform A second type of resolution is that, once again in contracts with corresponding benefits, occurs when an execution has become impossible (for example, the object of a sale has been destroyed). Where the impossibility is only partial, the other party shall be entitled to a corresponding reduction in the benefit due by itself, and may also withdraw from the contract if it has no appreciable interest in the partial performance. Resolution for excessive toughness The last type of resolution, which is not applicable to random contracts, is governed by articles 1467 et following of the Civil Code. To this purpose, the legislature has provided that where the contract is in the course of continuous or periodic or deferred performance, if the performance of one of the parties has become excessively onerous for the occurrence of extraordinary and unforeseeable events, that party may request the termination of the contract, with the effects according to article 1458. “The Code, however, offers the party against whom the resolution is required a chance to avoid the resolution: it may offer to change the terms of the contract. So far, we have spoken of the judicial resolution, but the contract can be terminated very much without judicial intervention. We have three hypotheses: Notice to comply (Article 1454 CC), the non-defaulting party may give notice to the other party requesting the fulfillment of its obligations within a reasonable period of at least 15 days. After the expiry of this period, the contract will be terminated automatically without any judicial decisions. Express termination clause (Article 1456 CC) the parties may agree that a default of one or more specific obligations will lead to the termination of the contract. The resolution occurs when the creditor declares to the other party his intention to invoke the clause Essential term (Article 1457 (c)) if the obligation is not fulfilled in the period considered essential

Corporate confidence in Italy at its highest level since 2007

The economic climate is conducive to business in Italy Fourth consecutive increase in the corporate confidence index in Italy, which rose in April by more than two points (107.4) and reached the highest level since October 2007. There has been a sound growth, pushing manufacturing and construction (to obtain higher values ​​in both cases we must return to 2008), as well as for services and retail sales. The improvement of the industry is linked in particular to the intermediate goods, while are slightly decreasing the consumer and instrumental goods. However, the latter were the protagonists of a leap of nearly three points in the previous month. In general, evaluations on order books and production expectations have improved. There has been significant growth in the construction sector, which has been the worst hit by the crisis, where confidence has improved by nearly five percentage points to the peak of May 2008, a development that affects orders as well as expectations of employment. Italy is the second country in Europe for business confidence This is the landscape that emerges from the 17th edition (of February 2017) of the Edelman Trust Barometer, an annual survey conducted in 28 countries on a sample of 33 thousand people by the public relations agency Edelman. In the first place for trust in companies there is the Netherlands. Italy has confidence in companies as factors of social progress 78% of Italians believe in the social role of the corporate sector In addition, Italy (55%) is the second country in Europe with more confidence in the corporate sector after the Netherlands (60%). 78% of Italians believe that companies can take specific measures not only to increase profits, but also to benefit the economic and social growth of the communities where they operate, and the company is the category with more confidence among the Italians. Add to this that Italy is the first in Europe for the creation of enterprises among young people. More than twice Germany: companies with CEOs under 40 years of age are 1.15 million in all, with a positive balance of 50,000 new cases in the first nine months of this year, at the rate of 325 openings per day. Young Italians are the most ingenious in terms of launching new businesses, especially in the South and in the retail sector. And with great interest back in agriculture.

Tax deductions for the renovation of buildings

Tax deductions for the house The table summarizes the tax deductions – valid for 2017 – for the renovation of buildings, the purchase of furniture, energy savings and anti-seismic measures as foreseen on the basis of the budget law which has just been published in the Official Journal. Here are all tax deductions for the house valid in Italy for 2017, and probably far beyond CONSTRUCTION REDUCTION (Deduction of income tax) – For individual residential property units: extraordinary maintenance, preservation and restoration, renovation of buildings – For common areas of residential buildings: routine maintenance, extraordinary maintenance, preservation and restoration, renovation of buildings – The construction of garages or parking places, the elimination of architectural barriers, the sanitation of asbestos, works to prevent domestic accidents, measures to prevent illegal acts, etc., wiring of buildings. Maximum amount of expenditure for the calculation of the deduction – from 26.6.2012 to 31.12.2017 = 96,000 € – dall’1.1.2018 = 48,000 € The measurement of the deduction (gross tax) – from 26.6.2012 to 31.12.2017 = 50%, in ten annual installments – dall’1.1.2018 = 36%, in ten annual installments Accessories and Furniture and Major Appliances (Deduction of Income Tax) Purpose of the Fund – Purchase of furniture and “major household appliances” (eg refrigerators and dishwashers.) At least A + (A for ovens), for equipment for which the energy label is intended, finalized to the furnishing of the building under renovation. Maximum amount of expenditure for the calculation of the deduction (A) from 06.06.2013 to 31.12.2017 = EUR 10 000 (the costs covered by this measure are calculated for the enjoyment of the tax deduction, irrespective of the amount of expenditure incurred for renovation work benefiting from the deductions from income tax) (B) from 1.1.2016 to 31.12.2016 = EUR 16 000 of expenditure documented for the purchase of furniture and furniture for the main residence for young couples (forming a married or cohabiting fcouple as husband and wife, at least three years, in which one of the two did not exceed 35 years) purchasers of real estate units to use as their principal residence “. This benefit may not be combined with the measure referred to in paragraph (a). Measurement of the deduction (gross tax) – from 06.06.2013 to 31.12.2016 = 50%, in 10 annual installments – from 1.1.2016 until 31.12.2016 = (young couples for furniture purchase) 50%, in 10 annual installments – from 1.1.2017 until 31.12.2017 = 50% of the costs referred to in point (a) in 10 annual installments incurred in the year 2017 limited to the resumption of housing in the year 2016 or has started in 2016 and will continue in 2017 Measures for energy saving (Income tax deduction / IRES) Purpose of the Fund – Interventions aimed at the rehabilitation of buildings – from 1.1.2016 are also deductible expenses incurred for the purchase, installation and implementation of multimedia devices for the remote control of heating or hot water or air conditioning housing units,  and tools to increase awareness of energy consumption by users and to ensure efficient operation. Maximum amount of deduction – from 06.06.2013 to 31.12.2017 = interventions to reduce the energy requirements of existing buildings: 100,000 euros; Interventions on walls, windows (including frames) on existing buildings: 60,000 euros; Installation of solar panels: EUR 60 000; Replacement of winter heating systems: EUR 30 000 – from 1.1.2018 apply the rules and limits of interventions related to the renovation of buildings The measurement of the deduction (gross tax) – from 06.06.2013 to 31.12.2017 = 65%, in 10 annual installments – dall’1.1.2018 = 36%, in 10 annual installments Particularly important energy saving measures (Income Tax Deduction / IRES) Purpose of the Fund – energy-saving measures with respect to the common parts of condominiums under sections 1117 (condominium) and 1117-one (super condominium) of the Civil Code or affecting all the units that make up the individual condo Maximum amount of deduction – from 06/06/2013 to 31/12/2021 = interventions to reduce the energy requirements of existing buildings: 100,000 euros; Interventions on walls, windows (including frames) on existing buildings: 60,000 euros; Installation of solar panels: EUR 60 000; Replacement of winter heating systems: 30,000 – From 1.1.2022 apply the rules and limits of interventions related to the renovation of buildings The measurement of the deduction (gross tax) – from 06.06.2013 to 31.12.2016 = 65%, in 10 annual installments – dall’1.1.2017 = 36%, in 10 annual installments Claims assigned to suppliers For expenses incurred in the redevelopment of the common areas of condominiums, the persons who are in the “no tax zone” (retired, employed and self-employed), instead of the deduction Of the gross tax may be used to transfer the credit corresponding to the suppliers who carried out the work. PARTICULAR MEASURES TO SAVE ENERGY ON PARTS OF COMMON COMMODITIES (Income Tax Deduction / IRES) Purpose of the Fund (A) improving the energy efficiency of interventions in common areas of dwelling units that affect the building envelope with an incidence greater than 25% of the gross area of ​​the building of the same dispersant (B) improvement of energy efficiency measures for common areas of dwelling units designed to improve the winter of energy performance and in summer and with the least average quality referred to in D. Mr. Ministère du Développement économique 26.6.’15 Maximum amount of expenditure for the calculation of the deduction – Dall’1.1.2017 until 31/12/2021 = 40 000 € multiplied by the number of building units that make up the building – From 1.1.2022 apply the rules and limits of interventions related to the renovation of buildings The measurement of the deduction (gross tax) – From 1.1.2017 until 31/12/2021 = 70%, for the expenditure referred to in point (a), in 10 annual installments – From 1.1.2017 until 31/12/2021 = 75% of the expenditure referred to in point (b), in 10 annual installments – dall’1.1.2022 = 36%, in 10 annual installments Oath The existence of the conditions set out in (a) and (b) shall be subject to oath by qualified professionals through certification of the energy performance of

Italians are the healthiest people in the world (according to Bloomberg)

For a long life and health, Italy is the place to live In the Bloomberg ranking, Italy happens to be the first country out of 163. Among the indicators, the quality and the life span. Not only counts wealth, but also counts the Mediterranean diet. Surprisingly, the peninsula, despite the crisis and the shaky economy, won the title of healthiest country in the world, jumping up the Global Health Bloomberg Index, first in the ranking of 163 countries with a score of 93.11 per cent. All countries in the index are ranked according to different variables: life expectancy, causes of death, health risks such as high blood pressure, smoking, availability of clean water and malnutrition. Life expectancy A child born in Italy can expect to live at least 80 years of age, compared with 52 in Sierra Leone, in the last place. Bloomberg also takes into account the quality of life. Italy, with 93 points, also exceeds other nations known for their longevity: those of Northern Europe (Iceland, the second at 91.21 points, Sweden at 88.92), those of Eastern Europe 89.15 Japan, Singapore 90.23). Spain is sixth with 89.19 points. Economic crisis Italy has been copingwith weak economic growth for decades, nearly 40% of young people are unemployed and is crushed by one of the highest public debt in the world. Yet, Italians are better than Americans, Canadians and British, most affected by high blood pressure, cholesterol, and mental disorders. Strengths: Physicians and Nutrition Among the strengths, the high number of doctors and especially the diet, rich in vegetables with extra virgin olive oil. Italy would even have “an excess of doctors,” says Tom Kenyon, medical director and head of the global organization Project Hope. “Not surprisingly, one of the most durable and followed television series is called “A Doctor in the Family”. But even that will be a criterion? According to Bloomberg Italy would indeed have a surplus of doctors. The OECD (Organization for Economic Co-operation and Development) in 2016 analyzed the total number of people in the world who are concerned with assistance and medical care. In Italy, there are 3.9 doctors per 1000 inhabitants. Italy, which ranks fifth in this special ranking, behind Greece (6.29 doctors per 1000 inhabitants), Austria (4.9), Germany (4.05) and Switzerland (4.04). A surprising number, however, are the everyday controversies about the objective lack of staff in Italian hospitals. The situation was created due to a lack of renewal of the generations of medical staff after the entry of the closed number in the Faculty of Medicine in 1999. Physicians are more numerous in Germany, despite that, in the ranking of Bloomberg this country, which enjoys an excellent economy, is only at the 16th place. Iceland and Switzerland on the podium To share the podium with Italy are Iceland and Switzerland, followed by Singapore and Australia. The United States is in 34th place, due to the overweight and obesity epidemic in North America, with a score of 73.05 out of 100. Far from our 93.11 out of 100.

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.