Ownership entails the right to fully and exclusively enjoy and dispose of any realty being the subject of the entitlement at will.
As a rule in Italy ownership is freehold. Other entitlements, however, may be the subject matter of assignment, such as usufruct (that is, the right to enjoy the advantages of a piece of realty for a limited term, which may be for a few years or the residual lifespan of a real individual). In such cases full ownership is shared under two entitlements, one being usufruct (whether for a limited term or “for the term of her/his natural life”) and the other bare ownership, full entitlement and hence ownership being restored upon usufruct expiring.
Common ownership or coproperty represents a special form of shared ownership that comes to be set up such as in the case of multi-storey dwellings or apartment houses that necessarily share parts of the estate’s structures and facilities. Such common ownership is an addendum to a full and exclusive entitlement. In addition to being the owner of a portion of such an estate in her/his own right, a real individual is also co-owner of areas in common, such as stairways and stairwells connecting each storey on which the private dwellings are located, the building entrance, the lift, the garden, and so forth. Expenses relating to the upkeep of coproperty (that is parts of the estate shared by more than one individually owned part) are annually divided up amongst each individual owner in equitable portions corresponding to the extent of each owner’s private possession.

Capital gain

Transfer of a property may result in capital gain, that is a positive difference between the original purchase price or construction cost and that of the subsequent sale, even after inherent maintenance and running costs.
In Italy any such capital gain after less than five years of original purchase or construction of a piece of realty constitutes taxable income. Such income is taxed at the standard rates applied to personal income.
The picture changes though for capital gain deriving from realty transferred five years after purchase or construction by way of succession or donation. As regards donations, a further proviso in the case of dwellings is that the property have been effectively lived in period by the donor or the donor’s next-of-kin as their principal dwelling for most of the period between purchase or construction and transfer.
Since 2006, assignees are allowed to opt for different rates other than the standard ones applied to personal income for any capital gain under the foregoing cases. Two rates are contemplated for this so-called substitutive duty (imposta sostitutiva), and namely 12.5% up to 2 October 2006, and 20% from 3 October 2006. To be eligible the assignee must submit due request to the notary at the moment of transfer and make a formal declaration of intent there of.

Inheritances and donations

In 2006 the Italian government revived estate and death duty on inheritances and donations. This burden is levied on any assignment of titles and rights in case of death or donation, even if gratuitous. The duty is determined on the basis of the value of the property thus transferred less deductible liabilities. If the deceased person or donor resides abroad, the duty is levied on the value of assets and titles based in Italy, that is on assets and titles filed with public registries and therefore inclusive of realty, motor vehicles, boats, and so on. Depending on the degree of relationship of the beneficiary with the deceased person or donor, different exemption thresholds and rates are contemplated as detailed in the table below.

RATES	HEIR	EXEMPTION THRESHOLD for each beneficiary
4%	- spouse and next of kin in direct line of descent	Euro 1,000,000
6%	- brothers and sisters	Euro 100,000
6%	- other kin to the 4th and 3rd degree in direct and collateral line of descent, respectively	-
8%	- other heirs	-

In addition to registration fees, a further burden is contemplated for successions or donations involving realty by way of mortgage and landed property register duties at a rate of two (2) and one (1) percent, respectively, and in any case to an amount of no less than 168 Euro for each duty.

A registration or transfer fee, mortgage and land survey duties, or alternatively VAT, are the main tax burdens in any realty transaction in Italy.

VAT applies when the seller is a developer or builder, while the other three fees are levied in the case of private sellers or firms other than the builder.
VAT on home property is charged at a rate of ten (10) percent, reduced to four (4) percent for property purchased as the buyer’s first-time home.
When the transaction is VAT exempt, then the sale is burdened by a registration or transfer fee at the rate of seven (7) percent (reduced to three (3) percent for first-time buyers), and land survey and mortgage dues, both at a the rate of three (3) percent (reduced to a fixed amount of 168 Euro for first-time buyers).
All the foregoing fees and duties (registration or transfer fee, mortgage and land survey duties) are paid in advance by the buyer and discharged by the notary when registering the sales and purchase contract.
The base for determining the VAT payable on property liable to this tax is the price agreed upon by the parties to the transaction and declared by them in the transfer deed. If a bank loan or mortgage has been taken out to purchase the property, then the price specified in the deed cannot be less than the amount disbursed for the loan or mortgage.

REALTY TRANSFER FEES	Fees/duties to BUYER’s ACCOUNT
	LAND SURVEY	MORTGAGE	REGISTRATION/ TRANSFER	VAT
1) from DEVELOPERS, BUILDERS or REFURBISHERS on sales made by them within 4 years of works completion
- first-time home	Euro 168	Euro 168	3%	4%
- other dwellings	Euro 168	Euro 168	Euro 168	10% /20%*
2) from NON-BUILDING FIRMS that have supervised reconstruction works or from builders on sales made by them after 4 years of works completion	.	.	.	.
- first-time home	Euro 168	>Euro 168	3%	exempt
- other dwellings	1%	2%	7%	exempt
3) from PRIVATE sellers	.	.	.	.
- first-time home	Euro 168	Euro 168	3%	No
- other dwellings	1%	2%	7%	No

*20% is the rate charged on luxury homes.
Facilitations are granted only when the following prerequisites are met:
- non-luxury homes
- realty located in the municipality where the buyer resides or in which the buyer will set up residence within eighteen (18) months of purchase, or in which the buyer’s chief business activity is located.
Other costs and expenses to be considered are notary fees, determined on the basis of property value, and any other brokerage fees.