Regens Magazine (ENG), #2 / June 2020

REGENS MAGAZINEREGENS MAGAZINE
by Regens International
Copyright 2020
ISSUE 02 | JUNE 2020

Our story is
in the unbeaten paths
we have travelled...
...in the
stormy horizons
we have challenged.
Credits:forthephotosand/orgraphicdesigncontributionscontainedinthisissue
specialthanksgotoSeozzy(AlessandroDavia)andtoUnsplashwebsite.

Dear readers,
in this second issue of our magazine we will bring to your attention
one-of-a-kind and really astounding properties.
We will start with a wonderful castle in commanding position
within just an hour’s drive to Rome.
From there we will move on to Russia with some property updates
for private investors and corporations.
After that we will «fly» you to Croatia, Slovenia and Montenegro
and make you discover some very interesting offers, including a
beachfront hotel on the Opatija Riviera.
Check out our latest listings regarding hotels for sale in Italy and
restaurant businesses and if you’re looking for a lifestyle investment
do not forget to take a look at our properties in Sardinia and new
apartments for sale in a historic mansion in the Venetian lagoon.
Do not miss out on our extra contents and insights dedicated to:
property prices in the centre of Saint Petersburg, buying property
in Croatia as a foreign national, access to bank financing for
purchasing real estate in Slovenia as a foreigner and incentives for
building renovations in Italy.
Feel free to contact us for additional information, property
enquiries or for leaving us a request.
Enjoy your reading!
Alessandro Alessio
a.alessio@regens-international.com
www.regens-international.com
Alessandro Alessio
Regens International, Founder
Introductory message
3
Regens Magazine 02/2020

Table of contents
Propertyofthemonth-The«LordoftheValley» 5
— real estate in Russia
Commercial propertiesin Russia 6
Featuredlisting-Premiumshowroompremisesforrentin Moscow 8
Industrial properties 9
Marketupdates/ Focuson Russia:
«Howcouldtherelationsbetween landlordsandtenantschangeafterthe
pandemic»
10
Luxuryresidentialproperties,Moscow& SaintPetersburg 11
Marketinsight/ Focuson Russia:
«OverviewofSaintPetersburgpropertyprices:thecentraldistrict»
12
— International real estate
Propertiesin Croatia 14
Marketinsight/ Focuson Croatia:
«Buyingpropertyin Croatiaasaforeign national»
15
Investmentsin hospitalityandtourism-relatedprojects,Croatia& Montenegro 16
Slovenia& Montenegrolistings 17
Expertopinion / Focuson Slovenia:
«Mortgageloansin Sloveniaforforeigners»
18
Hotelsforsalein Italy 20
Restaurantbusinessesforsale 21
Expertopnion / Focuson Italy:
«Newincentivesforbuildingfrontageimprovementsin 2020»
22
Propertiesin Sardinia 23
Featuredlisting-«TheResidencesin theVenetian lagoon» 24
This month’s featured topics:
4

For further information click > here
A majestic fortress
within an hour’s drive to the «Eternal City».
A genuine Renaissance masterpiece
standing atop the hills.
Acenturies-long story
set among the valleys of Lazio.
The Lord of the Valley
Property of the month
5

Moscow, metro Tverskaya
Class «B+» offices for rent
in renovated historic mansion
Link > here
Moscow, Smolenskaya
Street-facing premises for bakery/confectionery.
Monthly rent: 270,000 RUB/month.
Link > here
Commercial properties in Russia
6
Saint Petersburg, Petrogradsky district
Duplex premises (539 m2) for luxury showroom
or premium store/office.
Link > here
Saint Petersburg, Central district
Street-facing premises (70 m2)
on Malaya Morskaya (close to Nevsky).
Link > here
Saint Petersburg, Sadovaya street
Showroom premises for rent in 18th-century
building with an original architecture.
Link > here

Moscow
Move-in ready offices for rent.
Link > here
Moscow, Bol’shaya Dmitrovka street
High-street premises (705 sqm) for showroom,
store or offices in prime location..
Link > here
Kazan
3-star hotel for sale in very central location.
Link > here
Magnitogorsk
4-star hotel for sale.
Link > here
7
Moscow, central district
2-star hotel with 150+ rooms.
Link > here

Featured listing
8
Moscow, metro Mar’ina Roshcha
2-storey premises suitable for showroom,
store, offices or café/restaurant.
Designer’s renovation; great visibility from the road.
many and big street-facing windows.
Available for both rent or sale.
For additional information contact:

Moscow region
25 km West from MKAD
Premises of 1900 m2 for rent for
storage or manufacturing.
Rent: 11,000 RUB/m2/year
<
Information > on request
<
Mozhayskoe shosse
West of Moscow on MKAD
Premises of 464 m2 for storage, auto dealer or
production. Rent: 15,000 RUB/m2/year.
Information > on application
Industrial properties
9
Moscow region
9 km South from MKAD
Building of 2254 m2 for warehouse,
Rent: 11,000 RUB/m2/year.
Industrial park
3.5 km South-west from MKAD
Warehouse of 690 m2 for rent
for storage or manufacturing.

Howcould the relations betweenlandlords and tenants change after the pandemic - 16/05/2020
The general lockdown imposed as one of the measures to combat the
spread of the pandemic in Russia has resulted in a drop in revenues
of between 70 and 98% for almost all retail operators. Despite this,
retailers have to continue to pay rent and not all landlords have
shown willingness to make significant concessions or discounts.
In most cases, early termination of existing leases still leads to
penalties for tenants (usually the landlord retains just the security
deposit paid by the other party at the beginning of the lease, but
in some cases the tenant is even obliged to pay the rent for all
the months left until the expiration of the lease agreement).
For this reason, on May 9th, the Association of Retailers
sent the Duma a formal request for speeding up the
process of approval of the law that would allow tenants
the possibility - under certain conditions - to unilaterally
terminate lease contracts without any penalties whatsoever.
It is assumed that this opportunity will regard those
operators whose revenues have fallen by at least 50% as a
result of the crisis. In these cases the landlords will also be
required to return the security deposit to the other party.
Shopping mall owners, for their part, are obviously strongly
opposing the adoption of this bill and have already declared that
the possible introduction of these measures will lead to a general
collapse of the sector, which could lead to a critical level of insolvency
and the consequent impossibility for banks to see loans paid off.
The Association of Shopping mall owners has therefore addressed
a formal letter to the Duma of the Russian Federation asking it to
reject the bill which would give tenants the right to unilaterally
withdraw from lease contracts without incurring penalties,
claiming that this could induce some tenants to «blackmail»
them by urging changes to the contractual conditions even without valid reasons or just cause.
The landlords therefore fear that the proposed changes could lead to a real «default» in the sector: most of the
contracts could be challenged and many tenants would insist on replacing the fixed rent with a percentage of revenues.
This would result in the loss of value of commercial property, which would also result in dramatic losses for banks.
In their appeal, the landlords pointed out that this could cause the sector to collapse irreversibly,
with more than 6 million people losing their jobs and obvious catastrophic social consequences.
AlessandroAlessio
Market updates / Focus on Russia
10

11
Luxury residences, Moscow & Saint Petersburg
Moscow, Chistye Prudy
Exclusive apartments for sale
in restored 19th-century mansion.
Saint Petersburg, Chernyshevskaya
Premium residences a few minutes’ walk
to Nevsky Prospekt
Saint Petersburg, «Golden Triangle»
Luxury residences for sale
in riverside historic palace.
Moscow, Kitay-Gorod
Luxury residences in late 19th-century
building under restoration.
Information > on application

Market insight
Overviewof Saint Petersburgproperty prices: the Central district (Tsentral’ny)
The «Tsentral’ny» district, located on the left bank of the Neva River, represents the historic core of the city,
consisting almost entirely of buildings dating back to the pre-Revolution period. Here are concentrated a large
number of museums, theatres and also administrative offices, as well as the main tourist attractions of the city centre.
Many of the buildings in the central district relate to the so-called
«stary zhiloy fond», i.e. those apartment houses that are now old and
have never undergone thorough renovation since their construction.
In recent years some of these houses were
redeveloped into new luxury residential complexes.
If in the second half of the 19th century this part of the city was
embellished with numerous small buildings that were often
the homes of local aristocratic families or foreign businessmen
and diplomats, after the revolution many of these buildings
were requisitioned by the Bolsheviks in order to be converted
into collective apartments (the so-called «kommunal’ki»).
During the Second World War the German bombings heavily
damaged several blocks of flats, but in the 1950s various restoration
and reconstruction works were undertaken, often involving the
replacement of the old wooden floors with new mixed (reinforced
metal) or reinforced concrete ones. At that time gas was brought
to the houses and water heating was used to replace the stoves.
However, despite the significant amount of interventions, the architectural and historical identity of the neighborhood, luckily enough,
were not distorted thanks to the fact that much of the building heritage is recognized as «historical monument» of cultural interest.
It is therefore not surprising that the district - since the birth of the real estate market in the country
- has been identified as one of those with the greatest potential from the speculative point of view.
Already in the first half of the 1990s, just a few months after Perestroyka, many foreign investors «laid their eyes» on
St. Petersburg, immediately realizing that the city had exceptional potential for growth in terms of property values.
The most sought-after type was apartments of about 100 square meters - in most cases they were ex-kommunalki - in a riverfront
location. Buyers usually would purchase for rent the property out on a short-term basis to tourists and guests of the city.
The area within the so-called «Golden Triangle» (between Neva, Fontanka, Admiralteysky prospekt
and Gorokhovaya street) even then was already considered of particular interest and value.
While at that time average house prices were much lower than in Moscow, renting «Western-style» apartments in central locations on
a daily or weekly basis would turn out to be comparatively expensive, as a result rental returns could reach particularly interesting levels.
Overseas investors were particularly active in the city in the period between 1993-1995. This trend came to an
abrupt halt in 1998, not only because of the well-known economic default in the country, but also because both
the political instability and the Chechen crisis were legitimately perceived as elements of risk and uncertainty.
Thus it was that in 1998 many «early-bird» foreign investors
decided to sell their properties fearing a collapse not only
on the real-estate market but in the country in general.
For several years the share of foreign nationals among property
buyers in the city was strongly reduced, but in the early 2000s
the situation seemed to dramatically change once again. In fact,
following Putin’s appointment many investors predicted that in the
years to come the city would probably attract massive investments.
Just between the end of the nineties and the beginning of the new
millennium, the World Bank for Reconstruction and Development
allocated funds for several hundred million dollars for a loan to
Russia that the Federal authorities used for the restoration of the
historical and cultural heritage and for the modernization of the
city’s infrastructure, most of which concerned the central district.
As is often the case, real estate values rose as a result of this and still it was not a rarity then to find apartments priced
1000 USD/sqm in the centre, although in the most sought-after areas one could expect to pay up to 2,500 USD/sqm.
> > >
12

> > >
In those years foreigners, including some American investment funds and many private investors from European countries returned to the banks
of the Neva. Some bought large surfaces or entire floors and converted them into hostels or cheap mini-hotels that guaranteed good returns.
Even the New York Times in that period dedicated an article to the city in which it was pointed out that «for only 50,000 USD it was possible
to buy a piece of history in the capital of the Tsars» and apparently not a few thought it was appropriate to follow the advice, although in reality
at that price it was already unlikely to find anything with river views in the so-
called «Golden Triangle» between Nevsky Prospekt, the Neva and the Fontanka.
Another factor which contributed to a further peak in the city’s popularity
as a tourist and real estate investment destination was the celebration of
the 300th anniversary of its foundation in 2003. In view of this important
anniversary many historical buildings in the city centre were restored and
the city discovered that in addition to an innate hospitality and residential
soul, a «commercial» one was also beginning to mature. In fact, it was
in that period that there was a strong development of the retail segment
dictated by the growing interest of international retailers and franchising
chains that drove an increase in the prices of street retail premises.
As far as transport connections are concerned the district, among other things,
is crossed by 5 metro lines for a total of 11 stations: Chernyshevskaya, Ploshad’
Vosstaniya, Vladimirskaya, Nevsky Prospekt, Mayakovskaya, Gostiny Dvor,
Ploshad’ Alexandra Nevskogo-1 and 2, Dostoevskaya, Ligovsky Prospekt
and Admiralteyskaya. Road traffic here is quite congested, while shortage of parking lots and jams during rush hour here are commonplace.
Averagepricesofapartmentsinthecentraldistrict
From a real estate point of view, obviously both in the residential and office segments here average prices tend to be higher than in the other districts
of the city. According to statistical surveys published by specialized sources, the average prices for «resale» apartments in buildings
with communal areas in a far from perfection state of maintenance may range between 135,000 - 190,000 RUB/sqm (equal to
about 1,700 - 2,500 EUR/sqm as per the current exchange rate), but obviously they may rise significantly in case of options with a
Western-style renovation or with unique characteristics (such as great views, etc.) or located within new or premium developments.
It is possible to find studio apartments of around 40 m2 in decent houses within a price range of RUB 7,500,000 (a little less
than 100,000 EUR); however, in the case of already renovated options, the seller’s expectations may be significantly higher.
If we talk about two-room apartments it is not infrequent to find options calling for refurbishment priced 9,000,000-
10,000,000 RUB (about 112,500 - 125,000 EUR), while for three-room apartments the typical range may vary
between 11,000,000-15,000,000 RUB (between 140,000 - 190,000 EUR), again depending on a multitude of factors.
Obviously the above statistics are merely indicative: if you intend to buy a «business» or «premium» class
apartment in a newly built or recently renovated complex you should expect to spend up to 6.000 - 8.000 EUR/sqm.
As far as the rental market in the central district is concerned, it is quite typical to come across prices such as the ones pointed out below:
• one-room or two-room apartments: from 30,000 to 50,000 RUB/month depending on the size, location, condition of the premises,
communal areas in the house and other possible individual strong points (views, above-average renovation, etc.) or weaknesses;
• three-room apartments: 50,000 - 80,000 RUB/month, with prices even higher than 120,000 - 150,000 RUB/month in recently built
«business» class (or elite) developments.
AlessandroAlessio
13

Rabac, Istria
Premium apartments within minutes to wonderful beaches.
Link > here
Island of Korcula
Villa with direct access to the sea.
Link > here
Istria, Umag surroundings
New apartments for sale
in seafront building.
Link > here
Kvarner, Rijeka surroundings
Modern villa in commanding position
with breath-taking sea views.
Link > here
International real estate / Properties in Croatia
14

Buying property in Croatia as a foreign national
Those who, like myself, have had the pleasure of enjoying Croatia for years, both on business and on holiday, are not
surprised by the great popularity of this country at an international level, both in terms of tourism and real estate
investments. Austrians, Germans, British, Dutch, Italians, Russians but not only ... the charm of Croatia knows no borders!
It is impossible to remain indifferent to the many graces of this country, which combines an amazing coastline with a
landscape of exceptional beauty and heterogeneity (ranging from uncontaminated islets to inland villages clinging to
sinuous hills that evoke the Tuscan countryside), a rich historical and cultural heritage and a great food and wine tradition.
Croatia joined the EU in 2013 and in view of this event considerable investments had been made in infrastructure
(including the extension of the Istrian «Y», the well-known highway that almost all foreign holidaymakers
reaching the country with their own vehicles certainly know), and by 2023 plans to adopt the Euro as its currency.
In other words, a country in constant evolution.
Due to its remarkable variety of landscapes, Croatia is able to attract both those investors who just need a «pied-à-terre» near the
sea for their holidays as well as those who prefer stone houses with land inland in some picturesque setting far from mass tourism.
Inordertobetterunderstandwhataforeignercanexpectwhenplanningtobuypropertyinthiscountryhereissomeusefulinformation.
Question: Does Croatianlawprovide for restrictions onthe purchase of real estate by foreigncitizens?
Answer:Citizensof EU-memberstatescanpurchaserealestateinCroatiaasnaturalpersonswithoutanyrestrictions.Citizensofnon-EU
countriesmustobtaintheapprovaloftheCroatianMinistryofJusticeinordertobeabletoregisterownershipofrealestateintheirnameas
naturalpersons. SuchconsentshallnormallybegivenifthereisreciprocitybetweenCroatiaandthecountrytheapplicantisacitizenof.
Citizens of non-EU countries who wish to avoid the process of obtaining consent from the Ministry
can still set up a local company with which they can immediately proceed with the acquisition.
Question: Howlongdoes it usually take to obtainthe authorizationfromthe Ministry of Justice allowingto register the transfer of the
ownership infavour of the foreigncitizeninthe real estate registers?
Answer: Normally the consent from the Ministry is obtained in several months, but in some cases it may take just a few weeks.
Question: Inwhichcases could the CroatianMinistry of Justice turndownthe request?
Answer: The Ministry is primarily responsible for ensuring that a reciprocal agreement is in force between the Republic of Croatia
and the country of which the applicant is a national. If there is no such agreement between the two countries, the Ministry will
normally refuse to give its consent to the transcription of the transfer of the ownership of the property in favour of the applicant.
Question: Is it mandatory to use a notary publicinCroatia whenbuyingand sellingreal estate?Howmuchdo notary services usually cost?
Answer: The notary public is a qualified lawyer performing official acts on behalf of the Croatian government. Its role is to ensure
that all documents involved in the real-estate transaction are valid, duly drawn up and comply with current legislation. In particular,
the notary is required to authenticate the seller’s signature on the final contract. In addition to that, the notary certifies that all
documents that have been translated from a foreign language into Croatian have been prepared either by a certified sworn translator
or personally by a lawyer in order to guarantee their validity. In addition, the notary may provide escrow account services if required.
Question: What taxes must the buyer pay when buying the
property? Is there a difference if you buy from a natural person
(individual) or from the developer or other legal entity?
Answer: Transactions between private individuals are subject to
thepaymentofregistrationtax(normallytobepaidbythebuyer)
in the amount of 3% of the purchase price, while when you buy
fromthedeveloperthepricesusuallyalreadyincludeVAT(25%).
Question: How much does it cost setting up a company
under Croatian law with the aim of owning a property?
Answer: The most widespread and simplest legal
form in Croatia is that of the «d.o.o.» (limited liability company) whose share capital adds up to 20,000 kunas (about
2700 euros). The deeds of incorporation must be signed by the shareholders and directors of the company by a local
notary public (cost: approx. EUR 800), usually in the presence of a certified sworn translator (cost: EUR 200-300).
AlessandroAlessio
Market insight / Focus on Croatia
15

Opatija Riviera
Small beachfront hotel for sale.
Link > here
Istrian coast
Seaside resort development project.
Link > here
Kotor Riviera, Montenegro
Seafront hotel for sale.
Link > here
Island of Krk, Croatia
Seaside building
calling for thorough renovation.
Link > here
Kvarner
«4-star» hotel (60 rooms)
in front of the beach.
Link > here
Hospitality- and tourism-related investments, Croatia & Montenegro
16

Portorož
Commercial premises for sale with tenants
(as income-producing property).
Link > here
Piran
Old Town top-floor apartment
with stunning sea views.
Link > here
Koper
Semi-detached house with garden and
sweeping views over town and gulf.
Link > here
Kotor Bay, Montenegro
Modern villa with stunning sea views.
Price: 799,000 EUR
Link > here
Kotor Bay, Montenegro
Seaside historic complex
with apartments and a restaurant.
Link > here
Slovenia & Montenegro
17

Expert Opinion / Focus on Slovenia
Even though probably less advertised than its «most illustrious»
neighbours,Sloveniahasmuchtooffertobothsea-andmountainlovers
aswellastothosewhoarenotindifferenttothecharmsofthecountryside.
Among the many beauties worth admiring here a special mention
deserve the capital city of Ljubljana, still pervaded by a taste
of «Mitteleuropa», the lake town of Bled, the internationally-
renowned ski resort of Kranjska Gora, the «queens of the coast»,
Piran and Portorož, as well as the picturesque villages of the
Karst, often interspersed with rows of vineyards and rolling hills.
Among other foreigners, also a large number of Italians have
invested «across the border» attracted by the appealing
prices, more favourable taxation and cheaper cost of living.
For those who are considering buying property in
Slovenia it might be interesting to learn more about
the possibility of getting access to bank financing.
With this regard we had a chat with Tomaž Fefer,
Product manager at Banka Sparkasse in Ljubljana.
D - Mr.Fefer, does your Bank grant mortgage loans to
foreign citizens for the purchase of real estate in Slovenia?
A-BankaSparkasseoffersloanstoforeigncitizens,residentsofSlovenia,
in case the loan currency and the applicant’s income are both in EUR.
D - Is a loan possible for the purchase of any type of real
estate, or are there any restrictions, or types of properties
whose purchase the bank is more reluctant to finance?
A-Individuals cangetaloanfor the purchaseofresidentialproperties.
The bank finances the purchase of agricultural land or woodland only
if the property includes also annexes and/or residential buildings.
> > >
Mortgage loans in Slovenia for foreigners
Ljubljana
Apartments for sale
in new development in Šiška District.
Link > here
Tomaž Fefer
Product Manager
Banka Sparkasse, Ljubljana
18

D - Are loans available both to foreigners permanently residing in
Slovenia as well as to non-residents who do not have an income in
Slovenia and simply want to invest in real estate in the country?
A - In case of non-residents we have some additional limitations
and applications are usually considered on a case-by-case
basis, e.g. we finance up to 60% of purchase price and in case
of EU citizen the local currency of country must be EUR. In
all cases currency of consumers’ income must be in EUR.
D - Is the set of documents required for the assessment of the loan
application the same in both the above cases? What additional
documents must a non-resident foreign citizen provide?
A - Non-residents additionally have to provide
an excerpt from the national credit registry.
D - What documents is the potential borrower required to submit
to the bank in order for the loan application to be processed?
A - Applicants need to provide proof of their income over the last
12 months – e.g. Employer certificate, the last 12 payrolls and prints
of the last 12 months of operations of their transaction account.
D-Isitpossibletogetloansforthepurchaseofbothresidentialand
commercial properties?For commercial real estate do you provide
financing only to legal entities or also to private individuals?
A - Private persons can apply for mortgage loans only
for the purchase of residential properties. Commercial
real estate loans are available solely to legal entities.
D - What are typically the average interest rates for mortgage loans
for individuals and businesses respectively? In the case of non-
resident foreign nationals do such rates significantly increase?
A - All applicants are treated individually and receive their own
individual offer according to their rating, insurance of the loan
and payback period. Non-residents have stricter loan-to-value
limitations – we offer financing up to 60% of the purchase price,
while rates are usually comparable to the ones applied to residents.
D - What is the maximum loan repayment
period that your bank can offer?
A - Maximum repayment period for mortgage
loans to private individuals is 25 years.
D - If the borrower at a later stage decides to rent out
or resell the mortgaged property, does he or she need
prior permission from the bank in order to do so?
A - Borrower is obliged to inform the bank if the mortgaged property
willberentedtoathirdpartyorresold.Priorpermissionisnotrequired.
19

Riviera Romagnola
Small hotel a few steps away from the beach.
Price: 720,000 EUR
Link > here
Chianciano Terme
3-star hotel with ca.40 rooms.
Price: 1,200,000 EUR negotiable
Link > here
Calabria
Hotel complex with 90+ rooms.
Bargain price: 3,000,000 EUR negotiable
Link > here
Hotels for sale in Italy
20
Venice surroundings
Hotel in historic mansion
just 20 minutes’ drive to Venice.
Link > here
Bibione
4-star hotel for sale
in close proximity to the beach.
Link > here
Dolomites, close to Cortina
Family-run hotel close to the ski area
and Cortina d’Ampezzo.
Link > here

Marbella
Restaurant business for sale
in Puerto Banus.
Link > here
French Riviera
Family-run seaside restaurant
in internationally-renowned tourist destination.
Link > here
>>>
<<<
Florence, historic centre
Business for sale a few steps away to
Piazza della Signoria and Palazzo Vecchio.
Additional information > on request
Restaurant businesses for sale
21
Nice
Leasehold restaurant for sale
in the centre of Nice.
>>>
Mallorca
Very well established restaurant
with international customer base.
Link > here

Nebida
Move-in ready apartments for sale
a few minutes away from the sea.
Link > here
Costa Smeralda
Villa with pool and stunning sea views
close to Porto Cervo and Grande Pevero beach.
Properties in Sardinia
22
Nebida
Detached house on a cliff
with direct access to the beach.
Link > here

Expert opinion / Focus on Italy
Inthe2020BudgetLawtheItalianGovernmentincludedaninteresting
tax rebate for improvement works carried out to the facade of the
buildings.Let’sexamineinfurtherdetailwitharchitect GianlucaParon,
headofanarchitecturalstudioinTrieste,thecontentsofsuchprovisions
andwhatshouldbedoneinordertomakethemostofthisopportunity.
Q - Gianluca, what is this new«Bonus»about?
A - This is indeed good news not only for property owners but also
for professionals and building companies. The talk is about a new
tax discount aimed at supporting improvements, restoration or
redecoration works to the facades of the buildings in the Italian cities.
Itallowstorecoveruptothe90%ofthecostsactuallyincurredin 2020
with no maximum limit and can be benefited by everyone: owners,
tenants,residentsandnon-residents,betheyindividualsorbusinesses.
Q - Could youexplainhowexactly it works?
A - This is a tax deduction applicable to Italian income tax (be it
personal-orcorporatetax)andisgrantedwhenworksfortherecovery
or restoration of the external facades of existing buildings are carried
out, including the costs of cleaning or for the repainting.The building
must be located in specific zoning districts (specifically either «A» or
«B», i.e. areas which usually identify a town’s historic centre) of the
local Master Plan, or in other districts with similar characteristics
according to regional and municipal building regulations. The
expected rebate is the 90%of the documentarily confirmed expenses
incurred in the year 2020 or, for entities whose fiscal periods do not
coincide with the calendar year, in the tax period in progress as of
31 December 2020. The deduction is due over the next 10 years
in equal instalments. The main difference in comparison with
similar incentives related to buildings’ improvements is that there
are no spending limits nor maximum deduction limits for this new
«Bonus». While said provision shall stay in force until 31/12/2020,
it is very likely that it will be extended further until the end of 2021.
Q - So who canbenefit fromit?
A - All resident and non-resident taxpayers can benefit from this
tax rebate, even if they shoulder these costs as legal entities. More
specifically are eligible for the deductions: private persons, public
institutionsaswell asprivate corporationsnot involvedin commercial
activities, partnerships, professional associations, etc. The deduction
is not available to those entities who are subject to a separate or
substitute tax regime. It should also be noted that the deduction
does not apply to those who do not have a duly registered title to the
property as of the date of commencement of the improvement works
orasofthetimewhentheexpensesareincurred(ifpriortotheformer).
D - As with any tax rebate or bonus, it is essential to
understand exactly which kinds of works entitle you to
them and which don’t. What can you tell us about that?
A - The talk is about any works aimed at the improvement or
restoration of the external facades of a building, such as: renovations,
consolidation, cleaning or repainting , restoring (balconies,
ornaments and the likes), upgrading the thermal performance
(surface insulation) of a building. In a nutshell it relates to all works
carried out either on the frontage or on the other external sides of
the building. On the other hand, the bonus does not apply to works
carried out inside the building, if they are not visible from the street.
> > >
Q - And howdoes it apply to blocks of flats?
A - For improvements carried out on the communal parts of an
apartmentbuildingthedueapplicationcanbesubmittedbyanyofthe
ownersspecificallymandatedforthispurpose,orbythebuildingmanager.
The latter provides the documents confirming the actual payment of
the expenses by the apartment owners, proof of the amount paid and
certifiesto have fulfilled all the obligationsin compliance with the law.
Q - Is it complicated for the taxpayer to get this taxrebate?
A - In my opinion it is appropriate to seek the advice of a professional
to learn exactly what procedure to follow. That said, for the taxpayer
the procedure is really very simple. To get the 90% deduction you
needto make the payment bywire transferpointing out the reason for
the payment, the tax code of the beneficiary of the deduction and the
VAT number or the tax code of the entity in whose favor the transfer
is made (company or professional who carried out the work). Once
the payment has been made, in order to benefit from the tax rebate
taxpayers are required to point out in the tax return the cadastral data
identifying the property and, if the work is carried out by the owner,
theregistration detailsofthetitledeed.In certain casesitismandatory
to inform in advance by registered mail the local office of the National
Healthcare Service about the commencement date of the works
and then to keep and show at the officials’ request the papers related
to the carried out works (invoices proving the expenses incurred,
receipts of the bank transfer through which payment was made,
the permits required by current legislation, copy of the registration
request at the cadastral office, receipts of payment of the local taxes
on buildings, copy of the shareholders’ resolution approving the
execution of the works or, for works concerning communal parts in
a block of flats, declaration of consent to the execution of the works.
23
New incentives for building frontage improvements in 2020
Architect Gianluca Paron
Architectural & technical consulting studio
Trieste - Itay

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24

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Regens Magazine (ENG), #2 / June 2020

Regens Magazine (ENG), #2 / June 2020

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Regens Magazine (ENG), #2 / June 2020