In brief: agricultural land acquisition and use in Italy

Land acquisition and use

Identify and summarise the enacted legislation addressing agricultural property transactions in your jurisdiction. Outline how farmland is typically held.

Agriculture property transactions are mainly regulated by domestic legislation.

Properties functional to the agricultural activity, including instrumental constructions intended for office use of the farm and rural housing, should be considered agricultural property.

Agriculture property legislation is provided in both the Italian Civil Code and in specific regulations.

In this regard, for example, the acquisition of agricultural properties and easements are provided by the Civil Code and subject to common provisions (included the right of first refusal granted to the tenant of the property if it is set for sale).

Most of the benefits are related to the taxation applied for the acquisition of agricultural properties; in this case, such properties are VAT exempted and the registration fee is reduced (ie, equal to 9 per cent in case of acquisition by a professional farmer and 15 per cent for acquisition by a non-professional farmer).

On the other hand, Law No. 203/1982 sets out the specific rules applicable to the lease of agriculture properties. This Law regulates several aspects, including the duration of leases, their termination and the condition under which such properties may be transferred to another owner, and the right of first refusal of the tenant if the landlord intends to lease the property to third parties.

Outline any rules related to use of farmland for non-agricultural uses.

The qualification as agricultural property is framed by planning and environmental legislation.

If a property qualifies as for agricultural use, it does not mean that it should be used only for cultivation, animal breeding, vegetable production or for the manipulation, conservation, transformation, marketing and valorisation of such products (among others, in this sense, CdS, Sez. IV, No. 5334/2016).

The only prohibition is that such land cannot be used for building purposes.

In this sense, for example, it is possible to use such properties for tourist purposes, regulated by Law No. 730/1985, or for parking (eg, TAR Sardegna No. 926/2001).

What special rules are important to agricultural lending in your jurisdiction?

Under the Italian laws there are several incentives for agricultural business, including agricultural lending.

In this regard, Law No. 135/97 incentivises young agricultural entrepreneurs. There are several regional laws that provide financial support for developing agricultural business; the Institute of Services for the Agricultural Food Market, which is a public authority, also provides loans and guarantees in favour of agricultural business, as well as private banks providing loans and mortgages specific to agricultural purposes.

Describe any rules relating to public control of farm property in your jurisdiction. What enacted legislation governs them?

Under the Italian laws there are several incentives for agricultural business, including agricultural lending.

In this sense, Law No. 135/97 incentivises young agricultural entrepreneurs. There are several regional laws that provide financial support for developing agricultural business; the Institute of Services for the Agricultural Food Market, which is a public authority, also provides loans and guarantees in favour of agricultural business, as well as private banks providing loans and mortgages specific to agricultural purposes.

Are there any restrictions on foreign ownership of farm property in your jurisdiction? What enacted legislation governs them?

Under Italian law, foreign investments or ownerships of farm property are neither supervised nor forbidden. As a result, a foreign investment is not subject to any specific government approval or consent from a public authority before acquiring any shares in a domestic agricultural company.

However, the acquisition of a farm property may be subject to general rules related to ownership acquisition, and planning and environmental rules applicable to any other property.

Law stated date

Give the date on which the information above is accurate.

Correct on 19 December 2019.