Real Estate Glossary (EN)
Core terms of the Italian and international real estate sector, with operational definitions for agents, software developers, and real estate professionals.
> General Disclaimer: This content is for informational purposes only - for tax or legal decisions consult a licensed professional (accountant, notary, lawyer). Primary sources: Italian Revenue Agency (Agenzia delle Entrate), Banca d'Italia (2024).
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Real Estate Agent (Agente Immobiliare)
A professional registered in the Roll of Business Mediation Agents (CCIAA) who mediates between seller and buyer of real estate. The agent's remuneration is the commission (provvigione), owed by both parties upon conclusion of the deal (Italian Civil Code art. 1755).
Property Listing (Annuncio di Vendita)
A publication on real estate portals (e.g., Immobiliare.it, Idealista) describing a property for sale: location, area, price, features, photos. In Italy it must comply with price transparency regulations.
EPC (Energy Performance Certificate - APE)
A mandatory document for the sale or rental of real estate (Legislative Decree 192/2005 and subsequent amendments), certifying the building's energy class (from A4 to G). Must be attached to the deed of sale, otherwise voidable.
Notarial Deed (Rogito)
A public deed drawn up by a notary that formalizes the transfer of property. The rogito is the definitive transaction document and must be transcribed in the Property Registers to be enforceable against third parties.
Cadastral Survey (Visura Catastale)
A document issued by the Italian Revenue Agency containing the identifying data of a property: sheet number, parcel, sub-unit, cadastral category, cadastral income, owners.
Cadastral Income (Rendita Catastale)
A fiscal reference value assigned by the Italian Revenue Agency to each real estate unit. Used as the calculation base for several taxes (IMU property tax, personal income tax on rented properties, registration tax, mortgage and cadastral taxes).
> Tax Disclaimer: Tax calculations based on the cadastral income depend on the type of tax, the taxpayer's situation and the property's use. For tax decisions, consult a licensed accountant. Source: Italian Revenue Agency, Circular 6/E of 2012 and 2024 updates.
Cadastral Value (Valore Catastale)
Value obtained by multiplying the revalued cadastral income by the legal cadastral coefficients (Presidential Decree 131/1986 and subsequent amendments). Used to calculate registration, mortgage, and cadastral taxes in private-to-private sales.
Market Value (Valore di Mercato)
The estimated price of a property in free-market conditions, determined by appraisals and comparisons with similar properties (comparative method). Does not necessarily match the cadastral value.
Property Appraisal (Perizia Immobiliare)
A technical valuation carried out by a qualified expert (engineer, architect, surveyor, licensed real estate agent) that estimates the commercial value of a property. Required for mortgages, inheritances, and asset divisions.
Purchase Offer (Proposta di Acquisto)
An irrevocable purchase offer made by the buyer to the seller for a specific price. If accepted, it binds both parties. Usually accompanied by a confirming deposit (caparra confirmatoria).
Confirming Deposit (Caparra Confirmatoria)
A sum paid by the buyer to the seller as a guarantee of the seriousness of the offer (Civil Code art. 1385). If the seller withdraws, they must return double the deposit to the buyer; if the buyer withdraws, they forfeit the deposit.
Preliminary Contract (Compromesso)
A contract binding the parties to enter into the final deed (rogito). Must include: party details, property description, price, deadline for the deed. Should be registered in the Property Registers if the property is valued > €100,000.
Property Registration (Trascrizione)
Publicity recording in the Property Registers managed by the Italian Revenue Agency. Makes the deed enforceable against third parties and resolves conflicts between competing buyers (temporal priority principle).
Cadastre (Catasto)
A public inventory of all properties in the Italian territory, managed by the Italian Revenue Agency – Cadastral Services Division. Comprises the land cadastre and the building cadastre.
Cadastral Parcel (Particella Catastale)
The elementary unit of the land cadastre that identifies a plot of land. Identified by: Municipality, section, sheet (foglio), parcel number.
Sub-unit (Subalterno)
Subdivides the cadastral parcel to identify individual real estate units within a building (apartments, garages, cellars). E.g., sheet 23, parcel 45, sub 3 = third-floor apartment.
Cadastral Category (Categoria Catastale)
Classification of the real estate unit based on intended use (e.g., A/2 = civil dwelling, C/6 = garage, D/1 = industrial plant). Determines the coefficients for calculating the cadastral value and the IMU tax rates.
IMU (Municipal Property Tax)
A local property tax on properties other than the primary residence (Law 160/2019). Tax base: revalued cadastral value. Base rate: 0.86%; Municipalities can adjust within statutory limits. Primary residence exempt (except A/1, A/8, A/9 luxury categories).
> Tax Disclaimer: IMU information is for informational purposes only. Rates and exemptions change annually based on municipal resolutions. For accurate calculations, consult an accountant or your Municipality. Source: Italian Revenue Agency, IMU Portal; Law 160/2019; reference year 2024.
Flat Tax on Rental Income (Cedolare Secca)
An optional fiscal scheme for residential property rentals (Legislative Decree 23/2011). Fixed rate of 21% (or 10% for agreed-rent contracts). Replaces personal income tax, surcharges, registration tax, and stamp duty on the contract.
> Tax Disclaimer: Cedolare secca rates and eligibility requirements may change by law. This information is for informational purposes only. For tax decisions, consult a licensed accountant. Source: Italian Revenue Agency, Cedolare Secca Guide, year 2024.
Capital Gain (Plusvalenza Immobiliare)
The positive difference between the sale price and the purchase price (or construction cost) of a property, subject to income tax if realized within 5 years of purchase (with exceptions). Exempt for properties acquired by inheritance or used as the primary residence for most of the holding period.
> Tax Disclaimer: The tax treatment of real estate capital gains is complex (exemptions, optional 26% substitute tax introduced from 2023). For tax decisions, consult a licensed accountant. Source: TUIR arts. 67-68; Law 197/2022; Legge di Bilancio 2024.
Mortgage (Mutuo Ipotecario)
A medium- to long-term loan issued by banks or financial institutions, secured by a mortgage on the property (Civil Code art. 2808). Rates may be fixed, variable, or mixed. In Italy the maximum LTV is normally 80%.
Mortgage Lien (Ipoteca)
A real security right on a property in favor of the creditor (e.g., lending bank). In case of default, the creditor can proceed with forced execution on the property.
Notarial Deed Transfer (Rogito Notarile)
Synonym for "notarial deed". A notary is mandatory for the transfer of real property rights in Italy. The notary verifies cadastral and urban planning compliance, freedom from encumbrances, and handles the registration.
Urban Planning Compliance (Conformità Urbanistica)
The correspondence between the actual state of the property and the building permit (permesso di costruire, SCIA, concessione in sanatoria). Mandatory to declare in the deed (Presidential Decree 380/2001 art. 46).
Cadastral Compliance (Conformità Catastale)
The correspondence between the actual state of the property and the floor plan filed with the cadastre. Mandatory to declare in the deed since Decree-Law 78/2010.
Lease / Tenancy (Locazione / Affitto)
A contract by which the landlord grants use of a property to the tenant for a period and a periodic rent (Civil Code art. 1571). Residential leases are governed by Law 431/1998; commercial leases by the Civil Code.
Rental Rent (Canone di Locazione)
The periodic amount (monthly) owed by the tenant to the landlord for use of the property. In agreed-rent contracts, determined by territorial agreements between industry organizations.
4+4 Lease (Contratto 4+4)
A free-market residential lease with a duration of 4 years renewable for another 4 (Law 431/1998, art. 2, para. 1). Rent freely agreed by the parties.
3+2 Lease (Contratto 3+2)
An agreed-rent residential lease with a duration of 3 years renewable for 2 (Law 431/1998, art. 2, para. 3). Rent determined by territorial agreements. Tax benefits for the landlord (reduced cedolare or income tax base).
Security Deposit (Deposito Cauzionale)
A sum paid by the tenant at the time of signing as a guarantee of performance. Cannot exceed 3 months' rent (Law 392/1978 art. 11).
Condo Fees (Spese Condominiali)
Charges for managing and maintaining common parts of a building (elevator, garden, porter, etc.). Allocated between owners based on millesimal tables. Ordinary charges are borne by the tenant (Law 392/1978 art. 9).
Millesimal Tables (Tabelle Millesimali)
Parameters expressing the proportional value of each real estate unit relative to the entire building. Used to allocate condo fees and determine voting shares in building assemblies.
Building Regulations (Regolamento Condominiale)
A document governing the use of common areas and conduct of condo owners. May be contractual (attached to the deed) or assembly-adopted. Mandatory for buildings with more than 10 units.
Building Administrator (Amministratore di Condominio)
A professional (or condo owner) who manages the building: collects fees, makes payments, convenes meetings, represents the building in dealings with third parties. Mandatory for buildings with more than 8 units (Civil Code art. 1129).
Waste Tax (TARI)
A municipal tax covering the costs of waste collection and disposal. Owed by the property occupant (owner or tenant). Calculation base: property area.
Energy Class (Classe Energetica)
A rating of a building's energy efficiency, from A4 (highest efficiency) to G (lowest). Influences market value and rental rates. Certified in the EPC.
Real Estate Due Diligence
The process of technical, legal, and fiscal verification of a property before purchase: cadastral, urban planning, mortgage verification, compliance of systems, maintenance status, pending litigation.
Real Estate Investment Fund (Fondo Immobiliare)
A collective investment undertaking that invests gathered assets in real estate, real property rights, and holdings in real estate companies. Regulated by Banca d'Italia.
SIIQ (Listed Real Estate Investment Company)
A publicly listed company with predominantly real estate rental activity. Benefits from a favorable tax regime on dividend distribution (Law 296/2006). The Italian equivalent of REITs.
Cap Rate
A real estate return metric calculated as: (Net Operating Income / Market Value) × 100. Used to compare investment opportunities. A higher cap rate indicates higher return but also higher perceived risk.
> Tax / Investment Disclaimer: Cap rate and yield estimates are for informational purposes and depend on multiple market variables. They do not constitute financial advice. For investment decisions, consult a licensed financial advisor. Source: Banca d'Italia, Financial Stability Report; OMI – Real Estate Market Observatory, 2024.
LTV (Loan-to-Value)
The percentage ratio of the mortgage amount to the property value. Example: €160,000 mortgage on a €200,000 property = 80% LTV. A key bank metric for credit risk assessment.
Real Estate Mediation
Activity carried out by the real estate agent to bring together the parties of a sale or lease. The commission is owed by both parties upon conclusion of the deal (Civil Code art. 1755). The agent must be registered with the REA/CCIAA.