Press Release: State aid: European Commission opens probe into preferential real estate tax regime for non commercial entities in Italy

The European Commission has opened an in-depth investigation under EU state aid rules to establish whether the municipal tax exemption granted by Italy to real estate used by non commercial entities for specific purposes constitutes illegal state aid. At this stage, the Commission considers, in particular, that the real estate in question could also be used for commercial activities and that these tax exemptions could therefore distort competition.

The Commission will also investigate Article 149 (4) of the Italian Unified Law on Income Tax, which provides a favourable tax treatment for ecclesiastic institutions and amateur sports clubs. The opening of an in-depth investigation allows interested parties to comment on the measures under assessment. It does not prejudge the outcome of the procedure.