Land Registry Reform

The Land Registry reform represents one of the most significant transformations of the Italian tax system. Envisaged by Art. 7 of Delegated Law No. 39, approved on 5 October 2021, it aims to modernise property mapping tools and correct historical imbalances that make the current system inadequate to the country's economic and property reality.

This article analyses the criticalities of the current system, the expected changes and the fiscal and administrative implications of the reform.

The current context of the Cadastre

The Italian Cadastre serves as an inventory of real estate in the territory, but it has no evidentiary value, i.e. it does not constitute definitive proof of the real rights, the position or the regularity of the construction of the registered buildings.

Structural limits

The main critical issues of the current cadastral system include:

Outdated cadastral annuities: The valuation rates on which cadastral annuities are based date back to the 1930s, creating a large discrepancy with today's market values. The reform provides for an update to ensure greater tax fairness.
Non-uniform market values: Cadastral values of residential properties are on average 50% of the market value, while for older properties they may only represent 25% of their real value.
Unequal treatment: The absence of updates has accentuated inequalities between properties of different value and between different areas.
Uncensored or unauthorised buildings: About one million properties escape fiscal and administrative control.

Use of cadastral data

The Cadastre plays a crucial role in several areas:

Fiscal: Basis for the calculation of taxes such as IMU and TASI.
Topographical: Urban planning tool.
Economical: Property appraisal and valuation.
Legal: Proof of enjoyment rights over real estate.

Objectives of the reform

Cadastre reform has several key objectives:

Modernisation of mapping tools
- Introduction of advanced technologies (GIS, drones, artificial intelligence) to detect uncensored or unauthorised properties.
- Creation of a data exchange network between the Inland Revenue Agency and municipalities.
Updating cadastral information
- From 1 January 2026, each property unit will be registered with:
  - Current cadastral income.
  - Asset value based on market values.
  - Discounted yield with periodic updates.
Fiscal equity and transparency
- Elimination of discrepancies between cadastral rents and market values.
- Greater fiscal justice in the distribution of the tax burden.
Combating unauthorised building
- Strengthening of controls on non-census properties.

Structure of the reform

The reform is divided into two main phases:

1. Recognition and modernisation of instruments

Implementation of digital technologies to improve the accuracy of the Cadastre.
Data sharing between Revenue Agency and municipalities.

2. Revision of the Cadastre of Buildings

Allocation of new cadastral parameters based on market values.
Periodic adjustments of cadastral values.
Concessions for buildings of historical and artistic interest.

Conclusions

Cadastre reform is a decisive step towards a fairer and more transparent system. Despite technical and political difficulties, it will provide an opportunity to modernise the cadastral system and rebalance the tax burden.

The success of the reform will depend on the ability of the institutions to implement the changes efficiently and clearly. Transparent communication and gradual implementation will be essential to avoid resistance and ensure acceptance by citizens.

IdeaRE is working to make the ERP system compliant and ready for these new challenges.