Many Italian property owners face the burden of holding on to assets that are no longer assets at all. Derelict houses, landslide-prone plots, and unsellable buildings often generate only costs, like Property Tax (IMU), insurance, mandatory safety work (e.g., crumbling plaster maintenance, overgrown vegetation removal), without producing any economic return. In many cases, owners cannot even give such properties away (in this article we explain why).
The Italian Supreme Court (Sezioni Unite, decision no. 23093/2025) has now recognized the full legitimacy of renouncing property ownership through a unilateral deed. Once the owner declares the ownership renunciation, the property automatically passes to the State under article 827 of the Civil Code, without requiring acceptance or consent from another party, not even the Authorities. The Court emphasized that ownership includes not only the right to enjoy and dispose of property, but also the right to relinquish it when it no longer holds economic value.
This ruling resolves years of uncertainty and disputes with the State Property Agency (Demanio), which had resisted taking charge of such “unwanted” properties. It also applies to co-ownership shares, allowing co-owners to renounce their share without fear of compensation claims from the remaining co-owners.
From a practical perspective, the procedure is straightforward: the renunciation must be executed in a public deed or notarized private contract, then registered in the Public Property Register. Unlike transfers or sales, no building permit compliance checks are required, and no transfer taxes apply.
A Note of Caution
While the Court has opened the door to renouncing these properties under the current laws, reputable commentators warn that the Italian Parliament may intervene to limit or reverse this possibility by changing the law. Lawmakers could introduce new rules preventing owners from offloading these properties onto the State. Property owners considering this option should understand that there could be possible legislative changes (i.e. this ruling might not be final).
If you have property ownership rights which you would like to renounce, contact us to review your case circumstances and advise you about possible options.
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