What defines a luxury property in Italy?

What are the characteristics of a luxury home in Italy? We have all the details.

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20 January 2025, 9:00

What defines a luxury property in Italy? The classification of properties in the land registry plays a key role in determining when a property qualifies as luxurious and how it is officially registered. A property is therefore considered luxurious if it meets specific criteria regarding its features, quality, and value.

So, what exactly constitutes a "luxury property" in Italy? When does a luxury property fall into a particular land registry category, and what differentiates one category from another? Understanding the different types of luxury properties in Italy and their corresponding land registry classifications is essential, as these distinctions have significant implications for taxation and potential tax benefits. We have all the details.

When is a property considered as "luxury"?
How are luxury properties categorised in Italy?
When does a property qualify as A8?
When does a property qualify as A1?
What does category A7 mean?

When is a property considered as "luxury"?

When discussing luxury properties, to determine which ones can be classified as such, reference must be made to the parameters set out in Italy's Ministerial Decree of 2 August 1969, which outlines the criteria for identifying properties of this type.

This Decree specifies the characteristics of luxury residences, particularly identifying eight categories. In detail, the following are considered luxury properties in Italy:

Residences built on urban areas designated for villas or private parks.
Residences built on urban areas with land plots smaller than 3,000 m², excluding agricultural zones.
Residences in buildings with a volume exceeding 2,000 cubic metres or with a building index of 0.25 cubic metres per square metre.
Residences with a swimming pool of at least 80 m² or tennis courts with a drained surface of no less than 650 m².
Homes with a total gross floor area exceeding 200 m² (excluding balconies, terraces, basements, attics, stairs, and parking spaces), and with an outdoor area more than six times the covered area.
Units with a gross floor area greater than 240 m².
Residences built on prestigious land, where the cost of the land and its associated areas is one and a half times the cost of the building itself.

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The eighth category refers to houses and individual property units that have more than four characteristics from those listed in the following table:

CHARACTERISTICS	SPECIFICATIONS
Apartment area	Exceeding 160 m², excluding terraces and balconies, basements, attics, stairs, and parking spaces
Covered and uncovered level terraces and balconies	Total usable surface area exceeding 65 m² for a single urban property unit
Lifts	When there is more than one for each staircase
Service staircase	When not required by laws, regulations, or mandated by safety or fire prevention needs
Goods or service lift	When serving fewer than 4 floors
Main staircase	With walls covered in fine materials for a height of more than 170 cm on average; with walls covered in finely crafted materials
Clear floor height	Exceeding 3.30 m, unless building regulations require higher minimum heights
Entrance doors to apartments from internal staircases	Made of fine wood or solid wood and veneered; carved, sculpted, or inlaid wood; with fine decorations or intricate designs
Interior fittings	As with entrance doors, even if hollow-core, if their total surface area exceeds 50% of the total area
Flooring	Made of fine materials or finely crafted materials covering at least 50% of the total surface area
Walls	When more than 30% is made of fine materials or finishes, or covered with fabrics or other fine materials
Ceilings	If decorated with coffered designs, or decorated with stucco applied on-site or hand-painted
Swimming pool	Covered or uncovered, masonry-built, when serving a building or a complex of buildings with fewer than 15 residential units
Tennis court	When serving a building or complex of buildings with fewer than 15 residential units

How are luxury properties categorised in Italy?

As with other types of properties, luxury properties are assigned specific cadastral or land registry categories, determined by the unique features that define this type of residence.

Specifically, there are three categories for luxury properties:

A1: Upscale residences.
A8: Villas.
A9: Castles and palaces of significant artistic and historical value.

Properties classified under category A1 include prestigious residences often located in the historical centres of cities. These properties are characterised by their large dimensions, high-quality finishes, and exclusive features.

Category A8 encompasses villas, which are independent houses with extensive outdoor spaces, such as parks or gardens. These properties are typically secluded and equipped with exclusive amenities, such as private swimming pools.

Lastly, category A9 includes historical castles and restored period palaces that have been preserved.

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When does a property qualify as A8?

As mentioned, properties in the A8 category are villas, defined as residences situated within parks or gardens.

These properties typically feature larger dimensions than standard homes, as well as higher-quality finishes. However, these characteristics alone are not sufficient for a property to qualify as A8. To fall into this category, the property must meet specific criteria, including:

A gross floor area exceeding 230 m².
At least three bathrooms.
An exclusive open space, green area, or large garden.
Separate apartments or facilities for staff accommodation.
Auxiliary structures, such as garages or storage facilities.

When does a property qualify as A1?

The A1 cadastral category identifies upscale residences that meet specific criteria. A property qualifies as A1 when it exhibits the following features:

A large surface area, generally over 250 m².
A location in prestigious areas.
The use of high-quality materials.
Advanced technologies integrated into the property.
The presence of specific facilities, such as swimming pools or tennis courts.

What does category A7 mean?

Finally, let’s consider category A7, which is sometimes mistakenly associated with luxury properties.

This category includes villas, defined as independent residential buildings of a more economic nature, distinct from A8 villas, which are characterised by premium finishes.

A7 properties can be thought of as sitting midway between luxury homes and standard residences. Like villas, A7 properties also feature outdoor spaces for exclusive use, such as gardens, though these are typically smaller than those associated with A8 villas.