Mps, doBank starts the negotiations to manage 8 billion euro bad loans

17 October, Milano Finanza

While all the attention goes to the comeback of Mps on the Stock Exchange, once got the approval by Consob, the maxi securitisation machine for 26 billion euro bad loans is taking shape, with players such as Atlante 2, Cerved, and doBank involved. This is one of the biggest securitisations ever done in Europe.

doBank has recently communicated to have reached a temporary agreement with the bank to identify the main terms based on which the group will be appointed for the management, with the role of special servicer, of bad loans for a gross book value of 8 billion euro regarding the securitisation and divestiture operation. doBank will be then managing 30% of the Gbv with more than proportional returns on the total compared to the allocation of the portfolio volumes.

The underwriting of the servicing contracts, upon the finalisation of the operation and the good result of the negotiation between the parts, is expected along with the issuance of bonds of said securitisation by the end of the year, while doBank is expected to start operating on the portfolio by the first quarter of 2018.

The assignment of the task with the role of special servicer represents for doBank an opportunity to speed up its strategic plan, having the group already managed stocks for about 3.6 billion euro in the first semester of 2017.

Another share of bad loans for 13 billion has been appointed by Atlante II to the special servicer Cerved. The assignment, as reads a note, follows the acceptance by Banca Monte dei Paschi di Siena of the binding offer for the purchase of its platform for bad loans collection and it’s included in the industrial partnership between Quaestio Holding and Cerved Group. In fact, it’s likely that the special servicing activities assigned to Cerved may be managed by Juliet, which will be indirectly owned by Quaestio for 50.1% and for 49.9% by Cerved, as soon as it will be operational.

The temporary appointment of Cerved and the management by Juliet depend on the underwriting of a special servicing agreement and the finalisation of the securitisation of said bad loans, currently expected by the first months of 2018. Marco Nespolo, Cerved Information Solution Ceo, commented: “Being chosen by Atlante II as the main servicer of this big operation is the confirmation of the quality of our operational performance and independence, and it strengthens our position as main independent player in the non-performing loans management, most likely, and performing”.

 

Source: Milano Finanza (by Claudia Cervini and Paola Valentini)

Translator: Cristina Ambrosi

Mps hires the servicers to manage the non performing loans

17 October, Milano Finanza

The Mps plan to get rid of the bad loans is slightly in advance on its schedule defined before the summer by the Ceo Marco Morelli and by the Financial Director Francesco Mele. Yesterday, the servicers Cerved and doBank reached an agreement for the management of the stock. More in detail, Cerved (whose shares went down on the Stock Exchange by 0.84% at a price of 10.66 euro) will take care of a nominal value of 13 billion, while doBank (+ 3.24% at 14.00 euro) will manage 8 billion. Defined the loan date tape, namely the structured archive of the portfolio, the two servicers are already working on the business plan, consisting substantially of the collection plan. The creation of the document will take a couple of months, considered the dimension of the portfolio, one of the biggest ever seen on the market. It’s true that the experts at doBank, assisted in the task by the Bad Loans Division coordinated by Lucia Savarese, know already a good part of the positions since last year Italfondiario assessed the Mps portfolio. The business plan will be then sent to the agencies to rate the securitisation.

In the meanwhile, a special purpose vehicle will be created to receive the entire portfolio. At that point, the notes will be issued and Mps will temporarily underwrite A1 and A2 senior notes for almost 3.8 billion as well as the junior ones (the riskiest), while the mezzanine will go directly to the fund Atlante 2 for a value of 1.02 billion. The Gacs allocation for senior tranche is expected by the first half of 2018. This step will allow placing on the market these notes, while the junior ones will go to the fund managed by Quaestio, completing in this way the divestiture of the whole stock. The Gacs will be a crucial passage for the success of the operation in the scheduled times, even if somebody believed that it may conclude already in the first quarter of 2018.

In the meantime, everything is ready for the comeback on the Stock Exchange. The registration documents should get the green light by Consob by Friday, followed by an appendix containing the quarterly results. The goal of the bank is to start the recovery of the former retail bondholders for the first day in the market. For the operation, a swap between the Ministry of Treasury and the investors, it will be necessary a document of the offer including the registration document which is currently being evaluated by Consob. The recovery will be valid only for who bought the bonds before 31st December 2015. In case of total adhesion, at the end of the swap, the Treasury will hold approximately the 70%.

Whereas the creation of the new statute will take longer. The assembly to approve the document is scheduled in December, while the deposit of the lists for the new Board of Directors is expected by the second part of November, twenty days before the assembly. Among the candidates, besides the list suggested by the Treasury, there might be Generali and Assogestioni.

 

Source: Milano Finanza (by Luca Gualtieri)

Translator: Cristina Ambrosi

Milan is the city with the most interesting numbers

17 October, Casa.it

Milan is the city with the most convenient prices in Europe, while the risk of property bubble rises in many cities of developed countries.

The UBS Global Real Estate Bubble Index 2017 survey by UBS Wealth Management analyses the prices for residential properties in 20 metropolises around the world.

Toronto is the city most at risk of a property bubble, followed, in decreasing order, by Stockholm, Munich, Vancouver, Sydney, London, Hong Kong, and Amsterdam.

In Europe, Milan is the city with the most convenient prices compared to other financial cities for what concerns the property market. The risk of property bubble rises for Stockholm, Munich, and Amsterdam, while Frankfurt, Zurich, and Geneva have furtherly appreciated since 2016. London is still at risk, but not as much as last year.

The residential property market in the cities of the developed economies is still inflated and the number of cities at risk of property bubble has risen since 2016, according to the annual report by Global Real Estate Bubble Index by UBS Wealth Management.

Toronto, a new entry, is leading the chart for 2017. Same as 2016, Stockholm, Munich, Vancouver, Sydney, London and Hong Kong are still at risk. Amsterdam has added to the list starting from this year, while in the previous year the city was only slightly inflated.

According to the survey, Chicago is the only undervalued metropolis, while three-quarters of the cities around the world are risking a property bubble. In Europe, Milan is the most convenient. A qualified professional working in the service sector has to work on average only 5.7 years to afford a 60 Sq m apartment.

The real house prices remain about 30% below the 2007 levels. The slow growth of the economy has penalised the recovery of the residential property market. The recent figures, however, show an improvement and a consistent increase of occupation in the region of Lombardy with a positive effect on incomes.

UBS estimates that house prices are bound to rise. Meanwhile, in the rest of Europe, the situation is heating up. In the last three quarters, the UBS Global Real Estate Bubble Index has risen for all the city analysed.

Amsterdam, Frankfurt, and Munich have registered great increases. All the cities of the survey have appreciated, except for Milan.

Prices, net of inflation, are at their highest points ever in Munich, Amsterdam, and Stockholm. Prices are increasing also in Frankfurt. London is still at stake, but not as the city was just after the Brexit referendum of last year. Zurich and Geneva are moderately appreciated.

Superstar cities

The outlook regarding the increase of prices in the long term explains the demand for investments in the residential real estate sector worldwide. Many operators believe that, on the long term, the best locations, the so-called superstars, will benefit from the increase in prices, thanks to the increase of wealthy families. Without forgetting that, in the last ten years, the decrease of mortgage rates has made more attractive buying a property. Till the offer will not increase, many buyers will have to deal with the gap between prices in the superstar cities and rent prices, incomes, and prices at national level. In the past two years, the “superstar model” has become popular due to the increase of the demand at international level, particularly coming from China, causing the exit of many local buyers. An average growth of prices of 20% in the last three years has confirmed the expectations of the most optimistic investors.

How to identify a bubble

The term “bubble” refers to sharp and long-lasting discrepancies in prices of a certain financial activity. Despite it’s not possible to determine the existence of a bubble until it pops, by analysing the statistical data, it’s possible to find the presence of recurring patterns of excessive evaluations in the real estate market.

The UBS Global Real Estate Bubble Index detects the risk of property bubble based on these patterns in the most important financial cities all around the world.

The index uses the following classification of risk: depressed market, undervalued, equally valued, overvalued, at bubble risk. Also for the cities with the most obvious signs of a bubble, it’s hard to tell exactly when the bubble will happen and how long it will last.

The analysis is integrated by a comparison between the price/income (PI) ratio and the price/rent (PR) ratio. A low access expressed by the PI ratio means a low risk of appreciation in the long period, while multiple high PR values are the sign of a dangerous dependence on low interest rates.

 

Source: Casa.it

Translator: Cristina Ambrosi

The depot market is recovering

16 October, Il Sole 24 Ore

If it’s true that the investments in industrial properties reflect the current trend of the economy, the market is confirming the signals of recovery, with the GDP expected to grow by 1.5% by the end of the year according to Confindustria. Whether it’s matter of expanding with new depots or renting new offices, small and large companies are investing again their resources on workspaces.

The figures from the Revenue Office are clear: the purchase of commercial and industrial properties have grown in the last semester by 6.2% compared to the same period of the previous year. Moreover, according to Nomisma, the times to sell or rent a vacant space have reduced by 5-10% for the same period. This is another important sign that the industrial property market is reactive.

“We’re monitoring especially artisanal and commercial businesses – states Fabiana Megliola, responsible for the Tecnocasa research centre – this is a sector that suffered a lot during the recession years. There is still caution, but the recovery signals are solid”.

Most of the requests concerns leasing, rather than purchases: 72% for warehouses, 85% for shops, and 80% for offices. “This is normal – stresses Megliola – especially for commercial properties, the owner is often investing to rent the property. Anyway, 28% of sales for production facilities is an important signal. This means that the number of companies with solid assets, well-positioned abroad, and capable to plan on the long term is growing. We need to add that these activities are favoured by the consistent drop in prices, which since 2008 caused the values to fall by 30%.

At a regional level, the North is the most dynamic with Lombardy, Veneto, and Piedmont in pole position. But the trend is widespread across Italy, especially in some specific cases. For instance, Megliola reminds, “now that the Brebemi is completed, the area around Brescia registers many requests for warehouses. Lazio is currently having a similar trend with the Fca production plant in Cassino, which is connected to several suppliers located in the area. Finally, in Sicily, and especially Catania, the retail sector has restarted”.

What are the most dynamic sectors? Industrial SMEs, artisan businesses, and repair shops are the most active in the research of new depots. According to Tecnocasa, instead, “the food sector dominates the shops sector. Restaurants and grocery shops alone cover one-third of the market”. Concerning offices, the requests are coming from self-employed professionals, such as law firms, that prefer to be centrally located in the cities.

“Whereas for what concerns companies, big groups and multinationals are seeking headquarters were to gather their personnel, with locations well connected to the logistical infrastructures and the public networks, built according to the modern standards, reducing and optimizing in this way the costs connected to energy, regardless whether the property is inside or outside of the city”, explains Alessandro Mazzanti, Cbre Italia Ceo, a leading company operating in real estate consultancy. Mazzanti sees additional space for growth for the national market: “We’re monitoring the operations above 5 million euro carried out by big players that purchase non-residential properties with the purpose of investment. At the end of 2017, we’ll register the highest volume of demand ever, reaching nearly 11 billion”.

How much does a new workplace cost? The gap is wide, and it depends on the area and the type of activity. To rent a new office, there is great availability at national level of properties priced between 80 and 150 euro per Sq m, with peaks of 400-500 in Milan and Rome. For depots, instead, prices stay within 50 and 80 euro to rent and, on average, 500-800-euro per Sq m to purchase, even though the price may vary by 20% depending on the proximity of the main motorways. Concerning rents of shops, they start from 100 euro per Sq m in the suburbs and reach 1,500-2,000 euro in the centres of Rome, Milan, Florence, and Naples. Whereas with 1,000-2,000 euro per Sq m is possible to buy properties in many parts of Italy, however, in the centres of the main cities the prices start at least from 2,500-3,000 euro to reach peaks of 10-15 thousand. Finally, in the case of shops, the price doubles if the property is located on a high street or in an exclusive neighbourhood.

 

Source: Il Sole 24 Ore (by Adriano Lovera)

Translator: Cristina Ambrosi

Real estate in the second quarter: +3.8% for residential, +6.2% for shops and offices

13 Octobr, Monitor Immobiliare

The Italian real estate market has registered a positive trend in the second quarter of this year in residential transactions with +3.8%, while sales for cellars and attics have grown by 10.1% compared to the same period of last year.

A positive result also for the commercial sector with offices and shops (6.2%), while the industrial segment has grown by 4.9%. However, the interest rates have slowed down compared to the first quarter of the year. The survey of the Revenue’s Observatory for the Real estate market (published on the Revenue website) shows how the residential market has consistently grown over the last 3 years.

Between April and June of the current year, 145,529 houses have been sold, about 5,000 more than 2016, with a growth slower than the previous quarter. The sales of appurtenances were concentrated in minor cities (+11.9%) rather than in province capitals (+6.9%). Sales of garages and parking spaces had a good performance (+2.7%), even though rather heterogeneous: in the province capitals, the quarter has registered a negative result, while in smaller cities this has been positive.

The residential market is growing especially in big cities (+4.4%): Naples had the highest growth with +13.6%. Followed by Palermo (+8.3%) and Turin (+5.7%), while Rome and Milan are aligned to the average with respectively +4.5% e +4.1%. The market is more static in Genoa (+1.3%) and Florence (+0.9%), while in Bologna the trend is negative (-4.3%), with little more than 1,500 sales.

For what concerns appurtenances, the differences are more accentuated: sales for cellars and attics in Bologna have risen by 27.3%, while Florence has lost 9.2%. The trend for garages and parking spaces also varies: Naples and Florence have grown respectively by 23.1% and 18.3%, Palermo and Bologna have instead gone down by 10 percentage points.

The non-residential segment has risen by 6.2% in the sale of commercial properties, especially in the North-West and in the islands, achieving the highest recovery with respectively +10.9% and +7.6%.

Big cities see most of the sales of office spaces (+18%) and shops (+10.7%), while the industrial segment has grown by 4.9% for what concerns depots and production plants.

Despite the small numbers of this trend, the results of the second quarter of 2017 are getting close to those before the crash of 2012. The recovery is especially supported by the increase of sales in the Centre and in the North-West (respectively +18.7% and +11.3%), while the recovery has been more contained in the North-East (+3.5%) and in the South (+0.3%). Finally, the islands have reported a countertrend with a fall of sales of -37.3%.

 

Source: Monitor Immobiliare (by A.T.)

Translator: Cristina Ambrosi

Sales, mortgages, and donations: the real estate market seen by the notaries

17 October, Idealista

In occasion of the 52nd national congress of notaries, it was presented the statistic survey of the professional category concerning the first semester for the year. The report shows an interesting picture of the Italian real estate market, especially for what concerns sales, predominant in the North of the country, Lombardy first, while the mortgage sector shows some caution at the moment of applying, and issuing, for a loan.

Sales of properties

In the first semester of the year, 401,432 sales have been analysed: 300,929 have concerned residential properties and adjoined spaces (namely garages, cellars, and parking spaces). For more than half of the purchases, equal to 56.48% (163,155 transactions), the “first house benefit” was requested. There is, however, a big difference between purchases from privates and purchases from companies, showing clearly the crisis of the sector of new and renovated properties purchases. For what concerns the distributions on the territory, there is still a sharp difference between North and South.

North dominates real estate market

56% of the property transfers were registered in the North: 34.84% in the North-West and 21.59% in the North-East. The Centre reported 17.74% of transactions, the South 18.15%, and the islands 7.67%. Friuli-Venezia-Giulia reported a good performance with +10.72%, as well as Valle d’Aosta with 6.37% and Trentino-Alto Adige with +4.40%. In the Centre, Umbria is in countertrend with 7.91%. Lombardy and Veneto too had positive results with respectively +2.60% and +0.74%.

Lombardy confirms to be the region with the most properties traded with 82,561 transfers equal to 824 transfers every 100,000 inhabitants. Concerning the properties, it emerges that 56.48% of them was purchased through the “first house benefit”, more in detail, 49.5% was bought from privates and only 6.9% from developers. The people buying the first house is aged between 18 and 35 years, representing the 39.5% of the transactions, growing by 3% compared to 2016. Like the first semester of the previous year, also for the same period of the current year the prices have been below 100,000 euro for 55% of purchased buildings, 97% of agricultural land, and 85% of building land.

Caution and low risk in the mortgage world

The new mortgage loans have registered an increase of 2%, but it remains a certain caution and little tendency to risk since 70% of the mortgages issued doesn’t exceed 150,000 euro.  Whereas loans for above 500,000 had a significant increase, +10%, a signal of slight recovery of big investments. In the first semester, the amounts issued by banks for new loans increased by 9%. Concerning the totality of banks loans, 78% was mortgage loans, while subrogations were 13.38%. The main age ranges were 18-35 and 36-45 years with 70% of the loans.

Overall fall of donations

Compared to 2016, an overall reduction of the deeds of donations was registered which was sharper for real estate properties than for movable properties. These latter are concentrated in the North. Donations of money, stocks and shares have been substantially stable, while those for bare ownership reported a 12.89% compared to the 15% of 2016. Regarding real estate donations, they’ve concerned mostly buildings, while full ownership (52.34% in 2017 and 52.24% in 2016) and bare ownership (17.55% in 2017 and 17.29% in 2016) have remained substantially stable.

 

Source: Idealista 

Translator: Cristina Ambrosi

30 pharmaceutical companies invest in the Pharma Valley in Tuscany, aiming at logistics and vaccines

18 October, Business Insider Italia

The last one in chronological order is Eli Lilly that signed an agreement for a 100 million euro investment in Sesto Fiorentino. But the list of pharmaceutical companies with facilities in Tuscany is very long.

It’s not by chance that the district between Florence, Lucca, Pisa, and Siena, together with Lazio and Piedmont is the jewel of the Italian pharmaceutics, being Italy the second manufacturer (30 billion per year, second only to Germany) and first for per capita production. In 2015, the Region governed by Enrico Rossi launched the idea to create Pharma Valley which will take shape in 2018 aiming mostly at logistics and vaccine development.

The project is inspired by Biopolis in Singapore. It gathers giants of the pharmaceutical sector such as Gsk, Eli Lilly, Molteni, Menarini, Kedrion, Sebia, Abiogen and it’s aimed at attracting investments, doing high-level research, and creating new jobs, all through the collaboration between companies and regional, national, and European financing.

The Pharma Valley project originates in a fertile terrain where many multinationals set their headquarters, invest and hire personnel (11 thousand new employees in 2017). In the last few days, Eli Lilly, the American multinational present in 130 countries all over the world with 15 production sites and 40 thousand employees – has signed with the Region of Tuscany an agreement for the extension of its hi-tech plant in Sesto Fiorentino to produce insulin, taking in this way the area currently occupied by the high school Enriques Agnoletti which will move to another site.

Menarini too has settled down in Tuscany. It’s the first Italian pharmaceutical company with 17 thousand employees and a turnover of 3.5 billion in 2016. In the last few years, the company has invested a lot to add to the traditional pharmaceuticals the oncologic research, the diagnostic, and the use of new technologies to produce vaccines.

It’s indeed in the vaccines sector, where the British Gsk is also active, where Pharma Valley will make its first steps. The Region of Tuscany assures that the first facilities will be ready by 2018 and they will be designed by multinationals, political authorities, research centres, and Universities of Tuscany cooperating together to find out the best ways to develop the sector.

In Siena will rise the new facility for vaccines research and production which will also have a strategic role in case of national emergency. The project starts from a pre-existing facility and it will get the investments from the Region and the Government to create a hub with public functions.

The second objective for 2018 is the creation of two logistical hubs to serve the pharmaceutical multinationals operating in Tuscany since they’re currently shipping by air from Rome to Milan. In Livorno, it was identified a new platform for sea shipment, while Empoli will accommodate a dispatching hub to receive the raw materials coming from abroad and necessary for production. The Region confirms that the project is proceeding quickly: after having defined the governance, the investments will start.

The necessity of a logistics hub was one of the first requests advanced to multinationals. In fact, the vocation of Tuscany for export is very strong: companies export pharmaceuticals for 1.2 billion yearly, more than 60% of the production which is assessed for a 2 billion euro turnover and equal to 64% of the total export in hi-tech of the region. And the advance of the medicines Made in Tuscany doesn’t seem to stop. In the first six months of 2017, the exportation of the region has registered +8.8% compared to the same period of last year. Pharmaceuticals is the sector with the best results, having recorded a spike of 98.1%, almost doubling the performance of 2016.

 

Source: Business Insider Italia (by Marta Panicucci)

Translator: Cristina Ambrosi

Draghi: the NPL problem must be solved

15 October, Il Sole 24 Ore

The President of the European Central Bank and the Governor of Banca d’Italia have softened the terms of the debate exploded in Italy around the proposals presented last week by the ECB regarding the management of new bad loans (NPL).

Both have insisted on the fact that the document from the Surveillance Committee is only a reference. The definitive version will be published on December, after having gathered the feedbacks of the interested parties, a meeting in Frankfurt, and an intervention by the President of the Surveillance Committee, Danièle Nouy at the European Parliament in November. Draghi and Visco had a meeting before gathering with the Ministers’ Committee of the Monetary Fund and before their press conferences.

Draghi stated: “There is the issue of NPLs and it must be addressed. We have published a document and we have asked feedbacks. It’s the duty of supervisors”. “We’re against fighting over principles – commented Visco – “We must take advantage of the economic growth to continue working on banks’ financial statements. If the economy is doing better, there will be less pressure on bad loans. For what concerns the guidelines from ECB, we’ll see the final result”. The Minister for Economy said that “with NPLs it takes transparency and gradualness”. The ECB President is always cautious when commenting banking matters, referring to the Surveillance Committee. Yesterday, Draghi clarified that there are also some other critical issues in the European banking system, such as the real estate credits of Spanish banks or the derivatives in the books of French banks, and that there are also being monitored by the Surveillance Committee.

In Italy, there is currently a heated debate regarding the management of NPLs since the Italian banking system is in the Eurozone one with the highest quantity of bad loans. Visco started by saying that Banca d’Italia participates in the ECB decisions, and stated that in Washington the matter wasn’t at the centre of the official meetings. Concerning the stocks of NPLs, he said, they’re back to the 2006-2007 levels, hence before the financial crisis. “Our evaluations – stated the Governor of Banca d’Italia – see a sharp reduction of the stock net of the devaluations. We’ve gone from 10.9% of the stock in 2015 and 8.4% in 2016 and we’ll probably reach below 8% by the end of the year. For 2018, the outlook is for an additional reduction till 7.5%, considering there are some operations already in place”. According to the Governor, the introduction of a calendar for the provisions as proposed by ECB “is a good idea, even if the devil is in details. It’s in the interest of banks to have it planned”.

Visco also reminded that the banking system consolidation process is still on and it will get great impulse by the concentration of 330 co-operative banks into three groups. The excessive number of banks is a European problem, he observed, as well as the number of branches: in France, the number of the branches per house is higher than in Italy. “Banks have underestimated the impact of technology on their services,” he said.

On his side, Draghi believed that the policy of the negative interest rates applied by the ECB on banks’ deposits in Frankfurt has given more advantages than disadvantages”, he noted that the main result has been the improvement of the recovery generated by the monetary strategy. “This is one of the best things that happened to the banks’ financial statements and it made possible provisions reductions and the improvement of assets quality”.

The minister Padoan highlighted how the public debt will register a significant reduction starting from next year, as long as the next Government will maintain the same policy. “The next administration will find better economic conditions”. Draghi said that the countries without margins on their statement must not take advantage of the low interest rates to implement expansion operations and increase the debt.

 

Source: Il Sole 24 Ore (by Alessandro Merli)

Translator: Cristina Ambrosi

Banca d’Italia: optimism for construction

16 October, Monitor Immobiliare

According to the survey about the inflation and growth outlook by Banca d’Italia, the situation for the construction sector, which is slowly recovering, can be considered less negative.

From the figures, it emerges that in September 2017 the general economic situation has slightly improved for Italian companies with more than 50 employees. For the next three months, there are signals of optimism concerning the rise of demand.

It’s easy to spot the difference between the construction companies that forecast a rise of the nominal expenses for investments in 2017 and those companies that expect a reduction of them instead: 13.2% against the 6.4% of the previous report.

Still a negative balance for those companies intending to increase their staff in the next three months and those who want to reduce it. However, the gap is now -3.7% compared to the previous -7% at the beginning of the year. Good signals come from the companies operating in the residential sector, despite the price trend still being negative (-0.4% on yearly basis).

For the third quarter of 2017, construction confirms a positive trend of demand, reaching 16.3% against the previous 5.3%. The companies active in the non-residential sectors have reported positive results, together with the recovery of the construction companies operating in the residential segment.

 

Source: Monitor Immobiliare (by A.T.)

Translator: Cristina Ambrosi

Air Bnb surrendered: in Milan, the company will pay the residence tax

15 October, Monitor Immobiliare

Right at the eve of 16th October, the deadline to pay the so-called Air Bnb tax, the short-term rental platform decides to compromise.

At least with the Municipality of Milan. In fact, even if Air Bnb stated to not be willing to pay the national tax, the pact with Milan seems definitive: the Municipality will already insert the 3-euro tax in its books starting by 2018.

A residence tax that will bring earnings from 2 to 3 million euro per year. By November, the City of Milan should officialise the news. It’s interesting how the company appears open to compromise locally, while it stays adamant is its position when dealing with the State, to the point that the matter ended up in Tar (the regional administrative court) regarding the taxation on rentals.

It’s true that one thing is 3 euro per night and another is a 21% taxation on earnings, but still taxes nonetheless. If one is paid, it seems natural to pay also the other.

In the next days, we’ll have the confirmation of the company’s intention to not pay the national tax, with deadline on 16th October, or if Air Bnb will eventually decide to follow the measure.

 

Source: Monitor Immobiliare (by Maurizio Cannone)

Translator: Cristina Ambrosi