Public Grants from “Regione Puglia – Titolo II Turismo”

How to get a grant to buy or do up a tourist let in Italy / Gtres

9 October 2018, 11:16

The Law and Tax Firm Studio Legale Magaraggia is happy to inform you about a very interesting business opportunity, provided by the EU through the Region of Puglia, that you can take advantage of when buying or renovating Italian real estate.

More specifically, according to the public Invitation “Regione Puglia-Titolo II-Turismo", the buyer/owner who is about to buy or renovate a property, such as an old masseria, trulli or historical ruins in the countryside, or even a historical building in the old part of a town, can get 20% of the project funded by the EU. As well as this, up to 20% of the interest on a mortgage is allowable with a low interest rate on the loan, under conditions of incorporating a new company and running a start-up business in the field of Tourism (e.g. B&B, holiday home letting, etc.).

Any equipment, fixtures, fittings and furnishings related to the business of the tourist accommodation can be partially covered by these grants.

This offer is only available to new companies/sole traders offering touristic services, who will be able to take advantage of net subsidies ranging from 25% to 35% after expenses incurred in the process, and depending on the size of the loan/mortgage provided by the Italian bank.

The grant application process involves the following steps:

Start Company
Formulate project for property purchase/renovation upgrades
Present project to an Italian (local) bank
Receive the approval from the bank to take out a mortgage
Register the Business Plan with the relevant office (to Regione Puglia via the Italian Bank)
Receive approval from Regione Puglia
Receive up to 40% gross grant (approximately 30% net) via the bank, which will obtain the EU funding and interest rebates on your behalf

Although the process involves professional fees (lawyer, tax accountant, surveyor, financial advisor) we highly recommend this route as:

the funding outweighs the additional costs of company formation, business plan project, etc.
when the process is completed, you have a proper registered business in Italy to run your rentals from, avoiding any hidden dangers that may arise from the complex Italian fiscal network.

The crucial phase is with reference to the Bank, as you (acting as foreign stakeholder of the Italian Company) need to prove your financial rating and demonstrate your capability to pay back the mortgage as a Non-Italian resident (if you are an Italian resident, it’s easier to qualify for a loan). With regards to this potential issue of a Non-Italian resident holding shares in an Italian company, we would highly recommend providing equity funds of no less than 50/60% of the total investment.

If required, we will be happy to take your specific needs into consideration, providing a more comprehensive and tailor-made response, together with a quotation of costs and fees involved in the whole process.