Transfer of building volume in a condominium: income and tax

A transfer of building volume (cessione di cubatura) is the act by which the holder of land or property transfers unused building volume to another party, so the transferee can build a larger construction. Applied to a condominium, it concerns the possibility of monetising the development rights linked to a common area or to the building's capacity to be raised. It is an operation of significant economic value but delicate on the legal and tax level, because it affects a common good and the rights of all owners. Let us see how it is framed.

What a transfer of building volume is

Building volume is the developable volume that a planning instrument assigns to an area. When the owner does not fully use it, they can, within the limits set by municipal planning instruments, transfer it to another plot that benefits by building more. The transfer has real effects on the development regime of the land and, in civil law terms, is treated as an act requiring written form and registration in the property registers to be enforceable against third parties. It is not a mere contractual arrangement, but an operation that changes the development potential of the plots involved.

When it concerns the condominium

In the condominium context the issue arises when the development rights are linked to a common area, for example a courtyard or garden, or to the building's capacity to be raised, which Article 1127 of the Italian Civil Code reserves to the owner of the top floor but within the limits of structural conditions and with the indemnity due to the other owners. If the operation involves a common good, the volume belongs to all the owners in proportion to their thousandths (millesimi) and no one can dispose of it alone. The complexity almost always requires the involvement of a technician and a notary.

Majorities: why unanimity is needed

Transferring the volume of a common good is not an act of ordinary management but a disposal that affects the substance and value of the collective good. For this reason, when it concerns a common part, it requires the consent of all owners, that is unanimity, a majority resolution not being sufficient. The reason is that it permanently disposes of a right that belongs pro rata to each: a majority cannot deprive the minority of their share of a development right. An act adopted without the consent of all the co-owners of the good would be ineffective against those who did not join.

Form, registration and the notary's role

A transfer of building volume requires a public deed or an authenticated private agreement and registration in the property registers under Article 2659 of the Italian Civil Code, to make the operation enforceable against third parties and certain over time. The notary checks title to the rights, compatibility with the planning instruments and the correct expression of consent by all entitled parties. In a condominium this means attaching the documentation showing the unanimous consent of the owners who co-own the good concerned. Formal care is essential, because a defect can overturn the entire operation.

The income and its split

The consideration for the transfer, when it concerns a common good, is extraordinary income belonging to the owners in proportion to their thousandths, under Article 1123 of the Italian Civil Code. Since it is often a significant, non-recurring amount, it must be handled with particular care:

• collection in the condominium bank account, never in personal accounts
• resolution on the use: pro rata crediting, works fund or reduction of expenses
• recording as extraordinary income in the report and the balance-sheet statement
• individual statement to owners for tax obligations

Taxation of the consideration

The tax treatment of the consideration from a transfer of building volume is a technical matter and must be assessed with a professional, because it depends on the classification of the operation and the transferor's situation. In general, income deriving from the transfer of development rights is treated, for individuals outside business activity, as miscellaneous income, attributed pro rata to each co-owning condominium owner. Given the variety of situations and the size of the amounts, the administrator should limit themselves to providing the correct accounting data and delivering the statements, leaving the final classification to the tax adviser and the notary.

An extraordinary operation such as a transfer of building volume requires absolute traceability of the consideration, a robust resolution and clear statements for each owner. With AmministraPro the administrator records the extraordinary income, reconciles it with the bank account, represents it in the balance-sheet statement and generates the pro rata statements for tax purposes. The features are on /funzioni and the plans on /prezzi.