The recent reopening of the tax-favoured conversion regime into a simple partnership provides a significant opportunity to extract real estate assets no longer instrumental to the business at more favourable tax conditions. However, where the transaction is followed by a subsequent disposal of the assets, the Agenzia delle Entrate has identified potential abuse of law concerns, particularly in cases where the capital gain upon conversion is determined based on cadastral value rather than market value.
This approach appears only partially consistent with the underlying rationale of the relief, which is intended to facilitate the exit of such assets from the business sphere and their reallocation within the economy. The topic is further explored in the Rivista delle Operazioni Straordinarie of Euroconference.
