The Italian Supreme Court, in decision no. 6732/2026, narrows the scope of the PEX regime with respect to the business activity requirement. In particular, the Court excludes that activities typical of the early stages of real estate development – such as asset acquisition, financial structuring and permitting—are, per se, sufficient to qualify as the “carrying on” of a commercial business. The ruling affects the tax classification of shareholdings in contexts characterized by long production cycles, highlighting critical issues in distinguishing preparatory activities from actual business activity for PEX purposes.
Published in La Circolare Tributaria no. 16/2026 Euroconference.
