Buying a ‘rustico’ (country real estate or farmhouse) in Italy: the right of pre-emption on agricultural land

Introduction

Lots of people from all over the world dream of buying a ‘rustico’ in the Italian countryside.

When we talk about a “rustico” real estate, our imagination is immediately transported to the romantic scenes of countless films; our minds wander to memories of a relaxing holiday spent in a medieval village, or we dream of wandering along shaded paths that gently wind uphill, gathering chestnuts and “porcini” mushrooms.

There are countless country homes in Italy; among the most sought-after areas, to name but a few (there really be a plethora of choices!) the Tuscan countryside, with the marvellous views of the Lucca hills characterised by their amber-coloured olive groves and vineyards, the rural villages of Palaia and the unspoilt landscapes of the Argentario; and the panoramic views of the Versilia coast that can be enjoyed from the beautiful hills of Forte dei Marmi and Pietrasanta.

If we were to go on, the list would be endless.

As is well known, however, Italian law is very precise and detailed.

For this reason, to ensure that buying a property in these enchanting places is as relaxing as sipping an excellent glass of wine, basking in the Italian sun in the Chianti hills, it is advisable to pay particular attention to certain specific regulations, including the one relating to the right of pre-emption on agricultural land.

The right of pre-emption over agricultural land

The right of pre-emption over agricultural land is a legal institution that guarantees certain parties priority in the purchase of agricultural land put up for sale.

The owner intending to sell their agricultural land must, before proceeding with the sale, offer the land to the parties entitled to pre-emption, taking care to offer terms equivalent to those under which a third party would purchase the same land.

The purpose of this institution is to provide protection to agricultural workers and owners of neighbouring land.

The cultivator of the land

Law No. 590 of 1965 provides for the right of pre-emption in favour of the direct cultivator of the land being sold.

When intending to sell or purchase land, therefore, a specific search must be carried out to verify whether the land is subject to any lease agreements (excluding seasonal contracts), sharecropping agreements, or whether it is held under a part-ownership scheme or a joint tenancy.

For the right of pre-emption to apply, the person cultivating the land must have established a stable relationship with it, including in terms of duration; consequently, such persons are required to have cultivated the land for a period of at least two years.

Furthermore, the plot (together with any other land owned by the seller) must not exceed the ‘tripala’ limit in relation to the producer’s working capacity; this calculation must be carried out on a case-by-case basis according to the specific circumstances.

The Neighbour

The right of pre-emption for the neighbour is provided for by Law No. 817 of 1971 and applies to smallholders or professional farmers who own land (purchased after 1964) adjacent to the land put up for sale.

This right may be exercised by the neighbouring party provided that there are no tenant farmers, sharecroppers, lessees, co-owners or long-term leaseholders who are direct farmers on the land put up for sale.

Sale of multiple plots of land

In the event of the sale of multiple plots of land, each eligible party may exercise the right of pre-emption either in respect of the individual plot or the entire group of plots, it being understood that the right may be exercised either individually or jointly with other eligible parties.

Agricultural nature of the land

The right of pre-emption is linked to the agricultural nature of the property; therefore, the right of pre-emption may only be exercised if the land is classified as agricultural.

For a long time, there has been debate regarding the interpretation of the agricultural nature of the land, with views varying considerably.

A 2021 judgement clarified that land intended for possible non-agricultural use (e.g. for building purposes) cannot be subject to the right of pre-emption. The judgement also clarifies another key issue, stating that the assessment of the land’s agricultural use must be carried out both at the time the right of pre-emption is exercised and at the time of sale.

Partially agricultural land

Another significant issue concerns partially agricultural land, in relation to which the same judgement clarifies that the right of pre-emption may be exercised only in respect of the agricultural portion and not in respect of those portions intended for a different use.

Sale of land and buildings

In the case of the sale as a single lot of land and buildings, the right of pre-emption takes into account the functional autonomy of the land in relation to the building itself.

On this point, the Court of Cassation has ruled that the right of pre-emption may be exercised in respect of a specific plot of land sold as part of a single lot, provided that the land retains its own autonomy and is not indispensable to the overall productive unit.

Non-agricultural land

As we have seen previously, the right of pre-emption is closely linked to the agricultural nature of the land, as its purpose is to protect those who have a specific connection to it, including a productive one.

Therefore, when the subject of the sale is non-agricultural land, this right does not have to be respected.

When do the rules on agricultural right of pre-emption apply?

The rules on agricultural right of pre-emption apply in the event of the sale of land.

The following contracts are excluded:

expropriation for public use
exchange
compulsory liquidation
bankruptcy
forced sale
donation, whether direct or indirect

In this case, it is worth making a brief observation.

Under the Italian legal system, within the limits of the law, it is possible to use different contractual arrangements to achieve the same objective. Therefore, in the case in question, we may be dealing with a barter agreement rather than a sale and purchase agreement, with the aim of circumventing the agricultural pre-emption right.

On this point, the Court of Cassation has ruled, clarifying that a sale at a favourable price may be classified as an indirect gift, to which the agricultural right of pre-emption is not deemed to apply.

In any event, it is always advisable to pay extreme attention – including from a strategic perspective – to using the correct contractual arrangement that takes into account all the requirements of the specific case.

How to exercise the right of pre-emption

Compliance with the regulations governing the exercise of the right of pre-emption is not overly complex.

The law requires that the owner wishing to sell the land send the person entitled to exercise the right of pre-emption a registered letter with acknowledgement of receipt, specifying the name of the potential purchaser, the sale price and any other necessary information.

From receipt of the notice, the recipient has 30 days to exercise their right of pre-emption.

At this point, the recipient has three options:

to reply, stating their intention to exercise the right
to reply, waiving the right
not to reply; after 30 days, the law interprets silence as a refusal to exercise the right (silence constitutes a refusal)

Failure to notify the holder of the right of pre-emption

Very often, the step of notifying the holder of the right of pre-emption is omitted because it is considered unnecessary; in reality, it is a key stage in the sale of land.

If this step is not followed, the holder of the right of pre-emption has the right, within one year of the registration of the contract of sale for the land in question, to repurchase the land from the purchaser or from any third parties to whom the land has been transferred (in addition to other rights, such as the right to claim damages).

In essence, it is easy to see how strict compliance with the legislation on agricultural pre-emption rights ensures a smooth and risk-free sale.

Not to mention how essential it is, in such cases, to carry out a detailed analysis on a case-by-case basis, in order to determine the best possible strategy.

Barter in the real estate market (in italian it’s called: permuta) https://antonellolawfirm.com/2026/06/10/barter-in-the-real-estate-market-in-italian-its-called-permuta/

Purchasing an Italian Real Estate with a cultural pre-emption lien https://antonellolawfirm.com/2024/10/08/purchasing-an-italian-real-estate-with-a-cultural-pre-emption-lien/