2 December 2014
The Builders’ Surety Fund Contribution is applicable to a specific type of surety provided for by the Italian legislation. When selling land or a property not yet completed, and the scope of the contract includes the obligation to build or complete the property, the building company is required by the Italian legislation to obtain a surety to indemnify the buyer in case the contract is not fully executed. This requirement was introduced by Decreto Legislativo 122/2005 and came into force in
The same decree requires the entity issuing the surety, e.g. the insurer, to charge the building company a contribution equal to 5 per thousand of the value guaranteed. The Builders’ Surety Fund Contribution is due once on the issue of the contract and not every time a premium is paid by the policy holder. The amounts collected should be paid to Consap by the end of the month following the issue of the policy. An annual declaration summarising the surety contracts issued and the contribution paid during the year should be submitted to the Consap by the end of December each year.