Read news from:
Austria
SHARE
COPY LINK

PUBLIC

Five ‘ghost’ buildings that cost Italy dearly

Italy is a country of half-finished projects. In fact, there are 671 incomplete public works projects across the country, according to data compiled by Linkiesta.

Published: 6 August 2015 16:08 CEST
Five 'ghost' buildings that cost Italy dearly
The unfinished polo stadium in Giarre, Sicily. Photo: Incompiuto Siciliano/Flickr

The investigative journalism website said these projects are worth a total €2.6 billion and require a further €1.4 billion of investment in order be completed, which means most of them are destined to remain shelved for the foreseeable future.

In July, we wrote about the hotel that hasn't seen a guest in 61 years and the hospital which, despite work on it beginning in 1957, has yet to treat a patient. 

So we decided to come up with some more examples of unfinished projects.

Below is a round-up of our favourite 'ghost' buildings in Italy and the incredible stories behind them.

Giarre's polo stadium – Sicily



The unfinished polo stadium at Giarre. Photo: Incompiuto Siciliano/Flickr

Quite why the Sicilian town of Giarre decided its 27,000 residents needed a 20,000-seater polo stadium is anyone's guess. Polo is not a popular sport in Italy. 

Nonetheless, the local government launched the project in 1985 in order not to miss out on regional funds. As of today, the project is half complete, after works began and stalled repeatedly.

But all is not lost: children use the unfinished pitch as a good spot for a kickabout, while in the evening joggers can be seen doing laps of the athletics track. However, the stands are always empty and are slowly being consumed by vegetation.

The closest thing to a game of polo the stadium has ever seen came in 2012 when a group of youngsters decided to organize an ironic polo match, which they played on sticks with cardboard horse heads attached.

The small town has something of a penchant for unfinished projects – the polo stadium sits next door to an incomplete and empty swimming pool, bizarrely built a couple of meters smaller than Olympic size. 

Lecco youth hostel – Lombardy



The unfinished hostel in Lecco. Photo: Giacomo Reali/Wikimedia

Plans to build a large 200-bed hostel in Lecco, Lombardy, in order to boost tourism in the surrounding area seemed like a good idea. The area is steeped in history and surrounded by the beautiful Bergamo Alps. What could go wrong?

The first stone was eagerly laid in 2006, and in spite of the council paying €2.6 million to a private company to finish the job – the hostel is incomplete and abandoned. 

A recent plan to turn the building into a university dormitory stalled and the local council is now searching for private investors to provide the funds required to finish the job. 

Città Dello Sport Tor Vergata – Lazio



The extravagant sail makes the waste all the more obvious. Photo: Luca Cerabono/Flickr

Planned as a massive indoor sports complex that would host part of the 2009 World Swimming Championships, the proposed site, near Rome, boasts a half-complete sports arena with 8,000 seats and a half-built Olympic swimming pool with space for 3,000 spectators. 

The project was launched with great expectations in February 2006. The Spanish architect, Santiago Calatrava, designed a gigantic sail as the roof for the complex, which today only makes its failure more conspicuous. 

The project was blighted by spiralling costs. Initially the council set aside €240 million to complete the works but it is now looking for a further €400 million from private investors to finish the complex.

The Giunza tunnel – Umbria/Marche



The premature opening of the tunnel in 1990. Photo: Giacomo Reali/Wikimedia

The Giunza tunnel is a 5.96km tunnel connecting Umbria and Marche on the E78, the super highway that connects the east and west coasts of Italy.

Planning on this great engineering feat began in the 1970s and by 2004 more than 500 billion lire had been spent on the project. The tunnel is largely complete and even received a opening party in 1990, at a cost 300 million lire.

But the party proved premature as the tunnel has never actually been opened to the public, who are still waiting until the money required to finish the project can be found. 

After 40 years, nobody is holding their breath.

La Maddalena's G8 Hotel



Unused equipment in the luxury hotel's gym. Photo: Screengrab/Corriere TV

La Maddalena is a small island off the north coast of Sardinia, which between 1972 and 2008 made most of its money by hosting a base for US nuclear submarines off its shores. 

When this practice finished in 2008 it was decided that the best way for the island to replace its lost revenue was through tourism. 

To help La Maddalena, former Prime Minister Silvio Berlusconi chose the island as the location for the 35th G8 summit, which was hosted by Italy in 2009.

Work immediately started on an ambitious project to transform the island's old arsenal into a luxury hotel complex. 

An estimated €460 million was invested into the hotel, which was to include space for 600 boats, gleaming marble bathrooms, modern artistic sculptures and a fully equipped gym. 

But at the last minute the destination for the G8 summit was moved to L'Aquila as a symbolic gesture following the earthquake which destroyed the city on April 6th 2009.

La Maddalena was left with a largely furnished luxury hotel, but problems soon started to appear. 

The accounts didn't balance and a number of people working on the project were arrested for stealing funds.

Further complications arose as to who actually had responsibility for the site.

But after the town of Maddalena finally trumpeted its desire to finally finish the project earlier this year, tragedy struck: a fire tore through the hotel in March, sending any money invested quite literally up in smoke. 

Italy is not the only European country with an embarrassing backlog of incomplete projects. 

Spain’s building bonanza left the country with a vast array of half-finished monstrosities and pointless prestige projects.

Take a look: Spain's craziest building fails

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

AMERICANS IN ITALY

How to lower your social security bill as an American freelancer in Italy

A special bilateral agreement means that American freelancers can usually lower their tax bills by paying Social Security in the US instead of Italy. But exactly how can you take advantage of it?

Published: 13 September 2024 11:05 CEST
How to lower your social security bill as an American freelancer in Italy

Freelancers in Italy who register for a VAT number (called a partita Iva) pay two main forms of tax: IRPEF, or income tax, and INPS, which are Italian social security contributions.

However, the US is one of just two countries worldwide that uses citizenship-based taxation instead of residence-based taxation. That means US citizens must file US tax returns even if they move abroad – and even if they don’t actually owe any tax.

Because of this citizenship-based taxation, Italy and the US have signed a bilateral social security agreement allowing Americans to pay US Social Security instead of INPS.

Why paying US Social Security can save you money

This bilateral social security agreement can be good news for US freelancers. Professional associations such as the Italian Bar Associations (Ordine degli avvocati) and the National Order of Architects (Ordine degli architetti) have separate pension funds that members can pay into, but foreign professionals often don’t qualify for membership.

Freelancers of any nationality who are not enrolled in a professional association must pay into a state benefits scheme called the gestione separata.

The INPS contribution for the gestione separata is currently 33 percent. That number doesn’t include income tax – just Social Security. By contrast, the US self-employment tax – which covers Social Security and Medicare taxes – is 15.3 percent.

For US freelancers who aren’t enrolled in an ordine, the US Social Security savings are substantial.

How to pay US Social Security instead of INPS

Get a coverage letter

Freelancers who want to pay US Social Security must first request a certificate of coverage from the US Social Security Administration to provide proof that they are exempt from paying Italian INPS. The letter can now be requested online and is valid for five years. 

READ ALSO: LISTED: The visa options Americans can apply for to live in Italy

Pay quarterly self-employment taxes to the IRS

Continue filing a US tax return. Self-employment taxes are calculated using two main forms: a Schedule C (1040) with income or losses, and a Schedule SE self-employment tax form. Freelancers must pay estimated quarterly taxes in January, April, June and September. The amount is based on the previous year’s earnings and can be paid online. Any differences between the estimated tax paid and the actual amount due are reconciled when you file your annual tax return.

Continue paying Italian income tax to the Italian Revenue Agency

Freelancers must continue filing an Italian tax return and paying income tax (IRPEF) in Italy. However, instead of paying Italian social security (INPS), they submit their Letter of Coverage provided by the US Social Security Administration.

FAQs

Are there restrictions on what income I can pay Social Security on?

Americans can pay Social Security on all freelance income, even if the client is located in Italy and pays the invoice in Italy.  

If I paid INPS in the past when I was eligible for Social Security, can I get a refund and pay Social Security instead?

Generally speaking, a taxpayer who makes INPS contributions that were not in fact due can request a reimbursement. However, it can take a long time. The money is refundable within 10 years. 

My Italian accountant said I have to pay INPS even as an American. What should I do?

Many Italian accountants are not aware of the US Social Security exception. 

“The social security agreement between Italy and the United States has existed since the 1970s and is still in force, but it’s not well known,” said Andrea dell’Aquila, a certified chartered accountant in Milan. “It’s quite specific and not well publicized.” 

Dell’Aquila suggests working with a commercialista who specializes in international clients and social security benefits. 

Information about the bilateral agreement is also available on the INPS website in addition to the Social Security Administration site.  

Can I still charge Italian clients 4 percent for social contributions if I am paying US Social Security instead of Italian contributions?

Under Italian law, freelancers can charge clients an extra 4 percent on each invoice to help cover the cost of social contributions, and the client is obligated to pay. However, the law specifically refers to INPS, Dell’Aquila said. 

“If you don’t pay INPS, you can still ask for a Social Security contribution, but you can’t ask by virtue of the law,” he said. 

READ ALSO: Americans in Italy: Is it worth paying for professional help with your taxes?

The client can decide whether to pay the contribution, which is treated like regular income under Italian tax rules. 

Key vocabulary

Partita Iva – Tax identification number

Libero professionista – Freelancer

IRPEF – Italy’s main income tax

INPS – Italy’s National Institute for Social Security 

Gestione separata – INPS’ state benefits scheme for freelancers

Commercialista – Tax accountant

Please note that The Local is unable to advise on individual cases. Find more information on the INPS website or seek independent advice from a qualified tax professional.

SHOW COMMENTS