Italy's 2007 Budget Law (Law No. 296 of 27 December 2006) enacted provisions that created a new special tax vehicle - the publicly traded Real Estate Investment Company or REIC - for investments in the real estate market. The new regime is elective and available only for publicly traded companies (or their more-than-50%-owned subsidiaries). The government's regulation that implements the new statutory provisions on REICs was issued on 13 July 2007 and has been submitted to the Ministry of Economy and Finance for signature. It will become effective the day after publication in the Official Gazette. The new regime applies to taxable years beginning on or after 30 June 2007. The article analyses the new regime based on the applicable law and regulations.