Luxury resort off the coast of Tavolara: the Government backtracks
The Department for the South at Palazzo Chigi has revoked the SEZ authorisation for a highly controversial project
It had been the subject of strong opposition from local communities and environmentalists, and had also been opposed by the regional government. In the end, the government decided to withdraw the authorisation for the project by the Italian-Brazilian company Tavolara Bay srl, part of the Jhsf Capital group, based in São Paulo and led by property developer José Auriemo Neto, to build a five-star beach club on Sardinia’s north-eastern coast, at Loiri Porto San Paolo, centred around Villa Joy. This is one of the most picturesque beaches and coves in Gallura, situated opposite the Tavolara Punta Coda Cavallo Marine Protected Area.
The council’s U-turn
The decision came from the Department for the South within the Prime Minister’s Office, which ordered the revocation of the single authorisation granted in February. This setback comes two days after the Loiri Porto San Paolo Town Council meeting, which, in a surprise move, revoked – under its own authority – the November 2025 resolution that had reclassified the Cala Finanza area from Zone H to Zone F2 (an essential planning amendment for the implementation of the Sardinian-Brazilian company’s project), thereby prohibiting the construction of any new buildings and requiring that over 50 per cent of the land be designated as public parkland. On Wednesday 1 July, there had also been a protest organised by local residents and activist groups at Cala Finanza, whilst an online petition had been launched.
The company’s reaction
The company says it is “deeply dismayed” and is preparing its next steps with its lawyers: “As private investors, we can only express our profound astonishment and deep concern at the uncertainty of the legislative framework,” it states.
“The revocation was adopted following the subsequent revocation, by our Town Council, of the policy resolution,” said the mayor of Loiri Porto San Paolo, Francesco Lai. “It is a victory for the principle of loyal cooperation between institutions. It demonstrates that when a local council exercises its powers with seriousness and rigour, the State is willing to listen. And it is willing to correct itself.”
Todde: the government had to give in
According to the Governor of Sardinia, Alessandra Todde, “We were right about Cala Finanza. Sardinia was right. The Government tried to decide for us but had to bow to the evidence and back down.” The Government had initiated the SEZ procedure for the area in question, to which the Sardinian Regional Government had objected both at the inter-agency conference and by lodging an appeal with the Regional Administrative Court (TAR), seeking the annulment of the single ZES authorisation number 74 of 9 February 2026 in favour of Tavolara Bay srl. The interim hearing will take place on 8 July. A decision that has now been overtaken by events.

