The historic Rome headquarters of extra-parliamentary far-right group CasaPound was impounded on Thursday after the group had squatted there for years.
Rome Mayor Virginia Raggi said "this is an historic moment, a victory for the city".
CasaPound leaders were notified that the building was being repossessed by the city.
The move was hailed by Raggi's 5-Star Movement (M5S), the Democratic Party (PD), and the partisans' association ANPI.
Prosecutors said they were investigating the rightist organisation for criminal conspiracy aimed at instigating racial hatred and illegal occupation of state-owned property.
The leaders of the far-right movement, Gianluca Iannone, Andrea Antonini and Simone Di Stefano, are under investigation in the probe.
Police sources said the notification of the impoundment will be completed at the beginning of next week.
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