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Annual taxes for real property in Italy

Annual taxes for house and flat landlords in Italy

Every real property owner in Italy has to pay annual taxes: IMU (for owning property), TASI (municipal tax) and TARI (tax for waste collection). Starting from 2015 these three taxes were unified as one, named IUC - "Imposta Unica Communale".

The amount of state tax does not depend on whether owner is a resident in Italy. List of payers include Italians, as well as foreigners, with or without residence permit. It makes no difference, whether you own one flat or several-each is taxable
Taxes are to be payed even if you do not use the property. However, if it is being rented, part of the tax can be paid by tenant.

The amount of regular payments mainly depends on the region or even a district, where the object is placed. Each district establish their own rate (or "Aliquota"), that is used to calculate annual tax. As a result, the maintenance costs for the same type of house in Abruzzo and in Tuscany may differ tremendously.

Most of the tax estimate for property in Italy is based on cadastral value, rather than the market one. Normally, cadastral price is 20 to 40% lower of the actual price. As an exception, the brand new property, purchased from the developer, in which case the cadastral value will be equal to the price of purchase.

Attention: the customer will be able to know the cadastral value and the tax rate for the chosen object before confirming a deal, thus also being able to estimate the amount of annual maintenance costs.

Tax rates for property owners in Italy, the exemptions, as well as deadlines and payment procedures vary quite often. Below, you can see the current information for 2017.

Abruzzo. Pescara embankment

IMU - tax for property ownership in Italy

IMU Tax "Imposta Municipale Unica" was introduced by Salva Italia Decree (DL 201/11) as a replacement for ICI. All property, including commercial one is taxable by it. The fee amount depends on cadastral price of the object, as well as on the tax rate, established by the district.

Note: In 2017 the property owners that take advantage of Prima Casa (Exemption that occurs when buying the first housing, that is the main place of residence) are exempt from IMU tax.
Exceptions include: property owners of A1 category (luxury housing), A8 (villas) and A9 (castles, palaces and other subjects of historical or artistic interest).

Normally, this tax is paid by the property owner.

IMU Tax amount for property in 2017

Object description Annual Payment
New 3-bedroom flat near the sea, cadastral  value €140 000 €700
Economy- class flat from secondary market, cadastral value €50 000 €200-300
Detached house with land plot, cadastral value of €250 000 €800 / €1200 – if the house has swimming pool
  • The table shows the approximate payment amounts of Abruzzo property owners.

TASI - municipal tax in Italy

TASI " Tassa sui Servizi Indivisibili " - is a municipal tax, which covers the costs of lighting, taking care of greenery, street cleaning and other various communal services, that commune does for its inhabitants.
The TASI amount is not tied to the cadastral value of the property, and is calculated based on the tax rate, established in the commune. Therefore, villa and cheaper property owners pay approximately the same sum.

TASI Municipal tax amount in 2017

Object description Annual payment
Flat, house or villa €60-100
  • The table shows the approximate payment amounts of Abruzzo property owners.

There are no exemptions for TASI. If the property is in the long-term rent, that tax is almost always paid by tenant.

TARI - tax for garbage disposal in Italy

TARI "Tassa RIfiuti" - is a new name for the last year's tax for waste "TARES". Used to finance the expenditures for collection and garbage disposal.
The amount of TARI tax depends on the property category, as well as on the amount of registered and permanent residents. If the owner uses the flat only for holidays several weeks a year, than commune can lower the tax rate.

TARI municipal tax amount in 2017

Object Description Annual payment
Flat of 120 sq.m near Pescara
2 permanent residents
Flat of 80 sq.m near Pescara,
2 lodgers 30% Discount received
Joint house (townhouse) of 50 sq.m + 300 sq.m area
in a small town Mafalda,1 lodger 30% Discount received 
  • The table shows the approximate payment amounts of Abruzzo property owners.

If the property is rented, than garbage disposal tax is always paid by a tenant.

Payment Procedure of annual taxes for property in Italy

Some communes in Italy send property owners annual tax accounting. In that case owner simply pays the quittance at the post office. However, majority of Italian communes do not take that route. Also, the responsibility to account taxes and also for any possible errors and/or missing of deadline lies with the property owner.

Italians use one of two routes for accounting their property taxes:

  • Hire a tax consultant. (For instance, in Abruzzo their services cost 50 euro) 
  • Go to the public state services, where they get assistance with accounting a little cheaper, but that requires going through a long queue wait. 

SFR Realty clients can place an order for annual tax accounting (for 50 Euros) or make a deal for post-servicing (these services will be included into the cost).

When the accounting is complete, the necessary sum has to be transferred to the state. How do you do it when you are abroad?

  • Via the bank. All foreign homebuyers open accounts in Italian banks. Some of them allow tax payments online. In that case, it is possible to complete transaction without coming to Italy. However, such service is not presented by any bank; it is recommended to make sure beforehand. 
  • Through personal cabinet on the taxing website. You have to register and receive a digital signature key. In that case the bank or even online payment is acceptable. 
  • Through a representative. If you make a deal with a management company for property servicing, than your representative will go to post office themselves and pay the property taxes.

If the property owner does not have a working bank service, personal cabinet or representative in Italy, then he/she will have to physically arrive to country and pay the taxes.

And, finally, when are the property taxes being paid in Italy?

According to the data from 2017, taxes are paid twice a year: before 16th of June and before 16th of December. Missing deadline in Italy, just as anywhere else imposes the penalty. You can pay all sum in one go, but in the end of the year it's important to check, if the tax rates have increased (which does happen), and if they did - pay the rest.