Property taxation

All properties are classified according to the land registry identification assigned by the provincial offices of the Regional Agency: each property, depending on its characteristics and its intended use, is assigned to a specific category and class.

 

Property taxation

 

The taxation and the land registry income of the property are closely linked to its classification. For ordinary buildings (that include homes, offices and stores) the land registry income is calculated by multiplying the size of the property (expressed in number of rooms, cubic meters and square meters) by the valuation rate of its class and category (published in the Official Journal).

 

The owners must report new constructions to the provincial Regional Agency within 30 days since they have become habitable or suitable for their intended use.

 

Personal income tax (Irpef)

 

The personal income tax is a tax that anyone who owns properties by way of ownership, usufruct or other legal claim must pay. From 1st January 2012, the income tax is not due on buildings subject to IMU (local housing tax), with the exception of leased properties.

 

Main house

 

In the case of a main house owned by way of life tenancy or other legal claim, you are entitled to a reduction equal to the amount of the land registry income of the property and relative outbuildings. Therefore we can say that the main house and outbuildings are exempt from the personal income tax. Such allowance shall also be entitled in case of usual residence of family members of the same taxpayer.

 

Properties kept available

 

For buildings used as accommodation owned in addition to the main house, the income is calculated by increasing of 1/3 the rate of the land registry income. Unless in case of free use by a family member that has his residence in the building.

 

Local housing tax (IMU)

 

The local housing tax (IMU) is a tax paid by all the owners of properties, whether they are owned by way of property or other legal claim (usufruct, use, residence, etc..), Including the first house and relative outbuildings.

 

How much IMU do I pay?

 

To calculate the IMU you must first identify your taxable base, and then apply on it the tax rate stated by law.

The taxable base is the value of the property, determined by the income into force at the beginning of the year with a 5% increase, multiplyed by the coefficients of the category and class assigned to the property by the land registry.

See the attached pdf at the bottom to find the coefficients (in Italian).

The ordinary tax rate is of 0.76% and may vary of +0.3% or -0.3%, or -0.4% for rented properties depending on the town council.

The rate that applies to the main dwelling house and relative outbuildings is instead of 0.4%, which may vary of +0.2% or -0.2% depending on the town council.

 

Tax allowance

 

The owners of a main dwelling house and its outbuildings may deduct from the tax due for these properties, the annual amount of € 200 that has to be related to the period of the year for which it was intended as main residence.

For the years 2012 and 2013 to the basic deduction can be added a further € 50 for each child aged under 26 as long as they usually live in the house and are resident there. The total amount of this additional deduction cannot be more than € 400.

 

How and when the tax must be paid

 

The taxpayer can choose between two methods of payment of the IMU on the main house :

- By 3 installments (respectively not later than the 18th of June, the 17th of September and the 16th

of December in settlement of the due tax)

- By 2 installments (respectively not later than the 18th of June and the 16th of December in settlement of the due tax)

 

For all other properties the only option is the payment in 2 installments.

 

See the pdf attached at the bottom of the page to find out the tax codes to enter in model f24 to be used for the payment.

 

The IMU tax return

 

In general, the IMU tax return must be submitted when objective or subjective changes occur in the property, which the town council cannot directly detect.

The IMU tax return must be submitted within 90 days from the date in which begins the ownership of the property or from the date on which there have been significant changes for the calculation of the tax.

For more details, please enquire at the appropriate town council office.

 

Download the complete document "The house tax" of the Income Revenue Authority (updated to January 2013) - In Italian

 

How the taxation on real estate transactions will change from 1st January 2014, after the intervention contained in the Decree Law "Istruzione" that modifies the legislative decree 23/2011 (source Il sole 24 ore - Friday 13th September 2013), read the complete article at the following link (in Italian).