Italian Property Taxes In a Nutshell: IMU, TARI, TASI
IMU, TARI and TASI are three real estate acronyms you definitely need to know if are buying/have bought a property in Italy.
No panic, they are simpler than you might think. Ready to become a property taxes expert? Keep reading!
Let’s make a step backward and see what is the IUC (literally Imposta Unica Comunale, i.e. Unique Municipality Tax).
The IUC, that is the umbrella term that gathers in itself IMU, TARI and TASI taxes, is basically based on two prerequisites: you own a property in Italy AND you do enjoy the services provided by the Municipality your property is located in.
The Imposta Municipale Propria IMU has been introduced in 2012.
Only if you buy a house as holiday home, so not with residential purpose, you’ll have to pay the IMU: it is calculated on the cadastral details of the property, different for every estate. The only exception is represented by primary homes of particular cadastral categories: A1, A8, A9.
Primary homes with cadastral categories A2, A3, A4, A5, A6, A7, instrumental rural buildings and land in mountain areas are exempt.
All clear? To recap: the IMU applies to all second homes (or primary homes within specific luxury categories), to buildable and agricultural lands.
The IMU must be paid by the owner or by the holder of the real rights of usufruct, use, housing, emphyteusis, surface.
An important thing to know is that who is part of A.I.R.E (the association of Italians who have their residency abroad) can buy a primary home in Italy, BUT he/she has to pay the IMU anyway.
The taxable base is basically calculated as follows:
you take the cadastral income of your property
you add a 5% additional imputed income
you multiply the result by a coefficient ranging from 55 to 160 and depending on the classification of the property (apartment, villa, castle, etc.).
The basic rate of IMU is 0.76% (that can increase or decrease depending on the municipality).
The IMU tax can be paid in two installments:
1° between 1st of May and 16th of June
2° between the 1st and the 16th of December. You can pay the entire amount in just one rate between 1st of May and 16th of June.
The TASI (Tributo per i Servizi Indivisibili) is calculated in the same way as the IMU and for the same condition: as a result, you don’t pay the TASI if your estate is your primary (residential) one, except for some specific cadastral categories of luxury properties (i.e. A1, A8, A9).
The TASI applies to all real estates and lands, except for agricultural lands.
But what are these “indivisible services”? We’re talking about those services provided by the Municipality and generally used by all citizens for whom it is not possible to identify a specific user (unlike "individual demand" services like nursery school or school transport where only those who specifically use them pay the service). Examples of indivisible services are the public lighting, the road and public park maintenance, the civil protection service, the urban surveillance, the safeguard of environmental and cultural heritage etc. ...
The tax is paid by the owner; if the property is rented out, the tenant pays the 30%.
Again, the TASI could be paid in two separate payments:
1° between 1st of May and 16th of June
2° between the 1st and the 16th of December.
You can also pay the entire amount in just one rate between 1st of May and 16th of June.
Introduced in 2014, the TARI is a tax that finances the costs of waste collection and disposal service.
It’s paid by the owner or, in case of rentals, by the tenant.
How’s this tax determined?
The rate is set by the Presidential Decree n. 158/99 (coverage of all costs relating to the urban waste management service). Alternatively, and in compliance with the "polluter pays" principle, the Municipalities can adjust the fee to the average ordinary quantity and quality of waste produced per unit area, in relation to the uses and the type of activities performed as well as the cost of the service on waste.
The tax must be paid by whoever owns a property or uncovered areas that could produce waste.
In case of short-term detention of the property (i.e. less than six months), the owner - and not the tenant - must pay the fee.
The taxable base is either the size of the property or the quantity of waste.
Do you have any question related to IMU, TASI and TARI? No panic, we can put you in contact with our personal accountant!