There are several taxes related to owning a house in Italy. They may vary according to the type of property, its condition, and its purpose.
Trying to understand the Italian tax system can be rather difficult, so we have decided to write a simple and easy guide, to outline the basics.
Below we explain as simply as possible which these are:
What are IMU, TASI and TARI?
When are they due?
Who needs to pay them?
How do I pay them?
The IMU, TASI, TARI and together are called IUC, “imposta unica comunale” or in English single municipal tax.
What is IMU and TASI? They are Italian Municipal Property Taxes which are payable in June (for the months January – June) and December (for the months July – December).
IMU is the tax on the ownership of a property, while TASI is a tax that was introduced in 2014 to cover ‘indivisible services’, which refers to services used by all citizens, such as street lighting and road maintenance.
What is Tari? It is simply the garbage collection tax. It is calculated based on the size of the home and the number of inhabitants.
1- IMU:
*) Once called ICI, IMU is the regular property Italian tax, like in many other countries.
If your property in Italy is your main residence, and you live here for more than 6 months in a year then you do not have to pay this tax.
*) However, if the house is categorized as luxury, you need to pay it anyway, regardless of the fact that is your main residence. So, also if the property in Italy is your second house, you should pay this tax.
*) It is around 5% of the cadastral value of the house plus a 5% multiplied by a coefficient that varies from city to city. In general, on average, it is 1,0 – 1,3 % of the cadastral value.
*) The municipality where your property is located will not send you a bill at home, but they will only notify you of the deadline and the coefficient used.
To perform the calculation and the actual payment you may need to discuss that with your service agent or accountant.
2- TASI: This has now been merged with the IMU (see 1). For this tax, the owner does not need to pay any other / additional payment statement.
This is the tax regarding the services provided by the town hall or in Italian “municipio”. It varies from town to town and it does not exist in some autonomous provinces. Even if you decide to rent your place for the time you do not live in your house, this tax is still your responsibility. Therefore, you may want to include these costs in the rental prices.
3- TARI:
Everybody must pay TARI. This is the tax regarding the waste collection. It should be paid only once in a year and it includes a fixed fee based on the square meters of the house, and the number of people living in that place.
You will receive an invoice directly from the town hall in your mail stating how much and how you have to pay. That is why it is very convenient to register with the municipality as a new owner.
And what about landowners?
Landowners in Italy must pay for the IMU-tax, unless the land is owned by independent farmers or professional entrepreneurs of agriculture. Landowners do not have to pay for TASI.
When and how can I pay IMU, TASI and TARI?
IMU and TASI are calculated using the “Rendita Catastale” (cadastral value) of the property, which can be found in the property purchase deed.
This Italian Municipal Property Taxes are payable in June (for the months January – June) and December (for the months July – December).
The information on this page is compiled with the greatest care; nevertheless, no rights may be derived from this information and optional attachments. We recommend that you check with the embassy in your country for the specifications and available information regarding your plans.