The basic rate of tax based on property value, known as ‘Imposta Municipale Unica’ or IMU (Unified Municipal Tax), must be paid to the Italian state by June 16th this year.
IMU is owed by all owners of second homes and the June deadline marks the first instalment with the other payment due on December 16th, 2022.
You don’t pay this if your main residence is in Italy and you live in the country more than six months a year, thanks to a change introduced in 2016.
Otherwise, if it’s your second home, you must pay this tax.
Taxes on second homes are inherently higher than primary residences – or at least, a main home qualifies for certain tax reliefs that second homes can’t benefit from.
For non-EU nationals without residency in Italy, including Americans and now Brits, they are allowed to spend 90 days out of every 180 in the EU.
This group of people with a second home in Italy would need to pay IMU.
You’ll also need to pay IMU if you own a home in Italy classed as luxury property, even if it is your main residence. Italian luxury property in the Italian tax system is defined by its residential category.
In this case, the cadastral categories A1, A8 or A9, for tax purposes are all luxury dwellings (stately homes, villas and castles).
IMU is also due on farming or agricultural land.
How much you pay depends on your property and the area you live in – payments are based on a percentage of the property value, collected by the municipality where your home is located, with part of the tax also going to the national government.
As a rough guide, you’ll need to take 5 percent of the property value and then multiply that number by a coefficient – a figure that changes according to property type.
This will give you a taxable base and from there, you’ll be charged anything from 0.4 to 1.06 percent of that figure, depending on the municipality where your second home is located.
You can pay this via a form called F24 through the bank or Post Office – be aware you won’t receive a bill and will need to initiate the payment yourself.
You’ll only receive what coefficient your type of property is to be able to do the sums, which an accountant can help with and arrange the transaction too.
Aside from a non-luxury main residence, there are other exemptions to paying IMU.
Under the Support Decree (decreto sostegni ter), for 2022, properties affected by the major earthquakes of May 2012 that remain uninhabitable, located in the municipalities of Emilia Romagna, Lombardy and Veneto, remain exempt from IMU until December 31st, 2022.
You can find a list of further taxes owed on second homes in our guide here. Please note The Local cannot advise on specific cases.
For more information on property in Italy, check The Local’s property section here.