If you own property in Italy, IMU is probably on your radar, but whether you actually have to pay it depends on what kind of property it is, how you use it, and where in Italy it's located.
IMU (Imposta Municipale Unica, or Unified Municipal Tax) was introduced in 2012 to replace the local ICI levy. It applies to both private and commercial property, building areas and agricultural land, and its exact amount varies by the type, value and location of the property.
IMU can be paid in two yearly instalments, with the first payment due by June 16th and the second due by December 16th. Alternatively, you can pay the total amount in a single annual payment by June 16th.
Taxpayers are fully responsible for calculating and paying the amount of IMU they owe and will not receive a bill specifying how much they need to pay for the relevant year.
Note on regional variations: IMU applies across most of Italy, but three areas have their own equivalent property taxes. Friuli Venezia Giulia replaced IMU with ILIA (Imposta Locale Immobiliare Autonoma) from January 2023.
The autonomous province of Bolzano uses IMI (Imposta Municipale Immobiliare, in place since 2014) and the autonomous province of Trento uses IMIS (Imposta Immobiliare Semplice, since 2015). Property owners in these areas should check the rules that apply locally.
Who does IMU apply to?
IMU is generally owed by owners of the following types of property:
- Agricultural land (or terreno agricolo in Italian)
- Building land (area fabbricabile)
- Private houses other than the owner’s main residence (or prima casa), meaning second, third, fourth homes etc.
- Luxury dwellings (case di lusso) falling under Italy’s cadastral categories A1 (stately homes), A8 (villas) or A9 (castles), regardless of whether they are the owner’s main residence or not.
Essentially, besides agricultural and building land owners, IMU is owed by all second-home owners in the country and owners of properties categorised as ‘luxury’ under Italy’s cadastral system.
READ ALSO: What taxes do you need to pay on a second home in Italy?
The tax doesn’t apply to main residences (prime case) but owners must be Italian residents and be registered as such under Italy’s national registry (Anagrafe) in order to qualify for this.
If you’re non-resident who owns property in Italy, you’ll have to pay IMU on it.
There are a number of IMU exemptions and discounts available to some categories of homeowners.
These include a 50-percent discount for retirees residing abroad and claiming a ‘totalised pension’ (pensione totalizzata), meaning a hybrid ‘Italian-foreign’ pension merging contributions made in Italy and those made in the country they reside in (as long as this country has pension totalisation agreements in place with Italy).
How do I calculate IMU?
Calculating IMU is by no means an easy process, especially if you have little to no experience with paying it.
That’s why it’s advisable to consult a qualified accountant (commercialista), who can ensure that the correct amount is paid and even arrange the transaction for you.
READ ALSO: What is an Italian commercialista and do you really need one?
That said, as a rough guide, you'll need to take the cadastral value, or valore catastale, of your property (this is generally reported in the public deed of purchase, but you can also request it at your local land registry office).
Once you know the cadastral value, you must increase it by 5 percent and then multiply that number by a coefficient, which varies according to the type of property you own. For instance, private residential buildings and flats have a coefficient of 160.
Doing this will give you your property’s taxable base and from there you'll be charged anything from 0.5 to 1.06 percent of that figure, depending on the rate (aliquota) applied by the municipality (comune) where your property is located.
How do I pay?
IMU must be paid via Italy’s standard tax form F24, which is used when paying most types of taxes in Italy, including income tax (IRPEF).
The form can be found and submitted at most bank branches and post offices, and some Italian banks allow customers to complete and submit an F24 directly online. Alternatively, an accountant can complete and submit the form on your behalf.
What happens if I don’t pay?
Late payment carries a fine of 25 percent of the IMU owed. Failure to pay can lead to enforced credit recovery procedures (recupero coattivo del credito) from local authorities.
Italy does have a procedure known as ravvedimento operoso (literally, ‘active amendment’) which allows taxpayers to self-report and quickly rectify delays in their IMU payments in exchange for significantly reduced fines.
Under this system, fines for late payment are reduced to less than 1 percent of the sum owed if the payment is made within the first 14 days from the relevant deadline.
Please note that The Local is unable to advise on individual cases. Find more information on the Italian tax office’s website or seek independent advice from a qualified tax professional.
For all the latest news and practical advice, see The Local's property section.
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