Understanding IMU: The only Property Tax in Italy
Italy’s property tax, known as Imposta Municipale Unica (IMU), is a crucial aspect for homeowners, including both residents and non-residents. This tax applies to various types of properties and has specific guidelines regarding who pays, how much is paid, and the payment process.
What is IMU?
IMU is a municipal tax levied on the ownership of real estate properties in Italy, excluding primary residences unless they are classified as luxury homes. It was introduced to consolidate several existing property taxes and simplify the taxation process.
Who Has to Pay?
IMU is mandatory for:
- Owners of secondary homes (second homes).
- Owners of primary luxury homes (classified under categories A1, A8, and A9).
- Owners of commercial properties.
- Landowners, including those owning agricultural land, with some exemptions for small independent farmers and professional agricultural entrepreneurs.
How Much Do I Have to Pay?
The IMU amount is calculated based on the cadastral income (rendita catastale) of the property – NOT on the commercial price of the property – which is increased by 5% for residential properties and 25% for agricultural land. The resulting amount is then multiplied by specific coefficients depending on the property type:
- Residential properties (A1-A11): 160
- Storage units and attics (C2): 80
- Garages (C6): 65
- Canopies (C7): 55
- Offices (A10): 135
- Industrial buildings and hotels (D1-D4, D6-D10): 60
- Stores (C1): 55
The standard IMU rate is 0.76%, but municipalities can adjust this rate between 0.46% and 1.06%.
