Property tax in Italy, known as Imposta Municipale Unica (IMU), is an important factor to consider when owning a property. This article explains how the tax is distributed and how it is calculated, and the difference between a primary residence (Prima casa) and a second residence (Seconda casa).

Property tax distribution

The IMU is divided into several categories that reflect different property types and uses. Basic categories include:

Prima casa (main residence)

Exemption: a main residence is usually exempt from IMU unless it is a luxury property (e.g. categories A1, A8 and A9, which are historic or prestigious properties). This means that if you live permanently in the property and have it listed as your main residence, you do not pay IMU on it.
Accessory structures: accessory structures such as garages or basements that are part of the main residence may also be exempt.

Seconda casa (second homes and investment properties)

Taxation: all properties that are not the main residence are subject to IMU. This includes second homes, investment properties, commercial properties and land. Second homes are therefore not exempt from IMU and taxation applies to any other property you own in addition to your main residence.
Agricultural land and buildings

Exemptions: some agricultural land and buildings may be exempt or have reduced rates.
Calculation of property tax
The amount of the IMU is calculated based on several key factors:

Catastral value (rendita catastale)

The cadastral value is the basic value of the property as determined by the cadastral office (Agenzia delle Entrate). This value is a key factor in the calculation of the IMU.
Coefficients of cadastral value

The cadastral value is multiplied by a coefficient that depends on the type of property. For example, for residential properties a coefficient of 160 is used, while for commercial properties the coefficient may be different.
Tax rate (aliquota)

Each municipality has the option to set its own IMU rate within the legislatively established range. These rates may vary by property type and are announced annually.
Additional fees

Some municipalities may charge additional fees or increased rates for specific types of properties, such as unoccupied or blighted properties.
Paying property tax
The IMU is usually paid in two instalments:

First instalment: due in June, usually 50% of the total amount for the previous year.
Second installment: due in December, includes the remaining balance and any adjustments based on current rates.
There are several ways to pay the tax:

By transfer to the municipality’s bank account.
By postal order.
Electronically via the Italian tax portal (F24).

Property tax in Italy varies according to the type of property, its use and its cadastral value. Primary residences (Prima casa) can be exempted, while second homes and investment properties (Seconda casa) are subject to IMU. The tax calculation is based on the cadastral value, coefficients and rates set by the municipalities. The tax payment is divided into two instalments, which are paid in June and December.

We will be happy to help you through the whole process and better plan and manage your costs associated with owning a property in Italy.

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