TAXATION IN ITALY

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IMU is the municipaltax charged on the ownership of buildings, buildable areas and agriculturallands situated within the Italian territory, intended for any use, including property used to performing business activities.
The holder of the property rights, or the real right such as usufruct, use, residence, emphyteusis, or surface right, is required to pay the municipal tax.

In case of a financial lease, the lessee of a real estate is subject to pay this tax. The tax basis is computed as follow:
• for buildings, it is equal to the value obtained multiplying the cadastral rent increase of 5% for a dif- ferent multiplier (from 55 up to 160), based on the cadastral class;
• for building land, it is equal to the commercial value of the land as at January 1st in the FY;
• for agricultural land, it is equal to the cadastral income increased by 25% and multiplied by 135.
Under this special regime, VAT due is calculated with reference to two months before, instead of the month immediately before (Ministerial Circular no. 29 of June 10th, 1991).
Exemptions for IMU purposes:
• the buildings used as first house by the Taxpayer;
• according to the Law 208/2015, starting from FY 2016 the agricultural land, cultivated, owned and run by farmers and professional agricultural entrepreneurs.
Please note that, under certain condition, verified by the municipality, or certified by the owner, 50% of the tax base of buildings unusable and uninhabitable is considered as IMU exempt until the buildings is reusable.
The tax is usually calculated by applying the basic rate of 0.76% to the tax basis.
However, each municipality, as part of its own statutory authority, may vary such a rate by a maximum of 0.3%
(increase or decrease), to determine a range between 0.46% and 1.06%.
The tax amount due is paid in two installments on June 16th and December 16th of each FY.
In the FY 2016 a new Tax on Municipal Indivisible Services (TASI), charged on the ownership of buildings and buildable areas, was introduced.
TASI is applied on the same IMU tax base, with a rate that varies from 0,1% to 0,25%, and tax amount due is paid in two installments on June 16th and December 16th of each FY. Please note that the sum of IMU and TASI rate cannot be higher than the maximum IMU tax rate, equal to Euro 1,06%.