Before buying a house in Italy or in Sardinia it may be useful to understand which Taxes and fees on properties in Italy you will be subjected to.Indeed, once you will be the owner of a house in Italy you might receive tax notices that you had not thought of; Taxes and fees on properties in Italy.
Those vary according to, the residence, the number of houses in your possession and many other factors: therefore we suggest always to ask us a consulting to have a clear framework regarding taxes and costs of properties in Italy before the purchase.
Below, we provide a brief list of the most common taxes and fees on properties in Italy.
Which are the taxes if I buy a house in Italy ?Taxes and fees on properties in Italy
IMU (Municipal Tax on Ownership)
This is a direct property tax and is not applied to the first house.The IMU on the first house should be paid only if the main dwelling is considered part of the luxury class, ie if it is registered in the land cadastre in one of the following categories: A/1, A/8 and A/9 meaning mansions, villas and castles.
It replaces the ICI (Local Property Tax) and part of the IRPEF (Personal Income Tax); IMU rates are established annually by municipal deliberation, respecting some national rules.Therefore they vary widely according to each Communal Administration. In addition, reductions and exemptions are available under special conditions.
Taxes and fees on properties in Italy:TASI (Municipal Tax for Indivisible Services)
With the Tasi, the municipal administrations bear the costs of lighting, care of green spaces, street cleaning and all other services that are provided equally to all citizens.Since 2016, TASI is no longer applied to real estate used as a main dwelling, with the exception of luxury properties of categories A/1, A/8, A/9.To calculate the TASI, you need to contact our consulting service.
Taxes and fees on properties in Italy:TARI (Waste Tax)
The TARI is intended to pay for the collection and recycling of waste. It is managed directly by the Municipalities.Ownership or possession, on any basis whatsoever, of premises or open spaces, all uses included, likely to produce urban or similar waste, the surface of which rests wholly or mainly on the municipal territory;By prevalence, the whole area of the property is taken into consideration, even if part of it is excluded or exempt from this tax.
CEDOLARE SECCA (Tax on Rents)
If you plan to rent your house in Italy, from the second year of rental, you will deal this tax.The cedolare secca is a facilitated tax system for homeowners, which provides two kinds of rates, depending on whether you want to rent on the open market or with a regulated rent.
The cedolare secca’s rate act as tax substitutes.This tax will replace the Irpef and all the others, the registration tax of the lease agreements, the stamp duty of 16 euros. In this case also, considering the different possibilities, we advise to contact our consulting service.
CANONE RAI (Television Licensing)
Last but not least of the taxes and costs on properties in Italy: the Canone Rai.In Italy, all owners of televisions are taxed in a monthly surcharge of the electricity bill.The cost does not depend on the number of televisions in the house, but on the only presence of one device and it amounts to 10 monthly payments of 9 euros.If you don’t owe any, or are over 75 year’s old, you can apply for an annual exemption.