Taxes on the property ownership in Italy, IMU, TASI and TARI

What are IMU, TASI and TARI? When are they due? Who needs to pay them? How do I pay them?

Trying to understand the Italian tax system can be rather difficult, so we have decided to write a simple and easy guide, to outline the basics.

IMU and TASI are Italian Municipal Property Taxes which are payable in June (for the months January – June) and December (for the months July – December).

IMU is the tax on the ownership of a property, while TASI is a tax that was introduced in 2014 to cover ‘indivisible services’, which refers to services used by all citizens, such as street lighting and road maintenance.

And what is Tari? It is simply the rubbish collection tax.

It is calculated based on the size of the home and the number of inhabitants.

Who needs to pay for IMU, TASI and TARI?

If you have registered your property as holiday home, rent your property as a landlord, own a luxury home or commercial property, you need to pay for IMU and TASI.

Instead, you do not have to pay IMU and TASI if you live in a property classified as “main residency” (unless it is a luxury home).

For properties that are jointly owned, each owner needs to pay the respective tax share separately, even for properties jointly owned married couples.

And what about land owners?

Land owners in Italy have to pay for IMU, unless the land is owned by independent farmers or professional entrepreneurs of agriculture. Land owners do not have yo pay for TASI.

When and how can I pay IMU, TASI and TARI?

IMU and TASI are calculated using the “Rendita Catastale” (cadastral value) of the property, which can be found in the property purchase deed.

Usually, Italian Property Management companies offer this service.

They do all calculations, prepare the payment model and arrange for the payment on your behalf.

Your comune will not send you out a bill for these taxes.

Ask your property manager for further info.

And regarding TARI?

Everybody has to pay for TARI, but don’t worry,  you will receive an invoice directly from the town hall in your letterbox stating how much and how you have to pay.

If you have any questions about the above guide, please do not hesitate to contact us at info@italypropertyservice.it .

The Italian tax code (codice fiscale): why you need and how you get one

What exactly is the Italian tax code “codice fiscale”?

As a foreign buyer, one of the first things you will need when you purchase a property in Italy is the Italian tax code (codice fiscale).

It is an alphanumeric identification code and is similar to a Social Security Number card in the US or National Insurance Number in the UK.

When do you need an Italian codice fiscale?

An Italian codice fiscale is required for several things, including:

  • Purchase or rent a property in Italy
  • Opening a bank account
  • Settling-up utilities
  • Bnroll in the Italian health care system
  • Buying a car
  • Sign an employment contract of any kind
  • Sign a contract with an insurance company

How to apply for an Italian tax code

You can apply for your Italian tax code at the Revenue Agency offices in Italy (Agenzia delle Entrate).

Outside of Italy, you can apply at any Italian Embassies or consular representatives.

As an alternative your property management company can obtain a codice fiscale on your behalf without the need to deal personally with it.

The Italian tax code certificate is usually issued on the spot.

What are the requirements to obtain an Italian tax code?

If you are an EU citizen or come from a country from which a visa is not required in Italy, all you need is your valid passportto apply for an Italian tax code.

If instead you need a visa to visit/stay in Italy, you will need a visa also to apply for an Italian tax code.

Important: check your code!

Once issued, it is important to check your new Italian fiscal code and make sure all details are correct. Mistakes are unfortunately not uncommon, especially when foreign names are involved.

If you need assistance to obtain your Italian tax code, please contact us. For further information, please email info@italypropertyservice.it. 

 

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What to do when urgent property repairs are needed and you are not there

I am not at the property, so what should I do now? First thing: Do not panic!

If something gets damaged at your Italian property while you are away, getting urgent repairs can be difficult, especially if you decide to search for a plumber, an electrician or a locksmith by yourself on the internet and without knowing the Italian language.

If you have hired a property manager who supervises your property during your absence, it is probably him that calls to inform you about the problem, and it will be his duty to solve the issue in the shortest period of time.

Property management companies have extended networks of contacts they can call when emergencies arise and therefore, they are able to arrange an inspection with a professional within minutes.

But what if I do not have a property manager yet?

If you do not have your trusted property manager in Italy but were informed that your alarm, water, plumbing or heating system was seriously damaged, it is strongly recommended that you search for a property management company straightaway. We suggest to avoid to look for a plumber, an electrician or any professionals on the internet without any references and with no knowledge of their professional background in Italy.

In addition, remember that if you do not understand Italian fluently, there can be misunderstandings when explaining the problem f.i. over the phone which could cause additional delays.

A qualified property manager instead, is the one who can immediately deal with any emergency at your property and send you a written report after the repairs.

What can I do to avoid SOS repairs at my home?

Unfortunately, emergencies can always occur and it is difficult to predict them. However, you can reduce the risks by following two fundamental rules:

 

  1. keep the property in a good state of maintenance and cleanliness
  2. comply with all building, health and safety regulations that relate to the property.