Italian Property and taxation
Italian properties and taxation
According to Italian Law, property taxes are determined and due locally. Taking into consideration a non-resident purchasing a property located in Italy, without making use of any resident or non-resident company, taxes can be divided into variable taxes, that depend on the main characteristics of the property, such as size and type, and fixed taxes, that are determined by local offices and do not depend on mentioned characteristics. Variable taxes (I.R.P.E.F. and I.C.I.) Variable taxes are related to revenues attributable to each landed property. Revenues are determined according to parameters such as size and type of property and occur even if no activity is run. Revenues, locally known as “rendita catastale” are strictly related to each property and therefore occur whenever a property is owned. The amount of revenues obviously depend on the size and type of property but are in any case quite lower than the market value of the property. Therefore do not assume I.R.P.E.F. and I.C.I. are determined by multiplying tax rate by property value. I.R.P.E.F., Italian tax on personal income, is due by the owner, resident or non-resident, no matter the income amount and no matter the property has been used or not. I.R.P.E.F. is determined on revenues attributable to property and is determined according to following rates: Rates Revenues Amounts in Euro 23% 0,00 to 15.000,00 27% 15.000,00 to 28.000,00 38% 28.000,00 to 55.000,00 41% 55.000,00 to 75.000,00 43% More than 75.000,00 Many significant reductions apply, such as reductions related to restructuring expenses or other relevant expenses. I.R.P.E.F. is to be paid each year to local offices in June (1st instalment and previous year’s balance) and November (2nd instalment). Also a tax return is due, usually within July or September. I.C.I., Italian tax on properties, is determined on the same income used to determine I.R.P.E.F. and it therefore depends on property characteristics such as size and type. The rate of I.C.I. is determined each year by local office and it can vary from a minimum of 0,4% to a maximum of 0,7%. The payments is made locally in June (1st instalment) and November (balance) an no tax return is due. In some cases reductions apply, such as in case of an agriculture activity is run or the property is owned as “residence”. Fixed taxes (T.A.R.S.U.) Local office also raises a separate, but low tax to pay for refuse disposal called T.A.R.S.U. T.A.R.S.U. is determined according to local office rates and no tax return is required. TAX PARTNERS Tax Consultants – Certified Public Accountants - Auditors Email: pgmelis@taxpartners.it Mobile: 0039.392.9515453 |
