The Ultimate Handbook for Paying IMU on Rental Properties in Italy
In Italy, IMU (Imposta Municipale Unica) is a municipal property tax imposed on property owners. If you lease out your property, you must pay this tax, while renters do not have this obligation.
Who is Responsible for Paying IMU?
The responsibility to pay the IMU tax falls on the property owner. Renters are not held accountable for this tax, even if they occupy the rented space. This remains the case following the cessation of TASI in 2020. However, in certain situations, such as rent-to-own agreements, the payment duty may shift to the tenant.
When and How to Pay IMU?
IMU is due bi-annually:
- The initial installment (advance payment) is required by June 16.
- The final installment (balance payment) must be submitted by December 16.
Payments are to be made using the F24 form, obtainable from the Agenzia delle Entrate website or at banks. You can opt for two separate payments or a single comprehensive payment.
How is IMU Determined?
To determine the IMU amount:
1. Compute the cadastral income:
- Raise the cadastral income by 5%.
- Multiply the outcome by a factor of 160.
2. Apply the local tax rate (aliquota):
- The standard rate is 0.86%, though it can vary based on the municipality.
Discounts and Benefits on IMU
There are several reductions and incentives that can lower the IMU amount:
- Agreed rental rates (canone concordato): decrease the taxable amount by 25%, representing 75% of the full tax.
- Free use (comodato d'uso gratuito): reduces the tax base by 50% if specific conditions are satisfied, such as a registered contract and residency in the same municipality.
- Non-residential or uninhabitable properties: a 50% reduction applies if uninhabitable.
- Advantages for pensioners and disabled individuals: further discounts or exemptions from payment may apply.
- Exemption for single residences: if it does not classify as a luxury property (categories A/1, A/8, A/9).
IMU and Flat Tax on Rent (Cedolare Secca)
Opting for the cedolare secca (a flat tax on rental income) removes the need to pay registration tax and stamp duty. However, it does not exempt you from IMU payments. Thus, even with cedolare secca, the obligation to pay IMU remains with the property owner.
Advice
- Regularly review IMU rates in your area as they might change.
- Adhere to payment deadlines to avoid penalties.
- Consult a tax professional or utilize online tools for accurate tax computations.
If you have particular inquiries or need help calculating the IMU for your property, feel free to contact our agency.
