IMU is an acronym for "Imposta Municipale Unica" in Italian, which translates to "Single Municipal Tax." and corresponds to Municipal Property Tax. But what is IMU in Italy?It is a local tax in Italy that was introduced in 2011 and applies to the ownership of buildings, including homes and commercial properties, as well as agricultural land. IMU is calculated based on the taxable value of the property and the tax rate set by the local municipality, while the revenue from the IMU tax is used to finance local public services and infrastructure.
Every year, this issue gives rise to questions about when this tax has to be paid and when there are IMU exemptions. Since 2013, it has been established that houses that are considered "first homes" (main residences) do not have to pay IMU, provided they are not luxury homes. Let's have a closer look at IMU property tax in Italy and find out who has to pay. These are the cases in which IMU is not payable and who is therefore entitled to exemption from paying IMU in Italy in 2022/2023.
Who is exempt from paying IMU in Italy?
If you do not want to pay IMU in Italy, the house in which you live must be your main residence, known in Italy as "prima casa". This means that in that house you must have registered residence (i.e. in the corresponding municipality you must be resident in that house) and you must actually live there every day, not just from time to time.
Under these conditions, a property is exempt from IMU. However, this is not the only condition. In order not to pay IMU property tax in Italy, a house, in addition to being a main residence, must also not be classified in the land register in the luxury category, i.e. it must not be a villa, a mansion or a castle.
If I buy a villa in Italy, do I have to pay IMU?
If I want to buy a single villa, do I pay IMU? The answer is: it depends. If it is a small villa, the above applies. But if it is a villa of more than 230 square metres with at least 3 bathrooms, a very large garden, garages, warehouses and living quarters for service personnel, then IMU must be paid. This type of dwelling is registered in the land register under category A/1.
If I buy a mansion in Italy do I pay IMU?
As with a large villa, if you buy a mansion or stately home, IMU has to be paid because it is also a luxury home. In this case, we are talking about houses with architecture, finishes and technology that are superior to normal properties and that are located in particularly prestigious areas. These houses are registered under category A/8.
Do you have to pay IMU on a castle or historic residence?
Castles are subject to IMU property tax. This category includes buildings that cannot be compared with other types of properties due to their structure, the distribution of interior spaces and built volumes; they are large buildings, with several dependent units, land, parks and gardens, and with historical interest. These buildings appear in the land register under category A/9.
With regard to buildings of historical or artistic interest, IMU has to be paid but not in full, with a 50 per cent reduction. Beware though, they can only benefit from the reduction if they have obtained a declaration of cultural interest.
Other properties with IMU exemptions in Italy
Other houses in Italy that do not pay IMU are the following:
- A former marital home assigned to one of the spouses after separation, divorce or annulment of the marriage
- The homes of cooperatives
- Council houses
- Homes owned by members of the Armed Forces in active service
- The homes of Italian citizens not resident in Italy
- The homes of elderly people residing in nursing homes
- Properties belonging to the Church if used for worship.
How do you prove that you do not have to pay IMU?
How do you prove that you do not have to pay IMU on your home? For example, it is necessary to have a registered residence in the property, the registration of domestic utilities as your main residence, the payment of condominium fees and waste tax. All these are valid ways of proving that the property is exempt from IMU.
Do you have to pay IMU if you own a holiday home in Italy?
For the whole of 2022/2023, IMU has been abolished for business managed holiday homes (rural tourism sites, holiday villages, youth hostels, mountain huts, seaside and mountain residences, short-stay room rentals, holiday homes and flats, bed & breakfasts, residences and campsites).
Unfortunately, if as a private individual you own a holiday home in Italy or a second home in which you are not habitually resident, you have to pay IMU. If, however, the house is classes as in a state of disrepair and unsafe, IMU is not paid, while if the house is run down and not suitable for occupation, IMU is paid at 50 per cent.
IMU tax for non-residents in Italy
Do non residents pay tax in Italy? How do you not pay IMU if you are not a resident in Italy? Whoever does not have their residence and main residence in an Italian must pay IMU. A 50% reduction in the IMU taxable amount is possible if close relatives such as children or parents live in the house free of charge, provided there is a contract to prove this.
Do spouses with different homes pay IMU?
Spouses with different residences who live in two different municipalities in two different houses do not pay IMU. This is provided that it can be proved that each of them actually lives habitually in his or her own house: proof of this is provided by, for example, household utility bills, which must be registered as "main residence utilities" (utenze prima casa).
Do you have to pay IMU if a property is inherited?
If a house is inherited, IMU must be paid by the heirs. If the IMU was due before the death and inheritance, all heirs (even those who did not get the house) must pay it. In any case, however, if one of the heirs does not want to pay, the municipality cannot claim against the others.
If, on the other hand, IMU expires after the opening of the succession, it must be paid by the actual heirs, according to their respective shares. Again, if one heir does not pay, the municipality cannot claim against the others.
If, on the other hand, one of the heirs establishes his or her main residence in the inherited house, only the heirs who do not live there will have to pay the IMU, again according to their respective shares of ownership.
Finally, if one of the heirs is the surviving spouse, who continues to live in the inherited house, even in the presence of other heirs the property will be considered exempt from IMU. In other words, the surviving spouse will not pay IMU because he/she is a resident, while the other heirs will simply be exempt from payment, despite having inherited a share of the property.
If the house is occupied by squatters, do you have to pay IMU?
In the 2023 Budget Law, a provision has been included concerning IMU on squatted houses. There is in fact an exemption from paying IMU on a squatted house if the owner has filed a complaint.
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