Living in Italy
Shelley Ruelle
Shelley Ruelle
 · Posted in Living in Italy

How to calculate IMU property tax

IMU (Imposta Municipale Unica) is a property tax levied in Italy. The calculation of IMU involves several steps, including determining the taxable base, applying the correct tax rate, and considering any applicable deductions or exemptions.

Step 1: Determine the Taxable Base

  • Cadastral Income: The taxable base for IMU is generally calculated based on the cadastral income of the property. This is a value assigned by the Italian Revenue Agency based on the property's characteristics.

  • Revaluation: The cadastral income is typically revalued by 5% to account for inflation.

  • Coefficient: A coefficient is applied to the revalued cadastral income, which varies depending on the property's category (e.g., residential, commercial, agricultural).

Step 2: Apply the Tax Rate

  • Municipal Rate: The tax rate for IMU is set by each individual municipality (comune). It can vary depending on factors such as the property's location, type, and intended use.

  • Regional and National Surcharges: In addition to the municipal rate, there may be regional and national surcharges applied to the IMU.

Step 3: Consider Deductions and Exemptions

  • Principal Residence: Owners of their primary residence may be eligible for deductions or exemptions.

  • Other Exemptions: Certain properties, such as those used for charitable purposes or those in specific geographic areas, may be exempt from IMU.

Example Calculation

Let's assume you own a residential property in Rome with a cadastral income of €10,000. The revaluation coefficient is 160, and the municipal tax rate is 0.75%.

  1. Calculate the taxable base: €10,000 1.05 160 = €168,000

  2. Calculate the IMU: €168,000 * 0.0075 = €1,260

Note: This is a simplified example. The actual calculation may involve additional factors, such as deductions for children or elderly occupants, and may vary depending on specific circumstances.

For a more accurate calculation or to determine if you qualify for any deductions or exemptions, we recommend you consult with a tax advisor or accountant familiar with Italian property tax laws.

Helpful Resources:

Living in Italy