TAXATION OF PROPERTY OWNERSHIP IN ITALY

In a previous article, we examined the taxation of the acquisition of real estate in the Italian Republic.

Note that after the acquisition of a real estate object, you are obliged to pay certain taxes and fees arising from the ownership of such an object, as well as income tax if received from the lease of real estate (residential or commercial). Let's consider such situations in more detail.

With regard to the exclusive ownership of housing, we are talking about such annual payments:

1. IMU (imposta municipale unica) is the only municipal tax paid by the owners of real estate. The tax rate is set in the range of 0.3-0.76% of the cadastral value of real estate. The final rate is determined by the local authorities (municipality) But there is an important point - if this property is the main place of residence, that is, you have registered your place of residence there, then you are exempt from paying such a tax.
2. TARI (imposta sui rifiuti) is a housing maintenance tax. The rate of such a fee is set by the municipality and depends on factors such as the area of ​​the property, the number of people living in it, etc.
3. Real estate insurance. On average, such a payment is 1-2% of the cadastral (estimated) value of the object.

If you receive income from the rental of your real estate, you must pay personal income tax - IRPEF (Imposta sui redditi delle persone fisiche). In Italy, there are three levels of taxation (depending on the entity that determines the rate and to whose budget the collections go): national, regional and municipal.

Income tax for individuals in Italy at the national level:

• Income €0 – €15,000 – 23% rate
• Income €15,001 – €28,000 – 25% rate
• Income €28,001 – €55,000 – 35% rate
• Income €55,001 or more - 43% rate

Regional income tax varies by region, so there is no clearly defined rate. It is determined in the following range - 1.23% - 3.33%.

The municipal tax also depends on the municipality (district) of residence, so in this case also the range of rates is 0% - 0.8%.

It should be emphasized that in order to pay tax on income received from rental housing in Italy, it is necessary to fill out the appropriate tax returns and submit them to the Italian tax office - Agenzia delle Entrate. In the Italian Republic, there are two types of forms for declaring the income of individuals: Modello Unico persone fisiche and Modello 730. In the case of real estate ownership, the second of the above types of tax reporting documents is appropriate.

Thus, in the previous article we drew conclusions about the investment procedure, while it is worth adding that the established annual payments that follow from the fact of owning a property in Italy are quite standard for most European Union countries and do not constitute a significant part of the family budget or your profit in case rental property.

For additional questions and explanations of the nuances of taxation procedures for the purchase and ownership of real estate in Italy, please contact the lawyers of  "Prikhodko & Partners" Law Firm.