Taxes When You Own Italian Property (But Don't Live There)

Overview

Owning property in Italy creates tax obligations regardless of where you live. Even if you visit for only two weeks a year, you're liable for annual property taxes. The main ones:

• IMU (Imposta Municipale Unica) – property tax
• TARI (Tassa sui Rifiuti) – waste collection tax
• Rental income tax – if you rent the property out

You may also owe tax in your home country on the Italian property. Double taxation treaties typically allow you to offset Italian taxes against home-country obligations, but the mechanics vary by country.

IMU (Property Tax)

IMU is the main property tax in Italy. It applies to second homes, investment properties, and land. Principal residences (prima casa) are exempt,but as a non-resident, your Italian property is by definition not your principal residence.

How IMU Is Calculated

IMU is based on:

• Cadastral value (rendita catastale): The official value assigned to the property
• Multipliers: Applied to the cadastral value to get the taxable base
• Tax rate (aliquota): Set by each municipality, typically 0.76% to 1.06%

Payment Schedule

IMU is paid in two instalments:

• June 16: First instalment (50% based on previous year's rate)
• December 16: Balance (adjusted for current year's rate)

TARI (Waste Tax)

TARI is the tax for municipal waste collection. It applies to all properties, occupied or not. Even if you never generate any waste because you're never there, you still pay.

How TARI Is Calculated

TARI is based on:

• Property size (square metres)
• Number of occupants (sometimes estimated)
• Local rates set by the municipality

TARI varies enormously between municipalities. A property that costs €150/year in one town might cost €400/year in another. The comune sends you the bill.

Reductions for Non-Occupancy

Some municipalities offer TARI reductions for properties that are:

• Unoccupied for most of the year
• Without active utility connections
• Documented as second homes of non-residents

Check with your specific comune,these reductions are not automatic and must be requested.

Rental Income

If you rent out your Italian property,even occasionally through Airbnb,you have additional tax obligations.

Cedolare Secca (Flat Tax)

The cedolare secca is a flat-rate tax option for residential rentals:

• 21% flat rate on rental income (standard)
• 10% for certain "agreed rent" contracts in high-demand areas
• Replaces IRPEF, registration tax, and stamp duty on the rental income

The cedolare secca is often advantageous but isn't always available (commercial rentals, business rentals, etc.). You must opt in when registering the rental contract.

Short-Term Rentals

Short-term rentals (under 30 days) have simplified rules but still require:

• Reporting rental income on your Italian tax return
• Tourist tax collection in many municipalities
• Registration with the Questura for guest data
• Local permits/licenses in some areas

Home Country Taxation

You may also owe tax in your home country on Italian rental income. Most double taxation treaties allow you to credit Italian taxes paid, but you need to report the income and claim the credit properly.

When Taxes Are Due

Paying From Abroad

Paying Italian property taxes from abroad requires some setup:

Options

• Italian bank account: The most straightforward option. Pay via F24 form through your bank's online platform.
• International bank transfer: Some municipalities accept direct transfers, but F24 payment is standard for IMU.
• Representative in Italy: A property manager, accountant, or trusted contact can handle payments on your behalf.
• Online services: Some services facilitate Italian tax payments for non-residents.

The F24 Form

IMU and most Italian taxes are paid using the F24 form. This form requires:

• Your codice fiscale
• The tax code for the specific municipality
• The property's cadastral details
• The correct tax year and period codes

Mistakes on F24 forms can result in payments going to the wrong municipality or being unattributed. Consider having an Italian accountant (commercialista) handle your tax payments, at least initially.