The amount of property tax
Property tax in Italy is paid by everyone who owns property or land in the country, whether resident or non-resident. The amount of the tax ranges between 0.4 and 0.7 per cent of a property’s fiscal value. The rate is decided by the local municipality according to a property’s size, location, age, condition and official category, as shown in the property deeds. Categories are decided by the land registry according to the type of property: refined, civilian, economical, working class, ultra-working class, rural, small detached and private offices and studios.
A property’s category has a relatively small influence on the amount of tax payable. If a property is unfit for habitation, property tax is reduced by 50 per cent.
Property tax is usually paid in two installments: 90 per cent by 30th June and the remaining 10 per cent between 1st and 20th December (for uninhabitable properties, the figures are 45 per cent and 5 per cent respectively). If it isn’t paid on time, you can be fined in the form of a surcharge or additional tax of up to 200 per cent of the amount due.
Here is the following property taxes payable in Italy:
- Registration tax. It includes 7 percent, 3 percent if it is the only residence. The tax on the purchase of agricultural land is fifteen percent.
- Land Registry tax includes 3 percent.
- Cadastral tax includes one percent.
The form for paying tax is complicated and many people, and especially foreigners, employ an agent to do it for them. You can also pay property tax from abroad using registered post, addressing payment to the tax office of your commune. Payments must be up-to- date when a property is sold and you should check this before buying.
Other property-related taxes include communal services for owners of condominiums and other community properties, refuse tax and water rates. Property owners also pay income tax on their property, which is based on its cadastral value.
The taxes (registration, cadastral and land registry) are paid by the buyer to the notary at the signing of the purchase deed and then by the notary to the Inland Revenue at the time of registration of the contract.