Italy's IMU property tax: who pays and how much

In Italy, the IMU (Unified Municipal Tax) applies to all property owners except those with a primary residence—though there are important caveats.

Introduced in 2012, the IMU covers second homes, luxury properties, commercial land and agricultural land. The key distinction: non-residents of Italy pay IMU on any property they own. Residents pay only on second homes and high-value apartments.

Payments are due twice yearly: the first instalment by 16 June, the second by 16 December. Alternatively, you may pay the full amount by June. You calculate the sum yourself—no invoice is issued. Take the cadastral value, add 5 per cent, multiply by the coefficient (160 for residential property), then pay 0.5–1.06 per cent of the resulting figure. The rate varies by municipality.

Payment is made via form F24 at a bank or post office. Late payment incurs a 25 per cent penalty on the amount owed. However, there is a loophole: if you declare the debt within 14 days, the penalty drops to less than 1 per cent.

Note: three regions—Friuli-Venezia Giulia, Bolzano and Trento—operate their own tax systems instead of IMU. Non-resident pensioners receiving an Italian pension qualify for a 50 per cent discount.

Source: The Local Italy