IMU – Tax on Ownership of Italian Real Estate
IMU is Italy’s municipal property tax on real estate, introduced in 2012 to replace the previous ICI tax. It applies to owners (or holders of registrable legal rights like usufruct or a right of habitation) of buildings, buildable land, and agricultural land. The tax funds local services.
Primary residences are generally exempt unless classified as luxury properties – see below
Other exemptions or reductions may apply for historical buildings (50% reduction), agricultural land owned by professional farmers. Non-residents (i.e. people who are not tax resident in Italy for any particular tax year) are also liable to pay the tax.
IMU is managed and collected by local municipalities (comuni).
IMU applies only on real estate located in Italy. It is a sister tax to IVIE – the tax on the value of non Italian property. IVIE was introduced partly with a view to disallowing an incentive to purchase foreign property.
How IMU Is Calculated
The calculation starts with property’s cadastral income (rendita catastale), a government-assigned value based on size, location, and type. The rendita castale is then revalued by a standard coefficient and multiplied by a category-specific coefficient.
The municipal tax rate (aliquota), is expressed in amounts per thousands to the resulting taxable base.
For a second residential home with €500 of cadastral income at a 10.6‰ (1.06%) rate, by way of example:
- Revalue cadastral income: €500 × 1.05 = €525
- Calculate taxable base: €525 × 160 = €84,000
- Apply the 10.6‰ rate: €84,000 × 0.0106 = €890.40 annually
So the IMU tax would be €890.40 per year.
The tax is prorated by ownership months and percentage ownership (e.g., 50% for co-owners). Joint owners each need to pay their share of the IMU separately. For months of purchase or sale IMU is due for the whole month where you have owned the property for the greater part of the month.
Payments are due in two installments: an advance by June 16 (based on prior-year rates) and balance by December 16 (adjusted for current rates). Late payments incur penalties, but voluntary corrections (ravvedimento operoso) reduce them. Pay via F24 form, PagoPA, postal bulletin, or direct debit to your personal Italian bank account.
An IMU return must be filed but, in general only where there has been a change to the property itself (not simply a change of ownership) requiring land registry details to be updated.
Rates are set by municipalities within national limits, leading to local variations. Professional advice is recommended to effect the calculation.
Late Payment, Interest, and Penalties
If IMU is paid after the deadline, the taxpayer owes both interest and administrative penalties, calculated according to national rules. Interest (interessi moratori) accrues daily based on the annual legal interest rate set by the Ministry of Economy and Finance.
Penalties depend on how quickly the taxpayer regularises the position through the ravvedimento operoso (voluntary correction) procedure, or whether they simply wait for assessment by the comune.
Paying within 14 days triggers only a very small penalty if the ravvedimento operoso procedure is applied. After that penalties increase.
Overview of Rates from 2019 Onwards
IMU rates have been relatively stable but saw a key change in 2020 when the TASI (services tax) was merged into IMU via the 2020 Budget Law (Law 160/2019). This increased the national basic rate for most properties. Municipalities can adjust within caps, but since 2020, they cannot go below the basic rate. In 2023, the Budget Law updated publication rules (rates no longer tacitly renewed; must be explicitly set or default to basic). In 2025, a “new simplified rate system” was introduced, maintaining the basic rate but streamlining application for consistency.
Below is a table summarizing the national basic rates and municipal ranges for second homes (the most common taxable category; primary residential property (and one appurtenance) may be exempt. Rates for other properties (e.g., commercial, land) may differ slightly. Actual rates may vary by location—e.g., higher in major cities like Rome or Milan.
For precise calculations or your specific property, consult a local tax advisor or your Comune.
| Year | National Basic Rate (per mille) | Municipal Range (per mille) | Key Changes/Notes |
|---|---|---|---|
| 2019 | 7.6‰ (0.76%) | 4.6‰ to 10.6‰ | Pre-merger with TASI; municipalities had more flexibility to lower rates. IMU and TASI were separate taxes. |
| 2020 | 8.6‰ (0.86%) | 8.6‰ to 10.6‰ | TASI merged into IMU, raising basic rate (0.76% IMU + 0.1% TASI). No reductions below basic allowed. |
| 2021 | 8.6‰ (0.86%) | 8.6‰ to 10.6‰ | No major national changes; rates extended from 2020. |
| 2022 | 8.6‰ (0.86%) | 8.6‰ to 10.6‰ | Stable; some municipalities adjusted locally due to post-COVID recovery. |
| 2023 | 8.6‰ (0.86%) | 8.6‰ to 10.6‰ | Budget Law changed rate publication—must be explicit or default to prior year (or basic if none). |
| 2024 | 8.6‰ (0.86%) | 8.6‰ to 10.6‰ | Continued from prior years; focus on enforcement for non-residents. |
| 2025 | 8.6‰ (0.86%) | 8.6‰ to 10.6‰ | New simplified system fixes basic at 8.6‰ for uniformity; no rate increases beyond cap. |
IMU Exemption for the “Prima Casa” (Main Residence)
Conditions for exemption from IMU
IMU is not due on a taxpayer’s prima casa — their main residence — where:
- the property is classified in the land registry as a standard residential category (A/2, A/3, A/4, A/5, A/6, A/7 – check your visura catastale); and
- is occupied as the owner’s habitual residence;
- is the property at which you are registered as resident with the Anagrafe (the register of resident population).
All conditions must be met. The exemption applies from the date of effective registration as resident with the anagrafe, so the tax might be due, subject to the de miminis threshold, for a period following purchase and prior to registration.
The exemption does not apply to luxury categories A/1, A/8, A/9, which remain subject to IMU even if used as a main home.
A summary of residential property categories can be found here.
The exemption also extends to certain “appurtenances” (e.g., one C/6 garage, one C/2 storage room, one C/7 canopy) if they are linked to the main dwelling.
Special Rules for Married Couples and Dual‑Property Situations
Italian IMU rules become more complex when a household owns more than one property. As a general principle, a family unit may benefit from the prima casa exemption for only one property, even if spouses own homes in different comuni. If spouses are married and not legally separated, they are treated as a single tax unit for IMU purposes, and only one property can qualify as the main residence. An exception applies when spouses live in different municipalities for proven work reasons; in that case, each spouse may claim the exemption on the property where they actually live and are registered.
If spouses are legally separated or divorced, each person is treated independently and may claim the exemption on the home where they habitually reside. In addition, a property assigned to one spouse as part of a separation or divorce agreement is treated as that spouse’s prima casa for IMU purposes, even if they are not the legal owner.
50% IMU reduction for non‑resident pensioners
Official guidance from the Italian Ministry of Economy and Finance (MEF) confirms that there is a 50% IMU reduction applicable to non‑resident pensioners. defining what types of pensions qualify.
The key document is MEF – Department of Finance, Resolution No. 5/DF of 11 June 2021, which interprets Art. 1, comma 48, Law 178/2020. This is the authoritative source on the rule.
According to the MEF:
- The taxpayer must be non‑tax resident in Italy.
- They must own one residential property in Italy (property or usufruct).
- The property must be not rented and not licenced without rent (comodato d’uso)
- They must receive a pension “maturata in regime di convenzione internazionale con l’Italia” — i.e., a pension accrued under a social‑security agreement between Italy and the foreign country.
The MEF resolution also clarifies that the pension must be a pension accrued under an international social‑security agreement with Italy, such as:
- EU coordination rules
- Bilateral social‑security treaties (e.g., with Canada, USA, Australia, UK, etc.)
The following will be considered non‑qualifying pensions>
- Private pensions
- Occupational pensions not linked to a social‑security treaty
- Pensions from countries with no social‑security agreement with Italy
- Pensions which did not accrue under a convention (e.g., purely private retirement plans)
De Minimis Thresholds
Italian law allows each comune to set a minimum IMU amount below which the tax does not need to be paid. This is known as the soglia minima di versamento. The threshold is not set nationally — it is set locally — but most comuni choose a figure between €10 and €12 per year. If the total IMU due for the year is below the local minimum, the taxpayer is not required to make a payment.
The IMU is still calculated, but if the amount is below the threshold, no payment is required.
The threshold applies to the annual total, not to each instalment.
If the full‑year IMU is €9 and the comune’s minimum is €10, you owe nothing.
The threshold simply avoids collecting very small amounts.
Each comune publishes its own minimum threshold.
This rule is particularly relevant for small ownership shares (e.g., inherited property) or very low‑value rural buildings.
IMU and Inherited Property (Comunione Ereditaria)
When a property is inherited but not yet formally divided, it is held in comunione ereditaria. In this phase, each heir is liable for IMU in proportion to their inherited share, even if they do not yet have exclusive use of the property. The prima casa exemption applies only to an heir who actually lives in the property and is registered as resident at the property. All other heirs must pay IMU on their respective shares as if it were a second home.
If one heir has been granted exclusive use of the property (for example, by agreement among heirs or by court order), that heir is treated as the “holder” for IMU purposes and may claim the prima casa exemption if they live there. The other heirs, despite being co‑owners, are not liable for IMU during the period of exclusive use.
Once the estate is formally divided and each heir becomes the sole owner of their portion, IMU is calculated normally based on each person’s individual property rights.