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 (Prima Casa) 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 on Residential Property 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 the effective date of registration as resident.
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, shed, fixed veranda or car port) if they are linked to the main dwelling. But it is really important to note the exemption only applies to the main residence and one “pertinenza). it does not extend to exempt IMU on other portions included in what you purchased, eg. areas classified as agricultural or commercial property, or indeed to areas of the condo which are registered separately such as a porter’s lodge (although for the latter the condo will be responsible for payment of the tax and re-charge to owners.)
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 clarifies that this means that the pension must be a pension paid by a foreign institution (e.g an SSA or state 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);
- Pensions paid by INPS or other mandatory Italian social security scheme.
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 are registered as resident there and 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, with IMU being calculated on each person’s individual property rights.
Agricultural Land
Ownership of agricultural land in Italy comports the obligation to pay IMU by default, but exemptions exist. National law provides specific exemptions based on the location of the land or the status of the owner.
The rules for IMU on agricultural land generally follow these three categories:
1. “Mountainous Area” Exemption
This is the most common reason agricultural land is exempt. If the land is located in a municipality classified as “mountainous” or “partially mountainous” by the national government, it is exempt from IMU for everyone, regardless of whether the owner is a professional farmer or a hobbyist.
The classification is based on a specific list (Circular No. 9 of June 14, 1993).
Total vs. Partial: In “totally mountainous” (T) municipalities, all land is exempt. In “partially mountainous” (P) municipalities, only land located within specific cadastral zones is exempt.
If your land is in one of these zones, you pay €0 IMU, even if you only own land with a few olive trees for personal use.
2. The “Agricultural Entrepreneur” Exemption (Status-Based)
If the land is not in a mountain zone (e.g., it is in a flat, coastal, or prime agricultural area), it is generally taxable. However, the land is still 100% exempt if:
- The owner is a Coltivatore Diretto (CD) – literlally “direct cultivator” or an Imprenditore Agricolo Professionale (IAP) – agricultural entrepreneur; and
- They are actively farming the land and are registered with the agricultural social security system (INPS).
3. The “Small Islands” and Minor Exemptions
Land located on the “minor islands” (e.g., Elba, Capri, Ischia, etc.) is also generally exempt from IMU.
How the Tax is Calculated
If you do not meet the exemptions above, the tax is calculated using a specific formula:
- Take the Reddito Dominicale (the official yield based on land registry values found on your land registry extract – visura catastale).
- Revalue it by 25%.
- Multiply by a coefficient of 135.
Apply the local Comune IMU rate (usually, for agricultural land between 0.76% and 1.06%).
Other IMU Exemptions and Reductions
The Imposta Municipale Unica (IMU), Italy’s municipal property tax, offers other exemptions or reductions in specific cases. Below is a summary.
Historical or Artistic Properties:
Reduction: Properties declared of historical or artistic interest under Legislative Decree 42/2004 receive a 50% reduction in the taxable base. If the property is unusable or uninhabitable, it may be fully exempt, but this requires municipal verification.
Unusable or Uninhabitable Properties:
Exemption: Properties that are dilapidated, abandoned, or otherwise uninhabitable (e.g., lacking utilities) may be exempt. This requires a formal declaration and inspection by the municipality to confirm the condition.
Properties Rented with Fair-Rent Contracts:
Reduction: Properties let under “agreed rent” contracts (contratti a canone concordato), where rent is capped per local agreements, may qualify for a 25% IMU reduction in some municipalities. This encourages affordable housing but depends on local regulations.
Exemption for Social Housing: Properties used for public or social housing (edilizia residenziale pubblica) may be exempt, as per municipal discretion.
Properties Used for Specific Purposes:
Exemption: Properties owned by non-profit organizations, used exclusively for cultural, religious, or charitable activities (e.g., churches, museums), may be exempt, provided they meet strict criteria under Italian tax law.
Exemption for Public Entities: Properties owned by the state, regions, or municipalities used for institutional purposes (e.g., schools, hospitals) are typically exempt.
Municipal-Level Reductions:
Some municipalities offer local reductions or exemptions for residents with low incomes or specific conditions (e.g., pensioners those with disability or facing economic hardship). These are not standardized and vary by Comune.
Check by contacting your local Comune or check the Comune’s website for resolutions delibere on IMU rates and exemptions.
Temporary Exemptions (COVID-19 Related):
In 2020–2022, temporary exemptions were introduced for properties in the tourism sector (e.g., hotels, B&Bs) due to COVID-19 economic impacts. These were not extended to 2023–2025, but municipalities may offer similar relief in specific cases (e.g., economic hardship), subject to local approval.
Most exemptions require formal declarations (e.g., Dichiarazione IMU) by June 30 of the following tax year, along with supporting documents (e.g., proof of residency, lease agreements, or property condition reports).
Municipalities may audit claims, and false declarations can lead to steep penalties.
The Practical Approach to Manage your IMU
Working Out the Tax Due
Seeking advice on and explanation of the many rules governing MU is usually more time consuming, and hence expensive in terms of professional fees, than simply instructing a local professional service, such as a “CAF” (citizens tax assistance centre) or accountant/cpa (commercialista) to proceed to advise you of amounts due and deadlines.
These professionals have computer links to the Tax Agency, and (often based simply on your Italian fiscal code number), can quickly extrapolate the base information from the Land Registry, use their software to calculate the tax due and produce the F24 payment forms for presentation at your Italian bank )or via online banking) before each deadline.
Payment of IMU
They may also be arrange a direct debit so that the tax is transferred automatically to the Tax Agency, providing each owner of the property has an Italian bank account (either alone or jointly with someone else. You cannot use an account in someone else’s name (even a spouse or civil partner) to mandate the Tax Agency to take your tax from that account. In some cases it is possible to make payment by bank transfer from a non-Italian account but the process adds expense, and introduces scope for error, curtailment of amounts received due to bank charges, and difficulties with reconciliation of amounts paid.
Your Comune should also be able to confirm rates and local rules for the calculation of the IMU.
Type of Property
From all of the above it can be seen that the IMU is a precise calculation based on a series of elements. everything starts from how the property or properties are classified at the Land Registry (or how they should be correctly classified).
For a property in Italy represented by a single stand alone residential dwelling, the calculation is relevant simple. For mixed use properties (e.g. rural dwellings and agricultural land) the calculation can be more complex.
For an apartment in a condominium you need to check how the relevant portions are registered. Typically e.g. a porter’s lodge or common garage area, will be registered at the Land Registry as a specific category and IMU is due by the condominium manager (with subsequent recharge to owner-occupants). Other common parts such as entry halls, stairways, etc. are typically not registered separately but the area is included in each apartment owners area of ownership. The IMU is thus automatically included in the calculation of the total IMU due for each apartment. It is not due separately. The position in each case does need to be checked.
Calculate Your IMU Online
This website has a calculator requiring insertion of basic details (to be found on a visura catastale, or look up on the Tax Agency’s website. Note that the operator of the website is not responsible for any loss or damages. The disclaimer here is a reflection of the intricate variables at play, the need for a rigorous approach to the calculation of the tax, possibly consulting the relevant Comune, potential discrepancies between how property is registered and the actual state of the property, and steep penalties (within the context of the tax due) for under- or late payment.