IUC - new name, same old taxes

First topic message reminder :

All change yet again. There is nothing like tinkering to make sure that everyone is thoroughly confused over what they should pay and when.
We now have IUC - L'imposta Unica Comunale. This is made up of:

IMU - for second homes only (a generalisation but for clarity let's think of it like that)

• Calculated on the same basis as previous IMU
  
• Due on 16th June and 16th December
  
• Due on any property that is not your main, habitual residence or one of its 'pertinenze' ('pertinenze' means associated structure and is defined differently in each Comune) PLUS 'luxury' properties PLUS agricoltural land and rural properties 'strumentale' (necessary) for the functioning of your agricoltural land.
  
• As per last year, the guide rate is 0.76% but this can be increased by 0.3% or decreased by 0.3% at the discretion of the Comune to make a minimum of 0.46% and a maximum of 1.06%
  
• The 2014 amount should be paid at 2013 rates for the first instalment unless your Comune has published the new rates
  
• IMU is due on agricultural land with a deadline of 26th January 2015. At this point the exemptions are not 100% definite.
  
• Rural buildings 'strumentale' (necessary) for the functioning of your agricultural land is not liable for IMU.
  
  

TARI - Tassa sui rifiuti (rubbish tax which replaces TARES

• Calculated on the sqm of your property, whether it is residential or not and what class the property falls into. If it is residential then the number of people resident affects the bill.
  
• It is paid by the resident and not the owner of the property
  
• To be paid by the dates fixed by your comune in at least 2 installments.
  
• By 30/6/2014 the Ministry of the Environment must approve new rules to establish the rates of TARI for 2014
  

TASI - Tassa sui servizi indivisibile (new IMU-like tax on all property)

• Calculated on the Cadastral value of your property increased by 5% and multiplied by 160 (could be a slightly different number for land etc). For 2014 the maximum a comune can ask for is 0.25% of this calculated figure. The Comune can increase this by another 0.08% IF they offer discounts for Prima Casa.
  
• To be paid by the dates fixed by your comune in at least 2 installments. You must also be given the opprotunity to pay in one installment by 16th December if the Comune has not fixed the rate by 31/5/2014 for Prima Casa. For other property the first instalment is payable by 16th October if your Comune has published no rates by that date and the final installment is due on 16th December 2014.
  
• The base rate for 2014 is 0.1% and the IMU plus TASI may not exceed 1.06%
  
• This is paid by the owner of the property BUT the comune can choose to have the tenant or occupier of the property pay anywhere from 10% to 30% of the bill with the remainder due from the owner.
  
• This is paid on an F24 form and you will get no bill.
  
• This is not payable on agricoltural land and at a reduced rate for buildings 'strumentale'.
  

A separate new property tax is:

IRPEF - New for 2013 is also a reintroduction of IRPEF on second properties, that are not rented and owned in the same comune as your main residence.

• This is calculated by revaluing your Cadastral value upwards by 5% (like TASI & IMU), multiplying the result by 33% and dividing the result by 2.
  
• IRPEF is declared and paid in your tax return so this may mean you now need to complete one where you didn't before.
  

For the purposes of IMU & TARI your prima casa/main residence or whatever you wish to call it is where you habitually live.
For the purposes of IRPEF it applies only to property where you do not have residency and is not where you habitually live and is not rented out.

NB - only IMU and TASI are paid using the F24 form. The other two tax is paid on a precompiled form from your Comune, although TARI may be paid on the F24 (as at today 09/05/2014). Any IMU declarations (e.g. to claim a discount for an unoccupied property) have to be submitted by 30/6/2014. This is 6 months earlier than before and will prove difficult if the Comune has not yet announced and reductions.

You can check if your Comune has published the IUC rates for 2014 here

Link to F24 form to pay TASI & IMU.
Link to codes to use on F24 form to pay IMU & TASI
Link to site that calculates IMU and will also generate the F24

Welcome Michelangelo. Think you would be looking for a specific answer here from Admin and/or Modi.
However my understanding would be that you would be classed as resident if you lived here for more than 3 months. Tax resident is another matter and if in the UK for 183 days or more they will consider you tax resident there for sure.. Don't think it is only the IRPEF you need to be concerned about, it's other taxes on a second home and income also to consider. Admin does say IRPEF is payable on a second home where it is not your main residence here. From what's been said in the past it is advisable to avoid getting involved in paying tax here in Italy, if at all legally possible. INPS (National Insurance ) will be another thing to look at.

If I had the option to keep my tax affairs in the UK and not take residency here I would. So if you have a choice then you need to think long and hard about it.
Yes Michelangelo it is a very, very unfair tax the new (reinstated) IRPEF.

Steve makes a good point about INPS if you take residency but earn your money in the UK. I did similar for a while and it all depends on what type of job you will be doing. If you are employed then I don't know how that would work to be honest. If you are self-employed then I can tell you that you will have to pay INPS in Italy on income from your UK job. If it is a job that has a set minimum rate of INPS (e.g. farmers, builders, artigianale etc) then you will have to pay that on roughly the first 15,000 (the limit is different every year but this figure is a good rough idea) and then 25-ish% on amounts after that. If it is not this type of job then you pay the 25-ish% INPS plus income tax (starting rate 23%). You can allow your INPS contributions against your Italian tax bill.

I say 25-ish% as the amount depends on if you are a woman and want maternity cover.

Hi folks. First posting here having just discovered the forum. It 's really informative!

Anyway, have just bought a holiday apartment in the lakes and am trying to make sense of the local taxes. Is there a difference between the taxes for residents and non-residents? I have been told by the agent that we have to submit a tax return via an accountant, but is that only for residents? How do we pay these taxes otherwise if there isn't actually a bill dropping through your door? Just when I thought everything was going smoothly...!

Welcome Piquet. I'm glad you find it useful.

Well, the new property taxes (IUC) are made up of the three components above. The IMU element is paid on a special form called an F24 and you must calculate how much is due yourself based on documents you get for your property when you buy it. Some very nice comune will help you with it and others provide no help. They are not obligated to help you and you won't get a bill. The comune should list on it's website what rate they will apply IMU at.

The TARI part you will get a bill for but the TASI bit we just don't know as it's new.

I think the estate agent is referring to IRPEF due on the 'notional rental value' (cadastral value) of property owned in Italy (by residents and non-residents). You would need an accountant to calculate that for you and I believe it is only due and you only need to submit an Italian tax return to declare it if the sum due is more than €200. That may be out of date so please double check with an accountant.

If you are not planning on living here then an accountant should not charge more than €20 per F24 per person (if the property is jointly owned then you each pay separately) for the IMU. A tax return would be more but if you need to do one then the accountant could be expected to do both.

These guys will probably do both for you at a very low cost. The unions have their own accountants and are very reasonable. We belong to the farmer's union and they will calcuate the IMU for no cost and complete the F24 for a very small cost.
I hope that helps.

We calculated our own IMU (now IUC) last time, but before that our Comune did it for us (and still do for friends of ours). So worth a try and no harm in going to see them....

The irpef element is due on a second home in the same comune as your principal residence.  As yet there has been no word as to whether a non resident owning two homes will be subject to the IRPEF - however, it is not IRPEF in the traditional sense but a hopefully relatively tiny amount added to your IMU bill, usually about 20/30 euros per year.   As ever, we wait and see - especially as the imposition of the tax is decided by the comune - so some comunes will not apply it.

Yes, Modi is quite correct. Sorry if that wasn't clear. The introduction of IMU replaced IRPEF on unrented properties. If you rent it out then you must pay IRPEF.

Thanks for the replies. Will see what happens when we arrive in Itsly and talk to the comune next week. I will report back!

I for one, would think very very carefully about becoming totally resident here. the tax situation is such a can of worms that you almost HAVE to use a commercialista who apparently, although they charge you for doing the job (OK !), if they don't do it properly, YOU have to pay the bill ! You pay the fines and then you pay the interest on the fines !

I have know problems paying for the mistakes I make but come on !!!

Sadly.............it is best that you assume the worst and hope for the best regarding the tax situation !!

Think carefully !! Having said all that .................we LOVE it here !!    

V

We bought our house 4 years ago and have always used a commercialista for the payment of the IMU (seconda casa, non residents). The problem is the TARES, for which we never have been billed. I do not wish to get into trouble, so maybe it is about time to get this sorted out, now that it changes into TASI. Has anyone else been in the sam situation. How does one go about to correct this? Will there be fines?

The next problem will be to explain to our guest that they collect the various wastes on different specific days of the week, and one cannot put it out on the street in advance. Not very easy to organize as we often just stop by over the weekend.

Go to your Comune for the rubbish tax, but we have friends here in exactly the same position. They have never paid rubbish tax (it does get collected) in the 7 years they have been here. I await their return tomorrow to see if, like us, they have a bill awaiting them for this years. They are none resident, we are and have had a bill each year we have been here...

Hello all

I have a property in Italy which is not my country of residence, and which is my only property in Italy.

I am just trying to come to terms with the current taxation system....and finding it a challenge. Can I just check with all you gurus my current (very poor) understanding of how these changes might affect me?

- I will continue to pay IMU in the same way (self calculated last year with second home multiplier) as previously (two annual installments using the F24)

- I will now pay TARI - never paid a rubbish tax previously, although on visiting my house recently I found a bill for this for last year. Not sure why they have decided that there are three residents at our house, when there are only two owners, and of course the house is occupied only about 3 months of the year - any discount available for this?

- TASI - a new tax which I have not paid previously. I assume mine will be considered a second home as I am not resident in Italy, even though this is my only Italian property? How is this tax any different to IMU?

IRPEF - do I need to pay this? Our house is not rented out but, as I say, it is our only property in Italy. Have never completed an Italian tax return.

Apologies if my questions have painfully obvious answers. I will wait with baited breath......

Thank you in anticipation )

strawberrystar wrote:Hello allI have a property in Italy which is not my country of residence, and which is my only property in Italy.I am just trying to come to terms with the current taxation system....and finding it a challenge. Can I just check with all you gurus my current (very poor) understanding of how these changes might affect me?

- I will continue to pay IMU in the same way (self calculated last year with second home multiplier) as previously (two annual installments using the F24)

- I will now pay TARI - never paid a rubbish tax previously, although on visiting my house recently I found a bill for this for last year. Not sure why they have decided that there are three residents at our house, when there are only two owners, and of course the house is occupied only about 3 months of the year - any discount available for this?

- TASI - a new tax which I have not paid previously. I assume mine will be considered a second home as I am not resident in Italy, even though this is my only Italian property? How is this tax any different to IMU?

IRPEF - do I need to pay this? Our house is not rented out but, as I say, it is our only property in Italy. Have never completed an Italian tax return.

Apologies if my questions have painfully obvious answers. I will wait with baited breath......

Thank you in anticipation )

I would hazard a guess....

Yes IMU you will pay - calculation Mmmm the calculators will arrive... Rubbish tax (TARI) I'm not too sure, but suspect you should have been/be paying.... Reduction, sure if you can find out how to...  Other "services" (TASI), yes, but I would dispute the lot! Only joking, but these all come under the equivalent of house tax, rubbish on SQM and numbers of people (sure someone said they were trying in on for the latter). The other two based on the cadastral value. Sure all of this will have change before I hit the send button !

Hi, strawberrystar! Perhaps what you need is to understand some concepts. A "prima casa" means your principal place of residence. If you do not permanently reside in Italy, whether the home is your first, or your last, or one of the many that you own in Italy, this type of qualification will not apply to you.
The IRPEF should not apply if the home is the sole one you own in Italy. You only have to complete an Italian tax return if you rent your property, therefore deriving a benefit from it.
TARI is calculated on the size of the property, not ton the number of owners or occupants. And... think of it, discounts will not be granted on the basis of how many times and for how long you are staying. A rubbish service has to operate throughout the year, whether you are there or not. Electricity or gas are a different concept as they mainly depend on consumption.

For the rest... the usual calculations have to be made on the basis of the data provided by the Agenzia dell Entrate; however, it may be advisable to wait for your local council to issue instructions. What Admin has given us is the basic general rules...if such a thing exists in Italy.   
Other members may be able to give you more accurate information...
Good luck!

Some towns give a discount on the rubbish tax if you are not resident. I think it varies from town to town. Bagni di lucca gives a discount for non residents.

Thank you everyone for your help. I am feeling more than a little overwhelmed by all this. I am also quite short on time and don't want to spend my time catching up on the changes to the Italian taxation system. Consequently I am now wondering if it is time to get some assistance with calculating my taxes and paying them. I have seen a CAAF office locally. Do they offer this type of service? Does anyone know how you access it and what sort of costs this might entail? Thanks again...

You just go in and ask. The charges will be different for every organisation but are very low in my experience and may even be free. You will usually have a very long queue when the time comes though.

I've updated the information at the top of this page with the latest info I could find. All changes are in blue.

Update much appreciated. I'm glad we've found an accountant to sort out our IMU. Might be a bit pricy, but for peace of mind... Also it will be the first time (IMU virgins?) and we won't be there when payment's due. Luckily we can be billed and pay TARI online in our comune. So, a couple of questions a) does the IMU form filling make more sense once it's been done for the first time or does it always need professional advice b)  can we appoint a 'proxy' to pay the IMU (or does it vary by comune?)? Grazie.

Piquet wrote:So, a couple of questions a) does the IMU form filling make more sense once it's been done for the first time or does it always need professional advice b)  can we appoint a 'proxy' to pay the IMU (or does it vary by comune?)? Grazie.

a) Our commune now do it for us.
b) Anyone can pay - just so long as it's paid on time!

Ditto for us as "G", it is actually also not difficult to calculate either on-line or in a spreadsheet.

stevegwmonkseaton wrote:Ditto for us as "G", it is actually also not difficult to calculate either on-line or in a spreadsheet.

Thanks folks. Perhaps by this time next year my Italian will be up to the task! Anyone fancy devising a beginner's, step by step guide to the dreaded form filling?

Piquet my friend.  You don't need (a lot) of Italian and there are no forms to be filled in.   

Just pop along to your commune, find the IMU man/woman, and ask for your bill.  With a few deft strokes on the computer keyboard it will (or at least should) appear.  You then pop into a nearby bank, cough up the dosh, and go to celebrate in the nearest bar.    

IMU sorted for another 6 months.  Result!    

ghiro wrote:Piquet my friend.  You don't need (a lot) of Italian and there are no forms to be filled in.   Just pop along to your commune, find the IMU man/woman, and ask for your bill.  With a few deft strokes on the computer keyboard it will (or at least should) appear.  You then pop into a nearby bank, cough up the dosh, and go to celebrate in the nearest bar.    IMU sorted for another 6 months.  Result!    

"Result" sounds good, but (and apologies for limited brain capacity and more questions), I understood it was more complicated for non-res, 2nd home owners. Is this so?

... no I think it just costs you more....