IMU on the first home: when you pay

What IMU is in plain words

IMU, the municipal property tax (imposta municipale propria), is the annual tax on owning homes and other property. It is paid to the municipality where the property is located. The general rules are in Law 160 of 2019, paragraphs 738 to 783.

The owner pays. Holders of a usufruct, use, habitation, emphyteusis or surface right also pay. If the home is under usufruct, the person who pays is the usufructuary, that is, the person who has the right to use it and enjoy its fruits, for example by collecting the rent.

When the first home is exempt

The first home is exempt from IMU if two conditions apply together:

• it is your registered residence (residenza anagrafica);
• it is your habitual residence (dimora abituale), that is, the place where you actually live with your family.

The exemption also covers ancillary properties (pertinenze): cellars, garages, parking spaces and canopies. Only one is counted for each of categories C/2 (cellars and warehouses), C/6 (garages and parking spaces) and C/7 (canopies). If you have two garages, the second one pays the tax.

To find out the category of your home, check the land registry extract (visura catastale). The owner can consult it online, for free, on the website of the Italian Revenue Agency (Agenzia delle Entrate). If the category is A/2, A/3 or A/4 and you live there as your habitual residence, the first home is exempt.

Luxury homes: A/1, A/8 and A/9

Categories A/1 (stately homes), A/8 (villas) and A/9 (castles) have no exemption. Even if it is your first home and you live there, you pay IMU. For these homes three rules apply:

• a reduced rate applies, which you will find in the municipality's regulations;
• a deduction of €200 a year is subtracted;
• the calculation starts from the cadastral income, as for other homes.

Here is an invented example, with a hypothetical rate of 0.5%. Taxable base €84,000. The gross tax is €84,000 × 0.5% = €420. After subtracting the €200 deduction, €220 remains. You can find the actual rate for your municipality in the regulations or on the municipality's website, because it varies from one municipality to another.

How IMU is calculated

The calculation starts from the cadastral income, that is, the annual tax value that the cadastre assigns to the home. There are two steps:

• cadastral income × 1.05 × multiplier = taxable base;
• taxable base × rate = annual IMU.

The multiplier depends on the cadastral category:

• 160 for categories A (except A/10), C/2, C/6 and C/7;
• 140 for B, C/3, C/4 and C/5;
• 80 for A/10 and D/5;
• 65 for category D;
• 55 for C/1 (shops).

The base rate is 0.86%. Municipalities can change it up to 1.06%. For this reason, two identical homes can pay different amounts in two different municipalities.

How much you pay on the second home

The second home has no exemption and no deduction. It pays IMU at the municipality's rate, which can be as high as 1.06%.

Example with round numbers: cadastral income of €500, category A/2, maximum rate of 1.06%.

• Taxable base: €500 × 1.05 × 160 = €84,000.
• Annual IMU: €84,000 × 1.06% = €890.40.

If your municipality applies a lower rate, the tax goes down proportionally. For the full picture, read taxes on the second home and IMU: who pays it and how much.

When you pay: the deadlines

IMU is paid in two instalments every year, using form F24:

• advance payment by 16 June;
• balance by 16 December.

If the home is exempt, there is nothing to pay. For the exact amount of each instalment, use your municipality's rate.

If the home changes owner during the year, the tax is divided according to the months of ownership. A full month counts for the person who has owned the property for more than half of that month.

If you buy at auction: when you start paying

If you buy a home at auction, IMU starts from the transfer decree (decreto di trasferimento) issued by the judge, not from the day you pay the price. From that moment you pay the share for the rest of the year, in proportion to the months. For all the steps after the award (aggiudicazione), read what happens after the award: all the steps.

Warning: if the home is occupied by the former owner or by others, IMU is still payable. Occupancy does not exempt you from the tax.

Rentals, free loans and reductions

Some situations entitle you to reductions, but only if you meet the requirements:

• rent-free loan (comodato gratuito) to children or parents, registered and with precise requirements: 50% reduction;
• agreed rent (canone concordato): reduction to 75%, that is, you pay three quarters of the tax.

The municipality may ask for proof that you meet the requirements. Before relying on the reduction, check the conditions in the municipality's regulations.

If the home is rented out, IMU remains the responsibility of the owner. TARI, the waste tax, is instead paid by the person who occupies the property. For the calculation, read TARI: how it is calculated.

In practice

• Check the cadastral category in the land registry extract: if it is A/1, A/8 or A/9, IMU is payable even on the first home.
• Make sure you have both registered residence and habitual residence in the home: these are the two requirements for the exemption.
• Find your municipality's rate in the regulations or on the municipality's website.
• Count the ancillary properties: one for each of categories C/2, C/6 and C/7 is exempt.
• If you buy at auction, note the date of the transfer decree: IMU starts from there.

Frequently asked questions

Do I have to pay IMU on the first home if I live there?

Generally no. The home that is your registered and habitual residence is exempt, provided it is not in category A/1, A/8 or A/9. If it is a luxury home, you pay at a reduced rate and subtract a €200 deduction.

How much IMU do you pay on the second home?

It is paid at the municipality's rate, which can be as high as 1.06%. With a cadastral income of €500 and category A/2, the tax is €890.40 a year at the maximum rate.

Who pays IMU on a home bought at auction?

From the transfer decree onwards, you pay, in proportion to the months of the year that remain. For the period before the decree, the former owner is responsible.

Sources

• Law 160/2019, IMU (art. 1, paragraphs 738-783)
• Italian Revenue Agency (Agenzia delle Entrate), tax guides
• Italian Revenue Agency (Agenzia delle Entrate), land registry extract (visura catastale)