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Property taxes on second homes in Italy involve multiple levies that significantly impact your annual ownership costs.
The main tax is IMU (Imposta Municipale Unica), calculated on the property's cadastral value and charged at rates ranging from 0.46% to 1.06% depending on your municipality. Additional costs include TARI waste collection tax and potential IRPEF income tax, making total annual property taxes typically range between €1,000-€2,000 for most second homes.
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Second home property taxes in Italy consist primarily of IMU (municipal property tax), TARI (waste collection tax), and potentially IRPEF (income tax on imputed rental value).
Total annual costs typically range from €1,000-€2,000 for properties valued between €150,000-€200,000, with exact amounts depending on municipal rates and property characteristics.
| Tax Type | Calculation Base | Typical Annual Cost |
|---|---|---|
| IMU (Municipal Property Tax) | Cadastral value × 1.05 × 160 × municipal rate (0.46%-1.06%) | €800-€1,500 |
| TARI (Waste Collection Tax) | Property size + occupancy | €250-€500 |
| IRPEF (Income Tax) | Imputed rental value (if applicable) | €200-€400 |
| Total Annual Budget | Combined taxes | €1,000-€2,000 |
What types of property taxes apply to second homes in Italy?
Second homes in Italy are subject to three main property-related taxes that create your total annual tax burden.
IMU (Imposta Municipale Unica) represents the primary municipal property tax, applied at higher rates for second homes compared to primary residences. This tax forms the largest portion of your annual property tax bill.
TARI (Tassa sui Rifiuti) covers waste collection services and depends on your property's square footage and estimated occupancy levels. Unlike IMU, TARI applies regardless of whether you actually use the property throughout the year.
IRPEF income tax may apply on the imputed rental value of your second home, particularly if you rent it out or in specific circumstances where the tax authority calculates a deemed rental income.
As of September 2025, these three taxes combine to create your total annual property tax obligation for second homes in Italy.
How is the IMU (Imposta Municipale Unica) calculated for second homes?
IMU calculation follows a standardized formula applied across all Italian municipalities, though rates vary locally.
Start with your property's cadastral value (rendita catastale), which you'll find in the official land registry documents from your property purchase. This base value gets increased by 5% as part of the legal revaluation process.
Multiply the revalued cadastral value by 160, which is the standard coefficient for most residential properties in Italy. This multiplication creates your taxable base for IMU calculation.
Apply your municipality's IMU rate to this taxable base to determine your annual tax. For example, if your cadastral value is €1,000, the calculation becomes: €1,000 × 1.05 × 160 × municipal rate.
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What is the tax rate range for IMU depending on the municipality?
IMU rates vary significantly between Italian municipalities, giving local governments flexibility in setting property tax levels.
The national standard rate stands at 0.76%, but municipalities can adjust this rate within a legally defined range of 0.46% to 1.06% for second homes.
Major cities like Rome typically apply rates closer to the upper limit, often around 0.9% to 1.06%, while smaller municipalities may use rates closer to the 0.46% minimum to attract property investment.
Tourist destinations such as coastal towns in Tuscany or Liguria frequently implement higher rates due to increased demand for second homes in these areas.
Check with your specific municipality's website or local tax office to confirm the exact rate, as these can change annually based on local budget requirements.
How do you determine the cadastral value of a second home in Italy?
The cadastral value forms the foundation for all property tax calculations in Italy and comes from official government records.
| Document Type | Where to Obtain | Typical Cost |
|---|---|---|
| Visura Catastale (Land Registry Extract) | Agenzia delle Entrate offices | €10-€15 |
| Notary Provided Copy | During property purchase | Included in transaction |
| Online Portal Access | Agenzia delle Entrate website | €10-€15 |
| Real Estate Agent Copy | Property listing documentation | Usually free |
| Municipal Office Request | Local comune offices | €5-€20 |
How is the cadastral value multiplied or revalued to calculate the taxable base?
Italian law requires a two-step process to convert cadastral value into the taxable base for IMU calculation.
First, increase your cadastral value by exactly 5%, which represents the mandatory revaluation percentage established by national legislation. This adjustment accounts for general property value appreciation since the cadastral system's establishment.
Second, multiply this revalued amount by 160, the official coefficient for most residential properties (category A homes). Properties in luxury categories A/1, A/8, and A/9 use different coefficients but follow the same 5% revaluation rule.
The final formula becomes: (Cadastral Value × 1.05) × 160 = IMU Taxable Base. This standardized calculation ensures consistency across all Italian municipalities.
For example, a property with a €1,200 cadastral value creates a taxable base of €201,600 (€1,200 × 1.05 × 160).
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Are there additional local taxes or surcharges besides IMU that apply to second homes?
Yes, second home owners in Italy face several additional taxes beyond the main IMU property tax.
TARI (Tassa sui Rifiuti) represents the mandatory waste collection tax charged by every municipality. This tax depends on your property's square footage and estimated occupancy, typically ranging from €250-€500 annually for average-sized second homes.
IRPEF income tax applies to the imputed rental value of your second home, even if you don't rent it out. The tax authority calculates a deemed rental income based on your property's cadastral value, then applies standard income tax rates.
Some municipalities impose additional surcharges or special levies for tourism-related services, particularly in popular vacation destinations along the Italian coast or in historic city centers.
These combined taxes can add €400-€800 to your annual property tax bill beyond the base IMU amount.
Do foreign owners of second homes in Italy face different rules or tax rates?
Foreign property owners in Italy are subject to identical tax rules and rates as Italian citizens for second homes.
IMU rates, TARI charges, and IRPEF obligations apply equally regardless of your nationality or country of residence. Italian tax law does not discriminate between domestic and foreign second home owners.
However, foreign residents may face additional reporting obligations in their home countries regarding their Italian property ownership, depending on their domestic tax laws.
Some foreign owners benefit from double taxation treaties between Italy and their home countries, potentially reducing overall tax burden through foreign tax credits.
The main difference lies in payment logistics, as foreign owners often need to establish Italian bank accounts or use international transfer services to pay local taxes.
How often do you have to pay property taxes on a second home in Italy, and what are the deadlines?
Italian property taxes follow a split payment schedule with specific deadlines that apply nationwide.
- IMU payments are due twice yearly: June 16 for the first installment and December 16 for the final payment
- TARI payments typically occur annually, with deadlines varying by municipality but usually falling between October and December
- IRPEF on imputed rental income gets included in your annual income tax return, due by July 30 of the following year
- Late payments trigger automatic penalties and interest charges calculated from the missed deadline
- Payment schedules remain consistent regardless of when you purchased the property during the tax year
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How do you actually make the payments—online, through a bank, or at the post office?
Property tax payments in Italy use the F24 form system, which offers multiple convenient payment channels.
Online payments through the Agenzia delle Entrate (Italian Revenue Agency) portal provide the most efficient method, allowing 24/7 access and immediate confirmation of payment processing.
Italian banks accept F24 forms for property tax payments, either through teller services or ATM machines equipped for tax payment processing. Most major banks offer this service to both account holders and non-customers.
Post offices throughout Italy process F24 tax payments during regular business hours, making this option particularly useful in smaller towns where bank access may be limited.
Many property management companies and local accountants can handle tax payments on behalf of foreign owners, though this service typically costs €50-€100 per year.
What penalties or interest charges apply if you pay late?
Late property tax payments in Italy trigger escalating penalties and interest charges that increase significantly over time.
| Delay Period | Penalty Rate | Interest Rate |
|---|---|---|
| 1-14 days late | 0.1% of tax due | 0.5% annually |
| 15-30 days late | 1.5% of tax due | 0.5% annually |
| 31-90 days late | 3.75% of tax due | 0.5% annually |
| Over 90 days late | 30% of tax due | 0.5% annually |
| Over 1 year late | 30% of tax due | Compounding interest |
Are there any deductions, allowances, or exemptions for second homes?
Second homes in Italy qualify for very limited tax deductions compared to primary residences.
No standard deductions apply to IMU for second homes, unlike primary residences which often receive complete IMU exemptions. The Italian tax system specifically targets second homes with higher rates and fewer benefits.
Properties classified in luxury categories (A/1, A/8, A/9) never qualify for any exemptions or reductions, regardless of use or owner circumstances.
Some municipalities offer minor reductions for properties in specific historic districts or buildings undergoing approved renovations, but these exceptions are rare and temporary.
Energy-efficient improvements may qualify for separate tax credits through different programs, but these don't directly reduce your annual property taxes.
How much should you realistically budget each year for property taxes on a typical second home in Italy?
Annual property tax costs for second homes in Italy depend heavily on location, property value, and municipal rates.
For a €200,000 apartment in Rome with a typical cadastral value of €1,000, expect annual costs around €1,500-€1,800. This includes approximately €1,200-€1,400 for IMU (assuming Rome's higher municipal rates) plus €300-€400 for TARI.
A €150,000 holiday house in Tuscany with a cadastral value of €750 typically generates annual taxes of €1,000-€1,300. Rural Tuscan municipalities often apply moderate IMU rates, resulting in €700-€900 IMU plus €250-€400 TARI.
Luxury properties or those in prime locations face significantly higher costs, potentially reaching €3,000-€5,000 annually for high-value second homes in prestigious areas like the Amalfi Coast or central Florence.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding Italian property taxes for second homes requires careful planning and accurate calculations based on your specific municipality's rates and your property's official cadastral value.
Budget €1,000-€2,000 annually for most second homes, with payments due twice yearly for IMU and annually for TARI, using the F24 form system through banks, post offices, or online portals.
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Sources
- Taxing.it - Taxes on Second Homes in Italy
- RealPoint Property - Complete Guide to Italian Property Taxes
- Immigrant Invest - Italy Tax System
- Adigrat Legal - Taxes on Second Homes in Italy
- Capecchi Legal - Property Tax in Italy
- Casa Mare - IMU Property Tax in Italy
- Accounting Bolla - Municipal Tax in Italy Guide
- The Italian Lawyer - Italian Property Taxes