12 February 2016
TASI and IMU: What is New with the Stability Law 2016
As from January 1, 2016, the Italian local taxes, TASI and IMU, have been abolished on homes used as main residences.
Main residence means a dwelling where one or more people – whether owners or tenants – usually live and reside according to the tax register.
TASI (Tax on General Local Services) is a tax covering such public services as security, lighting and maintenance of roads and green spaces, preservation of buildings and municipal areas, rescue services etc.
Prior to the introduction of the Stability Law, TASI was always due; it was calculated on the basis of the rates determined by local governments, and shared between the owner and the tenant in accordance with applicable municipal resolutions.
Since January 1, 2016, TASI has been abolished on both owners and tenants, provided that the property is used as main residence, and that they take up their residence therein by registering at the Register Office of the Municipality where the dwelling is located.
Both property used as “first homes” and property loaned for free to one’s parents or children will be exempt from payment of TASI, provided that they take up their residence therein.
Free loan agreements shall be registered at the Italian Revenue Agency (Agenzia delle Entrate).
Whereas TASI shall be payable when the property is not used as main residence by the owner or tenant. The rates to be paid by the owner and tenant are determined by each local government, in percentages ranging from 70% to 100% for the owner and from 0% to 30% for the tenant respectively.
Therefore, TASI shall always be payable by the tenant if the Lessee is:
- a company;
- a natural person who does not take up his or her residence at the leased dwelling.
We recommend that you ask your professional accountant to calculate TASI and instruct you how to pay it, if due.
Under the Stability Law 2016, IMU (Municipal Property Tax) has also been abolished on any first homes other than so-called “luxury” property (castles, large houses, exclusive flats), registered in the cadastre as A/1, A/8 and A/9. However, this tax SHALL NOT be payable by tenants, regardless of whether they are natural persons or companies.