Index
IMU second home: rate and variations
The IMU for second homes provides a standard rate of 0.76%, which can vary between 0.46% and 1.06%, at the discretion of the municipality.
How to calculate the IMU? IMU is the tax that citizens are required to pay on the ownership of certain types of properties. The Single Municipal Tax specifically applies to second homes, but it is also collected when the first home falls into categories A1, A8, and A9, i.e., when the home is considered a luxury property.
In 2020, some rules regarding IMU have changed. The main change affects the single municipal tax (IUC), which has been abolished and replaced with a new tax that combines IMU and TASI. With the new Budget Law, the Government has attempted to reduce the bureaucracy of the tax system by simplifying the taxation of property ownership.
In this article, we will see in detail how to calculate the IMU following the new Government directives, when you are required to pay it and in which cases it is possible to obtain an exemption or a reduction.
What we are talking about:
- When to pay the IMU: deadlines
- How to calculate the IMU: formula
- Practical example of IMU calculation
- IMU and cadastral categories
- How and where to pay the IMU
- IMU: exemptions and reductions
- Second home, yes or no?
When to pay IMU: deadlines 2022
According to the Budget Law, IMU can be paid in two installments payable in the middle and at the end of the year or in a single payment to be paid by June 16. Those who prefer to pay in two installments must pay the deposit by June 16 and the balance by December 16.
How to calculate IMU 2022: formula
To understand how IMU is calculated for a second home, the first figure you need to consult is the cadastral income, i.e. the tax value of the property established through parameters set by law. If you want to know the cadastral income of your property – be it a house, a shop, or land – your reference document will be the cadastral survey, also available online in some municipalities.
Consequently, everything depends on the type of property. Start by adding the cadastral income to 5% of its value, then multiply the result by a value that varies depending on the category to which the property belongs. In the case of a second home, for example, the reference coefficient is 160. At this point, you will have obtained the taxable base to which you will need to add the rate established by the municipality where the house is located.
As we said, the coefficient varies depending on the type of property. If you are wondering how to calculate IMU on a shop or how to calculate IMU on agricultural land, the answer is simple: instead of 160, you will need to multiply the cadastral income revalued at 5% by 55 in the case of shops and 135 in the case of land, before adding the rate.
The base rate is 8.6 per thousand. The Budget Law, however, allows Mayors to increase it up to a maximum of 10.6 per thousand.
Finally, if the property used as a primary residence belongs to the cadastral categories A1, A8, and A9 (luxury homes such as villas, castles, and stately homes), a deduction of the basic value of 200 euros must be applied. The exemption from IMU for properties in category A7 is confirmed. The Budget Law also allows individual Municipalities to increase the value of the deduction. We discussed IMU and primary residences in detail in this article.
Practical example of IMU calculation
Let's see in practice how IMU is calculated for a secondary residence. For this example, let's consider a land registry income of €1,000 and a municipal tax rate of 8.6%.
Here are the three steps to perform:
- 1,000 + 5% = 1,050
- 1,050 x 160 (coefficient for housing) = 168,000
- 168,000 / 1,000 x 8.6 (rate of 8.6 per thousand) = €1,444.80
The tax to be paid, therefore, will be €1,444.80 in total, to be divided into two installments. The municipal administration website provides an automatic calculator with which you can immediately see how much you will have to pay based on the cadastral income of your property.
IMU and cadastral categories
As we have seen, to calculate how much IMU to pay in 2020 it is necessary to know the cadastral coefficient. For homes, the coefficient is 160, but this can vary greatly if the property falls into a different cadastral category.
Here is the table of different cadastral codes, with the coefficient for calculating the 2020 IMU and the type of property included:
Cadastral category Coefficient Property type From A1 to A11 (excluding A10) 160 Residential buildings A10 80 Offices and private studios From B1 to B8 140 Non-profit nursing homes and hospitals, prisons and reformatories, public offices, schools and laboratories, libraries, museums, galleries, academies, clubs C1 55 Shops C2, C6, C7 160 Warehouses, stables and stables C3, C4, C5 140 Artisan workshops, non-profit gyms, bathing establishments From D1 to D10 65 Hotels, theatres, cinemas, concert halls, nursing homes and gyms
How and where the IMU is paid
IMU can be paid in two ways:
- online, with the help of an accountant or tax advisor
- using the F24 form, available at all post offices, banks or on the Revenue Agency website.
To pay IMU on a second home using the F24 form, simply enter the amount to be paid in the section dedicated to "IMU and other local taxes". After completing it, you can choose whether to pay by postal order or with the PagoPA platform.
Remember that the deposit equivalent to 50% of the tax must be paid by June 16th, while the balance with the second half must be paid by December 16th.
IMU: exemptions and reductions
When calculating the IMU on your second home, always keep in mind that in some cases there are exemptions and reductions that allow you to save on tax payments. The new law establishes that houses granted on free loan to first-degree relatives can benefit from a 50% reduction on the IMU rate.
Properties with agreed rent, however, will be able to take advantage of a 75% discount, while in the case of properties belonging to non-profit organizations it is possible to obtain a total exemption from IMU payment in 2022.
The exemption also applies to all properties used as a first home, namely:
- structures belonging to cooperatives with undivided ownership in which the assigned members live or intended for students university students;
- buildings used for social housing;
- family homes assigned to a custodial parent;
- unrented real estate units owned by members of the Armed Forces, the Police Force, or firefighters.
Finally, if the property used as a primary residence belongs to the cadastral categories A1, A8, and A9 (luxury homes such as villas, castles, and stately homes), a deduction of the base value of €200 must be applied. The exemption from IMU for properties in category A7 is confirmed. The Budget Law also allows individual municipalities to increase the value of the deduction in this case. We discussed IMU and primary residences in detail in this article.
In addition to this type of property, municipalities also have the power to identify as primary residences empty real estate units owned by elderly and disabled people in nursing homes. Furthermore, the new law does not allow exemption for individuals who receive a foreign pension and are registered with AIRE, but own a home in Italy.
Second home, yes or no?
Sometimes it's difficult to get a precise idea of the costs associated with owning a property, but with this article we hope to have clarified your ideas regarding taxes on second homes. The laws change often and there are slight variations for each municipality: for this reason, it's important to always be up to date before investing in the real estate market.
We've seen how the IMU on a second home is calculated in 2022, now it's up to you to decide how, where, and when to proceed with the purchase. On our advertising platform you can find your ideal home: many offers available immediately await you in Milan, Turin, Florence, Rome, Bologna and Verona. Contact us now to find out how we can help you!
