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You are about to sign the final purchase documents for your new home when a doubt arises: is IMU paid on the first home or only on second properties? We at Casavo will help you clarify your ideas and check whether you have the credentials to benefit from an exemption from the cost of the Single Municipal Tax. For example, primary residences in cadastral category A2 are exempt from IMU payment.
The first aspect to consider is the definition of primary residence for IMU, which has very little to do with the first home purchased. To avoid IMU payment, you must prove that it is your primary residence. As regulated by law no. 160 of 2019, the "first home" is identified as the property where you have established your registered residence and regularly live with your family.
While it is true that, since the relevant law was approved in 2013, there is an IMU exemption on the first home, not everyone can take advantage of this benefit. Let's say you have invested in real estate while continuing to live in a rental property in a different location. In your situation, you will have to pay the IMU on your first home because, precisely, it is not the place where you habitually reside.
Another aspect to consider is the type of property. You are entitled to the IMU exemption on your first home only if your property falls into one of these specific cadastral categories:
- A/2 - civil-type dwellings, i.e. the most common on the market; type A2 homes are distinguished by their prestigious features and high-quality finishes.
- A/3 - affordable housing, equipped only with essential systems to comply with existing regulations. The characteristics of type A2 housing include advanced technological systems and quality finishes.
- A/4 - low-cost housing, built with inexpensive materials; the housing units in this category have modest finishes and dimensions.
- A/5 - ultra-low-cost housing, that is, all structures no longer in use that lack essential systems, such as bathrooms; type A/1 housing, on the other hand, are considered luxury and enjoy specific tax deductions.
- A/6 - rural housing, such as buildings constructed on agricultural land; Type A/9 dwellings include castles and palaces of eminent artistic and historical value, with special tax exemptions and deductions.
- A/7 is villa dwellings, built on several floors and featuring a garden.
Type A/8 dwellings are classified as villas and benefit from reduced IMU rates. Furthermore, 9-castle dwellings are distinctive real estate units with unique characteristics.
If you meet all the requirements we have discussed, you will not have to pay IMU. But it is a good idea, instead, to stay informed about the other taxes paid on the first home, such as the tax on urban waste or the costs on the purchase of a property.
Cadastral categories not exempt from IMU
There are cases in which it is always necessary to pay IMU on the first home. You cannot benefit from an exemption, for example, if your property falls into one of the luxury property cadastral categories, even when it meets the main residence criterion.
Cadastral category not exempt from IMU Property type Characteristics A/1 Luxury homes They are located in residential areas and are characterised by high-quality finishes and materials. The real estate units belonging to this category include buildings of varying levels of prestige. A/8 Villas Compared to the villas in category A/7, their surface area intended for gardens or parks is much larger A/9 Castles and palaces of eminent artistic or historical value The peculiarity of these properties lies in their cultural importance, which makes them impossible to assimilate to other types of buildings
Do you find yourself in one of these situations? Then it will be useful for you to understand when you have to pay IMU on your first home and how much it could amount to. Fortunately, meeting the deadline has become much easier since 2020. IMU is paid in two convenient semi-annual payments together with TASI, one in June and the second in December, and it is the responsibility of your municipality of residence to collect them.
Its cost, however, varies depending on the tax value of your property – called cadastral income – and the coefficient determined by its cadastral type. How much is it? Calculate the IMU you have to pay with a simple formula and always monitor the expenses you will have to pay for your first home.
