Home Life & CultureLifestyle Italian Austerity – The Monti Impact on Ex-pats & Holidaymakers
Abruzzo Thin Ice

Italian Austerity – The Monti Impact on Ex-pats & Holidaymakers

by Antonio

Abruzzo Thin IcePrime Minister  ‘s cabinet approved austerity package began the first of its debtates today, how will it affect , residents and holidaymakers?

IMU – nothing to do with Rod Hull for UK readers – just our old friend ICI under a new name. The change comes into force from 2012. This municipal tax will now be due on all houses, including main residences, prima casa, homes etc… That means if you own any property in you will now need to pay the new IMU. The rate of tax on a prima casa is 0.4% of the valore catastale of your house. These values are themselves set to rise by 60%. The rate on second and further houses is set at 0.76%. However, these are only the national rates – each Comune has some leeway to vary the rate as it sees fit.

IVA – another increase is on its way. IVA will rise to 23% from the second half of next year. The 2% rise will also apply to the 10% rate.

Tax on luxury – not a major worry for all of us, but if you do happen to own an airplane, helicopter or particularly flashy car, the Revenue is planning a special tax just for you.

Petrol – no surprise to anyone, but tax on petrol is due to rise from January 2012.

Limit for cash payments – something of an inconvenience for many. The maximum amount of cash you will be able to pay (or receive) in any transaction is to drop to euro 1000, forcing most people to take out credit cards.

Pensions – there will be an increase in INPS contributions for the self-employed (non-mutuati, INPS commercianti, INPS artigiani).

And finally….

….good news for all those registered for IVA – you will finally be able to deduct employee costs from your IRAP calculation!

If you have any queries about any of the above, contact us via our website .

newest oldest most voted
Notify of
Abruzzo
Guest
Abruzzo

Hi
If I live in Italy but own a house abroad which I rent out and I pay tax in that country will I have to pay IMU? cheers

LifeInAbruzzo
Guest

I don\’t know I\’d suggest contacting our commercialista Antonio – English language – see his facebook page – https://www.facebook.com/StudioDelGaizoPicchioni?…

Maria
Guest
Maria

I own a property with my brother, we inherited it when my father died. My brother refuses to pay- where does that leave me?

G Della Ripa
Guest
G Della Ripa

Hi
I have today visited the ACLI office in Bedfordshire and have been advised that the IMU tax payable on a 2nd house such as a holiday home is set at 1.6 % of the house valuation in Italy. However you mention the rate of 0.76%. Could you please clarify; have I misunderstood?

LifeInAbruzzo
Guest

Hi
The rate of IMU for residents (those habitually living in the property) is 0.4%; for non-residents it is 0.76%.
Possibly ACLI were referring to the amount by which the Comuni may decide to lower (unlikely) or raise (much more probable) the rate of IMU. The range is from 0.3% to 1.06%. (not 1.6)
Hope this helps.
Antonio