Recent remarks from Italy’s Economic Minister, G. Giorgetti, have stirred up a wave of concern among homeowners about the possibility of an impending reassessment of property taxes.
The State of Italian Property Taxes
Italy is known for its remarkably low property taxes. For primary residences (prima casa), these taxes are nearly negligible, while second homes face tax rates between 1% and 2%, depending on property class and local guidelines. But this could soon be changing. In particular, the government appears to focus on homeowners who renovated their properties between 2020 and 2022 using the ‘Superbonus 110%‘ tax abatement program. This initiative allowed homeowners to offset renovation costs with generous tax credits.
What’s on the Table?
Minister Giorgetti hinted at a potential revision of rendite catastali—the assessed rental income figures that determine property tax values. These rendite have remained untouched since the late 1980s and are currently far below market rates, making reassessment a topic of increasing relevance.
Who Should Be Concerned?
An increase in tax assessment values would have implications for both current homeowners and future buyers, as these figures play a crucial role in determining taxes at the point of sale. However, there are nuances to consider.
Most homeowners need not panic, as the primary Italian property tax (IMU) doesn’t apply to their homes. Conversely, owners of second homes are likely to feel the pinch if rendite catastali rise. The government is particularly eyeing those who undertook significant renovations through the Superbonus tax abatement scheme or subsequent tax incentives.
The Silver Lining
Here’s the catch: any renovation project in Italy mandates the submission of an updated rendita catastale by the engineer overseeing the renovation. If your engineer or geometra has properly filed this updated assessment with the Agenzia delle Entrate following your renovation, you might not need to worry, even if you own a renovated second home.
Conclusion
As discussions around property tax reassessment gain traction, homeowners and potential buyers alike should stay informed. While not everyone will feel the impact, those who have renovated under the Superbonus program should ensure their documentation is in order. Keeping your property’s assessment updated could save you from unwelcome surprises in the future.
Stay tuned as we monitor this developing situation!
