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PROPERTY

Italian property news roundup: Gucci’s house on sale and second home tax deadlines

From a famous Tuscan villa on the market to an important deadline if you have a second home in Italy, catch all the Italian property news you may have missed in The Local's weekly roundup.

A view over the Tuscan countryside.
Are you dreaming of waking up to a view over the Tuscan countryside. Photo: Anton Sulsky on Unsplash

IMU property tax deadline is approaching

This year’s second instalment of IMU, or ‘Imposta Municipale Unica’ (Unified Municipal Tax), is due by December 16th.

IMU is a basic rate of tax that has to be paid to the Italian state, based on the value of the property.

You don’t owe this if your main residence is in Italy and you live in the country more than six months a year. Otherwise, if it’s your second home, you must pay this tax.

READ ALSO: What taxes do you need to pay if you own a second home in Italy?

Therefore, non-EU nationals without residency in Italy, including Americans and now Brits for instance, are allowed to spend 90 days out of every 180 in the EU.

This group of people with a second home in Italy would need to pay IMU.

It would also apply to a property you are renovating, for example, while you are living at another residence. Even though the second property may not be habitable, it is still a second property and so IMU taxes are due. This is important to consider for those planning to use the government’s ‘superbonus 110‘ to restore or rebuild a home.

You don’t need to pay IMU on your main home unless it is categorised as a luxury property, in which case, IMU is payable even if it is your main residence. Italian luxury property in the Italian tax system is defined by its residential category.

In this case, the cadastral categories A1, A8 or A9, for tax purposes are all luxury dwellings (stately homes, villas and castles).

You’ll need to pay IMU on luxury property. Photo by Mike Morgan on Unsplash

So, the second instalment of IMU for 2021 must be paid on the second home and on all properties other than a main home not classed as luxury.

The main house is the property registered or enrolled in the Land Registry as a single unit, in which the owner and the members of his family live habitually or reside ‘anagraficamente’ – that is, registered with the Anagrafe, the registry office.

EXPLAINED: Can second-home owners get an Italian residence permit?

However, there are some exceptions to paying IMU, such as on land owned in a mountain municipality, according to the reintroduced Circular of the Ministry of Finance of 9 June 1993.

Generally, how much IMU you pay depends on your property and the area you live in – payments are based on a percentage of the property value, collected by the municipality where your home is located, with part of the tax also going to the national government.

As a rough guide, you’ll need to take 5 percent of the property value and then multiply that number by a coefficient – a figure that changes according to property type.

This will give you a taxable base and from there, you’ll be charged anything from 0.4 to 1.06 percent of that figure, depending on the municipality where your second home is located.

You won’t get a bill for this: property owners need to abide by the deadline of when to pay and what coefficient your type of property is to be able to do the sums. IMU is paid twice a year and the last instalment was in June.

You can pay this via a form called F24 through the bank or Post Office.

To know exactly what your final IMU tax will be, it’s best to consult an accountant who can arrange the transaction for you too.

Gucci’s house is on sale

A historic Tuscan villa built in the 17th century and owned by the Gucci family is on sale for anyone with an eye for fashion and the funds to meet a designer price tag.

Described as “splendid” in the property listing, this iconic home is on the market for €750,000.

READ ALSO: Why now is the ‘best’ time to buy property in Italy

Located a few steps from the historic centre of San Miniato, a beautiful village on the green hills overlooking the Arno plain, the property sits between the major centres of Tuscany, Pisa and Florence.

It belonged to the Gucci family, well-known Italian entrepreneurs and founders of the Florentine fashion house that bears the family name. Over the centuries, the villa has hosted the most illustrious members of the two branches of the dynasty, including Guccio Gucci, who originated the famous brand by producing hats in San Miniato.

The home measures a considerable 540 square metres, its walls adorned with frescoes, “which recall the seventeenth-century origins of the villa and the eighteenth-century influence,” according to the property description.

Fancy living in the family home of the world-famous fashion house Gucci? Photo by Julien Tondu on Unsplash

There is also a vast garden surrounding the villa of 1,500 square metres, which also contains an old private chapel with a surface of about 20 square meters. Beyond that, the property comes with five hectares of land.

For those with even grander ambitions, the listing reveals there’s another 600 square metres of buildings on adjacent land that can be renovated using the government’s building bonuses.

READ ALSO:

This historic home has been on sale for 20 years and in 2005 it seemed on the verge of changing hands, according to news reports. Chinese buyers were very close to signing but then the sale fell through. The property continues to arouse interest, and it is currently still owned by the Gucci family.

The ‘best’ places to live in Italy

Wondering where to move to in Italy? A new study has revealed the best places to live in the country, rating all provincial capitals from the best to worst.

Parma was ranked top of the league for quality of life in the survey compiled by ItaliaOggi and Rome’s La Sapienza University.

This year, as well as last, the study also took into account how different areas have handled the Covid-19 health emergency.

MAP: Which are the safest parts of Italy to live in?

The pandemic didn’t affect all parts of the country equally. Some areas showed weak spots in dealing with the pandemic, found in all parts of the country from north to south. On the other hand, it highlighted the resilience of other areas.

Some of the usual suspects made it into the top ten, such as Bolzano and Trento, but other cities that have previously been way down the liveability leagues shot to prominence, including Bologna, Milan and Florence.

In case you missed it

Renovation plans are still in the balance for homeowners hoping to take advantage of the government’s hugely popular superbonus 110.

After Italian authorities gave the green light to next year’s Budget Law at the end of last month, many carrying out renovations didn’t get the news they were hoping for.

The plans aren’t favourable for those with single family homes, as Italy decided to extend the superbonus only for condominiums until 2023, meaning there isn’t as much time to move through construction projects.

EXPLAINED: How Italy’s proposed new budget could affect you

As things stand, based on the manovra – or financial measures – set out by the government, there are just over seven months left to access the superbonus for those with a single family home.

That could mean that those who are waiting for their building project to get off the ground or those stuck in a backlog caused by high demand for construction companies don’t have enough time to finish their projects.

Here’s more on how Italy’s building bonus uncertainty is causing headaches for homeowners.

If you have any tips, stories or thoughts on what we should include in the next edition of the property roundup, we’d love to hear from you. Email us here.

See more in The Local’s Italian property section.

Member comments

  1. Just a warning if you are thinking of installing an in-ground pool to even a modest property – it can lead to it being classed as a ‘luxury home’ and thus IMU will be due, even if it is ‘prima casa’. Above ground pools don’t have this issue.

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MONEY

How to get a discount on the cost of solar panels for your Italian property

Solar panels are an understandably popular choice in Italy, and if you're thinking of installing them on your own home there's funding available to help lower the cost. Here's what you need to know.

How to get a discount on the cost of solar panels for your Italian property

As utility bills rise, more home and business owners in Italy are looking at installing solar panels as a possible way to reduce costs in the long term.

Solar panels are already hugely popular in Italy, with the nation ranking top worldwide for solar-powered electricity consumption.

READ ALSO: Who can claim a discount on energy bills in Italy?

And no wonder: it’s a solid bet in a country where there is sunshine in abundance. But what about the costs of installation?

The good news is that there’s financial help available from Italy’s national government aimed at encouraging uptake of solar energy, as well as other incentives from regional authorities in many parts of the country.

It’s in the government’s interest to incentivise solar power, as Italy has vowed to transition to greener energy with its National Integrated Plan for Energy and Climate (Piano Nazionale Integrato per l’Energia e il Clima 2030 or PNIEC).

So how could this benefit you? Here’s a look at what you can claim at both a national and a regional level.

Regional funding for installing solar panels

As well as the national government subsidies available for covering the cost of solar panel installation, some regions have introduced their own bonuses or discount schemes.

The sunny southern region of Puglia and the wealthy northern region of Lombardy have seen the highest number of residential photovoltaic systems installed, according to market research.

it’s not surprising, then, that these two regions’ governments are offering cash incentives to help cover the cost of installing solar panels.

Depending on the type of system you opt for, you could expect to pay between around €5,000 and €13,000 for installation, design, labour and paperwork.

To contribute to this initial outlay, the local authority in Puglia has created a pot to help homeowners on lower incomes move towards renewable energy.

READ ALSO: What you need to know about installing solar panels on your home in Italy

Newly introduced in 2022, the so-called Reddito energetico (energy income) offers households with an annual income below €20,000 a bonus of up to €8,500 for installing photovoltaic, solar thermal or micro-wind systems in their homes.

The bonus is intended for residents who have citizenship of an EU country or, if you are a citizen of a non-EU country, you can still claim the bonus if you have been resident for at least one year in a municipality in Puglia.

The €20,000 annual income refers to a household’s ISEE – an indicator of household wealth calculated based on earnings and other factors.

A worker fixes solar panels. (Photo by Ina FASSBENDER / AFP)

For this particular scheme, if you claim this bonus from the authorities in Puglia, it precludes you from also claiming funds at national level concurrently – such as through the popular superbonus 110 home renovation fund (see below for more on this).

Although there are other government bonuses, such as the renovation bonus (bonus ristrutturazione) that offers a much higher maximum total expenditure of €96,000, it can only be claimed as a 50 percent tax deduction spread over 10 years in your tax return.

For lower income families in Puglia, this may not be as cost effective as the grant from the regional authorities, which may equate to more money towards the cost and supply of solar panels.

For more information and to apply for Puglia’s renewable energy bonus, see here.

Lombardy is also stumping up funds to continue the solar power momentum experienced in the region.

While the coffers for private properties are currently closed, the region has made funds available for those with small and medium-sized businesses – again, in a move designed to lessen the impact of rising energy costs.

Business owners can claim a 30 percent grant for the installation of solar panels. There are more funds available to cover the cost of consultancy during the process too.

For more details on applying for this energy bonus in Lombardy, see here.

Other regions have also taken the initiative with encouraging more homes and businesses to change to solar-powered energy.

The region of Tuscany is offering an incentive on installing solar panels to residents in the form of tax deductions spread out over several years.

Works permitted include installing winter and summer air conditioning and hot water systems using renewable sources. This covers heat pumps, solar panels or high-efficiency biomass boilers.

For further details and information on how to apply, see here.

Each region may have its own solar panel bonus, either in the form of grants or tax deductions, available to private residents and/or businesses.

Check your regional government’s website to find out what may be currently on offer.

Solar panels are an increasingly popular option for those renovating homes in Italy. Photo by Jeremy Bezanger on Unsplash

National subsidies for installing solar panels

If your region isn’t offering any cash incentive to install solar panels on your property, there are government funds available, which cover all 20 regions.

The authorities introduced and extended a package of building bonuses in order to galvanise the construction industry following the economic downturn caused by the pandemic.

While there is no single, separate package of incentives for installing solar panels in 2022, you can take advantage of other government bonuses that include the cost of solar panel installation and supply.

As noted, you could use the renovation bonus (bonus ristrutturazione), which amounts to a 50 percent tax deduction spread over 10 years in your tax return – or through the superbonus 110, a scheme that promises homeowners a tax deduction of up to 110% on expenses related to property renovation and making energy efficiency measures.

READ ALSO:

The property must make at least a double jump in energy class or reach the highest efficiency rating when accessing these bonuses.

There’s a substantial amount of funds on offer to install your solar panels.

Using the renovation bonus, there is a maximum total expenditure of €96,000 (per single housing, including condominiums). Remember this amounts to a 50 percent tax deduction, so the maximum saving you would make is €48,000.

The renovation bonus has been extended until 2024 and, where solar panel installation is concerned, you can claim for the costs of labour, design, surveys and inspections, as well as VAT and stamp duty.

You must tell Italy’s energy and technology authority, ENEA, that you’ve done the works within 90 days in order to access the state aid for solar panel installation.

If you choose to use the superbonus route to claim funds for your solar panels, however, you can spread out the tax deduction costs over five years. Alternatively, you can apply for it as a discount on the invoice (sconto in fattura) or through the transfer of credit (cessione del credito).

The limit when using this bonus is €48,000, which can now be accessed for a while longer as the government extended the deadline for single family homes.

See HERE for details on how to claim it.

See more in The Local’s Italian property section.

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