While Mexico and China slam their doors on foreign investors, Italy not only widely opens its doors to foreign investors, but also offers incredibly low prices. Such generosity from others could raise suspicions, but our readers are well aware of the terms of this voluntary catch that those who wish to agree to. Buy a house for 1€ whichever accommodation you choose, you will still have to pay for it even after transferring down payment and signing the contract. Sometimes it is the service that becomes a stumbling block on the way to quick earnings. It is important not only to check the utility payments before making a deal, but also to pay attention to the numbers in them. Even if you are attentive enough not to buy other people's debts nothing will stop you from making your own. Especially if you have to pay a lot for comfort. As you guessed, today we decided to raise the issue of money. We will consider those unforeseen taxes that a Ukrainian investor may forget about because they simply have not encountered them before.
Money for garbage and other taxes on Italian real estate
Not so long ago, every property owner in Italy was required to pay three taxes annually. Now only two remain, but they can still add up. To avoid a heavy blow to the wallet, many owners prefer to split the payments and make them partially, twice a year. You will have to pay for IMU and TARI. Obviously, these abbreviations don't tell us anything, so let's figure it out.
IMU or property tax depends not only on the characteristics of the property, but also on local administration. To calculate the final amount, the following are used:
- category of ownership, which determines the multiplier coefficient;
- cadastral value of real estate;
- The annual tax rate set by the municipality itself.
On average, IMU costs 600-2500 € per year, but there are also a number of exemptions. For example, owners who permanently reside in their residential property are not subject to the tax at all. You can familiarize yourself with the current minimum and maximum rates for each category of real estate at website of Ministry of Finance of Italy.
The waste export tax is also calculated individually. Its size depends on:
- number of permanent residents;
- house location;
- amount of waste.
In the case of TARI, there are also several ways to save. An owner who resides in Italy for several months a year can reduce the amount by 30-50%. If the apartment is rented out, the tax is automatically imposed on the tenant along with all other payments related to resource consumption. Even if you have to pay the full amount, it will not bankrupt you - according to experts' calculations, in 2023 the average TARI amount for a family of three was only €320.