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Spike of rates on rents in 50% of the Italian cities
11 December, Il Sole 24 Ore
More than half of the Mayors of provincial capitals in Italy, 56 over 106, applies the maximum rate of Imu (namely 10.6‰) on rented properties at market prices. Three percentage points more than the minimum level of 7.6‰. Very few benefit from the lowest taxation: only the homeowners in Gorizia, Piacenza, Nuoro, L’Aquila and Teramo, these last two badly impacted by the earthquake.
The map of those who have the highest level of taxation spans from Bergamo to Benevento, from Crotone to Asti, from Potenza to Pavia. Of the 14 main cities, only Milan, Cagliari, Venice and Naples have decided to not apply the maximum of taxation.
These trend on rented properties is due to the necessity to obtain the maximum income possible to help the suffering finances of municipalities. In some cases, however, this is due to the will to create a sort of financial buffer to use for social purposes, in order to reduce the rates on properties destined to other purposes. Moreover, a good half of the Cities don’t distinguish between market rent and regulated rent. In most of the cases of the market rents, the maximum rate is applied.
In Bari, Pisa, Vicenza, Pavia and Livorno, the rates for regulated rents are half than those of the properties rented on the free market. In about 30 of the cities surveyed, the difference is of the 3‰.
Some cities apply also more than one rate: in Asti, the property owners willing to rent at lower prices than those set by the local agreements, pay the Imu tax reduced by three percentage points in comparison to those who rent at the maximum levels.
From the analysis by Il Sole 24 Ore, it appears that, also for this year, the administrations haven’t availed themselves that much of this fiscal leverage to increase the offer on rental properties.
To differentiate the rates, they should have applied the Tasi supplement (up to 2.5‰) granted by the 2017 budget. Some used this option, mostly to increase the income. In fact, Tasi has been applied both on rented properties (also in the case of regulated rents) and on unlet properties, making in this way no distinction between rented and not rented properties.
Among the Municipalities that haven’t applied the maximum rate on rented properties, four every ten have tried to discourage vacant properties, making taxation heavier. Considering the sum of Imu and Tasi, an owner of an unlet property has to calculate the highest rate, comprised between the 3‰ of Piacenza and Teramo and the 4‰ of Ravenna, Ferrara and Belluno. Of the 23 administrations that opted for this measure, more than half penalized vacant properties with a minimal tax difference, not surpassing the 1‰.
To increase the offer of properties at fixed prices, a more relevant help may come from the measure that reduces Imu by 25% on properties rented as main house.
Source: Il Sole 24 Ore
Translator: Cristina Ambrosi