Italian treasury issues guidance over new property tax

Information about the new property tax in Italy has been published by the country's treasury.

Tax News explained real estate in Italy will now be subject to a unified local authority tax, which should be 0.4 per cent on residential buildings, while other properties will be charged at 0.76 per cent.

However, different local authorities can choose to increase or decrease this levy by up to 0.2 per cent for residential assets and by 0.3 per cent for buildings classified outside the housing bracket.

Local governments will also be given the power to set the threshold for taxation on a prime dwelling, which is defined as a home that is the normal residence of the family or person in question. National rules specify this cannot be more than €400 (£320) per property.

All of Italy's regions have to submit their rates and deduction thresholds to the central government for review by September 30th.

Mario Monti announced the reintroduction of a property tax on first homes in Italy after becoming prime minister in November 2011. At the time, the government stated around €30 billion would be raised by the measure.