Calculating IMU property tax and cadastral income in Italy
Updated: 15 hours ago
The IMU (Imposta Municipale Propria) is the municipal property tax in Italy. It primarily affects holiday homes and second homes and is not calculated based on the purchase price or market value, but rather on the cadastral income (rendita catastale). The cadastral income is shown on the cadastral extract (visura catastale), which can be obtained online for each property.
For a typical residential property, the calculation can be represented as follows:
Cadastral income × national factors × municipal IMU rate = annual IMU
Three main components determine the annual IMU amount. Each is explained below.
1. Cadastral income
The cadastral income (rendita catastale) is a value used for tax purposes and recorded for each property in the Italian cadastre. For typical residential properties, it is calculated by multiplying the number of rooms (vani catastali) by the applicable cadastral tariff (tariffa d’estimo).
Number of rooms × cadastral tariff = cadastral income
Number of rooms
A cadastral room (vano catastale) is not simply a room in the German or Swiss sense. Rather, rooms are weighted differently according to their function.
Room type | Typical weighting |
Living room, bedroom, study | 1 room |
Kitchen | generally 1 room |
Bathroom, hallway, entrance | typically 1/3 room |
Basement, attic or similar ancillary rooms | typically 1/4 room |
The size of a room can also affect its weighting. A particularly large main room may count as more than one room, while smaller bedrooms may in some cases be counted as only one-third of a room.
Terraces, gardens and similar areas are not counted as additional rooms. They can be reflected through an upward or downward adjustment to the total cadastral room count. The final result is generally rounded to the nearest half room.
The defined number of rooms is shown in the cadastral extract under "vani".
The exact rules for counting individual rooms and applying adjustments are set out in decades-old comparison schedules held in the archives of the relevant province.
Cadastral tariff
The number of rooms (vani catastali) is then multiplied by the cadastral tariff (tariffa d'estimo). The cadastral tariff is not the same throughout Italy, but varies depending on the municipality as well as the property's category and class.
The property category and class assigned to your property by the municipality can be found on the cadastral extract. It may state, for example: Category A/2 – Class 3.
The category generally describes the type of property. For example, A/2 designates a standard residential property, while A/3 typically represents simpler residential properties. The class further differentiates properties within the same category, taking particular account of their quality. The higher the category and class, the higher the cadastral tariff.
The appropriate cadastral tariff can be researched using the municipality, category and class, for example via the following website:
For typical residential properties, the cadastral tariff is multiplied by the previously determined cadastral room count. For example: 7 rooms × €175.59 cadastral tariff = approx. €1,229 cadastral income.
This cadastral income is then used as the starting point for calculating IMU.
2. National factors
For the calculation of the IMU, the cadastral income is first increased by 5% by law:
Cadastral income × 1.05
This value is then multiplied by a legally defined multiplier. For most residential properties in category A, as well as, for example, garages in category C/6, this multiplier is 160.
These factors are derived from the national statutory valuation rules for IMU. They serve to derive a uniform tax base from the comparatively low cadastral income.
For our example:
€1,229.17 × 1.05 × 160
Unlike the cadastral tariff and the subsequent IMU rate, these factors are not determined by the respective municipality, but apply nationwide to the corresponding property categories.
3. Municipal IMU rate
The IMU rate of the respective municipality is then applied to the result.
For typical holiday homes and second homes, the standard state rate is generally 0.86%. Municipalities can vary this rate and generally increase it up to a maximum of 1.06%. The specific rate must therefore always be checked for the respective municipality and the relevant tax year.
4. Worked example
For an example holiday property, the calculation is as follows:
7 rooms × €175.59 cadastral tariff = €1,229.17 cadastral income
Then:
€1,229.17 × 1.05 × 160 × 0.95%
= €1,961.76 IMU per year
This makes it clear: The amount of the IMU is not primarily determined by the purchase price or living space, but by the cadastral income (driven by the number of rooms and the classification of the property by the municipality), national factors and the municipal IMU rate.
Garages, cellars or other ancillary units recorded separately in the cadastre may have their own rendita catastale, which is included separately in the calculation.
5. What can property owners influence?
As an owner, you have little influence over the municipal IMU rate—unless you become politically involved—and even less over the national factors. However, you can review and, if necessary, challenge the cadastral income by checking the cadastral room count and the property’s category and class.
The category and class can be checked in particular by comparing your property with similar properties in the same municipality. If properties of a similar construction type and standard are classified differently, this warrants a closer look.
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