The main property tax (ICI) in Italy to be changed

According to Weekly Real Estate News, the corrective budget law approved by the Council of Ministers of Italy will substitute the former main property tax (ICI) with a new council tax: the house of residence will be taxed with a 0.4% rate, with a Euro 200 tax allowance. Ordinary tax rate on other non residential houses is set at 0.76%.

The law introduced also a 60% increase in land registry values. A 36% tax relief will be always granted for house renovation and refurbishment. This tax reduction is extended to all non residential properties in the areas hit by natural calamities. The 55% tax relief for energy efficiency will be extended till 2014.

The decree-law by Prime Minister Monti will implement cadastral revaluations and then calculate the property tax on the new values provided, expecting an average increase of 60% compared to the current values. The multiplier for office properties will increase by 60%, from 50 to 80, while the increase for commercial properties is still to be issued.