Edited by SL
2014 will be a revolutionary year for taxes on the housing front! There will be new property taxes called Tasi and Tari as well as IMU, (the old property tax) together with changes to rental payments. Let’s see what’s going to happen.
Let’s start with the good news, the famous Bonus Energy/deductions for building restorations has been extended for another two years. In 2014 there will be a discount of 65 %, dropping to 50% in 2015. Even the restoration systems will remain until the end of 2014. The deduction of 50% (up to a maximum of 96 000 Euros) in 2015 will drop to 40%. A portion of the deduction could also be used to purchase new furniture or large white good appliances (washing machines, refrigerators, dishwashers etc), but only while there is a restoration being carried out: in this case, the amount of furniture or appliances, however, cannot exceed the number of that have been ‘worked’. From 2014 onwards, it will be possible to put any expenses incurred in 2013 in your income tax return.
New rent regulations, means that rental payments, even those under 1000 Euros, can no longer be paid in cash but only through ‘traceable’ payments i.e. through a bank. Empty properties pay the IRPEF (income tax) even if only 50% and empty apartments only pay in the council area in which the owner has their residence.
There will also be a reassessment on how properties are measured and sized. The property will no longer be listed in square metres but in room size and also the annuity will have a market value.
But the real revolution of 2014 seems to be the presence of the new property tax (Tasi). The IMU property tax will be replaced with TASI for the first home but IMU will continue for second homes, indivisible for council services (such as lighting or street cleaning) which will be paid therefore by all, first home owners and tenants alike, albeit in a reduced form. The IMU-Tasi, at the time, may not exceed 2.5 per thousand in 2014 on the first property and 10.6 per thousand for the second. But to give councils more flexibility (and resources), there will be an introduction of deductions for families and the less affluent – the government is debating – an increase in the maximum rate of 3.5 and 11, 6 to thousand. There are currently deductions for Tasi for sole occupiers and properties inhabited only for few months. The Tari, the new rubbish tax, is similar to the one that has just been introduced: you have to repay the services. IMU, Tasi and Tari together form the Iuc, the council’s single tax.