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The Tax Office (AT) is working on a system which will allow taxpayers to pay their taxes by direct debit with a simple payment order. This “Simplex” measure should be available by the end of 2017. The expectation is that the “IUC” road tax and the “IMI” property tax will be the most likely candidates for this method of payment. They are the basis of many fines for delays due to taxpayer forgetfulness
An added assessment, dubbed “Additional Municipal Property Tax” (AIMI), will cover the entire ratable value (VPT) with an exemption on the first €600,000. For properties above this evaluation, the rate of 0.3% will apply. Property Owners with outstanding taxes will forfeit this exemption and will have to pay the new levy whatever the VPT.
Apart from the increase in Tax on Local Lodging (from net 3,75% to net 8.75%) the State is planning indirect taxes and changes for 2017.
An added assessment, dubbed “Additional Municipal Property Tax (AIMI), will cover the entire ratable value (VPT) with an exemption on the first €600,000. For properties above this evaluation, the rate of 0.3% will apply. Property Owners with outstanding taxes will forfeit this exemption and will have to pay the new levy whatever the VPT.
On the other hand, owners of buildings with ratable values over one million euros should pay less overall tax in 2017 than last year, even with the proposed increase in Municipal Property Tax (IMI), due to the elimination of the 1% Stamp Duty on this type of luxury real estate.
Property Owners as well as the Tax Office may request an additional “IMI” (Municipal Property Tax) evaluation if there is disagreement over the original set values. However, any such challenge does not suspend the payment of the first evaluation.
The Budget proposals for 2017 foresee that real estate owners with high-value properties (VPT of more than 500.000€) will face an additional tax next year. The new levy will be progressive, to be accumulated with the regular IMI. It is hoped that the tax will provide an additional €100-€200 million to the state coffers.
The City Halls may now request IMI re-evaluations for tax purposes. Until now, this procedure was only open to property owners. IMI is a municipal tax collected by the AT (Tax Authorities), based on 0.3% – .45% of the rateable value of real property.
Solar exposure and the view are now being weighed more heavily in the determination of property values and the IMI (property rates). These two numbers now quadruple, going from 5% to 20%. On the other hand, the same factors, when considered for the reduction of property value, are worth 10%, a doubling compared to the prior coefficient which was in force at 5%.
Council Tax Rates (IMI) in 2016 will remain the same in 259 of 308 municipalities, 84% of the total. 46 towns and cities (15%) will lower tax rate and only 1% will increase the levy. 136 townships (44%) will charge the minimum charge of 0.3%
In 2015, you may apply for exemption from “IMI” (Property Rates) if you purchase a property (whether a villa or an apartment) as a permanent residence, provided that the rateable value (“VPT”) of the property does not exceed €125,000. In addition, it is necessary that the household has a total income tax base for personal income tax purposes (IRS) of less than €153,300. If taxpayers meet these criteria, they will qualify for an exemption for a period of three years.
The request form can be downloaded from the Portal here. and handed in to the respective Tax Office. It should take 2-3 months to receive the confirmation with the lower value. This results in a lower IMI (council rates) payment.
If you need help to fill out the document (NALLE has no capacity to do this, sorry), we can reccommend a Service, send us an email!