Property maintenance costs in Italy

It costs about 1–3% of the market value per year to maintain real estate, pay taxes, utility bills and insurance costs in Italy.

Taxes

Since 1 January 2014, homeowners pay the single utility tax (imposta unica comunale or IUC) covering:

1. municipal property tax (imposta municipale unica or IMU), 0.76% (does not apply to permanent residences);
2. waste removal and recycling tax (TARI), about €100;
3. municipal tax levied to maintain roads, street lights, etc. (TASI).

The TARI depends on the surface area of the property and waste volume. The other two taxes are computed with the real estate cadastre value (rendita catastale). IMU and TASI rates do not exceed 10.6%. The IUC is paid in four installments per year (every 16 January, April, July and October) or a one-off payment by 16 June. Tax on second homes is due in two installments by 16 June and 16 December. For example, an apartment of 85 sq. m is subject to €850 IUC.

Properties held for over five years are not charged capital gains tax; otherwise, it is 20% of the cadastre value.

Utility bills

Utility bills range from €200 to €5,000 per year for an apartment and from €1,200 to €6,000 for a villa including electricity (€0.2–0.3/kW•h), water (€15–20 per month) and gas (€30–50 per month). All the bills are drawn up in accordance with the meters. Rates vary by region and time of use.

Property bought in new residential complexes may be subject to acondominium fee covering maintenance of the public area, concierge services and pool cleaning fees.

Insurance

Real estate should be insured in Italy and will cost about 1–2% of the property value per year, ranging from €300 to €2,000.