Info about the new Tax Named I.M.U. – Real Estate Tax that Affects also the Properties held abroad by Foreigners Residing In Italy
With the changes made by the decree “Save Italy” (D.L. 201/2011) has been introduced in Italy a new taxation named IMU on real estate held abroad by phisical persons resident in Italy (irrespective of their intended use): that provision will already be considered active from 2011.
The Decree Law no. 201 of December 6, 2011 converted into Law no. 214 of 22 December 2011 article 13 establishes that the IMU tax affects the values of real estate located abroad held by individuals resident in Italy.
The IMU replaces the ICI tax and, as was in the case of ICI, it affects also the Italian based properties of foreigners residing in Italy.
Starting from 2011 (and then retrospectively with respect to the approval of the decree) foreign individuals resident in Italy in possession of properties situated abroad should be paid to the Italian State a tax of 0.76% of the value of property held in their foreign countries.
The value is the cost reported in the purchase of the property or in other agreements and, in the absence, is considered the market value that will be calculated where the property is situated.
The new IMU will be payable in proportion to the percentage of ownership of the buildings based abroad during the fiscal year by foreigners residing in Italy.
To avoid possible effects of double taxation is recognized in the IMU decree a tax credit equal to any capital tax charges applied in the State where the property is located.
The final instructions of Unico 2012 confirmed that the values of the buildings held abroad are to be included under RM submodule to pay IMU introduced by Decree MONTI
With the possession of such properties results a series of declarative obligations related to personal income tax to fulfill the new IMU.
Considering a property held abroad by a natural person, first of all we must determine whether the property is rented or is available.
If the real estate property is not rented, we must determine whether in the foreign country the property is taxed regarding the foreign income tax.
If it is not productive of income should not be indicated any amount in the declaration, while in cases the property is taxed the income subject to foreign real estate tax (minus any expenses deducted) must be reported also in Unico (line RL12).
In this case, however, it is provided a tax credit for taxes paid abroad, with indication in UNICO.
If, instead, the property is located abroad, if it is located in a foreign State that imposes the income tax, the amount taxed abroad must be reported in UNICO in Italy considering also in this case the tax credit for taxes paid directly abroad.
If the good in the foreign state is not subject to taxation, in Italy will be declared the rent obtained reduced by 15%.
As above indicated The IMU percentage is the 0,76% of the value of the buildings.
For the purposes of the calculation and payment of IMU you must specify the cost of purchase of the property which results from contracts and, if you can’t, you should refer to market value.
Deadline for the payment: 16 June account and 16 December balance.
Dr. Angelo Chirulli
Public Certified Chartered Accountant – Public Certified Payroll Consultant
Local Office (Italy): Street Trieste, 34
Zip code 74015 – City of Martina Franca (County of Taranto)
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