Property Taxes to Rise in Italy
January 9, 2014 Taxation in Italy
ROME – Italy may change the rate applied to property taxes in an effort to ease tax burdens for low-incomes families after years of severe and ongoing austerity measures.
In a statement issued on January 8th the government of Italy announced that in the near future the rules for the taxation of property will be altered to grant local governments the power to vary a portion of the tax rate in order to ease the burden faced by low-income families by collecting more revenues from high-income households.
The change will allow local governments to increase the annual taxes on high-value properties by up to 0.08 percent, raising the total annual tax obligation to as high as 0.33 percent of the value of the property, with the extra revenues collected from the hike to be used directly offset the tax obligations faced on low-value properties.
The overall tax revenues collected by the government will not change, but a greater portion of the tax burden would be shifted to high-income households.
Property taxes are a highly controversial topic in Italy, as nearly 80 percent of people in the country currently own their own homes, with a significant portion of people also owning a second home, rental properties, or holiday homes.
The revised property tax rates are in line with the government’s ongoing efforts to lower tax obligations after several years of ongoing austerity measures.
Photo by: Tristan Ferne