Ongoing Property Taxes in Italy: IMU, TARI and Rental Income

Buying a property in Sicily does not end at the notary's desk. From the day of purchase onward, ownership carries yearly costs of its own. This guide sets out the three recurring costs every owner should understand: IMU, the Italian property tax; TARI, the municipal waste charge; and how rental income is taxed if the property is let — plus what a non-resident owner needs to file, both in Italy and at home.

The one-off costs around the notary and purchase fees are covered in the guide Notary Fees and Purchase Costs in Italy.

IMU: the annual property tax, and who owes it

IMU (Imposta Municipale Unica) is Italy's annual municipal property tax. It applies to any property that is not the owner's primary residence, and is owed by whoever is registered in the land registry as owner, usufructuary, or holder of an equivalent right on the reference date — regardless of whether the property is actually used, rented out, or left empty all year.

Why the primary-residence exemption usually does not apply to a foreign-owned holiday home

Italian law generally exempts a primary residence (abitazione principale) from IMU. Qualifying for that exemption requires the owner to hold both legal residency (residenza anagrafica) and habitual abode in the municipality where the property is located. A foreign buyer who keeps a Sicilian property as a holiday home, while remaining resident abroad, typically meets neither condition. For tax purposes the property counts as a second home, and IMU is owed — however often, or rarely, it is actually used.

How the taxable value is set — and who decides the rate

IMU's amount is arrived at in several steps:

1. The starting point is the property's rendita catastale, an official assessed value recorded in the land registry — not a market price.
2. That value is adjusted under a formula set by national law, weighted differently depending on the property's cadastral category (residential, ancillary, and so on).
3. The municipality where the property is located then applies its own IMU rate to the resulting taxable base.
4. Each municipality sets — and can revise — its own rate every year, within limits fixed by national law, so the rate itself varies by town and by year.

The base rate set nationally is 0.86%, and municipalities may adjust it up to 1.06% or down to zero (as of August 2026). The rate actually in force is published in that municipality's own annual resolution and is worth confirming directly, or through a commercialista, before budgeting for it.

TARI: the municipal waste charge

Alongside IMU, every municipality levies its own waste-collection charge, TARI (Tassa sui Rifiuti). It is calculated separately from IMU, typically based on the property's living area and the number of registered occupants, and funds the local waste service. Rates, the calculation method, and payment deadlines are all set by the municipality each year — there is no single national tariff. An empty holiday home is still generally liable for TARI, usually at a reduced rate for unoccupied properties.

Taxing rental income: ordinary taxation or cedolare secca in outline

If the property is let, the rental income is taxable in Italy. An owner can choose between ordinary taxation (IRPEF, which allows actual costs to be deducted) and cedolare secca, an optional flat-rate scheme that taxes gross rental income at a fixed rate instead of the progressive IRPEF brackets, in exchange for giving up those deductions. For a standard long-term residential lease, the ordinary cedolare secca rate is 21% (as of August 2026). Short-term, touristic lets follow their own rules — the applicable rate, and how many properties can be let under the scheme at all, have both been revised more than once in recent years. Which option suits a given case, and what the current short-let rate is, is a question for a commercialista working from the specific facts.

Non-residents: filing in Italy — and possibly at home

Even without Italian residency, a foreign owner needs an Italian tax code (codice fiscale) to meet the property's tax obligations. Rental income must be declared through an Italian tax return (Modello Redditi); an unrented property can still, depending on the circumstances, carry a notional taxable value. Because most home countries also tax worldwide income, a double-taxation treaty between Italy and the owner's home country typically applies — it determines which country has the primary right to tax, and how tax already paid in Italy is credited at home. Which filing obligations actually apply is a question for a tax adviser familiar with cross-border cases.

A few more specific questions

Does IMU apply even if the holiday home is only used for a few weeks a year?

Yes. IMU follows the property's tax status, not how often it is actually used. Without registered residency in that municipality, it counts as a second home and IMU applies — whether it is occupied for two weeks a year or fifty.

Who sends the IMU and TARI bills — is there one central portal?

No, there is no single national portal. IMU is self-assessed and paid by the owner via form F24, usually in two instalments a year; TARI is billed directly by the municipality or its waste contractor.

Is an empty Sicilian holiday home, never rented out, tax-free in Italy?

Not necessarily. Beyond IMU, a notional income can, depending on the case, still be taxable even without actual rental income. Whether that applies, and to what extent, depends on the specific circumstances and is worth confirming with a commercialista.

Does the same property get taxed twice if the home country also taxes foreign assets?

Usually not in full. Most countries have a double-taxation treaty with Italy that credits tax already paid in Italy against the tax owed at home. How it applies in practice depends on the specific treaty and the owner's personal tax situation.

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