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Sharp Increase In Italian Property Costs

by Ulrika Lomas,, Brussels

19 December 2012

CGIL, Italy’s largest trade union organization, has calculated that the introduction in 2012 of the country’s unified property tax (IMU) has helped to raise to 31.1% the incidence of the cost of their homes on Italian families’ total expenditure.

IMU, which reintroduced in 2012 the local tax on prime residencies that had been taken off by a previous Berlusconi government, was part of the Monti government’s ‘Save Italy’ budget, which was approved at the end of last year, and designed to enable the country to reach fiscal balance by the end of next year.

IMU, providing the greatest slice of increased revenue for the budget, is applied (with local variations and an allowance for family dependents) at a standard rate of 0.40% to first residences, with all other residences being subject to a rate of 0.76%. The second and final IMU payment for this year was payable on December 17, following finalisation of the rates being applied by each local authority.

It is said that the IMU amount due will significantly reduce 2012 Christmas spending in Italy, given that the level of property costs being suffered by Italian families has reached such a high level. In contrast to the level seen this year, in 1980 the comparable figure was 11.5%; almost a third less.

In addition, it was discovered that 3m Italian families, as against 2.4m in 2010, suffered property costs of more than 40% out of their disposable income. According to CGIL’s report, such families are suffering “serious hardship” leading to unpaid mortgages, rent and bills, while the second IMU payment is a “further blow” to Italians with lower incomes, employees and pensioners.

TAGS: individuals | tax | property tax | real-estate | budget | tax rates | Italy | trade

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