Tax regulation mechanisms II (Reduction in real estate tax)
Updated: 07.02.2019
Author: Jasmin Schwarz
The Budget Act of 2008 gives municipalities the opportunity to grant a reduction in real estate tax (imposta municipale propria, IMU) to buildings equipped with renewable energy installations. The amount of IMU depends on the value of the property and differs from municipality to municipality.
Eligible technologies
All technologies used for the generation of electrical and thermal energy for domestic use, provided that the energy produced within the property in question, are eligible for this tax benefit (Art. 1, c.6, l.a. L 244/07).
| Wind energy | Eligible. |
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| Solar energy | Eligible. |
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| Geothermal energy | Eligible. |
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| Biogas | Eligible. |
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| Hydro-power | Eligible. |
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| Biomass | Eligible. |
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Amount
The reduced real estate tax amounts to less than 0.4 percent. The reduction is valid for a maximum period of five years starting at the date of installation of the plant (Art. 1, c.6, l.a. L 244/07). This tax is determined at city council level.
Addressees
Entitled party. The entitled party is the owner or proprietor of the property (soggetto passivo), even if neither his place of residence nor place of work nor administrative or principal company office is within Italy.
Obligated party. The obligated entities are Italian municipalities.
Procedure
Process flow | The real estate tax is levied annually. |
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Competent authority | The entities obligated are Italian municipalities. |
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Distribution of costs
| State | The real estate tax reduction causes revenue losses for municipalities. |
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Italy
