Property Taxes
As a non-resident who owns property in Italy, you are not always required to file an annual Italian income tax return—dichiarazione dei redditi—unless your property generates income. However, voluntarily submitting a tax declaration can offer multiple strategic benefits, even if you do not rent out your Italian home or earn any local income.
Filing an annual tax return, even when not strictly required, serves as documented proof that you are complying with Italian tax obligations. This is especially relevant for paying local property taxes such as IMU (Imposta Municipale Unica – Municipal Property Tax) and, where applicable, TASI (Tributo per i servizi indivisibili – Local Services Tax). Both are typically due by non-resident property owners whether or not the property is rented. Keeping a consistent tax filing record helps prevent any misunderstandings or disputes with Italian tax authorities (Agenzia delle Entrate) regarding your fiscal status or alleged undeclared income.
A regular history of tax compliance can play a crucial role if you decide to sell your Italian property, transfer it to heirs, or apply for Italian residency. Notaries, buyers, or Italian tax officials may request proof that all property taxes, especially local ones, have been properly and timely paid. If you are able to provide annual tax declarations, it demonstrates transparency and a clean tax history—expediting sales, inheritance, and legal clearances, while reducing the risk of delays or complications.
Should you ever be contacted by authorities regarding your Italian tax position or potential undeclared income, being able to produce a record of regularly filed Italian tax returns—even "zero" returns—demonstrates your good faith and commitment to compliance. This documentation can often make any audit or inquiry from the tax authorities much easier and less stressful to resolve.
If your plans change and you decide to become an Italian tax resident (residente fiscale), your history of compliance—including filing annual tax returns—can smooth your application to beneficial programs like the Italian flat tax regime for new residents, preferential tax rates for retirees, or similar incentives. Some Italian tax benefits require a clear record showing non-residency in previous years and well-documented timelines for property ownership and residency.
For foreign nationals, particularly those residing in countries with Double Taxation Agreements (DTA) in place with Italy, filing an Italian tax return helps clarify your Italy-sourced income and provides the necessary documentation to claim foreign tax credits or exemptions abroad. This paper trail is often required by your home country’s tax authorities (such as the IRS in the United States) to support your case for correct international tax treatment.
Even if you currently do not have rental income from your Italian property, submitting a tax return can help you keep track of deductible expenses (local property taxes, necessary maintenance costs, etc.) that could become relevant if your situation changes and you begin renting out your home or move to Italy. Establishing a history of diligent recordkeeping lays the groundwork for simpler future tax filings.
Non-resident individuals who own property in Italy can file their Italian tax declaration (dichiarazione dei redditi) through the online portal or with a qualified English-speaking tax expert (commercialista). Even if you do not earn rental income, filing a "zero" return may benefit you by providing proof of compliance and creating a helpful tax history.
Yes, if your Italian property generates rental income, you are required to declare and pay tax on that income in Italy, even as a non-resident. You may also need to register the lease and collect taxes via the cedolare secca (flat rate regime) or regular income tax progressive rates, depending on your circumstances. Local property taxes, such as IMU and TASI, are due annually regardless of rental activity.
The standard deadline for filing Italian income tax returns is typically in June or November of the year following the tax year, depending on the filing method. IMU payments are generally due in June (advance payment) and December (balance payment) each year.
Filing an Italian tax declaration—even as a non-resident property owner who does not currently earn rental income—offers multiple advantages. These include ensuring compliance with Italian tax law, establishing a clear and transparent fiscal history, supporting future transactions, and simplifying cross-border tax reporting. For personalized assistance in filing your Italian taxes online, resolving issues with IMU, TASI, or income tax, and ensuring compliance both in Italy and your home country, trust the experts at ItalianTaxes.com. Start your easy, expert-guided Italian tax filing today!
From income reporting and local tax compliance to legal documentation and payment workflows — we’re building the first truly connected platform for non-resident property owners. No fragmented tools, no language barriers — everything in one place, for Italian taxes, in plain English.
