The annual budget matters more than the purchase tax, because it repeats every year. It is also the part foreign buyers underestimate most, especially on a country property with a pool, a garden and an olive grove. This article sets out what it really costs to own a house in Tuscany, and is part of our complete guide to buying property in Tuscany.
IMU, the municipal property tax
The basic IMU rate for property other than a main residence, which includes every holiday home, is 0.86% of the cadastral taxable base, and each municipality can move it anywhere between 0% and 1.06%, so the effective rate depends on the comune. It is due from the owner, or the holder of a right such as usufruct, not from the occupant, so you pay it even when the house is let. It is paid in two instalments, by 16 June und 16 December, or in one payment by 16 June.
The distinction that costs foreign buyers money
A main residence is exempt from IMU, but for IMU purposes a main residence means registered residence and habitual dwelling. A foreign buyer with a holiday home in Tuscany pays IMU whatever the cadastral category. Do not confuse this with the first home relief on purchase taxes, they are different rules with different conditions, and the relief on the purchase does not make the house exempt from the annual tax. The one exception, a main residence in categories A/1, A/8 or A/9 is not exempt either, it pays a reduced 0.5% with a €200 deduction.
TARI, the waste tax, and its trap
TARI is the waste collection tax, a fixed part based on the floor area and a variable part based on the number of occupants. The trap for our clients is who pays it. Normally it falls on the occupier of a property let for more than six months, but where the property is occupied for no more than six months in the calendar year, which is exactly the case with seasonal and holiday letting, TARI is owed by the owner.
The costs no one lists in the sale
- Versorgungsunternehmen, electricity, water, gas or LPG, plus wood or pellets for winter, since many country houses heat with a combination.
- Maintenance, the pool, the garden, the olive grove, the private road. A pool needs opening, weekly attention through the season and winterising. An olive grove needs pruning and a harvest, which can also give you your own oil.
- Property management, if you are abroad for most of the year somebody local has to hold keys, meet the plumber and check the house after storms. Budget for it honestly, it is what keeps a Tuscan house in good condition and it is the single thing that most affects how much you enjoy the house.
A realistic annual budget is part of choosing the right house in the first place, a smaller restored property in a village carries a fraction of the running cost of a country estate, and for many buyers that trade is worth making.
Where to go next
- Renting out your Tuscan home, the CIN and the rules
- The cost of buying, taxes, fees and mortgages
- How much property in Tuscany costs, prices by area
How we can help
We are a boutique agency based in Tuscany, and we can give you a realistic running budget for a specific house before you buy. Browse what we have for sale, use our property finding service, oder book a call, in English, Italian or German.
Frequently asked questions
Do I pay IMU on a holiday home in Tuscany?
Yes. A foreign buyer with a holiday home pays IMU whatever the cadastral category, because the exemption applies only to a registered main residence and habitual dwelling.
How much is IMU?
The basic rate for property other than a main residence, which includes every holiday home, is 0.86% of the cadastral taxable base, and each municipality can move it between 0% and 1.06%, so the effective rate depends on the comune. It is paid by 16 June and 16 December.
Does first home relief on the purchase make the house exempt from IMU?
No, they are different rules with different conditions. The first home relief on the purchase taxes does not make the house exempt from the annual IMU.
Who pays TARI on a seasonally let property?
The owner, where the property is occupied for no more than six months in the calendar year, which is exactly the case with seasonal and holiday letting.
What running costs do foreign buyers underestimate?
Utilities including wood or pellets for winter, maintenance of the pool, garden, olive grove and private road, and property management if you are abroad for most of the year.
The effective IMU rate depends on the municipality, so treat these figures as indicative and confirm the running costs of a specific house before you buy.
