Use of land in the garden and common area: when it is allowed, when it is not and special cases.

Property tax (IMU) is a local tax applied in Italy to property, including buildings and adjacent areas such as gardens.

When it comes to IMU on a home garden, it is important to understand how this tax is calculated and the specific assessment criteria that apply to green spaces. In fact, a garden, being an integral part of the real estate, is taxable in the context of IMU.

The basis for calculating the IMU on gardens

The basis for calculating the BMI on gardens is determined on the basis of the cadastral value of the property, which depends on various factors such as location, size and specific characteristics of the area.

When do IMLs for gardens need to be paid?

To understand when to pay a garden IMU, it is important to introduce the concept of 'ownership'. This term, in the context of IMU and Italian real estate taxation, refers to those structures or premises which, although separate from the main property, are considered an integral part of it and affect its overall value. Typical belongings include garages, basements, attics and, relevant to our topic, gardens. In general, when calculating the IMU on a property, the value of the accessory property is added to the value of the main property: in this case it is the IMU on the garden, which is an accessory to the dwelling house. This means that the garden, as an accessory property, has a direct impact on the amount of HMI that needs to be paid.

It is important to note that to be recognized as an accessory use, the garden must be functionally related to the property and be intended solely or primarily for the use of the owner or occupants of the main property. In addition, the tax law provides for up to three accessory structures to be counted for each property (categories C/2, C/6 and C/7, which include garages, basements and attics respectively), which have the same tax advantages as the main property, including the calculation of the IMU. Having a garden as an accessory use is therefore of significant importance in determining the total amount of IMU to be paid on a property.

The IMU rules for a garden as an accessory:

Whilst it is impossible to determine in advance whether or not an IMU should be paid for a garden (as the overall situation of the property and surrounding area determines the situation), it is worth remembering that:

• if the garden is separate from the building, the HMO is compulsory;
• If the garden is attached to the main building, then the HMO is compulsory under the property tax rules as a whole and not limited to the garden.

If you are in special circumstances such as: HMO on undeveloped land, HMO on undeveloped building space, HMO on land for the construction of a first residential building, it is advisable to consult an appropriate specialist as only he/she can assess the specific situation in accordance with the legislation in force, the location of the land and the financial situation of the person. In fact, there are categories of taxpayers who may be exempted from the IMU on certain special grounds.

IMU on a communal garden in an apartment building

The special case is the payment of IMU for a communal garden in a block of flats. First of all, it is worth noting that it is the responsibility of the home administrator to pay this garden tax, including communal gardens. Civil Code section 1130, amended December 11, 2012, No.

The payment of IMU for common parts, such as communal gardens, is the responsibility of the administrator, who obtains the necessary resources from individual owners in accordance with the pro rata division of the property or in accordance with rules set out in the house rules.

How to settle an unpaid HMO?

If it has become apparent that the HMO for a garden has not been paid on time, there are various actions you can take depending on whether you found out about it with the help of a professional or have been notified of a tax liability determination by the competent authorities.

In every case where settlement occurs after a notice of determination of liability, you may be required to pay not only the amount of HMI due for the garden, but also accrued interest for the time in arrears.

In addition, if you are wondering how to pay the IMU after the due date, it is worth considering how long it has been since the due date. If this is the time allowed by law or if there were objective reasons preventing payment (e.g. problems with the banking system), no additional interest or amounts need to be paid.

In any case, it is recommended that you contact your family accountant or contact your local customer advice center (CAF).

Be aware that before reaching the point of refusing to pay the IMU, it is possible to decide on installment payments with certain conditions: the number of allowable payments is 72; the debtor must be in temporary hardship; nevertheless, it is the creditor who can choose the methods and terms of the installments.

It is also worth remembering that the law sets a deadline after which a missed IMU payment ceases to exist. Decades of obligations after which utilities are not entitled to demand payment of IMU (including for the garden) will expire.

Be careful not to confuse the amounts and timing of IMU and TARI IMU and TARI IMU and tariffs are two taxes that can affect the garden of a private home in Italy, but with different conditions. In relation to HMI, the Budget Act 2020 established that the garden of a private house, if it is cadastralized with the house and treated as belonging to it, is not subject to HMI. This is true unless the garden or orchard is separately registered and must be paid for as building or agricultural land. In addition, parking a car outdoors on a garden plot is not considered under the IMU as it cannot be compared to a garage or parking lot.

With regard to TARI, it relates to waste generation and applies to outdoor areas or premises that are capable of producing municipal waste. However, outdoor areas that are ancillary or connected to other already taxed properties, such as a private garden, are exempt from TARI. The exception is the part of the garden designated for car parking, for which TARI is mandatory as it is anticipated that there may be waste production there.