Italy Intensifies Property Tax Enforcement and Streamlines VAT Refunds

Italy is implementing stricter controls on property taxation, particularly concerning the Superbonus scheme, while simultaneously leveraging technology to expedite VAT refunds for compliant taxpayers. These measures, outlined in a recent policy document, aim to combat tax evasion and improve the efficiency of the Italian tax system.

Latest ‘Register of Owners’ and Superbonus Scrutiny

The Ministry of Economy is establishing a new ‘Register of Owners,’ a comprehensive tax census of property owners. This registry will serve multiple purposes, including supporting territorial authorities, emergency management, and safeguarding real estate. A key focus of this initiative is ensuring accurate data on properties, particularly those that have undergone renovations under the Superbonus program.

The government will employ “innovative control methodologies” to encourage property owners to update their land registry information and adjust their declared income where necessary. Increased checks will be conducted on properties to verify compliance, especially those that have benefited from the 110% Superbonus but haven’t updated their cadastral income as required. Source

International Data Exchange to Combat Offshore Income

Italy has signed an agreement with 24 other countries to automatically exchange information on property ownership and rental income, including short-term rentals. This cross-border data sharing will help identify undeclared assets and income held abroad by Italian taxpayers. Source

Cadastral Updates and Imu Evasion

Cadastral databases will be utilized to support tax assessments on property transactions and assist municipalities in combating Imu (Italian property tax) evasion. Adjustments to cadastral income are mandatory when property improvements increase the property’s value by 15% or more, or when renovations alter the property’s characteristics. Source

Faster VAT Refunds Through Digitalization

The government is investing heavily in digitalization to improve taxpayer services, with a particular emphasis on accelerating VAT refunds for compliant businesses. Advanced data analysis and machine learning techniques will be used to assess tax risk and prioritize refund payments, including those from split payments. Source

Expanded ‘Tax Drawer’ Functionality

The functionality of the “tax drawer”—a digital container storing taxpayer declarations, payments, and communications—will be expanded to provide a more comprehensive and accessible record for taxpayers. Source

Superbonus and Land Registry Updates: A Closer Seem

The 2024 Budget Law (Law no. 213 of 30 December 2023) confirms the obligation to notify the Revenue Agency of cadastral changes upon completion of works supported by tax bonuses, including the Superbonus. Source While debate exists regarding the necessity of reporting for certain types of maintenance work (C.I.L.A.S. Procedures), updates are generally required when interventions increase a property’s value or alter its characteristics. Source

Energy efficiency upgrades and seismic consolidation projects undertaken through the Superbonus typically necessitate a change in the land registry. Source