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HEALTH

Italy plans to charge non-EU residents €2K to keep using healthcare

Foreign nationals living in Italy got a nasty surprise on Monday as the government’s budget plan was revealed to contain a requirement for them to fork out €2,000 a year to use the public health service.

Man entering a hospital in Italy
Many of Italy's international residents already pay annual charges to use Italy's public healthcare system, but the cost could be about to increase sharply. Photo by Miguel MEDINA / AFP

Italy’s international residents will have to pay another €2,000 euros a year to use the public health service (servizio sanitario nazionale, or SSN) if they are citizens of a country outside of the European Union, according to a measure contained in the draft budget bill for 2024 approved by the cabinet on Monday.

“For foreign residents who are citizens of countries that are not members of the European Union, the possibility of registering on the lists of those entitled to benefits from the SSN is envisaged by paying a contribution of €2,000 per year,” read a statement published by the economy and finance ministry (MEF) on Monday.

The amount may be lower for people holding a student residence permit, or for those working as au pairs, it said.

The statement did not give any further details of who the charge would apply to and in what circumstances, leading to widespread concern and speculation.

READ ALSO: What we know about Italy’s plan to charge non-EU residents €2,000 for healthcare

It did not make clear whether the requirement would apply to those who are currently exempt from paying to register with the Italian public healthcare system.

Using Italy’s national health service already involves paying an annual registration fee for many foreign nationals resident in Italy, and it wasn’t immediately clear whether the proposed charges would be additional.

The minimum annual fee currently is €387.34, with a discount for students and au pairs, rising to a maximum of €2,788.86.

Asylum seekers and the unemployed have access to free healthcare, as do all Italian nationals. However the MEF statement did not mention exemptions for any category.

Several Italian news outlets including Sky TG24 and Ansa on Monday afternoon reported that the charge would apply to those who want to “continue” using the health service.

READ ALSO: Which foreign residents have to pay for healthcare in Italy?

The budget law is still at the draft stage and must be reviewed by the European Commission before being voted on by Italy’s lower and upper houses of parliament.

Commentators were quick to point out on Monday evening that the proposal may contradict the Italian constitution, which guarantees a ‘right to health’.

“Article 32 of the constitution: ‘the republic protects health as a fundamental right of the individual and interest of the community, and guarantees free care to the poor,'” wrote Nino Cartabellotta, president of the Gimbe Foundation health watchdog, in a post on the social media platform X.

“Why should non-EU citizens pay a contribution of 2,000 euros?”

Giordana Pallone of the Cgil trade union told the Adnkronos news agency: “We’ll now have to wait to see how the law is written, because as it is reported today, it has no value or basis compared to the system and regulations that we have,” she said, adding that it was “outside of the constitution and article 32.”

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TAXES

IMU: Who has to pay Italy’s property tax?

The first instalment of Italy’s main property tax IMU is due by Monday, June 17th, this year – but not all homeowners in the country have to pay it.

IMU: Who has to pay Italy’s property tax?

Italy’s main property tax, IMU (Imposta Municipale Unica, or Unified Municipal Tax) was introduced in 2012 to replace the local ICI levy.

It applies to both private and commercial property, building areas and agricultural land, and its exact amount varies by the type, value and location of the property.

IMU must be paid in two yearly instalments, with the first payment normally due by June 16th (the deadline was moved to June 17th this year as June 16th is a Sunday) and the second one due by December 16th. 

But the tax is a frequent source of confusion for homeowners in Italy as the rules on exactly which types of property it applies to have changed multiple times over the years.

Taxpayers are fully responsible for calculating and paying the amount of IMU they owe, meaning you won’t get a bill from local authorities specifying how much you need to pay for the relevant year.

Who does IMU apply to?

IMU is generally owed by owners of the following types of property:

  • Agricultural land (or terreno agricolo in Italian)
  • Building land (area fabbricabile)
  • Private houses other than the owner’s main residence (or prima casa), meaning second, third, fourth homes etc.
  • Luxury dwellings (case di lusso) falling under Italy’s cadastral categories A1 (stately homes), A8 (villas) or A9 (castles), regardless of whether they are the owner’s main residence or not.

Essentially, besides agricultural and building land owners, IMU is owed by all second-home owners in the country and owners of properties categorised as ‘luxury’ under Italy’s cadastral system.

READ ALSO: The Italian tax calendar for 2024: Which taxes are due when?

The tax doesn’t apply to main residences (prime case) but owners must be Italian residents and be registered as such under Italy’s national registry (Anagrafe) in order to qualify for this.

If you’re a foreign resident owning property in the country, you’ll have to pay IMU on it.

There are a number of IMU exemptions and discounts available to some categories of homeowners. 

These include for instance a 50-percent discount for retirees residing abroad and claiming a ‘totalised pension’ (pensione totalizzata), meaning a hybrid ‘Italian-foreign’ pension merging contributions made in Italy and those made in the foreign nation they reside in (as long as this country has pension totalisation agreements in place with Italy).

How do I calculate IMU?

Much like most other Italian taxes, calculating IMU is by no means an easy process, especially if you have little to no experience with paying it. 

That’s why it’s generally advisable to consult a chartered accountant (commercialista) who can ensure that the correct amount is paid and even arrange the transaction for you.

READ ALSO: What is an Italian commercialista and do you really need one?

That said, as a rough guide, you’ll need to take the cadastral value, or valore catastale, of your property (this is generally reported in the public deed of purchase but you can also request it at your local land registry).

Once you know the cadastral value, you must increase it by 5 percent and then multiply that number by a coefficient, which varies by the type of property you own. For instance, private residential buildings and flats have a coefficient of 160. 

Doing this will give you your property’s taxable base and from there you’ll be charged anything from 0.5 to 1.06 percent of that figure, depending on the rate (aliquota) applied by the municipality (comune) where your property is located.

How do I pay?

IMU can be paid via Italy’s standard tax form F24, which is used when paying most types of taxes in Italy, including Irpef income tax instalments.

The form can generally be found and submitted at most bank branches and post offices in the country. Some Italian banks even offer customers the option to complete and submit an F24 form directly online.

Alternatively, you can ask an Italian accountant to complete and submit the form on your behalf.

What happens if I don’t pay?

The Italian taxman shows little in the way of leniency when it comes to late filing or failure to pay IMU. 

Late filing can be punished with a fine of up to 30 percent of the IMU owed, whereas failure to pay can lead to enforced credit recovery procedures (recupero coattivo del credito) from local authorities. 

The good news here is that Italy has a procedure known as ravvedimento operoso (literally ‘active amendment’) which allows taxpayers to self-report and quickly rectify the delay in their IMU payments in exchange for significantly reduced fines.

For example, under this system, fines for late payment are reduced to 0.1 percent of the sum owed per day if the payment is made within the first 14 days from the relevant deadline.

Please note that The Local is unable to advise on individual cases. Find more information on the Italian tax office’s website or seek independent advice from a qualified tax professional.

For more information on property in Italy, check The Local’s property section.

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