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HEALTH

Who would be affected by Italy’s plan to charge €2,000 a year for healthcare?

Italy's government has said it wants to charge a €2,000 annual fee for some foreign nationals to register with the Italian national health service - but it's not yet entirely clear who this would apply to.

Who would be affected by Italy's plan to charge €2,000 a year for healthcare?
(Photo by Alberto PIZZOLI / AFP)

We now know that the plan to introduce a €2,000-euro charge for healthcare mentioned in a budget statement by Italy’s economy and finance ministry on Monday will not in fact apply to all non-EU nationals, as it appeared to state.

According to a clarification from the health ministry on Tuesday, the charge will only apply to non-EU nationals who already have to pay an annual fee to use the public health service (servizio sanitario nazionale, or SSN).

The rule contained in the 2024 budget draft is “limited to updating the stipulated lump-sum contribution,” the health ministry said, suggesting that the new charge would replace existing annual registration fees, rather than being an additional fee.

So it doesn’t appear to be a blanket charge applied to all non-EU nationals as many initially feared – and it doesn’t look like this will apply to people who are currently exempt from paying annual registration fees for Italy’s health service (those who are entitled to free healthcare under ‘mandatory’ registration, or iscrizione obbligatoria.)

But for many others, it seems that – if this proposal becomes law – they could face higher charges.

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

Many of Italy’s international residents are required to pay an annual fee (the “lump-sum contribution” the health ministry referred to) if they choose to register with the SSN under what’s called ‘voluntary’ registration, or iscrizione volontaria.

(You can read more about the two different types of registration in a separate article here.)

Under the government’s proposal, it seems people in the ‘voluntary’ registration category are the ones who could face a steep increase in fees from next year.

The SSN registration fee starts at €387.34 and goes up to a maximum of €2,788.86, based on your income and other factors. The average payment is around €1,200, meaning that for the majority of people a €2,000 fee would be a sharp increase.

Still others say they’re unclear as to whether or not the charges would apply in their circumstances.

With very little information about the plans announced so far, a lot of questions remain about exactly who the charge would apply to.

Many of The Local’s readers have expressed concern and frustration about the lack of detail given so far, with some saying that, as they did not factor a €2,000 healthcare charge per family member into their budget when they moved to Italy, they would struggle to afford this extra cost.

Based on the information available so far, the main – and perhaps only – factor determining whether or not someone will face the €2,000 charge so far appears to be whether or not they are signed up to the SSN via voluntary or mandatory registration.

Announcements so far have not dealt with the issue of whether British nationals who were resident in Italy before the end of December 2020, and who are therefore covered by the post-Brexit Withdrawal Agreement (WA) would be treated like EU or non-EU nationals in the application of this rule.

The WA provides that British nationals who were legally registered as resident in Italy before the Brexit date should be treated the same as EU citizens in Italy.

There has also been widespread confusion among Italy’s international residents about what it means to pay a registration fee for the SSN.

This fee is charged annually upon registration with and subsequent renewal of registration with your local health authority, which entitles you, among other things, to register with a medico di base (family doctor, or general practitioner).

It’s important to note that this fee is not the same thing as the INPS (health, social security and pension) payments due if you’re obliged to pay your own contributions in Italy, such as in the case of those who are self-employed under a partita IVA.

In this case, you would be entitled to ‘mandatory’ registration with the SSN, with no fee – but as INPS contributions in this case are charged at around 23-26 percent of your income, the total of these payments usually comes to much more than 2,000 euros a year.

Anyone who is signed up to the ‘voluntary’ system can effectively opt out of the public system and choose to pay for private healthcare instead. However, whether or not this would prove better value than a 2,000-euro fee will depend on the type of healthcare coverage you need.

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For members

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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