Italian authorities will impose a property tax again

Italian authorities will impose a property tax again

Last year, Italian Prime Minister Enrico Letta, fulfilling campaign promises, has abolished the property tax (IMU). Today, the Italian authorities are going to return the tax, but in a modified form and with a new name, according to ee24.com citing reuters.com.

In 2012 IMU has brought €24 billion into the treasury of Italy, which is 2.4% of the budget expenses. The state has no money , the budget is in deficit and debt exceeds 100% of GDP, so the only way out is the return of the hated tax. A new tax on real estate in Italy , known as TASI, may be introduced in the near future . Government intends to give regions the right to set the tax rate, as well as define the owners having preferential taxation .

According to experts, in 2014 in Italy there will be sold by 10% more properties than in 2013. For the first time since 2007, fall in activity of buyers will be replaced to the demand growth. It's not surprising considering that 2013 is the worst in last 30 years. In particular, sales were half less than in 2006, when it amounted to 800 thousand.

But the growth in the number of transactions won't save from falling real estate prices in Italy. They've already fallen by 15% compared with the maximum rates of 2006 and will fall by another 3-4 % in 2014, according to Luka Dondi, CEO of the analytical center Nomisma.