Legislative Decree No. 147/2026: Key changes on Municipal Property Tax (“IMU”)

Prepared by Fabio Beolchi, Daniele Di Michele and Domenico Marziliano

Legislative Decree No. 147 of 7 August 2026, entitled “Provisions on regional and local taxes and regional fiscal federalism” (the “Decree”), implements the enabling law for tax reform (Law No. 111/2023, as amended by Law No. 120/2025) with respect to the section concerning the taxation of local authorities.

The Decree, published in the Official Gazette No. 185 of 11 August 2026 (ordinary supplement), entered into force on 12 August 2026. In general, its provisions apply from that date, except where individual provisions expressly provide for deferred effective dates.

Among the various measures adopted, the Decree introduces a series of changes regarding the municipal property tax (“IMU”), which are briefly summarised below.

Voluntary regularisation procedure also available where access, inspections and audits have begun (Article 12, paragraph 3)

The Decree extends to local taxes, and therefore also to IMU, the rule already provided for state taxes under Article 13, paragraph 1-ter, of Legislative Decree No. 472/1997 (from 1 January 2027 replaced by Article 14, paragraph 2, of Legislative Decree No. 173/2024), under which a taxpayer may still apply the voluntary regularisation procedure even after access, inspections, audits or other administrative assessment activities, of which the taxpayer has been formally notified, have begun. Voluntary regularisation is precluded only once liquidation or assessment notices have been notified.

The provision has been in force since 12 August 2026. Accordingly, from that date, a taxpayer may regularise its position even in the context of IMU audits that are already under way, provided that the relevant tax assessment notice has not yet been notified.

Reduced penalties for omitted and untrue IMU returns from 2027 (Article 12, paragraphs 5 and 9)

The Decree amends Article 1, paragraph 775, of Law No. 160/2019 by reducing the penalties for omitted and untrue IMU returns. The penalties are no longer set within a minimum-to-maximum range but are instead fixed at a single amount. In particular, for an omitted return, the penalty is reduced from a range of 100% to 200%, to 100% of the unpaid tax. For an untrue return, the penalty is reduced from a range of 50% to 100%, to 40% of the unpaid tax. In both cases, the minimum penalty of EUR 50 remains unchanged. The new penalty amounts apply only to violations committed from 1 January 2027.

Single IMU return to be filed exclusively electronically (Article 26)

The new paragraph 768-bis of Article 1 of Law No. 160/2019, introduced by the Decree, provides for the adoption of a new single IMU return form for all taxable entities, to be filed exclusively by electronic means in accordance with procedures to be laid down in a dedicated decree of the Ministry of Economy and Finance.

Until that ministerial decree enters into force, taxpayers will continue to use the return forms currently in force.

IMU returns already filed remain valid, to the extent compatible. The filing deadline is unchanged and remains 30 June of the year following the year in which possession began or in which changes relevant for IMU purposes occurred.

IMU assessments for buildings with challenged cadastral income (Article 32)

Article 32 of the Decree introduces special rules for assessing additional IMU in respect of buildings whose cadastral income, proposed through the DOCFA procedure, has been reassessed by the Italian Revenue Agency and subsequently challenged by the taxpayer.

The provision addresses the mismatch between the duration of cadastral litigation and the ordinary statute of limitations for assessing local taxes, given that disputes concerning cadastral income may continue beyond the five-year period normally available to the municipality to exercise its assessment powers.

As a result of this amendment, by way of derogation from the ordinary regime, the municipality may assess the additional IMU arising from the difference between the proposed cadastral income and the reassessed cadastral income, as finally determined in the litigation, by 31 December of the fifth year following the year in which the judgment resolving the cadastral dispute becomes final. The rule therefore allows the municipality to await the outcome of the cadastral litigation without losing the power to recover the additional tax and without having to take action while the proceedings are pending.

The additional IMU determined on the basis of the cadastral income established in the litigation is due retroactively from the date on which the cadastral update deed was filed through DOCFA. Only statutory interest applies to that additional IMU up to the date of payment, and no penalties apply.

Conversely, where the proceedings result in the annulment or reduction of the reassessed cadastral income, the provision expressly allows the taxpayer to claim a refund of any additional IMU paid by 31 December of the fifth year following the date on which the judgment becomes final. The municipality must execute the refund within 180 days from submission of the refund request.