Cadastral Income (rendita catastale)
The cadastral income is a fiscal value in Italy assigned to every real estate unit, specifically both buildings (fabbricati) and land (terreni). It does not represent the actual, real income generated by a property, but rather defines the normally average achievable income that a real estate unit should be capable of generating.
The cadastral income plays a central role in the taxation of real estate. It is crucial for:
- Municipal real estate taxes (imposte municipali degli immobili) – based on this, the basis for calculating the municipal real estate tax IMU or GIS (Autonomous Province of Bolzano) and ILIA (Friuli Venezia Giulia Region) is determined.
- The cadastral value (valore catastale) – this is derived from the cadastral income and forms the assessment basis for inheritance and donation taxes as well as mortgage and cadastral taxes.
- The taxation of income from property (redditi fondiari) – it is used for the determination of income from property.
Determination of cadastral income for buildings
The cadastral income is determined by the responsible cadastral offices (uffici del catasto). Two factors are decisive here:
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The size (consistenza catastale) – depending on the cadastral category, it is expressed in different units of measurement:
- Category A (residential units and offices): in rooms (vani)
- Category B (buildings with a social or community character, e.g., schools, hospitals, or libraries): in cubic meters (m³)
- Category C (buildings for commercial or diverse activities, e.g., shops, garages, or cellars): in square meters (m²)
- Category D (buildings with a special purpose, e.g., factories, hotels, or industrial facilities): in square meters (m²)
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The valuation rate (tariffa d'estimo) – this is a numerical coefficient created by the cadastral offices. This varies depending on the location of the property and the typology or customary use (cadastral category or class).
The cadastral class (classe catastale) serves to further differentiate objects within the same cadastral group by taking into account, for example, the amenities and the size of the rooms.
For real estate units with a special purpose (Group D), the determination of the cadastral income is not carried out using standard tariffs, but through a direct appraisal by the responsible cadastral office.
Determination of cadastral income for land
The cadastral income for land is calculated differently than for buildings. For every plot of land used for agriculture, there are two values:
- The ownership income (reddito dominicale) – this refers to the income attributed to the mere ownership of the land.
- The agricultural income (reddito agrario) – this refers to the income attributed to the cultivation of the soil.
For both the ownership income and the agricultural income, there are officially determined valuation approaches (tariffe di estimo) per hectare. These depend on the type of use (qualità di coltura) of the land (e.g., grassland, forest, fruit growing) and the quality (classe) of the soil.
The ownership income and the agricultural income result from the multiplication of the land area by the respective valuation approaches.