A Significant news for owners of properties affected by illegal occupations it was established by the Court of Cassation, which, with the Judgment No. 18940 of July 10, 2025, confirmed the retroactive value of the IMU exemption for such properties. This decision opens the way for owners not only to avoid paying the tax during periods of unlawful occupation, but also to request a refund of the sums already paid.
There Ratio Legis: the lack of ability to contribute
The fundamental principle underlying this jurisprudential interpretation lies in the lack of ability to pay in the hands of the owner who, while maintaining the formal title, is effectively deprived of the availability of his property due to illegal occupation. According to the judges, someone in this situation cannot be considered fiscally "rich," provided he has I file a formal complaint with the competent authoritiesIn these cases, mere ownership does not constitute a concrete and valid indicator of taxable capacity, which is an essential element for tax purposes.
This setting is based on the historic ruling of the Constitutional Court no. 60/2024, which declared the unconstitutionality of Article 9, paragraph 1, of Legislative Decree 23/2011, in the part in which it provided for the payment of IMU even in the absence of availability of the property due to illegal occupation.
The specific case that gave rise to the ruling
The Supreme Court's ruling stemmed from an appeal filed by a taxpayer who had been denied use of her land for years due to third-party occupants. Despite only partially recovering the use of the property through a repossession action, the Municipality continued to demand IMU payment, ignoring her actual inability to exercise possession of the property.
The Supreme Court has therefore reiterated that, for tax purposes, what is relevant is the concrete possibility of using the property, beyond the mere formal ownership title. If a property is unusable for reasons beyond the owner's control, and if the owner has promptly initiated legal action, the taxable basis ceases to exist.
What Changes for Owners
In summary, owners who have reported an illegal occupation of their property and who have lost the availability of the property now have right to IMU exemption, even for previous years, and can avail themselves of all legal remedies to obtain a refund of any sums already paid. The case, although referred to the Tax Court of Appeal, established a clear and favorable principle for taxpayers.
Content by the Lawyer. Gianmaria Pesce
