Press Release: State aid: Commission finds Italian ICI real estate tax exemptions for non-commercial entities incompatible and clears amended exemptions under new IMU law

The European Commission has found that the former Italian system of municipal real estate tax exemptions granted to non-commercial entities for specific purposes (ICI) between 2006 and 2011 was incompatible with EU state aid rules. After the Commission opened an in-depth investigation in October 2010, Italy amended the system and has now adopted a new municipal real estate tax law (IMU), which does not involve state aid since exemptions will only apply to premises where non-economic activities are carried out. The Commission has therefore closed its investigation.