Construction tax: ICIO
By Ross Alinari · Last checked · Editorial policy · How we check facts
ICIO is the municipal construction tax. Understand its execution-cost base, the need for a checked local rate and the distinction from a planning fee.
The municipal tax on qualifying construction, installations and works. The national framework defines its base and limits; the municipality fixes its rate through the applicable ordinance.
A tax with a defined base
Articles 100–103 of the TRLRHL provide the national framework. ICIO applies to the relevant works subject to municipal control, including those requiring a responsible declaration. The absence of the required permission does not itself remove the taxable event.
The material execution cost is the statutory base. VAT, relevant local public charges, professional fees and contractor business profit are among the excluded concepts in article 102. A single package total therefore does not necessarily provide the right figure for the calculation.
The local ordinance matters
The municipality sets its rate within the statutory maximum of 4%. The ceiling is not a verified rate for every town. Check the current ordinance and its publication and effective dates before using a percentage. Any relief must also be checked against the conditions actually adopted locally.
Ask the person preparing the submission to show the source and calculation. Keep the property reference and scope on the record, particularly where a building has several units or an earlier works file exists.
The first payment may not close the file
Keep the planning submission and tax calculation cross-referenced. If several contractors contribute to one intervention, ask how their work is represented in the municipal assessment.
Article 103 provides for provisional assessment and later adjustment according to the actual work and municipal check. Retain the budget, revisions and final cost information. An overseas owner should know who will receive later correspondence after construction has finished.
Read the ICIO and licence fee guide for the distinction between the tax, the planning tasa and other project expenditure. The guide supplies no unverified municipal rate or renovation price.
An owner's example
An extension owner asks for the verified local rate and material execution base, keeping professional fees and VAT separate from the ICIO calculation.