Construction contribution

The construction contribution is regulated by art. 43.1 of the Regional Law 12/2005

«The qualifications for new construction interventions, expansion of existing buildings and building renovation are subject to the payment of primary and secondary urbanization charges and waste disposal (Laboratory/Industry only), as well as the contribution to the cost of construction, in relation to the destinations functional of the interventions themselves."

The contribution is made up as follows:

  • charge for primary urbanization (art. 44 L.R. 12/2005)
  • charge for secondary urbanization (art. 44 L.R. 12/2005)
  • charge commensurate with the construction cost (art. 48 L.R. 12/2005) – not for industrial activities
  • waste disposal - only for industrial activities (art. 19.1 Presidential Decree 380/01).

Surcharges

The new construction interventions defined by the art. 27, paragraph 1, letter. e) L.R. 12/2005 in an area intended for de facto agricultural and forestry use (DUSAF paragraph 2 bis art. 43 L.R. 12/2005) are subject to the increase of:

  • + 5% throughout the territory for urban charges. primary, secondary and waste disposal to be mandatorily allocated to forestry interventions of ecological importance and to increase naturalness (art. 43.2 bis LR12/2005; DGR.8757/2008).

Furthermore, with the entry into force (14 December 2019) of LR 18/2019 which repealed the art. 5 paragraph 10 of LR 31/2014, a further increase has been introduced (art. 43.2-sexies of LR 12/2005), in addition to the existing one, of the sole charge commensurate with the construction cost equal to 30% (unless otherwise determination of the Municipality) for interventions not included in the consolidated urban fabric; equal to 20%, for interventions within the consolidated urban fabric; equal to 50%, for logistics or road transport interventions not affecting the regeneration areas.

The resolution of the City Council n. 28 of 17/05/2023 introduced, in application of the art. 64.7 LR 12/05, the 10% increase in the construction contribution for projects involving the residential recovery of attics in the central area and 3% in the peripheral area.
The resolution of the City Council n. 28 of 17/05/2023 establishes, for abandoned buildings, the increase in the construction contribution for the volumetric increase portion only:

  • central band: (100% of the construction contribution due relating to the volumetric increase plus the percentage increase/decrease based on the location band of the intervention) x 60%;
  • peripheral zone: (100% of the construction contribution due relating to the volumetric increase plus the percentage increase/decrease based on the location zone of the intervention) x 20%.

Furthermore, for the recovery interventions of the critically abandoned building stock, when exceeding 2 thousand square meters of Gross Surface Area (SL), this resolution establishes an extraordinary contribution, produced by the economic valorisation of the projects, to be divided 50% between the Municipality and the private part.

Reductions

The resolution of the City Council n. 28 of 17/05/2023 provides that in the presence of Social Residential Housing, including Residence for University Students, the charges are reduced by 50% or 100% if the requirements set out in Annex 1.F are respected.

In cases of subsidized housing, also relating to existing buildings, the contribution relating to the building permit is reduced only to the share of the urbanization costs if the holder of the permit undertakes, by means of an agreement with the municipality, to apply sales and rental fees determined pursuant to the standard agreement provided for by article 18 (Art. 17 Presidential Decree 380/2001 - Reduction or exemption from the construction contribution).

For interventions relating to private services which are of general interest, but which do not qualify as public services or of general public interest pursuant to art. 4 of the PGT Services Plan in force, the reductions in urbanization charges apply as per Annex 1.A.

For new construction, urban renovation and building renovation with demolition and reconstruction interventions, for which compliance with art. 10 of the PTG Rules Plan in force, in cases where the CAM obligations (minimum environmental criteria) envisaged by Ministerial Decree no. are satisfied. 183 of 23/06/2022 and - only for cases of agreed mode - are equipped with LCA life cycle analyses, it is possible to apply a maximum 20% reduction in the contribution commensurate with the construction cost, according to the criteria and the declinations that will be specified in the Building Regulations of the Municipality of Milan.

For urbanization interventions consisting of services of public or general interest carried out pursuant to art. 4 of the PDS of the PGT and art. 9 LR 12/2005 it is possible to apply a reduction of a maximum of 50% of the contribution commensurate with the construction cost, if due, according to the criteria and declinations that will be specified in the Building Regulations of the Municipality of Milan and up to 60% in case of services for children, age group 0/3 years.

Agricultural areas

Agricultural areas in their current state, regardless of their urban destination, are those whose actual use falls into the following categories:

  • agricultural areas
  • high altitude natural grasslands
  • low density forests
  • evolving areas
  • internal wet areas

Starting from the territorial information available within the Integrated Territorial Information System (Integrated GIS), the Lombardy Region has made available an information layer on a 1:10.000 scale which identifies the agricultural areas in their current state (DUSAF).

The data can be consulted and downloaded from Regional geoportal.

The figures for urbanization charges are established by the City Council Resolution of no. 28 of 17/05/2023 and identify the rates for the new construction; for building renovation interventions, as well as for demolition and reconstruction interventions even with different shapes, or qualified demolition and reconstruction of new buildings and also for expansion interventions through the use of building rights bonuses, the charges are those established for the new construction interventions, reduced by 68%. For building renovation interventions, as well as for demolition and reconstruction, even with a different shape, or even for expansion through the use of building rights premiums, waste disposal is due at an amount equal to 50% of the new construction.

The new tariffs are expected to come into force after 30 days. from the enforceability of the resolution (08/06/2023), therefore starting from 08/07/2023. Starting from that date, pursuant to art. 38 paragraph 7 bis of LR 12/2005, the new tariffs will be applied to all qualifications (CILA and SCIA), which require the payment of the charges together with the presentation, and to building permits presented but not yet issued, where the themselves do not present complete documentation.

The update is also applied to all the essential variations relating to the part of the intervention that modifies the building parameters of the original project, under whatever title they are presented.

In order to identify the band, you can consult the map on the portal which returns the belonging of the street number or cadastral identifiers to the OMI Zone and to the Central or Peripheral Charges Band.

Charge commensurate with the construction cost

For all interventions that fall under Ministerial Decree 801/77, the tables for the automatic calculation of the construction cost are reported in the attachments - updated annually.

All other interventions which have an intended use other than residential and industrial are subject to the drafting of the estimated metric calculation based on the Price List of the Metropolitan Chamber of Commerce of Milan-Monza-Brianza-Lodi in force at the time of presentation of the SCIA or on the date of issue of the building permit.

Furthermore, it is specified that pursuant to art. 43 paragraph 2-sexies letter. c) for logistics or road transport interventions not affecting the regeneration areas, a percentage increase in the contribution relating to the construction cost of 50% is envisaged. Consequently, the content of the art. 19.2 Presidential Decree 380/01 as well as art. 48.4 LR 12/2005, which provide for the payment of the charge commensurate with the cost of construction for commercial and management activities, the amounts to be used for the purposes of urbanization charges are those indicated in Annex 1.A in paragraph D) Activities Management and Commercial.

Art. 10 PDR – CO2e component

In application of the art. 10 of the PDR of the current PGT, the verification of the CO2e component is also necessary in cases of projects in urban planning exemption, i.e. recovery of attic or recovery of basement and in the case in which they do not reach the requirements of the art. 10, the application of monetization is envisaged with the same criteria established by the technical document referred to in the aforementioned article.

Related services

City Council Resolution n. 28 of 17 May 2023

Update of primary and secondary urbanization and waste disposal charges, due for authorizations for new construction interventions, expansion of existing buildings and building renovation.

Revaluation of the unit construction cost to be applied for determining the construction contribution

Pursuant to art. 48, paragraph 1 and 2 of the LR of 11 March 2005

Amounts Urbanization charges
Construction cost calculation table for interventions that fall under Ministerial Decree 801/77

Subjects: 

Updated: 13/12/2023