Milan expects the record of collections for urbanization costs

With Milan’s building and architectural scene in constant turmoil, there is a really interesting side effect for municipal treasurers. In fact, the urbanization costs in 2022 will mark an unprecedented record, so much so that the municipal coffers will collect 200 million euros. The previous record was recorded just last year, when the million euros were “only” 153.

A huge leap forward, given that an increase of over 30% is a truly incredible figure. The boom in construction sites in the Lombard capital, as we know, is there for all to see, so much so that wherever you look you can see scaffolding, cranes and new steel skeletons. But it is not only new buildings that are driving this number up, but also – and above all – renovations, thanks also to the enormous success that building bonuses have achieved in recent months.

Construction sites in Milan: not only disadvantages

The many construction sites in the city therefore, although boring for those who live and frequent Milan as they cause road closures, narrow lanes and even various noises, are a godsend for the coffers of the municipal administration, which manages to bring home two brilliant results: one has to do with the improvement of general energy efficiency in the city, given that all new buildings are built according to eco-sustainability rules and principles, and renovations to have access to the 110% super bonus must improve energy performance of at least two classes.

The second important result is obviously the economic one: 200 million euros in the coffers of the municipality of Milan go beyond any rosiest forecast.

Beppe Sala’s words

The mayor of Milan Beppe Sala spoke to the press after the general assembly of Assimpredil Ance which took place at the Opera House. His words reveal a satisfaction never experienced before: “Milan in 2022 will set a historical record in terms of urbanization costs, thanks above all to over 150 construction sites of over 5,000 square meters each”. According to the assessments of the experts of the municipal council, “the record of 2021 will be exceeded during the month of November”.

And what a record! In turn, 2021 had been the year in which Milan had exceeded the maximum historical collection relating to urbanization costs, a figure of 153 million euros, which seemed truly unattainable. But 2022 has a hand in it, and now this figure has been definitively pulverized.

Urbanization charges: what they are and how they are calculated

Whenever a new construction is built, or when an existing building is extended, the owner must pay the urbanization charges. Their function is to involve the builder in the costs of the urbanization works to be borne by the municipality.

The idea is simple: if the urban load increases after the construction of a building or a renovation, the Municipality must equip the area with new urbanization works, with a consequent outlay. The owner or builder also participates in this outlay, paying the urbanization charges.

There are two types of urbanization charges:

  • Primary urbanization charges, which concern the construction of roads, parking lots, sewers, electricity or gas networks, public lighting and green spaces.
  • Secondary urbanization charges, which concern the construction of kindergartens, schools, municipal delegations or neighborhood sports facilities.

As for the costs, they are defined on the basis of the intended destination, and are calculated by multiplying the volume of the project by the value of the primary and secondary charges, provided for by the municipal building regulations. The rule establishes that the amounts must be updated every three years; for the payment it is possible to proceed in a single solution, or in 3 installments (the first equal to 50% of the total, the other two to 25%.)

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