Tax incentives for the purchase of a first home in Italy: the guide of the Revenue Agency

January 2023 update
28.01.2023 1 minuti di lettura

The purchase of a first home is an important step in the lives of many, and for this reason, the tax incentives provided by the Revenue Agency can make a difference. With the 2023 Budget Law, the incentives for the purchase of a first home have been extended for another 12 months, offering young people under 36 the opportunity to pay no tax on the purchase until the end of the year. In addition, taxes on mortgages have also been eliminated.

In order to take advantage of the first home incentives, it is necessary not to be the holder of ownership rights, usufruct, use and habitation on another house in the same municipality, and not to own other properties, not even by shares or in legal co-ownership, throughout the national territory, for which the same incentive has been used in the past. In addition, it is necessary to have residence in the municipality where the property is located or to transfer it within 18 months from the purchase. Those who meet these requirements, in case of purchase from a private individual or a company that sells in VAT exemption, are entitled to reduced registration tax from 9% to 2% calculated on the cadastral value of the property and not on the price paid. On the other hand, those who purchase from a company are entitled to VAT with a rate of 4%, instead of 10%.

Regarding those under 36, the Revenue Agency reminds that until the end of the year, for those under 36 years of age and an Isee not exceeding 40,000 euros per year, the purchase taxes are completely eliminated. Therefore, registration and mortgage and cadastral taxes are not due when buying from a private individual, while if you buy from a builder, a tax credit is recognized for the amount of VAT paid.

It is important to note that the incentives can be lost if the statement at the notary's office is not respected, and in this case the difference and a fine of 30% of the taxes will have to be paid. The Revenue Agency provides a detailed guide to avoid common mistakes and make the most of the incentives provided for the purchase of a first home.

Download the official guide from the Revenue Agency (Italian only)

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