Buying a home is a major life decision, and taxes and administration can feel confusing. The State offers practical assistance through first-home tax relief, intended to reduce the taxes payable when purchasing a settled home. It is not automatic: specific conditions must be met.
The central provisions are in the Consolidated Registration Tax Act, Presidential Decree 131/1986. The requirements can be divided into those concerning the property and those concerning the purchaser.
The property must not fall within excluded luxury categories: stately homes, villas and castles or prestigious historic buildings classified A/1, A/8 or A/9. Other ordinary homes, from apartments to terraced houses, can qualify. Relief can also cover an ancillary unit, such as a garage, cellar or parking space, purchased with the home.
The article identifies three personal requirements. Buyers must not own another home in the same municipality and must not own another property anywhere in Italy bought using first-home relief. It describes an exception for those replacing a previously subsidised first home: the new purchase may qualify provided the previous home is sold within one year. Finally, buyers not already resident in the municipality must transfer their registered residence there within eighteen months of signing the deed.
The tax saving depends on the seller. Buying from a private individual reduces registration tax from the ordinary 9% to 2% of cadastral value, with mortgage-register and cadastral taxes of €50 each. When buying directly from the construction company, the article describes VAT falling from 10% to 4% of the purchase price, with the other fixed taxes at €200 each.
It also describes a tax credit for those selling their first home and buying another qualifying home within one year, equal to the registration tax or VAT paid on the first subsidised purchase.