ITALY: The “first home under 36” benefits

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To promote housing autonomy for young people under the age of 36, Law Decree no. 73/2021 (known as the “Sostegni bis” decree) introduced new tax benefits on indirect taxes (VAT, register tax, mortgage and cadastral tax) applicable to the “first home” sale-purchase deed and the loan deed subscribed to finance the acquisition.

These benefits apply to deeds signed in the period between May 26, 2021 and December 31, 2022, and consist of:

  • for sales not subject to VAT: total exemption from the payment of registration, mortgage and cadastral tax;
  • for purchases subject to VAT: total exemption from registration, mortgage and land registry taxes. The VAT has to be paid to the seller as normal but the tax administration recognises a tax credit equal to the VAT paid.

This tax credit may be:

  • deducted from the indirect taxes (registry, mortgage, land registry, inheritance and donation taxes) due on deeds and reports submitted after the date of acquisition of the credit;
  • used to reduce personal income tax due on the basis of the return to be submitted after the date of the subsidised purchase;
  • used for the payment of other taxes;
  • an exemption from substitute tax granted for loans for the purchase, construction and renovation of the “first-home” concerned.

This benefit only applies to young people who:

  • have not yet completed 36 years of age in the year in which the deed is signed;
  • have an ISEE indicator (Indicator of the Equivalent Economic Situation) not exceeding 40,000 euros per year.

The ISEE is calculated on the income received and the assets owned in the second year prior to the submission to INPS of the Single Substitute Declaration (DSU): a document that contains the personal data, income and assets necessary to describe the economic situation of the family unit.

For deeds stipulated in 2021, the ISEE refers to the income and assets of 2019; for deeds stipulated in 2022, the ISEE is that of 2020.

Foreigners are also able to enjoy the “first home” benefits if they meet the requirements, which are the same as those for Italians.


The above-mentioned requirements are in addition to those already established to take advantage of the “first home” benefit.


Author: Insignum International Office, Milan

Tags: Italy

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