Buying a house is very difficult for the youngest: luckily the Italian government has introduced a bonus to help them
Buying a home is the first step to building a future, a family, or just some degree of economic independence.
The problem is that for young people, the people who most need such an investment, It is becoming increasingly difficult to be able to buy a property. Prices are now rising steadily while jobs offer fewer and fewer guarantees of getting a mortgage or loan.
Luckily, in May 2021, the Italian government introduced a bonus for young people buying their first home. The bonus was extended until December 31, 2023 according to the draft budget 2023.
Now it’s time to use this bonus!
What is the bonus?
The bonus consists of a number of tax and economic benefits for the purchase of a house or its accessories.
The discounts are as follows:
- Exemption from paying registration, mortgage and cadastral taxes for all purchases not subject to VAT;
- on the other hand, in the case of a purchase subject to VAT, a tax credit can be created on these taxes, which can be refunded in subsequent taxes or in the tax return;
- the exemption also applies to registration, stamp, mortgage, cadastral and state concession taxes;
- and finally, the exemption from the substitution tax on mortgages paid for the purchase, construction and renovation of a home.
Who can apply for it
Benefit from the first home bonus The requirements are as follows:
- be no older than 36 years;
- have an ISEE of less than 40,000 euros;
- Acquisition of a residential property by December 31, 2023;
- in the case of an accessory to the plot (box, shed, garden, etc.), provide a document proving that the bonus also applies to the latter;
- The document must also state that the exemptions from registration, mortgage and cadastral taxes also apply to purchases subject to VAT.
How to lose the bonus
The bonus can also be lost in these cases:
- false or misrepresentation of the requirements necessary for the application;
- in the event that the place of residence in the purchased property is not actually transferred;
- if the property is sold in the following 5 years;
- If you already own a property before purchasing the new one, the old one must be sold in order to keep the premium, otherwise you will lose the allowances provided.
Other useful information
For more information, you can consult the infographic published by the Revenue Agency, which explains point by point the benefits of the bonus and its requirements:
First Home Bonus Infographic
Here is the budget text