Italy: Purchase With "First Home" Benefits In Italy For Italians And Foreigners

Last Updated: 15 May 2019
Article by Arnone & Sicomo
Most Read Contributor in Italy, April 2019

Purchase with "First Home" benefits in Italy 2019: how much can you save? 

First home benefits in Italy are fiscal measures regarding people who want to buy heir first home (Article 1, Note IIbis, "On tariff" – part I, attached to the Presidential Decree no. 131/1986).

First home benefits involve: reduced property taxes, VAT or registration fee on the property's price, more in detail:

Reduced VAT or registration fee:

- 2% registration fee;

- 4% VAT;

Fixed mortgage tax amounting each to 50.00€ for purchase deeds subject to registration fee, and to 200.00€ for purchase deeds subject to VAT.

First home benefits can be obtained even though the purchased property is not designed to be the buyer's primary residence, with the only limit being that the purchased property should not be classified as a luxury home, regardless of the requirements declared by the taxpayer. Moreover, a rented out property obviously cannot be used as a residence (Order no. 19989/2018 of the Italian Court of Cassation).

In order to be entitled to first home benefits, the property buyer should meet some requirements which have to be certified by means of a declaration provided for this purpose. The declaration has to be attached to the purchase deed.

Purchase with "First Home" benefits in Italy for Italians and foreigners: who is entitled? 

In order to facilitate and stimulate the  purchase of properties to be used as primary residence, lower taxes have been introduced in the Italian real estate tax system. Both Italian and foreign citizens are entitled to first home benefits, provided that the following requirements are met:

Foreign citizens are entitled to first home benefits only in case they have established their residence in Italy, in the same municipality where the property to be bought is located, within 18 months after purchasing the property itself.

Moreover, as regards property tax in Italy for foreigners, in order to be entitled to first home benefits the following requirements should be met:

- The property to be bought should be classified as habitation;

- The property to be bought should not be classified as luxury property;

- The property to be bought should be located in the same municipality where the property buyer has established or will establish within 18 months his/her residence;

- The property buyer should not have exclusive (either solely or jointly with the spouse) right of exclusive ownership, usufruct, use and occupancy, on another home located in the same municipality as the property to be bought;

- The property buyer should not have exclusive (either solely or jointly with the spouse) right of exclusive ownership, usufruct, use and occupancy, and bare ownership on another home bought by himself/herself or by the spouse.

Also Italian citizens living abroad but wishing to buy a house in Italy are entitled to first home benefits, provided that they are registered in the in the AIRE (the Public Registry of Italian citizens living abroad). In this case, they do not need to move their residence in the municipality where the property to be bought is located.

Purchase with "First Home" benefits in Italy for Italians and foreigners: what to do if you are an Italian citizen living abroad? 

Italian citizens living abroad and registered in the AIRE, are entitled to first home benefits if they wish to buy their first home in Italy

They do not need to move their residence in the same municipality where the property to be bought is located, but apart from that, all the above mentioned requirements are still to be met. In order to be entitled to first home benefits, anyway, they can declare their condition of emigrants either by a certificate issued by AIRE, or by a by a self-certification to be attached to the purchase deed (pursuant to the Italian Ministerial Memorandum 38/E of 2005).

Clearly this latter condition represents a discrimination against foreign citizens who want to buy a home in Italy with first home benefits. For this reason, Italy has been brought to the European Court. Foreign citizens indeed, are not entitled to first home benefits if they do not move their residence, within 18 months after the purchase, in the same municipality where the property to be bought is located, whereas Italian citizens living abroad are not subject to this limitation.

Arnone&Sicomo Law Firm provides legal assistance in matters of property taxes in Italy both to Italian citizens living abroad and to foreign citizens who wish to buy a property in Italy.

We give advice to Italian and foreign citizens about the best way to obtain first home benefits.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions