First home bonus benefits 2024: who is entitled to them

When buying a house, one of the aspects to consider are the taxes and duties which will be applied to the sale, which vary depending on whether the property purchased is a first home or not, whether purchased by private individuals or companies subject to VAT, or if purchased by people under the age of 36.

The Revenue Agency has published on its website a guide with all the news and instructions for what has been defined as the first home bonus, i.e. the benefits provided for those who buy a property that is their main residence.

Particular attention is paid to “price-value” system, namely the taxation of the deed occurs on the value calculated based on the cadastral income of the property and not on the amount actually paid.

The Revenue Agency's power to assess value is limited. A reduction in notary fees is required by law."

What are the tax breaks

Normally, anyone who buys a house has to pay theregistration tax on the price of the sale which is equal to 9 percent. To that is also added the payment of mortgage and land registry taxes, 50 euros each. 

For sales subject to VAT, the rate to be applied is 10 percent, while registration, mortgage and cadastral taxes have a fixed amount of 200 euros.

It is precisely on these expenses that the first home bonus intervenes, introducing benefits for those who purchase a property to be used as a main residence. 

First home taxes: how much do you pay?

First of all, it is necessary to make a distinction between purchases from private individuals and those from businesses.

For purchases from private individuals or companies with VAT exemption, the registration tax is reduced from 9 to 2 percent, while the mortgage and land registry taxes will be 50 euros each.

If, however, the company from which you purchase is subject to VAT, taxes are 200 euros and the reduced rate from 10 to 4 percent applies. 

Are there discounts for those under 36?

To encourage young people under 36 to buy their first home the legislative decree n. 73 of 2021, after several extensions, established that until 31 December 2023, people under 36 with ISEE up to 40 thousand euros could benefit from total exemption from taxes due. This relief, however, has not been extended for 2024. Consequently, from January 1st of this year young people can only access the ordinary first home bonus. 

What you need to know before buying

Before buying a house you need to make sure that the seller is the rightful owner and obtain as much information as possible about the property through a check on the cadastral and mortgage data of the property, checks which are usually carried out by the notary who draws up the deed of sale, but also on the Revenue Agency website there are practical tools to know the situation of the property you intend to purchase.

Home purchase, preliminary contract or compromise: what is it

When the preliminary contract, also called "compromise”, the seller and the buyer undertake to stipulate a subsequent and definitive contract of sale.

The compromise can be stipulated when an immediate sale is not possible because the buyer is looking for a mortgage or the seller is waiting for a new house to be delivered to him.

This act, drawn up in written form, must be registered within 30 days of signing up and must be registered by paying a registration fee and a stamp duty. 

It is important to clarify that the transfer of the right of ownership over the property you will have only with the signing of the definitive contract and not with the preliminary one.

What to do when signing the compromise

It may happen that, despite the "compromise", the seller sells the same property to another person, or establishes a right of usufruct, or that it is mortgaged, therefore, to avoid finding oneself in such a situation, it is preferable transcribe the preliminary contract in the real estate registers so as not to prejudice the buyer's rights.

First home bonus 2024: the requirements

In order to take advantage of the benefits regarding the purchase of a first home, the property purchased must meet certain requirements:

• IThe building must belong to one of the following cadastral categories: A/2 (civil-type homes); A/3 (economic housing); A/4 (popular housing); A/5 (ultra-popular type housing); A/6 (rural type homes); A/7 (detached houses); A/11 (houses and accommodation typical of the places). The bonus is not permitted for the sale of a property belonging to cadastral categories A/1 (stately type homes), A / 8 (homes in villas) e A / 9 (castles and palaces of eminent artistic and historical merit). The concessions are also available for the purchase of appliances classified or classifiable in the cadastral categories C/2 (warehouses and storage rooms), C/6 (for example, garages and garages) and C/7 (closed or open sheds), but only for one relevance for each category. 
• The house to be purchased must be located in the territory of the municipality where the buyer has his own place of residence, but, otherwise, you have them 18 months of time starting from the date of purchase to transfer your residence. A declaration of intention to change residence must be included in the purchase deed.

Who is entitled to the tax credit?

Che sells a house purchased with the "first home" incentives and buys another within a year is entitled to a tax credit equal to the registration tax or VAT paid for the first subsidized purchase, but the tax credit cannot be greater than the tax due on the second purchase.

The tax credit can be used either by decreasing the registration tax due on the new purchase or by the entire amount decreasing the registration, mortgage, land registry, inheritance and donation taxes due on deeds and reports presented after the date of acquisition of the credit. 

In reduction of the Irpef due on the basis of the first tax return following the new purchase, or in compensation with other taxes and contributions due when making unitary payments with the F24 form (using the tax code 6602). If the credit is not used entirely, the residual portion can be carried forward to subsequent tax periods.

If the declarations in the purchase deed are false or se the "first home" is sold or donated before 5 years have passed from the date of purchase, the benefits may be lost and in this case the "saved" taxes, interest and also a penalty of 30% of taxes themselves. .