No Tax for Home Buyers 35 years & under in Italy
In May of 2022, the Italian government exteneded tax cuts and incentives on mortgages targeted to young people aged 35 or under who want to buy their first property in Italy. Young people falling into this category can apply for the so-called First Home Bonus, or “Bonus Prima Casa” in Italian, and benefit from certain exemptions on registration, mortgage, and land registry taxes, saving thousands of Euro on the costs of buying their first home.
If you buy a residential property from a private individual, the transfer tax or “Imposta di Registro” which normally is 2% for residents is completely waived. The mortgage and land registry taxes, normally 50 Euro each, are also waived. You’ll only have to pay the agency fees and the notary public.
How to Qualify for Italy's No Tax for Homebuyers
For those of you who are 35 or younger, hoping to buy your first property in Italy, the bonus will run until the end of 2022. You may qualify as long as you do not turn 36 before December 31st, 2022. Moreover, the government will guarantee 50% of the total value of your home. So, banks will now lend you 100% of the value of the property!
You may apply for the “First Home Loan Guarantee Fund,” known as “Fondo di Garanzia sui mutui prima casa” in Italian, directly at the bank. There is no need to have a credit history in Italy. The mortgage will cover the purchase and renovation of a property valued up to €250,000, with a fixed interest rate that can’t exceed 1.86%, and more often than not it’s even lower than that. What’s more, if your household income is less than €40,000 yearly, the government will guarantee up to 80% of the value of the house. Why rent when you can buy an apartment with zero downpayment!
The home must be located in the municipality where you work, study, or currently live. If you already own a property in Italy and have applied for the first home bonus, you must sell that property first to be able to apply for the First Home Loan Guarantee Fund.
The tax incentive applies also to European and non-European citizens with a “Permesso di Soggiorno” which is your Italian temporary residency card. You can even buy a property as a student in Italy. If you reside in Italy or plan on moving soon, don’t miss out on this great opportunity.