Introduction 📘
The 2025 Italian Budget Law introduces significant updates for those wishing to purchase a first home, expanding opportunities for taxpayers and facilitating transitions between properties.
Among the most notable changes is the extension of the period granted to sell a previously purchased home benefiting from the "first home" tax relief, which increases from 12 to 24 months.
Let’s explore how these measures simplify the process and the requirements to benefit from them.
Extension of the Deadline for Selling the Previous Property 🕒
From January 1, 2025, individuals intending to purchase a new property with "first home" tax benefits will have 24 months to sell or donate the property previously purchased with the same benefits.
What Changes?
More time to sell: Previously, taxpayers had only 12 months to dispose of the previous property. Now, with the extension, the timeframe doubles, offering greater flexibility.
Reduced stress: This measure allows a calmer transition between properties, avoiding rushed sales.
Requirements to Access "First Home" Tax Benefits 📋
To qualify for the tax benefits, specific criteria must be met.
Main Requirements:
Property categoryThe property must not belong to the following categories:
A/1: Luxury dwellings.
A/8: Villas.
A/9: Castles or historic palaces.
🔑 Properties in these categories are considered luxury properties and are therefore excluded from the benefits.
ResidencyThe buyer must already reside or establish residency in the municipality where the property is located within 18 months of purchase. This ensures the property becomes the buyer’s principal residence.
Ownership of other properties in the municipalityThe buyer cannot exclusively own or co-own with their spouse another residence in the same municipality.
Ownership of properties nationwideThe buyer must not own other properties purchased with "first home" benefits anywhere in the country, even partially or under joint ownership.
Subsequent Sale of the Previous Home 🔄
The extension to 24 months applies exclusively to taxpayers who:
Own another property purchased with "first home" benefits.
Must sell or donate it within the stipulated period to retain the tax advantages.
Important Exceptions ⚠️
If the existing property is located in the same municipality as the new purchase, even if not acquired with benefits, it must be disposed of before completing the new purchase. In this scenario, the 24-month grace period does not apply.
Penalties for Failing to Sell on Time 🚫
Failure to meet the deadline for selling the previous property results in the loss of tax benefits.The consequences include:
Full payment of taxes on the new purchase.
A 30% administrative penalty on the owed taxes.
"First Home" Bonus for Under-36 Buyers 🎁
Among the additional incentives introduced in the 2025 Budget Law is the extension of the Under-36 First Home Bonus until December 31, 2027.
This incentive provides:
Exemption from registration, mortgage, and cadastral taxes.
Eligibility: Young buyers with an annual ISEE not exceeding €40,000.
Summary Table of "First Home" Tax Benefits 📊
Tax | Standard Rate | Discounted Rate |
VAT | 10% | 4% |
Registration Tax | 9% | 2% |
Mortgage Tax | Variable | €200 |
Cadastral Tax | Variable | €200 |
Advantages of the 2025 Reforms 🌟
The changes introduced in 2025 provide concrete benefits:
Increased flexibility for selling properties.
Reduced stress for property owners.
Enhanced accessibility for young buyers and families.
These measures are part of a broader strategy aimed at encouraging homeownership and supporting the real estate market.
Conclusion 📝
The 2025 Italian Budget Law reforms represent an important step toward making "first home" tax benefits more accessible.
With extended timeframes for selling previous properties and additional incentives, taxpayers now have more tools to manage their transition to a new home without pressure and with greater financial benefits.
👉 Contact us for more details.