This article was translated automatically from Italian.
Under 36 First Home Bonus: Tax Breaks and Updates for 2023
We explore everything you need to know about the first home bonus for under 36s.
The first home bonus for under 36s offers tax advantages with the aim of encouraging young people, whether single or in couples, to buy a property.
The Sostegni-bis Decree 73/2021, in force since 26 May 2021, introduces the first home bonus for under 36s. Eligibility for the benefit is determined by the ISEE, the economic indicator that establishes the overall level of household income.
How does it apply?
The bonus entails exemption from mortgage and land registry taxes, as well as easier access to the Guarantee Fund for first homes. The aim of this bonus is to promote independent living, and the measures apply to the property defined as the "first home" and its appurtenances, such as garages and cellars.
What are the benefits of the first home bonus for under 36s?
- Access to credit
The Sostegni-bis Decree offers benefits relating to the Guarantee Fund for first homes. The decree makes access to the fund easier thanks to less restrictive requirements. The State guarantees 80% of the purchase of the first home. - Tax advantages
- Exemption from registration tax and from mortgage and land registry taxes;
- 50% reduction in notary fees;
- Finally, there is also a tax credit equal to the VAT paid, which is the credit that is offset against the registration, mortgage, land registry, inheritance and, finally, gift taxes due.
Permitted expenses
For sales subject to VAT, exemption from registration, mortgage and land registry taxes is granted, along with a tax credit equal to the total VAT paid to the seller. The tax credit covers the costs of:
– Paying the registration, mortgage, land registry, inheritance and gift taxes due on deeds and declarations filed after the date the credit was obtained;
– Paying personal income tax (IRPEF); offsetting sums due by means of form F24, entering the tax code "6928".
The purchase of a first home by under 36s is exempt from stamp duty, as with other purchase deeds subject to proportional tax.
The requirements
To obtain the youth bonus on the purchase of a first home, under the Sostegni-bis Decree, the buyer must be under 36 years of age and hold a valid ISEE of no more than 40,000 euros.
If the Agenzia delle Entrate (the Italian Revenue Agency) finds that the conditions and requirements for benefiting from the tax breaks are not met, or that the right to them has lapsed, the law provides for the recovery of the taxes due, with interest and penalties applied.
The requirements for benefiting from the tax breaks
The tax breaks provided for the purchase of a first home are specified and are available only under certain conditions. The dwelling must fall within one of the following cadastral categories:
– Residential properties of the standard type;
– Economy-type residential properties;
– Popular-type residential properties;
– Ultra-popular-type residential properties;
– Rural-type residential properties;
– Residential properties in villas;
– Dwellings and housing typical of the area.
In addition, the deduction can be applied only to the purchase of appurtenances classified as storerooms and storage rooms, garages and car ports, and finally covered or open sheds.
To benefit from the first home bonus, the property must be located in the municipality where the buyer is resident; otherwise, the buyer must transfer their residence to the municipality where the home is located within 18 months.
How do you apply for the first home bonus for under 36s? To apply for the first home bonus for under 36s, you must submit the application directly to the bank or financial intermediary from which you are requesting the mortgage, using the appropriate form.
Who is it for?
The youth bonus is intended for young people with the following characteristics:
– Under 36 years of age at the time of the deed of sale; – Not holding rights of ownership, usufruct, use or habitation over another home in the area;
– Not owning another property purchased with the first home tax relief;
– Being resident in the municipality where the property is located.
– Having an ISEE, that is, an Indicator of the Equivalent Economic Situation, whether ordinary or current, of no more than 40,000 euros per year.
Alessandro Langella
Founder of Pavé, Milan
He knows Milan through years of hands-on market experience, properties visited and neighbourhoods watched as they changed.
