First home relief 2021: practical help for young people


Among the interventions promoted in 2021 by the government to economic support of citizens In this phase of difficulty resulting from the spread of Covid-19 there is the Encore supports decree. This is a package of measures that are part of the PNRR, or National Recovery and Resilience Plan. In this article we will deal with those facilities aimed at young people, or rather the under 36, Who intend to purchase their first home by June 30, 2022.

These measures provide valuable help in two main respects: they facilitate access to the mortgage and lower tax expenditures.
But let us see more specifically how it is articulated.

Easier access to mortgage
One of the main difficulties that young people face is being able to provide adequate guarantees when they find themselves applying for a bank loan. For those who can rely on the help of their parents, this is a circumventable difficulty. But for the many who lack this leverage, it really succeeds in gaining their complete autonomy.

E' the state so that takes charge of this burden providing the necessary guarantees. As in fact provided in the Decree Law No. 73 of May 25, 2021, qhis public guarantee covers up to 80% of the principal amount of the loan. Specifically, this guarantee is provided to the following categories:

  • couple who have been married for at least two years, where at least one of the two is under 36, that is, not older than 35 years of age;
  • Single-parent family with minor children living together;
  • young people under 36
  • Tenants of housing owned by autonomous housing institutions.

Tax breaks
We come to the first home bonus 2021 through which tax-related costs are reduced in case a young person under 36 buys his or her first home. Here are what these benefits are:

  • In case you buy the house from a construction company VAT is reduced from 10% to 4%, while the mortgage and cadastral tax is set at 200 euros;
  • in case you buy from an individual, the registration tax is reduced to 2%, while the mortgage and cadastral tax will amount to 50 euros;
  • there is also a tax credit, i.e., those who sell a house and repurchase another one within 12 months can subtract the tax payable with the tax already paid for the previous purchase.

Requirements to qualify for benefits

We have previously listed the categories of citizens who are eligible for these benefits. Other requirements are also required, which we are going to list:

  • the property purchased must be residential property not belonging to categories A1, A8 and A9, respectively stately homes, villas and castles or mansions;
  • ISEE must not exceed 40,000 euros;
  • the buyer must not be in possession of other properties in Italy for which benefits are taken or sell them within one year of purchasing the new home;
  • must not be a homeowner in the same municipality in which the benefits are being claimed;
  • must be a resident of the municipality in which the house is purchased or declare his intention to move there within 18 months of the purchase, or he can prove that the same municipality is his usual place of residence for work, study or other congruent activities even if not remunerative (e.g., sports activities);
  • must not hold a right of use, usufruct or dwelling on another property in the municipality in which the purchase is made.

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