With the Budget Law 2023, the government has extended until December 31, 2023, the first home purchase and youth mortgage benefits.
The First Home Bonus intended for the under-36s includes a whole series of tax breaks to encourage young people (single or in couples) to purchase the property that will become their primary home.
The Bonus was introduced by the Support-bis Decree 73/2021 and came into effect as of May 26, 2021 and was scheduled to expire with December 31, 2022, but the new Budget Law extended it until the end of 2023.
Let's see in detail what the requirements and features of the facilities are.
1 - Requirements
The Sostegni-bis Decree stipulates that in order to qualify for bonus-youth on the purchase of a first home, the buyer must meet the following requirements:
- an age of less than 36: that is, he must not yet have turned 36 in the year in which he applies for the benefit;
- A valid ISEE not exceeding 40,000 euros.
Recall that these requirements are in addition to those already established by the provisions governing the classic "first home" benefits. In general, the benefits provided for the purchase of the so-called "first home" are recognized only if certain specific conditions are met. Let's see them below.
First, the home purchased must fall into the following cadastral categories:
A/2 (civilian-type housing);
A/3 (affordable housing);
A/4 (social housing);
A/5 (ultra popular type of housing);
A/6 (rural-type dwelling);
A/7 (cottage dwellings);
A/11 (typical local dwellings and housing).
In addition, concessions also apply to the purchase of appurtenances classified in the following cadastral categories (but limited to one appurtenance in each category):
C/2 (warehouses and storage rooms);
C/6 (e.g., sheds and garages);
C/7 (closed or open canopies).
Another fundamental condition is the location of the property. In fact, to take advantage of the benefits, the home must be located in the territory of the municipality where the buyer has his or her residence, or if, on the other hand, he or she resides in another municipality, he or she must transfer his or her residence there within 18 months of the purchase of the new home.
In addition, in order to claim first home benefits, it is necessary to declare that:
Not be the owner, either exclusively or jointly with his or her spouse, of rights of ownership, usufruct, use and
dwelling, on another house in the territory of the municipality where the property subject to the subsidized purchase is located;
not be the holder, not even by shares or in legal community, throughout the country, of rights of ownership, use, usufruct, habitation or bare ownership, on another property purchased, including by the spouse, taking advantage of the same "first home" benefits.
It is worth pointing out that as of Jan. 1, 2016, the tax benefits have also been extended to the taxpayer who already owns a property purchased with first home benefits, provided, however, that he or she sells it within one year of the new purchase.
2 - Facilities
Young people who purchase a first home by 12/31/2023 will be entitled to the following tax exemptions or bonuses:
- for purchases and sales not subject to VAT, exemption from payment of registration, mortgage and cadastral tax;
- for purchases subject to VAT, in addition to the exemption from registration, mortgage and cadastral taxes, the recognition of a tax credit in an amount equal to the VAT recognized to the seller.
The tax credit can be:
- Carried as a deduction from registration, mortgage, cadastral, inheritance and gift taxes due on deeds and reports after the date of credit acquisition;
- Used as a deduction from personal income taxes due on the return to be filed after the subsidized purchase;
- Used as an offset in the F24 form
3 - Youth Mortgage Under 36
There are also benefits from the state for young people who intend to apply for a mortgage to buy or renovate a first home.
- Guarantee of 80%. Consap guarantees mortgages up to 80% in value so as to facilitate access to credit even for those who do not have very high incomes or large savings. Consap stands for Concessionaria Servizi Assicurativi Pubblici SPA, it is a company that "manages" various funds such as the first home fund.
- Rate below the APRM (Average Global Effective Rate). By providing a guarantee, the state in return asks banks to charge a subsidized interest rate below the APRM, the average rate calculated periodically and also used as the basis for calculating the usury rate.
- Substitute tax exemption for loans provided for the purchase, construction and renovation of residential properties.
- Stamp duty exemption.
You can take advantage of the under 36 first home bonus even if the house in question is purchased through a real estate auction. This is clarified by the Internal Revenue Service in its answer No. 808 of Dec. 13, 2021, taking a cue from a question posed by a young buyer who was doubtful about taking advantage of this tax break.
If you have any questions or want more information, please do not hesitate to contact us at 0583 997201 or email firstname.lastname@example.org , we are available to help you in your search for your HOME!