First House

Tax’s reduction

First house – Tax’s reduction
Principal requirement: the purchase refers to not- luxury buildings (D.M.LL.PP. 2 – 8 -1969)
In case of first house’s purchase, the registration tax is reduced to 2%: the mortgage’s taxes and cadastral’s taxes are fixed to 50€.
To define a building “first house” there must be some conditions:
a) Buyer must be resident in the municipality where the house is located, otherwise must be resident within 18 months from purchase;
b) Buyer can’t be owner of other house in the same municipality ;
c) Buyer can’t be owner for quotes also even under the system of legal communion of properties, usufruct, use or bare ownership, on an other house, in Italy, bought by himself or by the spouse thanks to “first house’s” facilities

The facilities, belong to the purchase of appliances, if intented for house use not more than two, also in case of separated document.
It’s possible purchase like a “first house” leased real estates.

PEEP – Zone 167/62

The price of purchase in PEEp 167/62 is established by original Convention. It’s important to redeem the surface’s right.


Credit Tax awaits to those wich have sold their first house, buyed thanks to facilities guaranteed planned for registration’s duty and IVA, and within a year they purchase another building as first house.
To achieve Credit Tax, there must be some condintions:
– The real estate was purchased using “first house’s” facilities (also through barter or procurement)
– The purchase was done withina a year from sale of another real estate, using “first house’s” facilities (or purchased thanks to aliquote of IVA reduced by construction’s company according to legislation until May, 22 1993)
– Isn’t deprived first house’s benefit

The amount of credit’s tax is equal to amount of register’s tax, or IVA, paid for first facilited purchase; however the sum can’t be higher than register’s tax or tha IVA in relation to second purchase.


Municipalities release facilities of IMU every year.

Income resulting from real estate’s unit used as first house isn’t subject to IRPEF.
The amount of total income’s deduction is equal to the cadastral income’s amount of the real estate used as first house.
The deduction concerns the interest expenses relating to the mortgages stipulated for the purchase of the main home or others buildings or restorings, but also the ancillary charges such as the costs for taking out the mortgage, and the revaluation quotas, for example if there is a clause in the contract that provides for the indexing of capital.

On mortgages for the purchase of the first home, the law provides for a deduction of 19%, calculated on a maximum amount of € 4,000.
The tax deduction can be recognized on condition that:

– the property is used as a main residence within a year of purchase
– the purchase of the real estate unit must be made in the year preceding or following the date of the loan stipulation.
The purchase of a leased property does not lose the right to deduct the passive interest of the mortgage provided that:
– within three months of purchase, the lessee has been notified of the act of licensing or eviction for the end of the rental;
-within a year from the release of the property, it is used as a main residence.

The property in which the taxpayer habitually lives (residence) is considered a property used as a main residence.
The deduction for interest paid is not lost in the event that the property purchased is subject to building renovation, proven by the building permit or equivalent act.

In this case, the deduction is due from the date on which the real estate unit is used as a habitual residence, and in any case within two years of purchase.

If the mortgage is made out to both spouses, each of them can benefit from the deduction only for their own share of interest; but in the case of a spouse fiscally dependent on the other, the deduction is up to the latter for both shares.

If the mortgage has been taken out by several people, for example husband and wife, the € 4,000 limit to be reported in the declaration must be divided between them if the mortgage was turned on after January 1, 1993, while if the mortgage was turned on first, the 19% deduction on a maximum amount of € 4,000 is due to each person who has taken out the mortgage.

There are no deductions if the mortgage is stipulated for the purchase of a house property, for example the garage or the cellar.
There is the possibility of deducting interest expense relating to loans for renovation and / or construction of the main house up to a maximum of € 2,582.28.
The deadline to use the property as a main home is six months from the stipulation.