1st home in Italy: the cost of taxes to buy it

House at Pontremoli Italy
House at Pontremoli – Italy

You should know that, if you are resident abroad, you must establish your residence in Italy if you want to buy a home as your first home to benefit from the associated reduced taxation.

Buying the first home is a very important step for many people and should be carefully considered. In this sense, an error that could be made in the first stages of the research is to consider only the sale value of the house.

In addition to the cost of the property itself, when we decide to buy a house, we actually have to take into account other expenses that the tax authorities impose on us: some fixed and annual, others one-off. However, it must be considered, more specifically, that the taxes for the purchase of the first home are regulated differently and benefit from certain special measures: here is what they are, how much they could be and how they are calculated.

What taxes are paid to buy a house in general

Before addressing the specific case of buying a first home, it would be useful to clarify more generally what taxes are required when buying a property. Wanting to simplify the possible scenarios, we could say that the taxes vary according to two conditions:

  1. The seller is an individual or a company whose sales are exempt from VAT
  2. the seller is a company whose sales are subject to VAT.

In the first situation, the buyer will have to pay:

  • proportional registration tax of 9%
  • mortgage tax – 50 euros
  • Cadastral tax – 50 euros

In the second case, you will have to pay:

  • VAT – 10% (or 22% if the property belongs to cadastral categories A / 1, A / 8 or A / 9)
  • Registration fee – 200 euros
  • Mortgage tax – 200 euros
  • Cadastral tax – 200 euros

First time home purchase: taxes and bonuses

When it comes to buying your first home, taxes and duties are calculated differently, as statutory concessions apply.

In short, taxes are not completely eliminated, but are reduced in both of the above cases. It does not matter whether you buy the main residence from an individual, from a company that can sell VAT free or from a company whose sales are subject to VAT: well-defined “first housing taxes” apply in all these contexts. . Here are which ones.

Purchase and sale from individuals or companies with sales excluding VAT

As the Revenue Agency’s example prospectus makes clear, if you are buying your first home from an individual or business with a VAT-free sale, the taxes payable are as follows:

  • Registration tax – at 2% (with a minimum of 1000 euros)
  • Mortgage tax – 50 euros
  • Cadastral tax – 50 euros

Purchase and sale from a company whose sales are subject to VAT

In the event that you are buying your home from a company whose sales are subject to VAT, the taxes you will need to pay are:

  • VAT – at 4%
  • Registration fee – 200 euros
  • Mortgage tax – 200 euros
  • Cadastral tax – 200 euros

First-time home tax breaks: when they are not applied

There are exceptions to the tax breaks on the taxes for the first home purchase. The “discounts” in fact do not apply. The house belongs to certain cadastral categories, which we could define very generically as “luxury”.

More specifically, if the property you are interested in is classified as

  • A / 1 – stately homes
  • A / 8 – houses in villas
  • A / 9 – castles and palaces of exceptional artistic and historical value

it is not among those who can get tax breaks.

Main residence: what taxes for garages, garages and warehouses?

A full assessment of the tax liabilities for the purchase of the first house cannot fail to take into account the so-called outbuildings, that is, warehouses and garages, closed or open sheds. In these cases, what tax applies?

Also in this case, the indications from the Revenue Agency are clear: in the situations just mentioned, and which therefore fall under the cadastral categories

  • C / 2 (warehouses and storage rooms)
  • C / 6 (remittances and garages)
  • C / 7 (awnings),

the same subsidized taxes apply to the purchase of the first home.

The fundamental condition to be respected is that the outbuildings are permanently intended to serve the main residence; and that in turn, the latter was purchased with the “first house” concessions.

Imu, Tari and Tasi: other taxes and exemptions for the first house

Among the taxes that the owner will have to pay annually to the municipality, there are no Imu and Tasi. The first house, in fact, is exempt from the payment of these two taxes, but under certain conditions: the property must not be classified as luxury, that is to say enter cadastral categories A / 1, A / 8 or A / 9; the property in question must be the taxpayer’s first residence; the house must be the habitual residence of the taxpayer and all his family.

So what do you have to pay? The Tari, that is to say the tax on waste, the cost of which varies according to the size of the property and the number of inhabitants of the municipality in which it is located.

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