House purchase by auction: the first home bonus is valid

The application for tax relief for the purchase of the first house must be made before the transfer order.

Turin - Palazzo Madama
Turin – Palazzo Madama

Buying an auction house can be a big plus. With the online auction portal, you can stay informed of the progress of judicial sales of all assets attached or for which bankruptcy proceedings are ongoing. Research may be limited to houses located in a specific geographic area and within specific price limits. You should almost never participate in the first sale because, in the event that the auction is deserted (that is, in the absence of bidders), at subsequent auctions, the judge may order a reduction of 25%. This is certainly a speculative attitude that is in the end very often the goal of those who buy at auction. In addition to the normal rebate in relation to the market price, home buyers can also benefit from the first housing bonus, ie the tax advantage reserved for those who buy real estate – the first real estate – in the municipality where they have their home or transfer it 18 months after the purchase. A recent decision of the Sondrio Provincial Tax Commission confirmed this. The pronunciation has the important merit of establishing what you need to do to use the first home bonus on the auction purchases.

Let’s see more in detail what was said.

We do not need to repeat, in this article, all aspects of tax relief for the first home, including the IMU exemption, the property tax. Just remember that it applies to those who have never benefited from the same bonus before and have no other property in the municipality where the house to buy is located. You can get the bonus if you transfer your home within a maximum of 18 months from the purchase in the municipality where the house is located.

  • The first home bonus
  • Does the first home bonus apply to real estate purchases at court auctions?
  • When claiming the first home home bonus for forensic sales?

The first home bonus

The bonus brings a significant advantage in terms of paying taxes. If the seller is an individual or a company that sells VAT-free, you pay:

  • Proportional register fee of 2% (instead of 9%);
  • Fixed mortgage tax of 50 euros;
  • Fixed register tax of 50 euros.

If the seller is a company, with a sale subject to VAT (typical of the manufacturer), you pay:

  • VAT reduced to 4% (instead of 10% VAT for buildings A / 1, A / 8 and A / 9 is 22%);
  • Fixed registration fee of 200 euros;
  • Fixed mortgage tax of 200 euros;
  • Fixed register tax of 200 euros.
Does the first home bonus apply to real estate purchases at court auctions?

The first house bonus also applies to those who buy a property at auction at the courts. But beware: in order to benefit from the subsidy, it is necessary that the application to benefit from the benefit is presented before registration of the transfer decree with the relevant tax agency. Later, it is impossible to get the bonus. This is the clarification provided by the Sondrio CTP.

When to apply for the first house bonus for judicial sales?

The judge pointed out that auctions can certainly benefit from the first housing subsidy if the taxpayer declares that he wants to make use of the facilitation at the same time as he asks to be auctioned. This declaration can therefore also be inserted later, with a supplementary act, even after the publication of the decree of transfer, but with the insurmountable delay of the moment of registration of this decree with the Revenue Agency. On this point, the Supreme Court also agrees that it has adopted the same interpretation in the past.

Therefore, if the application for use of the bonus is submitted after the registration of the transfer decree, there is no longer any possibility of obtaining the tax benefit.

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