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Italy's Government has announced that young people hoping to get on the property ladder can apply for the 'first home bonus' from June, a scheme offering tax cuts and help with mortgages.
The name is 'first home bonus' (Bonus prima casa), announced last week by Prime Minister Mario Draghi.
People under 36 years old who want to buy their first home can apply to get financial help from 24th June, with the scheme lasting a year.
The scheme aims to eliminate VAT on taxes relating to deeds transfers and the mortgage on the purchase of a home and help young homebuyers secure a mortgage.
Purchasing a property in Italy involves no small amount of added fees and taxes. Many property experts advise buyers that they'll need to budget as much as ten per cent of the property price for additional charges.
Who is it for?
People under 36 will benefit from two main types of help:
Firstly, there will be a raft of reductions on the taxes paid when buying a first home.
And secondly, taking out a mortgage is set to be made more straightforward, as the state will put down the deposit for young homebuyers.
Thanks to new funding from the 'First Home Loan Guarantee Fund' (Fondo di Garanzia Mutuo Prima Casa).
Firming up plans to help young people buy a home is the latest step following Draghi's pledge to boost the country's economy following the coronavirus crisis.
In a press conference earlier in May, he promised financial help would go to businesses, young people and healthcare services.
How can you access it?
For those hoping to buy their first property in Italy with state help, the bonus will run until 30th June 2022, and people under 36 years old are eligible to apply.
It's available to those with an 'ISEE' – a social-economic indicator of household income – of up to €40,000.
Young people falling into this category can benefit from certain exemptions on registration, mortgage and land registry tax, saving up to €9,000 on the costs of buying a first home.
Suppose you buy property from a private individual. In that case, the bonus cancels out the registration, mortgage and cadastral taxes, meaning that only stamp duty, mortgage taxes and special cadastral taxes remain paid, amounting to a total of €320.
And if you need a loan?
The Government decided to extend the First Home Loan Guarantee Fund.
The fund will cover 80% of the total value without a deposit – and the banks get a state guarantee.
What are the conditions?
To access the bonus, it must be your first home, and you'll need to keep in mind that not all properties can benefit from the Government's help, including stately homes, villas, castles and places of historical or artistic value.
The decree text appears to state that you'll also need not reach the age of 36 in the year. So that means if you're buying a house this year, you'll need to be no older than 35 for the whole year. In other words, if you sign the deed for a home this year, you'll need to turn 36 from next year onwards.
You can buy a house where you live or study or currently live.
You can't sell the property for five years – unless you buy another house.
More details in this link
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I'm Natalia Bertelli, an English/Spanish to Italian legal translator. Since 2008 I have been working on contracts, judicial deeds, certificates, corporate translations for foreign clients who want to do business in Italy, get a dual citizenship or simply settle in my beautiful country.