get dual citizenship blog
English to Italian Legal Translation Blog
e You Under 36? Here's How You Can Buy Property in Italy!
In Italy, the government has decided to prolong the 'first home bonus' until June 30, 2023. Therefore, anyone looking to purchase a property in the country should be aware of the details of this incentive.
The Italian government implemented the 'Bonus prima casa' in June of last year with the aim of creating opportunities for younger individuals to purchase their initial home and to stimulate the real estate market.
In this year's Budget Law, it was announced that the incentive for those looking to buy their first property would be extended until the end of June 2023.
The goal is to reduce the initial expense of purchasing a house, which includes charges for deed transfers and a loan - and extend assistance to those of a younger generation to acquire a loan.
What discounts does this bonus entail?
This bonus offers exemptions from registration, mortgage, and cadastral taxes.
The Inland Revenue Agency of Italy ( Agenzia delle Entrate ) has outlined the potential tax advantages that could be claimed, as per guidelines.
Below is the list of those benefits:
· There is no registration tax, which is usually 2% of the cadastral value;
· Nor is there a mortgage and land registry tax, which would have been €50 each;
· If the seller is a private individual, the taxes are non-existent;
· However, if the seller is charging VAT, such as a building company, the sale is subject to stamp duty and mortgage taxes, amounting to a total of €320. This is then nullified, as the buyer receives a tax credit of the same amount;
· Since the 4% VAT is cancelled out, when buying from a builder it is effectively non-existent;
· There is also an exemption from the 0.25% loan tax for financing for the purchase, construction or renovation of the first home.
The First Home Loan Guarantee Bonus (Bonus mutui prima casa) will assist those getting a mortgage by covering up to 80% of the total value of the property, with a maximum of € 250,000.
The State offers a guarantee to banks, which facilitates the granting of loans to those who may have been refused them, such as the self-employed, making it simpler for them to get credit.
Who can buy property in Italy?
Youths who are under the age of 36 are regarded as being qualified for this incentive in Italy, although if you're inching close to that age, it will depend on the date of your birthday to decide if you can get the bonus.
In 2022, the law allows a discount to be given to those who purchase their first home and are not older than 35 years for that entire year.
How to buy property in Italy as an American?
Irrespective of citizenship, anyone can avail the benefits of this offer. Furthermore, it is not necessary to be a resident of the area where the property is located, provided you agree to settle there within 8 months of the acquisition.
One important requirement is age: if you make a purchase in May 2023 and reach the age of 36 by December of that year, you are not able to receive the discount. However, if you purchase in September 2023 and reach 36 years of age in January 2024, you can take advantage of the offer.
Besides age requirements, other prerequisites must be met.
· Your ISEE is under €40,000 yearly;
· Your mortgage debt is not more than €250,000;
· The house bought will be used solely as a residence and not be defined as a luxury dwelling https://www.studiolegalemetta.com/en/italian-luxury-property-purchase/;
· You don't have to have an unlimited work contract (tempo indeterminato), since the state funds are available to freelancers and temporary workers, as long as they meet the criteria above.
Things to Bear in Mind
This bonus can only be claimed if this is your initial property, however, remember that not all properties qualify for this bonus program.
Exceptions are made for those known as luxury properties, such as villas, castles and buildings of historical significance.
Need help with translations to get your mortgage? I can help!
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.