The ownership of a house has always been a life goal for Italians, and an increasing number of young people are choosing to purchase a home rather than rent. According to an analysis conducted by Milano Finanza, 86% of Italians prefer buying a home. Homeownership is becoming increasingly crucial, serving as a source of security and stability, a valuable asset to be protected and maintained with care.

Among young people, concerns about mortgages and housing prices in the long term persist. For these reasons, the Youth First Home Bonus, a government incentive for individuals under 36 purchasing their first home, has been extended for this year through the 2022 Budget Law.

WHAT IS THE YOUTH FIRST HOME BONUS?

The Youth First Home Bonus, extended until December 31, 2022, is a measure in favor of individuals under 36 who intend to purchase their first home. It consists of a series of fiscal and non-fiscal benefits aimed at encouraging the housing autonomy of young individuals with a maximum ISEE (Equivalent Economic Situation Indicator) of 40,000 euros. These measures apply to the purchase of the “first home” and also extend to related properties, such as garages and/or cellars.

WHAT ARE THE BENEFITS?

The regulation essentially provides two types of benefits:

Access to credit for the purchase: This refers to the First Home Guarantee Fund, in which the government supports 80% of the first home purchase. Tax benefits: Exemption from registration tax and mortgage and cadastral taxes. 50% reduction in notary fees. Tax credit equal to the paid VAT.

WHAT ARE THE REQUIREMENTS FOR THE BENEFITS?

The Sostegni-bis Decree stipulates that to qualify for the benefits, the buyer must meet the following requirements:

Not have reached the age of 36 in the year the deed is signed. ISEE lower than 40,000 euros. Establish residency, within 18 months of the purchase deed, in the municipality where the facilitated property is located. Not be the owner, exclusively or in communion with the spouse, of rights of ownership, usufruct, use and residence, on another house in the municipality where the facilitated property is located. Not be the owner, even in part or in legal communion, anywhere in the country, of rights of ownership, use, usufruct, residence, or naked ownership, on another property purchased, even by the spouse, using the same “first home” incentives for divided and undivided cooperative members. The property must not be luxurious but fall within the cadastral categories from A2 to A7 and A11. The purchase of any related properties, such as a garage, cellar, or box, is also covered by the bonus.

The under 36 first home bonus is valid for deeds signed between May 26, 2021, and December 31, 2022. The legislation introducing these benefits also outlines the consequences in case of “non-existence” of the conditions and requirements, including the recovery of due taxes, the application of interest, and the imposition of sanctions, as established for cases of forfeiture of first home benefits.

The Alma Residence team is available to assist individuals under 36 who intend to purchase a home. For more information on the regulations, click here.