Am I eligible for relief when I buy property in Italy?

Yes, there are tax benefits in Italy that may be available to those buying a property

1. Prima Casa Tax Credit:
   • Registration Tax (Imposta di Registro): Instead of the standard 9% rate, a first-time home buyer pays a reduced tax of 2% of the property’s cadastral value. There is also a minimum tax amount, which is €1,000.
   • The cadastral tax (Imposta Catastale) and the mortgage tax (Imposta Ipotecaria): For a first home, each of these taxes is only 50 euros, regardless of the value of the property.
2. VAT (IVA) for the property from the developer:
   • If you are buying a property directly from a developer and it is your first home, the VAT rate is 4% instead of the standard 10% or 22%. This significantly reduces the cost of the purchase.

To take advantage of Prima Casa’s tax benefits, you must meet certain conditions:

• You cannot own on your own another home in Italy for which you have already received Prima Casa relief.
• You must register in the municipality where the property is located (or already live there) within 18 months of purchase.
• You cannot sell the property for another 5 years unless you acquire another property under the terms of Prima Casa within a year.