Budget Law 2025: 2 years to sell "first home" and major tax breaks
Among the new regulations in the Budget Law2025, we want to point out a very interesting regulation for those who are thinking of buying a home.
Until December 31, 2024infact, all those who had purchased a property with "first home" benefits had only one year to sell or donate the property they already owned. From January 1, 2025, the time limit doubles to two years, giving owners more flexibility. Therefore, not only will you have more time to sell (or donate) the property but, during this time, you will not lose the tax benefit of the 2 percent registration tax.
Who is eligible for these benefits?
- All colors entering into a deed as of January 1, 2025;
- All those who entered into a 2024 deed and did not sell the property by the end of the year.
Who will not fall under this regulation?
- All those for whom the old one-year time limit for sale has expired.
All the tax blessings of the "first home" tax break:
A necessary premise; the economic benefits that this legislation offers are economically significant!
- VAT will in fact be reduced from 10 percent to 4 percent for purchases by construction companies;
- Registration tax reduced from 9% to 2% for purchases by individuals;
- mortgage and cadastral taxes of 50 euros each for purchases from individuals and 200 euros for purchases from businesses. In the case of inheritance, on the other hand, a fixed sum of 200 euros applies instead of the 3 percent rate.
All requirements to qualify for "first home" relief:
- the property must not fall into cadastral categories A/1 (luxury housing), A/8 (villas) and A/9 (castles);
- the purchaser must establish residence in the municipality of the property within 18 months of purchase or prove that he or she is working or studying there;
- the purchaser must not own other homes in the same municipality as the one benefiting from the benefits, and must not own, even in share, other homes purchased with "first home" benefits throughout the country.
This new norm is an important facilitation of the housing market in that it favors in timing those who intend to change homes and can do so with more flexibility and less pressure. It facilitates all players in the housing market: homeowners, buyers, and movers. The economic benefits at the tax level are extremely significant and impactful in the decision to buy or sell a property.