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NEWS - First home purchase: all the 2018 tax reductions


First home purchase: all the 2018 tax reductions

  • 2018-January-31
Thanks to the 2018 tax innovations, it is possible to save money on VAT, registration fee and a part of the personal income tax. Let’s see in detail these first-home fiscal aids:  
  • application of a fixed registration fee equivalent to 2%
  • application of mortgage taxes and cadastral duties equivalent to € 50 each
  • if the sale is subject to VAT, the purchaser must also pay a fixed € 200 fee including the registration fee, the mortgage tax and the cadastral duty, in addition to a reduced 4% VAT fee.
  These fiscal aids are charged to the purchaser who, alternatively:
  • lives in the municipality where the property is located
  • undertakes to move his residence there within 18 months after the purchase
  • works in the above-mentioned municipality. 
This bonus doesn’t include houses belonging to one of the following cadastral categories: A1 (elegant houses), A8 (residential villas), A9, (castles and buildings of artistic and historical merit/luxury houses).   If the purchase is performed through an estate agency, a 19% income tax deduction is foreseen for a sum not higher than € 1,000. According to the 2018 First-Home Bonus, a tax credit is also foreseen for those who sell their house and purchase a new one.   People who receive a property by inheritance or donation must pay a € 200 mortgage tax/cadastral duty, in line with the duty paid when purchasing a property from a construction company. In these cases, the Revenue Agency checks the presence of all the declared and necessary requirements.   In case of false declarations, the purchaser not only loses the tax reductions granted, but he is also obliged to pay a fine equivalent to 30%.   The classification of a property in the luxury category is made according to a series of criteria, among which its surface. A property with a surface exceeding 300 square metres is subject to a registration fee. In fact, the “habitative” potential of a property is not important. On the contrary, it is important to remember that the property surface always includes the basement and the attic, i.e. all the rooms that – though not having the requirements foreseen by the Building Regulation for “habitability” - increase the floor space of the property.

Monica Castiglioni

The legislative and fiscal news from the real estate sector and the latest living ad housing trends under the lens of your trusted consultant.