What happens if I sell the house within 5 years?

If you sell before 5 years without buying another first home within 1 year, you forfeit the benefit. You must pay the unpaid tax difference plus a 30% penalty and interest. If you buy again within 1 year, you keep the benefits.

Can I use the benefits if I buy with a mortgage?

Yes. The first home benefits are independent of the payment method. Even with a mortgage, the reduced tax applies at the time of signing.

Can I buy with benefits if I own a garage?

Yes. Owning ancillary properties (garage, cellar, parking space) does not prevent you from accessing first home benefits, as long as you do not own another property bought with the same benefits.

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First home tax benefits

Those buying their first home in Italy can benefit from a 2% registration tax instead of 9% (buying from a private seller), or 4% VAT instead of 10% (buying from a developer). To qualify, specific requirements must be met and declared in the notarial deed at the time of signing.

Authority

Agenzia delle Entrate

Time

1-2 ore (gestito dal notaio al rogito)

Updated

Apr 2026

What you need

✓Identity document and tax code
✓Purchase deed (rogito) with tax benefit declaration
✓Notary (mandatory for the deed)
✓Land registry search for the property (to verify cadastral category)

Step-by-step procedure

Check the requirements

To qualify for first home benefits you must: not own another property purchased with the same benefits in Italy; transfer your residence to the municipality of the property within 18 months of signing (if not already resident there); the property must not be luxury class (cadastral categories A1, A8, A9).

You can own shares of other properties without losing the benefit, as long as they are not primary homes purchased with the same benefits.

Declare the benefits to the notary

At the time of signing, you declare in the notarial deed that you wish to use the first home benefits and that you meet all requirements. The notary automatically applies the reduced tax (2% on the cadastral value or 4% VAT). No separate application is needed.

The minimum registration tax with benefits is €1,000. Even if 2% results in a lower amount, the minimum payable is €1,000.

Transfer your residence within 18 months

If at the time of signing you are not already resident in the municipality of the property, you have 18 months to transfer your residence. Submit the residence change notification to the municipality. Failing to transfer within the deadline results in forfeiture of the benefit.

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Agevolazioni prima casa, Agenzia delle Entrate

Agenzia delle Entrate

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Frequently asked questions

Responsible authority

Authority

Agenzia delle Entrate

Phone

800.909.696

Certified email

Website

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The information in this guide is for orientation only and does not constitute legal or tax advice. Always verify on the official portal of the responsible authority.