First home subsidy under 36: clarifications from the tax agency on the extension


Emma Potter

Buying your first home represents an important step, especially for young people under 36 who can take advantage of significant tax breaks.

Recently, article 3 of the Milleproroghe decree (law decree no. 215/2023) introduced new provisions on the matter, and the Revenue Agency published circular no. 14/E of 18 June 2024 to provide operational clarifications on these innovations.

The clarifications concern, in particular, the possibility of presenting the ISEE certification even after the signing of the deed and the procedures for obtaining the tax credit.

What changes for those who intend to buy a house in 2024? What are the requirements and methods to benefit from the benefits?

Extension of the “First Home under 36” benefits

The paragraph 12-terdecies extension to 31 December 2024 the deadline for purchasing a home in order to take advantage of the “first home under 36” benefits. This benefit is reserved for those who have subscribed to e registered a preliminary contract by 31 December 2023.

The circular clarifies that this facilitation does not apply if the preliminary contract, although drawn up in 2023, was registered in 2024.

For deeds stipulated between 1 January and 29 February 2024, the circular specifies that if the buyer does not have a valid ISEE certification at the time of the deed, it is still possible to demonstrate compliance with the requirements by subsequently presenting an ISEE certification.

This certification must refer to the same family unit present on the date of signing of the deed.

This provision offers greater flexibility to buyers, allowing them to complete the necessary documentation even after signing the deed, thus avoiding complications and delays.

Tax credit for “First home under 36” benefits

The paragraph 12-quaterdecies instead it introduces a tax credit equal to the taxes paid in excess for deeds stipulated between 1 January 2024 and 29 February 2024. Buyers must declare to the notary, through a supplementary deed, their desire to take advantage of the tax benefits and to possess the necessary requirements.

The declaration must include the protocol number of the ISEE or DSU certification.

Furthermore, the supplementary deed:

  • It can also be stipulated after 31 December 2024.
  • It must be exempt from registration tax.

This eases the process for buyers, giving them more time to complete the necessary formalities without losing tax benefits.

The circular specifies that the tax benefit does not apply if the right to the property is acquired through an award report drawn up in 2023, even if the transfer decree is issued in 2024.

This clarification is essential to avoid misunderstandings regarding the time requirements for accessing the benefits. In fact, the legislation applies exclusively to preliminary contracts for the purchase of a home, not to other forms of acquisition of the right to the property.

Tax credit for subsequent purchases

In the case of a new purchase of a property subject to registration tax, the first home purchase tax credit, if used, is considered “neutral”. This means that the purchase made with the under 36 discounts does not affect the determination of the tax credit for any subsequent purchases.

In other words, using the tax credit for the first purchase does not reduce the benefit available for subsequent purchases.

If the new purchase deed is subject to VAT, the buyer can use the tax credit to offset the taxes paid, taking into account the benefits already used. This mechanism ensures that buyers can maximize the tax benefits available, without being penalized for having already taken advantage of the benefits previously.

In particular:

  • If the buyer has already used the “first home purchase” tax credit to offset taxes other than those currently due (for example, in relation to a deed of donation), he can still take advantage of the new tax credit referred to in article 3, paragraph 12-quaterdecies, of the Milleproroghe decree, for an amount equal to the taxes (VAT, registration and land registry mortgages in a fixed amount) paid net of the repurchase tax credit already used.
  • In the event of subsequent disposal and repurchase of another property for which the taxpayer is entitled to take advantage of the “first home” benefits, the tax credit will be calculated without considering the deed for which the tax benefit has already been used.” first home under 36″. This purchase will therefore be considered “neutral” for determining the repurchase tax credit.

Application for deeds stipulated from 1 March 2024

For deeds stipulated from 1 March 2024 to 31 December 2024, the previous provisions of circular no. continue to apply. 12/E of 2021. These include the criteria for the accrual of the buyback tax credit, provided for by article 7, paragraphs 1 and 2, of law no. 448/1998.

In particular, circular no. 12/E of 2021 provides clarifications on how to calculate and apply the tax credit for the purchase of a first home in the event of repurchasing another property.

The key points of circular no. 12/E of 2021 include:

  • Accrual of Tax Credit: The tax credit accrues at the time of the new purchase and can be used to offset the registration, mortgage and cadastral taxes due on the purchase itself.
  • Calculation of the Tax Credit: The credit is equal to the registration tax or VAT paid for the purchase of the previous property, up to the amount of the tax due for the new purchase.
  • Use of the Tax Credit: The credit can be used to offset registration, mortgage and cadastral taxes due for the purchase of the new property, or to offset other income taxes.

These provisions guarantee that buyers can continue to benefit from the tax breaks provided for the purchase of a first home even for deeds stipulated after 1 March 2024, maintaining regulatory continuity and offering essential clarifications for the correct application of the breaks.