Question 1

What are the tax benefits of buying a 'Prima Casa' (First Home) in Italy?

Accepted Answer

Buying a primary residence benefits from substantially reduced tax rates: if purchased from a private seller, the registration tax (Imposta di Registro) drops from 9% to 2% and mortgage/cadastral taxes are fixed at €50 each. If bought from a builder, VAT (IVA) is reduced from 10% to 4%.

Question 2

What is the 'Prezzo-Valore' mechanism?

Accepted Answer

The Prezzo-Valore statutory rule allows private buyers of residential homes to pay registration tax based on the cadastral value of the property (Rendita Catastale × 1.05 × 110 for primary homes, or × 126 for second homes), rather than the actual agreed commercial purchase price.

Question 3

What conditions must be met to qualify for Prima Casa tax relief?

Accepted Answer

The buyer must: 1) not own another residential property in the same municipality; 2) not own another home purchased with Prima Casa benefits anywhere in Italy (or sell it within 1 year); 3) establish registered residency in the municipality within 18 months of closing; and 4) the property must not be classified as a luxury home (A/1, A/8, A/9).

Question 4

Is there a minimum registration tax in Italy?

Accepted Answer

Yes, whenever proportional registration tax (Imposta di Registro) is due on a deed of transfer, the minimum statutory charge cannot be less than €1,000.

Question 5

What taxes apply when buying from a developer or construction company?

Accepted Answer

When buying from a builder within 5 years of construction completion (or if the company elects VAT treatment), the purchase is subject to 4% IVA for a Prima Casa (or 10% for a second home) calculated on the actual contract price, plus fixed taxes of €200 for Registro, €200 for Ipotecaria, and €200 for Catastale.

Italy Prima Casa Registration Tax Calculator

Transaction Values & Seller Type

Statutory Real Estate Taxation Ledger