“Price is what you pay. Value is what you get.” Warren Buffett

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The term PRIMA CASA – “the primary / first residence” refers to a tax benefit that can be used by anyone who purchases their first main residential property in Italy.

What does this benefit currently provide?

If the seller of the property is an individual, then you will pay a discounted registration fee. It will be 2% of the cadastral value of the purchased property (instead of the standard 9%).

If you buy real estate from a legal entity, for example, from a real estate developer, then VAT is charged at the rate of 4% of the market value of the purchased property (instead of the standard 10%).

Requirements for the Purchased Property and the Buyer.

When making a decision to request a Prima Casa tax benefit, it is important to remember that there are certain conditions and requirements in relation to the property to be purchased and in relation to the Buyer, namely:

  • the property must belong to the cadastral category A (residential property) or C2, C6, C7 (adjacent buildings and parking) ” Immobile ad uso abitativo e relative pertinenze”;
  • the property to be purchased must not be luxury real estate (cadastral categories A1, A8, A9);
  • the buyer can only be an individual;
  • the purchased property must be located in the municipality where the buyer intends to acquire a residence permit within 18 months from the date of becoming the owner of the real estate (the application is made in the presence of a notary and is prepared in writing in the form of a notarized document);
  • at the time taking ownership, the buyer must also declare that he does not own (either in full or in part) other real estate either in the territory of the municipality and the region, or in the entire territory of the Italian Republic.

What to do if, for some reason, the buyer is not able to get a residence permit within the established time frame?

If you are unable to obtain a residence permit within the established time frame, you will need to apply for a waiver of the tax benefit by submitting an application to the tax revenue agency and attach the necessary documentation.

I hope this article was of use. You can always get more detailed information on this issue by contacting us for advice.