how to buy a house without paying taxes

After the approval of the Dpb by the Council of Ministers, the Draghi government will enact the 2022 Budget Law in the coming days. bonuses already active, including that on the first home reserved for young people, launched in the spring with the Sostegni bis decree (a measure that also introduced the strengthening of guarantees to ensure that banks finance young people with mortgages up to 100% of the value of the houses ). In fact, the incentive for those who want to buy a first home and are under 36 years old, with an ISEE of up to 40 thousand euros per year, will not run out at the end of the year. In short, it involves the granting of a tax credit in the event of a purchase subject to VAT and the cancellation of mortgage, land registry and registry taxes. But let’s see in detail how it works and what you need to know about the home bonus for under 36s.

How the first home bonus works for young people under 36

The instructions for taking advantage of the tax bonus are contained in a circular from the Revenue Agency, signed by the director Ernesto Maria Ruffini. The tax concessions for young people under 36 who buy their first home are also valid for garages and appurtenances, and also in the case of purchases of properties from judicial auctions. The taxes due at the time of the compromise remain standing, however, but you can then ask for a refund once the final deed is signed. Having made this necessary premise, the Revenue Agency recalls the general outlines of the legislation: young people under 36 years of age and with an equivalent economic situation indicator (Isee) not exceeding 40 thousand euros who buy a house by June 30, 2022 (starting from May 26, the date of entry into force of the Sostegni bis decree).

With reference to the age limit, the legislator introduces an element of a personal nature, limiting the application of the facility to purchasers who “in the calendar year in which the translation deed is stipulated, have not yet completed the thirty-sixth year of age”. Let’s take an example to clarify:

  • Tizio, who will enter into a deed of purchase of a property for residential use in October 2021 and will turn 36 years of age in December 2021, will not benefit from the concession;
  • Caio, who will enter into a deed of purchase of a property for residential use in October 2021 and will turn 36 years of age in January 2022, will benefit from the subsidy if the other regulatory requirements are met.

The bonus provides several benefits, which also extend to the purchase of the main home appliances. Under 36s are entitled to exemption from the payment of registration, mortgage and cadastral tax and, in the case of a purchase subject to VAT, a tax credit equal to the tax paid for the purchase is also recognized, which may be used to subtract taxes due on deeds, reports and tax returns subsequent to the date of purchase or used in compensation, through F24. There is also an exemption from the substitute tax for loans granted for the purchase, construction and renovation of residential properties. On the other hand, the facility is not applicable to preliminary sales contracts, as it is envisaged only for translational or constitutive deeds for consideration. The properties admitted to the benefit include those classified or classifiable in the following cadastral categories:

  • A / 2 (civil dwellings);
  • A / 3 (economic housing);
  • A / 4 (popular housing);
  • A / 5 (ultra popular house);
  • A / 6 (rural house);
  • A / 7 (houses in small villas);
  • A / 11 (houses and accommodation typical of the places).

The concession is not allowed, however, for the purchase of a house belonging to the cadastral categories A / 1 (stately homes), A / 8 (houses in villas) and A / 9 (castles and palaces of eminent value historical and artistic). To benefit from the exemption, the beneficiary must declare the existence of the requirements in the contract or in an attached document. The preliminary sales, as mentioned, cannot enjoy the new concessions as the law refers only to translational or constitutive deeds for consideration. It is understood that, in the presence of the legal conditions, after the signing of the definitive sale contract, it is possible to present a formal request for reimbursement for the recovery of the proportional tax paid for advances and deposit pursuant to article 77 of the TUR ( Consolidated text of the registration tax). Finally, green light for properties purchased through a judicial auction, which can still access the benefit.

How to buy a house without paying taxes: the instructions

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