In 2024, the first home bonus for young people under 36 continues to represent a significant opportunity for those who want to buy their own home. The Revenue Agency has recently published new instructions related to this incentive, aimed at encouraging the purchase of their first home by young people with an ISEE not exceeding 40,000 euros. Let’s see in detail how it works, what are the requirements and the main changes introduced for 2024
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What is the First Home Bonus for Under 36
The first home bonus under 36 is a tax advantage for young people who buy their first home. Introduced to facilitate access to real estate, this bonus offers tax exemptions and tax credits for those under 36 with an ISEE not exceeding
40,000 euros per year.
How does the Under 36 First Home Bonus work
The operation of the bonus was outlined by the 2024 Budget Law and then by the Milleproroghe Decree 2024. In particular, the bonus applies in the following cases:
- Registered Preliminary Contract: The preliminary home purchase agreement must have been signed and registered by December 31, 2023.
- Final Deed: The final act of sale must be concluded by December 31, 2024.
- ISEE Requirements and Age: The applicant must be under 36 years old and an ISEE not exceeding 40,000 euros per year.
The benefits include:
- Exemption from registration, mortgage and cadastral tax for acts of transfer for consideration of the ownership of “first homes” of residence, excluding those of category A1, A8 and A9.
- Tax credit equal to the VAT paid on the purchase for acts subject to VAT.
- Exemption from registration, stamp, mortgage and cadastral taxes, and taxes on government concessions for loans provided for the purchase, construction and renovation of the first home.
Requirements for the Under 36 First Home Bonus
The requirements to access the bonus are clear:
- Age: Not having reached 36 years of age in the calendar year in which the document is written.
- ISEE: Have an ordinary or current ISEE not exceeding 40,000 euros per year.
- Residence: Have or transfer the residence to the municipality where the property is located within 18 months of the purchase.
- Not Owning Other Properties: Do not own the ownership, usufruct, use or residence of another residential home in the Municipality where the property to be purchased is located.
The properties eligible for the benefit must fall into the cadastral categories A/2, A/3, A/4, A/5, A/6, A/7, A/11. The bonus also applies to the appliances of the subsidized property, such as garages or warehouses, limited to
one for each category.
How to Claim the First Youth Home Bonus
To request the bonus, it is necessary to apply directly to the bank or financial intermediary participating in the initiative, using the appropriate forms available on the ABI and Consap websites. For final acts concluded between January 1, 2024 and February 29, 2024, the bonus is recognized as a tax credit that can be used in 2025. The taxpayer must declare to the notary his willingness to avail himself of the benefit and certify that he meets the
necessary requirements.
What You Don’t Pay With the Under 36 Bonus
The bonus includes several exemptions:
- Purchase and sale taxes: Exemption from registration, mortgage and cadastral taxes.
- Tax Credit: For purchases subject to VAT, there is a tax credit equal to the VAT paid.
- Financing: Exemption from registration, stamp, mortgage and cadastral taxes for loans provided for the purchase, construction and renovation of the first home.
The tax credit can be used to reduce registration, mortgage, cadastral and inheritance and gift taxes, or to reduce the personal income tax due, or in compensation through the F24 model.
Expiry of the Under 36 First Home Bonus
The bonus expires on December 31, 2024 for young people with an ISEE not exceeding 40,000 euros who have registered a preliminary contract by December 31, 2023 and signed the final act by December 31, 2024. For acts signed between January 1 and February 29, 2024, the bonus is recognized as a tax credit that can be used in 2025
.
Exclusions
The concession is not allowed for the purchase of homes belonging to the cadastral categories A/1, A/8 and A/9. It does not apply to acts of transfer of ownership for consideration, nor to the establishment of real rights of enjoyment over
such properties.
Other Help for Buying a First Home
Although the first home bonus under 36 has been modified, there are still other benefits for young people who wish to buy a home, such as the soft loans offered by the Consap Fund. There are also other incentives for buying a first home, accessible to all age groups
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The first home bonus under 36 represents a significant opportunity for young people who wish to buy their first home. Understanding how it works and what the necessary requirements are is essential to make the most of this tax advantage.
