The IRS instructions relating to the first home bonus under 36 have been updated for 2024. This benefit aims to encourage the purchase of their first home by young people with an ISEE not exceeding 40,000 euros. Milleproroghe 2024, converted into law,
extended the benefit.
What is the first home bonus for under 36
The “first home under 36” bonus in 2024 is a tax advantage for young people under 36 who buy their first home.
The 2024 Budget Law and the Milleproroghe Decree 2024, converted into law, provide for tax exemptions and tax credits to facilitate the purchase of a first home for those with an ISEE not exceeding 40,000 euros per
year.
How does the first home bonus under 36 work in 2024
The updated instructions from the tax agency make it clear that:
- the preliminary home purchase agreement must be registered by December 31, 2023.
- the final act, also for the transfer of ownership from building cooperatives to members, must be signed by December 31, 2024.
- the purchase must concern the first residential home and the buyer must be under 36 years old with an ISEE not exceeding 40,000 euros per year.
Discounts recognized by the bonus under 36 in 2024
The first home under 36 bonus in 2024 includes:
- exemption from registration, mortgage and cadastral tax for transferable acts for consideration of the ownership of “first homes” of residence (excluding cadastral categories A1, A8 and A9).
- tax credit equal to the VAT paid for purchases subject to VAT, usable in 2025.
- exemption from registration, stamp, mortgage and cadastral taxes and from taxes on government concessions for loans provided for the purchase, construction and renovation of residential properties.
Requirements for the first home bonus under 36
The bonus was due to those who met the following requirements:
- not have reached 36 years of age in the calendar year in which the document is drafted.
- have an ISEE not exceeding 40,000 euros per year.
- not be owners of ownership, usufruct, use and residence rights of another house in the Municipality where the property to be purchased is located.
- do not own another property purchased with the first home benefit (or sell it within one year of the new purchase).
- have the residence in the Municipality of the purchased property or transfer it within 18 months of the purchase.
The properties eligible for the benefit are those classified in the cadastral categories A/2, A/3, A/4, A/5, A/6, A/7 and A/11, and the appurtenances classified as C/2, C/6 and C/7.
How to apply for the youth first home bonus
The application for the first home bonus for young people under 36 in 2024 can be submitted directly to the participating bank or financial intermediary, using the forms available on the website of the tax agency. The final acts signed between January 1, 2024 and February 29, 2024 can take advantage of the bonus as a tax credit that can be used in 2025
.
Expiry of the first home bonus under 36
The bonus expires on December 31, 2024 for those who signed the preliminary contract by December 31, 2023 and sign the final contract by December 31, 2024.
Exclusions
The concession is not allowed for the purchase of homes in the cadastral category A/1, A/8 and A/9. It applies to all acts involving the transfer of ownership for consideration or the establishment of real rights of enjoyment
.
Other help for buying a first home
Despite the abolition of the first home bonus under 36 since 2024, young people can access subsidized funding thanks to the Consap Fund. For more information on first home bonuses, consult the dedicated guides
.
