Buying in Italy: “prima casa” or “seconda casa”?

As a preliminary remark, it’s essential to say that the amount of tax to pay when you buy a prima casa, primary residence, is lower than when you buy a seconda casa, holiday home; that’s why it is relevant to know if you are going to buy one or the other.

In very simple words, you can enjoy the prima casa tax break if you are going to reside and establish your main residence in that property within 18 months from purchasing it. Otherwise, you are going to buy a seconda casa – holiday home.

You can claim the prima casa tax relief even if you are not going to move your permanent residency there if you have lived or worked in Italy for at least five years, have moved out of Italy for work reasons and are going to buy in the town you lived or worked or were born.

The tax relief applicable to the purchase of the prima casa, however, is not applicable if your dream home falls in some categories such as: A/1 luxury properties, A/8 villas, A/9 castles and palaces (we’ll talk about cadastral categories in one of the next newsletters).

Bear in mind that if you have claimed the tax relief for prima casa, and sell that property within five years, you lose your tax relief and have to pay the difference between the lower tax rate you enjoyed and the full tax rate, and you could also be fined.

If you sell within five years, but you buy within one year another property for which you can claim the tax relief for acquisto prima casa, you don’t have to pay the difference nor are subject to fines. We’ll talk about the amount of taxes to pay when buying a property in one of the next newsletters.
The notary involved in the purchase of your property is due to work out the taxes you will have to pay.

Sources: https://www.agenziaentrate.gov.it/portale/web/guest/schede/agevolazioni/scheda-acquisto-prima-casa/infogen-agevolazioni-acquisto-prima-casa
https://www.agenziaentrate.gov.it/portale/documents/20143/5866239/Circolare+n+3_del+16_2_2024.pdf/6e8e87f4-a360-b3c0-8b0b-475cf43ab2d8

This article is not exhaustive and is a guidance only.

If you need assistance in the buying process in Italy, please do get in touch.

Barbara De Benedittis Relocation and Legal in Italy