The Prima Casa Bonus in Italy

Buying a house in Italy is a dream for many: enjoying the sunshine, the rich heritage, and a slower pace of life… But beyond the emotional appeal, this purchase can also become a genuine tax opportunity thanks to the Bonus Prima Casa in Italy.

This scheme introduced by the Italian government aims to make homeownership more accessible for those who want to settle in Italy on a long-term basis. It offers a significant reduction in purchase taxes, provided the property becomes your primary residence.

In other words, the Bonus Prima Casa helps lower the costs of acquiring a home while encouraging long-term residency. It is a valuable benefit, but one that comes with strict rules.

In this article, we explain who can benefit from the Bonus Prima Casa in Italy, what conditions must be met, and what risks to avoid in case of mistakes or false declarations — so you can buy your home in Italy safely and with full knowledge of the process.

What is the Bonus Prima Casa in Italy?

The Bonus Prima Casa is a tax reduction granted when purchasing a first residence in Italy, designed to encourage those who wish to settle there on a permanent basis. In practice, it allows buyers to pay significantly less in taxes at the time of purchase:

• the registration tax drops from 9% to 2% on the cadastral value of the property,

• the mortgage and cadastral taxes are set at €50 each,

• if the purchase is subject to VAT, it is reduced from 10% to 4%.

These reductions often represent several thousand euros in savings for the buyer.

But the benefits do not stop there: by officially establishing your primary residence in Italy, the owner also benefits from full exemption from IMU, the Italian property tax.
Being a registered resident in the purchased property therefore not only reduces upfront costs, but also limits taxes over the long term — a double advantage for those who choose to live in Italy year-round.

Who can benefit from the Bonus Prima Casa?

To qualify for the Bonus Prima Casa, the buyer must meet several conditions set by the Agenzia delle Entrate. This scheme is intended for those who wish to buy a home in Italy and make it their primary residence on a long-term basis.

Here are the main eligibility requirements:

• The property must be located in the municipality where the buyer already resides or in the one where they commit to transferring their residence within 18 months of purchase;

• The buyer must not own another property purchased with the Bonus Prima Casa anywhere in Italy;

• They must not already hold a primary residence in the same municipality;

• The property must not be classified as a luxury home (cadastral categories A1, A8, or A9).

For foreign buyers, it is therefore essential to officially transfer their residence to Italy within 18 months of signing the notarial deed in order to qualify for the bonus.

Restrictions and conditions to be aware of

The Bonus Prima Casa offers significant tax advantages, but it comes with strict rules to follow in order to retain the tax relief.

IMU payment

Until you have officially transferred your primary residence to the purchased property, it is treated as a secondary residence.
During this period, you will be required to pay IMU (Imposta Municipale Unica), the Italian equivalent of a property tax. The full IMU exemption only applies once your residence is officially registered at that address.

Minimum ownership period

To retain the benefit of the Bonus Prima Casa, you must keep ownership of the property for at least five years.
If you sell before this deadline, you will be required to:

• repay the difference in taxes (for example, between 2% and 9% on the cadastral value),

• pay a 30% penalty,

• as well as late interest charges calculated from the date of purchase.

There is one exception: if you purchase another primary residence in Italy within the year following the sale, you retain the right to the bonus without penalty.

In the event of a resale before five years, the capital gain (plusvalenza) — the difference between the sale price and the original purchase price — is subject to a flat tax of 26%.

Common mistakes to avoid: misconceptions and oversights

Based on our clients' experience, certain mistakes come up repeatedly when buying a first home in Italy. The most common is assuming that administrative steps happen automatically. In reality, no one will contact you to remind you to pay the IMU or to check your situation. It is your responsibility to contact the municipality or the Agenzia delle Entrate to regularise your position as soon as you complete the purchase.
Failing to do so in time can result in late payment penalties or a tax reassessment if the authorities identify missing payments.

Another frequent mistake is assuming that the Bonus Prima Casa automatically applies to foreign buyers simply because it is their first property in Italy. This is not the case. The bonus only applies if you actually transfer your primary residence to Italy within 18 months of purchase.
The Agenzia delle Entrate can verify this very easily, in particular through electricity, water, and gas consumption data, as well as municipal records.
If it finds that you are not genuinely living in the property, the bonus is cancelled retroactively, and you will be required to repay the taxes along with penalties and interest.

Taking advantage of the Bonus Prima Casa is an excellent opportunity to reduce the cost of buying a home in Italy and lower your tax burden over the long term.
But to make the most of this benefit, you must comply with the residency deadlines, pay the IMU for as long as the property is not your primary home, and keep the property for at least five years before any resale.

Before signing, it is therefore strongly recommended to seek guidance from a lawyer or a tax adviser.
A professional can verify your eligibility, include the necessary clauses in the preliminary contract, and help you avoid the mistakes that lead to tax penalties.

Buying in Italy remains an exciting project — as long as you are well informed and properly supported.

FAQs

1 — Can non-residents benefit from the Bonus Prima Casa?

Yes, but only if you commit to transferring your residence to Italy within 18 months of purchase. Without this effective transfer, you lose the right to the bonus and will be required to repay the tax benefits received.

2 — When do you stop paying IMU on a property purchased with the Bonus Prima Casa?

You must pay the IMU for as long as the property is considered a secondary residence — that is, until your primary residence is officially registered in the municipality where the property is located. Once residency is recognised, you are exempt from the IMU.

3 — What happens if I sell the property before 5 years?

If you sell before 5 years, you lose the benefit of the Bonus Prima Casa. You will be required to repay the difference in taxes (2% → 9%), pay a 30% penalty, and cover late interest charges. There is an exception if you purchase a new primary residence in Italy within the year following the sale.

4 — Does the Bonus Prima Casa apply to holiday homes or rental investments?

No. The Bonus Prima Casa applies exclusively to primary residences. Secondary homes or properties intended for rental purposes are not eligible for the tax reduction.