Buying your first home is one of the most important milestones in a person’s life. It is a step that requires careful planning, knowledge of current regulations and an accurate assessment of your finances. With the year 2025 approaching, it is crucial to be up-to-date on all the news regarding tax breaks, legal procedures and costs associated with the purchase. In this article, we will explore the rules, steps and costs to be considered for successfully buying your first home.
1. The Rules for Buying your First Home
1.1 Requirements for access to tax breaks
In order to take advantage of the tax breaks for buying your first home, certain basic requirements must be met:
- residence: the buyer must transfer his/her residence to the municipality where the property is located within 18 months of the date of purchase. Alternatively, the property can be located in the municipality where the purchaser carries out their work/ business activity;
- first home: in order to benefit from the benefits, the purchaser must not be the owner, usufructuary or holder of other real rights of enjoyment over another home located in the same municipality. In addition, you must not have already benefited from the same benefits granted for the purchase of another home anywhere in the country;
- excluded land registry categories: luxury dwellings classified in land registry categories A1 (stately homes), A8 (villas) and A9 (castles and palaces of artistic or historical value) are not eligible for relief.
1.2 Tax concessions for 2025
In 2025, first-time home buyers can benefit from the following tax breaks:
- registration tax: for purchases from private parties, the registration tax is reduced to 2% of the land registry value of the property (instead of 9%). This is a considerable saving compared to buying a second home;
- reduced VAT: if the property is bought from a construction company within 4 years of the work being completed, the VAT applied is 4% instead of 10%;
- mortgage interest deductions: 19% of the interest paid on the mortgage can be deducted from income tax (IRPEF), up to a maximum of EUR 4,000 per year;
- other subsidies: some regions or municipalities may offer additional incentives, such as reduced local taxes or purchase contributions in certain geographical areas.
2. Steps for Buying your First Home
2.1 Financial Planning
The first step towards buying a house is financial planning. It is essential to make a detailed analysis of your finances to determine the budget available. This includes:
- calculating the mortgage payments: the mortgage instalments should be sustainable in relation to household income. A rule of thumb is that a monthly payment should not exceed 30-35% of net disposable income;
- consideration of ancillary costs: in addition to the price of the property, taxes, notary fees and other costs associated with the purchase must also be taken into account.
2.2 Property Search
Searching for the ideal property can be a long but crucial process. We recommend exploring different options, using:
- online property portals: these offer a wide range of properties where you can apply filters by price, area and features;
- qualified real estate advisers: they provide personalised support and accompany the buyer in all stages;
- property visits: it is important to visit properties in person, assessing not just the dwelling but also its surroundings (services, transport, security).
2.3 The Buying Process
Once you have identified the property you wish to buy, the buying process involves several stages:
- purchase offer: this is the first formal step. At this stage, a price is offered to the seller, subject to the fulfilment of certain conditions (e.g. obtaining a mortgage);
- preliminary sale and purchase agreement: also known in Italian as a compromesso, it is a contract binding both parties to conclude the sale. It provides for the payment of a deposit, which usually amounts to 10-20% of the purchase price;
- deed of sale (Rogito): this is the final document that officially transfers ownership of the property. The deed is concluded before a notary, who verifies the regularity of all documentation.
2.4 Taking out a Mortgage
Most buyers finance the purchase of their first home through a mortgage loan. Here are the aspects you must consider:
- types of mortgage: fixed-rate, variable-rate or mixed-rate mortgage. Each of these has pros and cons that have to be weighed against your own financial situation and market forecasts;
- required documentation: this includes identity documents, tax returns, documentation on the property and the purchase offer;
- choice of bank: we recommend comparing offers from several banks in order to obtain a mortgage at the best conditions. Negotiating the interest rate and other contractual conditions is crucial for long-term savings.
3. Costs to be Taken into Account
3.1 Fixed Costs
Fixed costs represent the largest part of the investment:
- purchase price of the property: the figure agreed with the seller;
- taxes and fees:
– registration tax (2% of the land registry value);
– VAT (4% if purchasing from a company);
– land registry and mortgage duties (a total of EUR 100 if buying with first home benefits); - notary’s fee: the notary’s fee varies according to the value of the property and the complexity of the deed. On average, it can range from EUR 1,500 to 3,000.
3.2 Variable Costs
These costs can vary according to personal choice and the specifics of the purchase:
- real estate advisor fees: if a real estate professional is used in the buying process, there will be a fee, usually between 2% and 4% of the purchase price;
- compulsory insurance: some mortgages require insurance on the property, e.g. against fire and explosions;
- renovation work: if the property needs renovation work, a renovation budget should be provided for.
3.3 Other Costs and Fees
In addition to the main costs, there are other expenses to consider:
- moving costs: the cost depends on the distance and number of items to be transported;
- furnishing and customisation: if the property is new or empty, furniture and accessories will have to be purchased.
Buying your first home is a complex process that requires good planning and in-depth knowledge of the applicable regulations, so it is always advisable to consult a professional, such as a real estate advisor, for knowledgeable support throughout the process.
