The property must not belong to the cadastral categories that identify luxury homes
The relief seems to be granted to those who move abroad for work purposes
If the purchaser of a property located in Italy has moved abroad for work reasons and has resided or carried out his or her activity in Italy for at least five years, either in the municipality of birth or in the municipality where he or she resided or carried out a business activity before the move, the person may be eligible for tax benefits on the property, provided it is the purchase of a first home.
This is the regulatory change that will be coming into force on June 14, 2023, and pending that DL 69/2023 be converted into law by August 12, 2023, brings benefit to Italians who buy in the territory but have moved abroad.
What does the discipline provide for?
Those who have lived in Italy for at least five years, moved abroad for work purposes, and bought a property in the territory provided that it does not fall into the cadastral categories A/1, A/8, or A/9 (luxury properties), can benefit from registration tax of 2%, mortgage, and cadastral taxes in the fixed amount of 50 euros each, or VAT at 4% and fixed registration mortgage and cadastral taxes in the amount of 200 euros each.
When does the relief apply?
To qualify for the relief, the homeowner must meet specific residency requirements, must not be in possession of other properties in the municipality of birth, and must not simultaneously enjoy the relief on other properties.
In more detail, the Italian buyer who has emigrated must prove:
- That the property does not belong to cadastral categories A/1, A/8 or A/9
- Has resided or carried out business in Italy for at least 5 years
- The property purchased in Italy is located in the municipality of the purchaser’s birthplace, or in the municipality where he or she resided or carried out business before moving abroad
When is one excluded from the benefit?
As stated in the rules, it is deduced that those who purchase a luxury property, who have not met the minimum period of residence in Italy of 5 years, and those who have moved abroad for reasons other than work are excluded from the benefit.
