Effective 1 September 2026, the Italian tax authorities have clarified the application of the first-home repurchase tax credit (credito d’imposta per riacquisto prima casa) in the 2026 income tax return. This credit allows taxpayers who sell their primary residence and buy a new one within one year to offset the registration tax (imposta di registro) due on the new purchase, or alternatively to reduce other taxes such as mortgage, cadastral, succession, and donation taxes. The credit amount equals the registration tax paid on the previous first-home purchase, provided the sold property was the primary residence for at least five years.
Key Takeaways
- Eligibility and Timing: The credit applies only if the new property is purchased within 12 months of selling the previous primary residence. Both properties must qualify as “first home” (non-luxury, primary residence). The taxpayer must not own another residential property in the same municipality.
- Credit Utilization Flexibility: The credit can be used to offset registration tax on the new purchase directly at the notary, or claimed in the tax return (Quadro G of 730 or Quadro CR of Redditi PF) to reduce Irpef, mortgage, cadastral, succession, or donation taxes. Unused credit can be carried forward.
- Anti-Abuse Provisions: The credit is revoked if the new property is sold or rented out within five years, or if the taxpayer fails to establish residency within 18 months. The Agency emphasizes strict compliance checks, and taxpayers must retain all sale/purchase deeds and residency certificates.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement