Time and forfeiture, the first home bonus is a puzzle

(a) in sole or in community with spouse rights of ownership, usufruct, use and habitation of another dwelling house in the territory of the municipality where the property to be purchased is located;

b) not even in shares, even under a legal community regime, throughout the national territory, of the right of ownership, usufruct, use, dwelling and bare ownership of another dwelling house purchased by the same person or by the spouse with the 'Prima casa' facility.

Those who find themselves in one of the two situations described above and want to make a subsidised purchase, must therefore cease to be pre-owned before making the new purchase (e.g. by selling or donating the pre-owned house).

There is, however, an exception, i.e. a case in which the prepossession may be terminated even after the new purchase, but this only concerns the case in which the taxpayer owns a house purchased with the first house (example 2): the taxpayer may initiate a purchase/purchase/sale sequence, and thus purchase with the tax benefit an additional first house and sell the prepossessed house (and purchased with the first house relief) within two years of the new purchase. The two-year term applies to all those who bought from 1 January 2024 onwards (previously one year was allowed).

One forfeits the relief (example 3) if one makes an 'intra-five-year disposal', i.e. sells or donates one's first house that was purchased less than five years ago (Note II-bis, para. 4).

The forfeiture just mentioned can be avoided (example 4) if a so-called "interim repurchase" is made, i.e. if, within one year of the intra-quinquennial sale of the first house, another house is purchased and used as the purchaser's main residence (Note II-bis, para. 4).

In the case of an intra-quinquennial alienation, forfeiture is also avoided (example 5) if a purchase/purchase/sale sequence is imposed, i.e. such a sale (or donation) is entered into within one year from the date of purchase (even without the 'Prima casa' relief) of another dwelling that is to be used as the taxpayer's principal residence (answer to interpello 551/2021).

The answer to interpello 314/2025 confirmed that the latter term is annual and not biennial. Therefore, it follows that:

1) on the one hand, the taxpayer may purchase with the relief without having already disposed of the prepossession, being able to dispose of it within two years of the new purchase;

(2) on the other hand, the taxpayer forfeits the relief obtained at the time of the purchase of the prepossession if, having bought another first house before disposing of the prepossession, he makes this disposal within one year of the new purchase.

It accrues a tax credit to anyone who buys a first home, sells it or donates it (at any date) and then makes an interim repurchase, i.e. buys another first home within one year of this sale (Article 7, Law 448/1998). The credit is equal to the registration tax or VAT paid for the first purchase, subject to a ceiling equal to the registration tax or VAT due for the new purchase (example 6).

The tax credit also accrues even if a sequence of acts other than the one described above (interpello 197/2025) is carried out, i.e. if a first home is purchased, a further first home is purchased and, within two years of the latter purchase, the house purchased at a later date is sold or donated (example 7).

In the latter case, unlike the others (where it reasoned by invoking the need to read the facilitation rules restrictively), the Agency adopts an extensive interpretation criterion, with the consequence that

(a) there is one year's time in the purchase/sale/purchase sequence, i.e. for the purchase of a further first home if it is subsequent to the alienation of the home also previously purchased with the relief; this annual time limit was not innovated by the 2025 manoeuvre, which only affected the repurchase that avoids forfeiture for infra-quinquennial alienation (interpello 297/2025);

b) there are two years in the purchase/purchase/sale sequence, i.e. for the purchase of an additional first home if the disposal of the previously purchased home is subsequent to the repurchase.

This two-year deadline applies to those who have alienated their first home since 1 January 2025 and also to all cases where the previous one-year deadline for repurchase.

1) The house received as an inheritance

Tizio owns a house he inherited in 2009 and located in Varese. Now he would like to buy another house, located in Milan, benefiting from the first home relief. Tizio is entitled to the relief because it is due to the taxpayer who:

(a) does not have ownership or co-ownership of houses;

(b) has a co-ownership share of a house not bought with the relief;

(c) has a right of ownership, bare ownership or usufruct (not bought with the relief, as, for example, received by inheritance or donation) of a house located in a municipality other than the one in which the newly purchased house is located.

2) The purchase of a new first home

Titius is the owner of a first house bought in 2018 and intends to buy another first house in 2026.

To obtain the relief, Titius:

(a) must sell the house bought in 2018 and then make the new purchase;

b) alternatively, he must make the new purchase (e.g. on 20 April 2026) and then, within two years (i.e. by 20 April 2028), he must sell the previously owned house.

If the first-purchased house was instead purchased in 2024 instead of 2018, it would have to be sold by 20 April 2027 in order to avoid forfeiture (as in Example 5).

3) The sale within five years

Tizio is the owner of a first house bought in 2023 and sells it in 2026. This sale, which took place within five years of the first subsidised purchase, results in the forfeiture of the advantage enjoyed in 2023 (the difference between the subsidised tax and the ordinary tax is recovered and a 30% penalty is imposed on this difference).

4) Sale to avoid forfeiture

Tizio is the owner of a first house bought in 2024 and sells it on 1 March 2026. The sale falls in the intra-quinquennial period and this triggers the forfeiture. The taxpayer can, however, avoid forfeiture if he buys a house by 1 March 2027 - i.e. within one year - and uses it as his main home (the latter purchase avoids forfeiture even if it is made without taking advantage of the first home bonus again).

5) Selling within five years but after new purchase

Titius is the owner of a first house bought in 2023. He then buys another first home on 1 March 2026. The taxpayer avoids forfeiture (in respect of the relief obtained in 2023) if he uses the house bought in 2026 as his principal residence and by 1 March 2027 sells the house bought in 2023. This sale also allows Titius to avoid forfeiting the relief obtained in 2026 by reason of prepossession.

6) Tax credit with interim repurchase

Titius is the owner of a first house bought in 2018 (with a registration fee of EUR 2,000). On 1 March 2026 Tizio sells this house. If, by 1 March 2027, Titius buys another first home (registration tax of 3 thousand euro), he accrues a tax credit, which in this case will be 2 thousand euro.

7) Tax credit with repurchase within two years

Tizio is the owner of a first house bought in 2018 (with registration tax of 4 thousand euros). On 1 March 2026, Tizio buys another first home (with registration tax of 3 thousand euros). The taxpayer accrues a tax credit of 3 thousand euros if by 1 March 2028 he sells the house bought in 2018. This sale also allows Tizio not to lose - for pre-possession reasons - the relief obtained in 2026.