One of the first questions when buying property in Italy is whether you will move into the house or keep it as a second home and holiday home. The answer directly affects the purchase tax and therefore the final price. In Italy the main residence relief is called prima casa.
What is prima casa?
Prima casa is a tax relief for people buying a home they will live in. It significantly reduces the purchase tax. For a second home (seconda casa) the regular, higher tax applies.
How big is the difference?
| Prima casa | Second home | |
| Buying from a private seller | 2% of the cadastral value | 9% of the cadastral value |
| Buying from a company (developer) | 4% VAT on the price | 10% VAT on the price |
In both cases, when buying from a private seller the purchase tax is at least €1,000, plus mortgage and cadastral taxes of €50 each. For a prima casa the cadastral value is also calculated with a slightly lower multiplier (110 instead of 120).
Example
The house price is €120,000, the seller is a private person and the rendita catastale is €650.
- Second home: cadastral value €81,900, purchase tax including state fees about €7,471
- Prima casa: cadastral value €75,075, purchase tax including state fees about €1,602
In this case the difference is almost €5,900. A prima casa is also usually exempt from the annual property tax IMU, which the owner of a second home pays every year.
Who can get the prima casa relief?
The relief is not only for Italians; foreigners can use it too. The general conditions are:
- You register your residence (residenza) in the municipality within 18 months of the purchase.
- You do not own another home in the same municipality.
- The house is not in the luxury categories A/1, A/8 or A/9.
- If you already own a home in Italy bought with the relief, additional conditions apply, such as selling the previous home within a certain period.
If the conditions are not met, for example if the residence is not registered in time, the difference between the regular tax and the relief must be paid together with a 30% penalty. That is why it is worth discussing the conditions with the notary and Casa Sole before buying.
Which one suits you?
- Prima casa suits you if you plan to move to Italy and register your residence there.
- Second home suits you if you stay living in Estonia and use the house for holidays or occasionally.
Registering your residence in Italy can also affect your tax residency and other obligations, so this decision is worth thinking through carefully. Casa Sole helps with the residency process.
Calculate both options
In the calculator you can compare how much the same house would cost as a prima casa and as a second home.
This article provides a general overview and is not tax advice. The conditions of the relief may change and the exact requirements depend on your situation. The notary will confirm them before the transaction.
