Up to 1,710 Euro Housing Bonus: Who Qualifies?

Bonus of up to 1,710 euros for home buyers: what is it and how does it work?

Purchasing a house is a significant milestone that comes with considerable expenses beyond the property itself, and not everyone has the financial security to face it.
For those who decided to take this step in 2023, despite the current real estate market trends and mortgage interest rates, there is a significant tax benefit in place.

Who is eligible for the bonus and how to apply for it?

In Italy, homebuyers have always been protected, benefiting not only from tax breaks during the purchase (first home benefits) but also from a partial refund of the expenses incurred for the notary, real estate agency, and mortgage interests.

Bonus of up to 190 euros for real estate agency fees

Most of the time, when buying a property, one relies on a real estate agency.
This service comes with a cost that significantly impacts the overall expenses, as the agent’s commission is calculated on the selling price and can range from 2% to 5%.
This expense affects both the buyer and the seller.
However, for the purchase of a 200,000 euro house, even with a 2% commission, we are talking about 4,000 euros (which becomes 10,000 with a 5% commission).

According to fiscal regulations, this expense can be deducted when incurred for the purchase of the primary residence, but only up to a maximum threshold of 1,000 euros.
This results in a tax discount of 190 euros from the Personal Income Tax (Irpef), benefiting only those who face expenses to buy the home they live in.

Bonus of up to 760 euros for notary fees

Another significant expense for property buyers is related to the notary’s compensation for drawing up the purchase deed.
Notary fees are solely the buyer’s responsibility.
It is essential to note that there are no fixed fees for notarial expenses, as they vary from one professional to another.

For the purchase of a first home with tax benefits, the cost can range from 2,000 to 5,000 euros.
There is a 19% tax deduction on the incurred expense, up to a maximum of 4,000 euros, resulting in a tax discount of 760 euros.

Bonus of up to 760 euros per year for mortgage holders

Those who have taken out a mortgage to support the purchase of their primary residence are entitled to a tax benefit that helps cover the interest expenses.
This deduction is only applicable to mortgage loans secured by the property.
The 19% deduction is granted for a maximum amount of 4,000 euros, resulting in a yearly decrease in the due Personal Income Tax of 760 euros.

When is the bonus of up to 1,710 euros applicable?

For those who purchased a home in 2023 to be used as their primary residence, covering notary, real estate agency costs, and taking out a mortgage, a bonus of up to 1,710 euros is available.
This amount is obtained by summing up the 190 euros for the real estate agency deduction, the 760 euros for the notary fee deduction, and the 760 euros for the mortgage interest deduction.

To claim this bonus, taxpayers must report the incurred expenses in the tax return’s specific section, backed by supporting documentation and traceable payments.
The tax reduction or refund is then obtained through the annual tax return process.