the 2020 benefits for the first home

It is very important to know which tax benefits are available for those who buy their first home in 2020, especially if they take out a mortgage. There are also important incentives to apply for a mortgage. In fact, today not everyone has the guarantees to be able to apply for a mortgage for the purchase of a first home, especially the younger holders of atypical work contracts, so the State has financed the 2019 Mortgage Guarantee Fund, and in the 2020 budget law the possibility of extending the fund is also evident in 2020.

First home purchase discounts: what they are

In addition to the Mortgage Guarantee Fund, for those who take out a first home loan there are several tax breaks.

Let's see below which:

• Registration tax reduced to 2%;
• Mortgage and land registry tax of 200 euros;
• Irpef deductions on interest payable in the amount of 19% for a maximum of 4,000 euros per year;
• VAT reduced to 4% if you buy from a company.

Facilities for first home can also be requested for the purchase of appurtenances, even if this happens subsequently, the important thing is that they are intended for the service of the first home and that they belong to the cadastral categories C2, C6, C7.

First home subsidies: the requirements to request them

The requirements that you must possess in order to apply for benefits for the purchase of a first home are:

• The property must not be "luxury" and must fall under the cadastral category A / 1 and A / 11;
• It must be located in the Municipality where the purchaser is resident or intends to establish it within 18 months from the purchase or in the Municipality where the buyer works;
• The declaration of wanting to establish residence in the Municipality where the property is located must be transcribed in the purchase deed;
• The buyer must not be the owner, even in community of property or usufructuary of any other property located in the Municipality in which he intends to make the purchase;
• The purchaser, if he has already benefited from the benefits of a first home, cannot request it again.

Therefore, based on this, before buying a house and taking out a first home loan, you must always first realize what a benefit you can enjoy.

Other facility: the tax credit

In the event that the first house is sold and for which the first home benefits have been used, a tax credit is recognized if within a year of the sale a new building is purchased for the first home. The tax credit is equal to the amount of the registration tax or VAT paid in relation to the first subsidized purchase, but cannot exceed the registration tax or the VAT due in relation to the second purchase.

First home purchase subsidy, the garage is not binding

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