Module 220 min2224 wordsFree — no account
The first-home relief: who qualifies, what it saves and how it is lost
The module’s worked examples, then cases to attempt before revealing their solution · 3 sections · 324 words · 4 min
Worked example
Roberto moves house
Roberto lives in a flat he bought in 2019 with the relief. On 1 March 2026 he buys a bigger home, again with the relief, undertaking to sell the old one. He has until 1 March 2028. If he still owns the old flat on that date, he loses the relief on the new purchase, not on the 2019 one.
Worked example
When the floor swallows the discount
Carla buys her main home from a private owner; its cadastral value is €30,000. Two per cent would give €600, but registration tax cannot drop below €1,000. With the flat taxes she pays €1,100. Without the relief she would have paid 9%, or €2,700, plus €100: she still saves, but €1,700 rather than €2,100.
Practical case
Elena leaves Italy
Two years ago Elena bought a category A/2 flat from the building company for €180,000, claiming the first-home relief, and has lived there ever since. She is now moving abroad, sells the flat for €200,000 and buys no other home within a year. How much does she owe for losing the relief, interest aside, and is her €20,000 profit taxed?
Hint: On the VAT route the agency recovers the gap between the standard and the reduced rate on the price paid, plus the penalty. For the profit, ask yourself how the flat was used.
Show the solution
On purchase Elena paid 4% VAT instead of 10%, plus flat taxes of €200 each, which are the same under both regimes. Selling within five years without buying again within a year cancels the relief: the VAT gap is 180,000 × (10% − 4%) = €10,800 and the penalty is 30% of 10,800, or €3,240. Total €14,040, plus interest. As for the profit, the flat was her main home for the whole period of ownership, so article 67 of the TUIR excludes the gain from income, even though the sale takes place within five years.
Answer: €14,040 plus interest, and no tax on the capital gain
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