First Home: More Time to Buy Again Without Losing Tax Benefits

LT Immobili & Design 14 October 2025

The 2025 Budget Law extends the time limit to 24 months and changes real estate planning

For many homeowners, selling their primary residence to buy a new one is a major step — but often a complex process full of deadlines, paperwork, and strategic choices.

The 2025 Italian Budget Law (Law No. 213/2024) introduces an important change: the time limit to purchase another property while keeping the “first home” tax benefits is now extended from 12 to 24 months.

It may seem like a technical adjustment, but this change deeply affects how people plan their property transactions, making the process more flexible and less stressful.

What the new rule says

Until 2024, anyone who sold their primary residence with “first home” benefits had to buy a new one within 12 months to avoid losing those benefits.

From 2025, that period is doubled to 24 months, offering more time to:

• find the right new home without pressure;

• plan renovation works if needed;

• manage sales and purchases in a slower or more selective market.

This update applies both to those who sell a home previously purchased with first-home benefits and to those who wish to use the tax credit from a new purchase within the deadline.

Why this change matters

The extension reflects a real need in today’s housing market:

closing a property deal now takes longer, especially in areas where buyers are increasingly attentive to compliance, energy efficiency, and overall quality.

Giving people more time means:

• less pressure for sellers and buyers managing two transactions;

• greater freedom of choice, with time to evaluate carefully;

• stronger fiscal protection, avoiding the loss of benefits that can be worth thousands of euros.

A practical example

Imagine a homeowner who sells their property in January 2025 and buys a new one in the summer of 2026.

Under the previous rule, they would have lost the benefits; under the new one, they fully comply with the 24-month window and retain:

• the reduced registration tax of 2% (instead of 9%);

• exemption from mortgage and cadastral taxes;

• the right to a tax credit equal to the VAT or registration tax paid on the previous purchase.

How real-estate planning changes

This longer window opens new strategies for anyone changing home:

1. Sell before buying, avoiding double financial exposure.

2. Consider renovation properties, with enough time to complete works.

3. Coordinate notarial and mortgage procedures more easily, without the pressure of short deadlines.

In short, the new rule brings legal timing closer to real-life timing — often slower, more complex, and more human.

Key requirements remain unchanged

The extended period does not alter the basic conditions for accessing the “first home” benefit:

• the property must be located in the municipality where the buyer resides (or establishes residence within 18 months);

• the buyer must not already own another property purchased with first-home benefits;

• the buyer must not own another home in the same municipality.

 More time, more freedom to choose well

With the new 24-month rule, property planning becomes calmer and more sustainable.

Sellers and buyers can manage timing, investments, and decisions with greater balance — without fearing to lose valuable tax advantages because of overly tight deadlines.

This reform brings flexibility to the housing market, aligning legal requirements with the real pace of life for those who buy and sell homes