“Main abode” benefits for a non-resident

The Italian Revenue Agency provides clarifications about the "main abode" benefits and the repurchase of a house in Italy by an individual resident abroad.

Clarifications on the ‘main abode’ benefits and the repurchase of a house in Italy by an individual resident abroad.

Individuals who are resident abroad and who would like to buy another house in Italy do not have to comply with the obligation to use the new property as a main residence. As clarified by the Italian Revenue Agency, this is an obligation that cannot be required for those living abroad in a stable manner.

The answer of the Italian Revenue Agency

With the answer to the tax ruling No. 627, the Italian Revenue Agency has provided clarifications about the “main abode” benefits and the repurchase of a house in Italy by an individual resident abroad.

The purchase of the “first abode” by a construction company is ruled by the provision n. 21 of the Table, Part II, attached to the d.P.R. n. 633/1972 in which the VAT of 4% is applied for cessions of dwelling houses (except those of cadastral category A1, A8 and A9), provided that the original destination remains, subject to the conditions set out in Note II-bis) in Article 1 of the tariff, part one, annexed to the single text of the provisions concerning the registration tax, approved with DPR n. 131/1986.

it is not necessary to comply with the obligation to designate the new house as a principal residence

The Italian Revenue Agency stated that, in line with the provisions for the application of the “first abode” benefits at the time of first purchase by the resident abroad, and also in the repurchase of other houses in Italy, it is not necessary to comply with the obligation to designate the new house as a principal residence.

Following the residence criteria, also for the designation to the main residence, this condition cannot be imposed to those individuals who live permanently abroad and who, therefore, are unable to use the purchased house “as the main abode”.

Benefits: valid even in case of re-sell to purchase a new property

In conclusion, in the event individuals re-sell the property for which they have taken advantage from the “main abode” benefits, they can purchase a new property and enjoy from the benefits in questions and they do not need to transfer their residence within 18 months in the new house or declare it as their main residence.

Furthermore, as stated in Circular No. 38/2005, the status of emigrated abroad does not necessarily have to be documented with a certificate of registration within the AIRE, but it is sufficient a self-certification of the taxpayer with a declaration made during the purchase act.

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