Italy's 2025 Budget Law extended the deadline for disposing of a previously owned home from one year to two years when buying another home with first-home tax relief, subject to the statutory conditions. The aim was to give households more flexibility when moving.
The purpose of the change
A qualifying buyer who purchases the replacement home before disposing of the earlier qualifying home has two years to make that disposal, whether by sale or another permitted transfer. The article also discusses purchases by gift or inheritance; the applicable relief must be assessed for each type of transfer.
Time limits and eligible buyers
The article calls this a disposal after the replacement purchase and discusses:
- Purchases from 1 January 2025 : eligible buyers have two years to dispose of the previous home while retaining the purchase relief.
- Purchases made in 2024 : the extension also applies where the former 365-day deadline had not expired on 1 January 2025.
It does not revive a disposal deadline that had already expired by 31 December 2024.
How it relates to other rules
The article distinguishes this from other provisions concerning:
- The tax credit under article 7(1) of Law 448/1998, which the original article discusses by reference to a one-year replacement period.
- Sale within five years of a home bought with first-home relief , which can trigger loss of relief unless an applicable exception is satisfied.
Different sequences engage different rules. The two-year disposal extension concerns buying the replacement before disposing of the earlier home; the position where disposal happens first must be checked separately, including the treatment of any tax credit.
Worked examples
The original article offers two examples:
- Replacement purchase before disposal :
- Scenario : a buyer purchases a qualifying first home in 2023, then a replacement qualifying home in January 2025.
- Commitment : dispose of the earlier home by January 2027.
- Outcome : the article describes retention of relief and a credit on the 2025 purchase, conditional on timely disposal and the other requirements. The credit position should be verified separately.
- Disposal before the replacement purchase :
- Scenario : a buyer sells the qualifying home purchased in 2023 on 31 January 2025 but does not buy another home by 31 January 2026.
- Outcome : the article describes loss of the 2023 relief and no credit for a later purchase. The actual consequences depend on the applicable exceptions, use of the replacement home and timing rules.
The extension offers more time to coordinate a move. Planning the sequence with the notary or tax adviser remains essential, since deadlines for disposal, replacement purchases, relief retention and tax credits are not interchangeable.
