With the 2025 Financial Law, an eagerly awaited change has been introduced for those purchasing a new first home before selling their existing property that was bought with tax benefits.
The Italian Revenue Agency, through its official ruling No. 197/2025, has finally clarified several key points affecting many common situations faced by homebuyers.
📌 What’s Changing: From 1 Year to 2 Years to Sell Your Old Property
The new provision, introduced under Art. 1, paragraph 116 of Law No. 207 of 30 December 2024, extends the deadline to sell your previously owned property — purchased under the “first home” tax relief scheme — from 1 year to 2 years, without losing the tax benefits, even if you buy a new property before selling the old one.
This change aims to:
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Boost the property market
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Make the transition from one first home to another more flexible and secure
✅ Applies Even to Purchases Made Before 2025
An important clarification concerns timing: the new two-year deadline is retroactive. It also applies to purchases made before 1 January 2025, provided that, as of the end of 2024, the original one-year deadline had not yet expired.
In practice, if you bought a new first home in 2024 (or late 2023) and are still within the original one-year period to sell your old property, you now automatically benefit from the extended two-year timeframe.
💡 What About the Tax Credit? It Remains, but with Conditions
Another key point clarified relates to the tax credit available to those who purchase a new property benefiting from tax relief after selling their previous “first home”.
The Revenue Agency has confirmed that, even if you buy before selling, the tax credit remains available as long as the old property is sold within two years of the new purchase.
This means:
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The tax credit is granted provisionally
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If you fail to sell within two years, you lose both the “first home” tax relief on the new purchase and the associated tax credit
⚖️ A Fair and Balanced Measure
This interpretation resolves an important concern: homebuyers who purchased in 2024 (before the legislative change) are not disadvantaged compared to those purchasing in 2025.
This ensures equal treatment for all taxpayers, as highlighted in the Revenue Agency’s ruling.
🏡 Why This Matters If You’re Buying or Selling a Home
This new rule simplifies and eases the process of moving from one first home to another.
It provides buyers and sellers with greater peace of mind and more flexibility when organising a property transaction.
For those who have purchased a new property before selling the old one, this extended timeframe offers more breathing room to manage the sale carefully and strategically.
👉 Need Personalised Advice?
If you’d like to understand how this change could affect your property purchase or sale, or if you’re thinking about buying or selling your first home, get in touch with us — our team is ready to guide you through every step of the process.
📞 +39 347 6525991
📩 luigi@pugliarealty.com
🌐 www.pugliarealty.com
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