The first-home tax benefit reduces registration, cadastral and mortgage taxes for eligible buyers. It applies to purchasers who meet both subjective and objective conditions. Beneficiaries cannot already own a dwelling that previously received the same fiscal treatment anywhere in the country. The acquired
property must not belong to categories classified as luxury, such as specific A1, A8 or A9 types. Proper timing, clear notarial declarations and complete documentation are essential to preserve the relief and to manage the conversion of non-residential units into residences.
This article summarizes key eligibility rules. It explains how a property classified as C/2 (warehouse) may qualify after conversion to a dwelling. It also offers practical measures to reduce the risk of administrative disputes.
Who can claim the benefit and what counts as a qualifying property
Eligible claimants are natural persons purchasing a property for use as their principal residence. They must not hold, anywhere in the national territory, a property that already benefited from the first-home tax relief. The rule applies irrespective of whether the prior property is occupied or rented.
Qualifying properties typically include ordinary residential categories. Properties explicitly listed as luxury—for example certain A1, A8 and A9 classifications—are excluded. The legal classification recorded
in land and cadastral registers is decisive for the tax treatment.
Conversions of non-residential units can alter eligibility. A unit initially classified as C/2 may qualify if it is converted into a dwelling and the change is formalised in the relevant registers before or at the time of purchase, as required by law. The notary plays a central role in certifying the cadastral status and in recording any necessary commitments or declarations in the deed.
The notary plays a central role in certifying the cadastral status and in recording any necessary commitments or declarations in the deed. To qualify for the first-home tax relief, a buyer must not already own a property that previously received the same benefit anywhere in the country. The purchased dwelling must be classifiable as an ordinary residential unit and must not fall within categories formally excluded as luxury. The relief covers transfers executed under the regulatory framework in force at the time of purchase; buyers should verify local interpretations and any regulatory updates before finalising the deed.
Residency obligations, deadlines and the risk of losing the benefit
One common requirement is an obligation to establish residency in the municipality where the property is located. In many cases, the buyer must move their legal residence to the address within a set period after purchase. Failure to meet the residency requirement can trigger a revocation of the tax benefit and the obligation to repay the difference with interest and possible penalties.
Deadlines and specific residency periods vary by jurisdiction and by the specific relief scheme. Buyers should ask the notary to record any residency commitments in the deed and to note the applicable deadlines. The notary can also flag conflicting registrations or prior ownership that would invalidate the claim.
Other conditions can include restrictions on the use of the property and prohibitions on renting out the dwelling for fixed periods. Breach of these conditions may lead to reassessment of taxes and financial sanctions. Administrative appeals and remedial options exist, but they may be time‑consuming and costly.
Before signing, buyers should request a written checklist from the notary listing all subjective and objective conditions tied to the relief. They should also obtain confirmation that cadastral classifications and prior ownership records have been verified. That step reduces the risk of unexpected reassessment after the deed is registered.
Where interpretations differ between municipal offices or regional authorities, buyers should seek a written position from the relevant tax office or obtain specialist legal advice. Recording explicit declarations in the deed and securing contemporaneous proof of compliance with residency and deadline requirements can be decisive in defending the benefit.
Key documents to review include the cadastral certificate, the seller’s ownership history, the draft deed with recorded commitments, and any municipal residency ordinances referenced by the notary. The notary’s certification remains central to establishing the factual basis for the relief and for limiting later disputes.
The notary’s certification remains central to establishing the factual basis for the relief and for limiting later disputes. Buyers must transfer their official residence to the municipality where the property stands within the period required by law or declare an intention to do so in the deed. They must also respect any time frames governing the sale of a previously owned dwelling acquired with the benefit. Missing those obligations or the prescribed time limits may result in forfeiture of the first-home tax relief. In such cases, tax authorities can seek recovery of unpaid taxes and may apply penalties and interest. Accurate timing and strict compliance are therefore essential.
How to regularize mistakes
When requirements are not met, corrective steps are possible but must be undertaken promptly. The first action is to inform the notary who prepared the deed and obtain a written assessment of the omitted or incorrect formalities. That assessment helps define the factual record and supports any subsequent communications with authorities.
Where a benefit has been improperly claimed, the taxpayer can contact the relevant tax office to disclose the error and arrange corrective payment. Such disclosure often reduces procedural risk and can lead to negotiated terms for repayment. Taxpayers should also request written confirmation of any agreed timetable or settlement terms.
If the issue stems from residence formalities, a declaration of intent filed in a supplemental deed or an administrative declaration submitted to the municipal registry can regularize the position in some cases. Where disposal of a previous dwelling is overdue, evidence of ongoing sales efforts or contractual arrangements may be relevant in discussions with revenue authorities.
Legal counsel or a specialist tax adviser should be retained when disputes escalate or when significant sums are at stake. They can advise on available remedies, administrative appeals, and the risks of litigation. Throughout the process, maintaining documentary evidence and clear communications with the notary and tax office is advisable.
Resolution timelines and available relief vary by case and by authority. Early engagement with the notary and tax authorities increases the chance of a manageable outcome and limits the accrual of penalties and interest.
Early engagement with the notary and tax authorities increases the chance of a manageable outcome and limits the accrual of penalties and interest.
When declarations required in the original deed are missing, parties can often correct the record through a formally registered integrative deed. This act must be executed with the same notarial solemnities as the original instrument. The integrative deed may only document facts that already existed at the time of the original purchase; it cannot create legal conditions retroactively. The deed is subject to a fixed registration duty, stamp duties and applicable professional fees. Parties should factor those costs into their remediation plan and discuss potential tax or administrative notifications with their notary before proceeding.
Converting a C/2 warehouse into a home: when the benefit applies
Tax and cadastral benefits for converting a C/2 warehouse into a dwelling depend on substantive and procedural conditions. Authorities typically require a genuine change of use, formal cadastral reclassification and a notarial act reflecting the new destination. The property must be intended as the purchaser’s principal residence where applicable relief is claimed. Municipal requirements, building permits and compliance with zoning rules must be satisfied before benefits can be granted.
Because relief often hinges on facts present at the time of purchase, missing or incorrect declarations at closing can jeopardize eligibility. An integrative deed can clarify the factual record, but it cannot manufacture the factual prerequisites for relief that were absent at purchase. Prospective claimants should obtain a notary opinion early and verify local municipal practice on residence registration and cadastral changes to reduce the risk of denial or retroactive adjustments.
Buyers who acquire a unit classified as C/2 and intend to convert it into a dwelling can still qualify for the first-home tax benefit if they document a credible, lawful path to residential use. Ensure continuity with prior steps by confirming residence-registration practices and cadastral change procedures with the notary and local authorities before completing the purchase. Tax and judicial precedent recognises that proven intent and an executable conversion plan may suffice even when the asset is not yet used as a home.
What documentation matters
The decisive evidence is documentary and must demonstrate both legality and feasibility. Primary items include:
building permit or equivalent title: an issued building permit, a valid SCIA, or a formally recognised municipal authorisation showing approval for conversion to residential use.
project plans and technical reports: architectural drawings, structural assessments, and timelines prepared or signed by licensed professionals that show the works will lead to ordinary residential classification.
contractual commitments and invoices: signed contracts with contractors, advance payments, and invoices for materials or services tied to the conversion can corroborate the execution of the plan.
declarations to the land registry and municipal offices: filings or applications requesting cadastral changes or residence registration should be lodged promptly and retained as proof of intent.
correspondence and administrative records: written exchanges with municipal planning offices, building authorities, or the tax administration that confirm procedural steps or provide instructions relevant to conversion.
Absent a complete permit, a well-documented, credible sequence of administrative steps and procurement actions increases the likelihood that the first-home tax benefit will be upheld. Keep originals and certified copies of all documents and seek early verification from the notary or a qualified tax advisor to limit the risk of denial or retroactive adjustments.
Buyers and sellers should assemble complete documentation when a property is undergoing transformation. Collect the building title, such as a SCIA, the technical project, municipal permits and all written communications with local building authorities. Provide these materials to the notary before signing to enable timely checks.
The notary will examine cadastral and mortgage records. The notary will verify the buyer’s declarations and record required statements in the deed. Early notarial review reduces the risk of later challenges to tax benefits or registration.
Ensure documentary consistency across planning permissions, the physical progress of works and final cadastral classification. Alignment among those elements forms the legal basis for a defensible position in audits or disputes.
Practical advice: planning, notary role and recordkeeping
Start verification at the earliest practical stage. Provide the notary with full file copies and request written confirmation of any outstanding issues. This preserves a clear paper trail and documents professional advice.
Retain digital and physical copies of all submissions, approvals and communications with municipal officials. Record dates, reference numbers and names of responsible officers for each transaction.
Where works are incomplete, ask the notary to include conditional statements in the deed. Such clauses should specify remaining obligations and the consequences for tax treatment if the conversion is not completed as represented.
Consult a qualified tax advisor for the specific implications of your case. Early coordination between the buyer, notary and tax specialist improves compliance and lowers the likelihood of retroactive adjustments.
Keep a central, chronological file of documents and confirmations. That record will be the primary evidence if authorities or third parties later question the property’s status or the buyer’s entitlement to benefits.
The documentation already described will be the primary evidence if authorities or third parties later question the property’s status or the buyer’s entitlement to benefits.
Advance planning reduces legal and fiscal risk. Coordinate the timing of any sale and acquisition to satisfy statutory deadlines. Engage a notary or a tax advisor at an early stage to verify eligibility and to prepare the required declarations at the time of the deed.
The notary performs several essential functions. They confirm that the deed contains correct statements. They arrange payment of registration, cadastral and mortgage taxes. They also forward the act to the competent offices, which lowers the risk of formal errors and registration delays.
Maintain meticulous records of all steps. Keep signed declarations, proof of registry entries, correspondence with municipal or building offices, receipts and technical certifications. Preserve dated copies of communications and filings.
Administrative authorities may initiate checks. In such cases, the burden of proof rests on the taxpayer. Presenting organised, dated documentation materially reduces the risk of disputes and facilitates rapid resolution of inquiries.
Other considerations: price-value option and credit on resale
Price-value option and resale credit: what buyers need to know
Buyers purchasing from private parties can elect the price-value option to calculate the taxable base on the cadastral value rather than the declared price. This choice must be made expressly in the deed to be effective.
The option often yields more predictable taxation in transactions where the declared price diverges from cadastral benchmarks. Not all transactions benefit equally; the fiscal impact depends on the cadastral assessment and specific regional rules.
Resale after using first-home benefit
If a purchaser previously used the first-home tax benefit and later sells the property, a targeted credit may apply when they timely acquire another qualifying dwelling. The credit is conditional on meeting the statutory requirements and observing prescribed timeframes.
Authorities require documentation proving the conditions that justified the original benefit were genuinely met at the relevant time. Procedural and timing rules are exacting. Missing or incomplete records can trigger recovery actions.
Practical steps to protect the benefit
Engage a qualified tax or real estate professional early to confirm eligibility and to draft the deed language required for the price-value option. Professionals can also map the deadlines tied to the resale credit and advise on acceptable proof.
Maintain complete documentary trails: purchase deeds, permits or communications showing lawful transformation of the unit into a dwelling, tax filings, and correspondence with municipal offices. Organise records so they are readily available for inquiries.
Careful planning of timelines and strict adherence to procedural steps materially reduces the risk of disputes. Clear documentation also facilitates faster resolution when authorities or third parties request verification.
For families, entrepreneurs and younger buyers, the interplay between cadastral valuations and first-home provisions can materially affect net costs. Seek professional guidance and prioritise documentation to preserve available benefits.