Buying a home is a significant milestone in one’s life, often accompanied by a myriad of questions and concerns. One of the financial tools that can ease this journey is the advance on the Trattamento di Fine Rapporto (TFR), or severance pay. This guide aims to unravel the complexities of accessing TFR advances, particularly
when purchasing property directly from private sellers, thereby avoiding real estate agency fees.
As of 2026, an increasing number of individuals are opting to utilize their TFR advances when acquiring their first home. This option allows buyers to access a portion of their severance pay to facilitate the purchase of real estate, making homeownership more accessible. However, it’s essential to understand the nuances of this process, including the possibility of requesting subsequent advances for
additional property purchases after selling an existing home.
Requesting a TFR advance: key considerations
To initiate a TFR advance, the first step is obtaining approval from your employer. Open communication with your employer is crucial, as their consent is mandatory for the process. It is also advisable to consult with a financial advisor or a tax assistance center (CAF) to navigate the specifics of your situation and gain clarity on your options.
Understanding TFR and its implications
The TFR, often referred to as “severance pay,” is a deferred compensation that accumulates throughout your employment. This amount is typically paid out to employees upon the termination of their working relationship, whether due to resignation, dismissal, or contract expiration. The funds contribute to your overall earnings, but the unique aspect of TFR is that it is disbursed only at the end of employment or through specific advance requests.
Advantages and risks of buying from private sellers
Purchasing a property directly from a private seller can seem appealing due to the elimination of agency commissions. However, this approach carries its own set of risks that buyers must be aware of. It is vital to conduct thorough research on the property’s condition and ensure that all legal requirements are met before proceeding.
Assessing the property and necessary documentation
Before signing any agreements, verifying that the property complies with urban planning regulations and is free from legal disputes is essential. Hiring a qualified professional, such as a surveyor or architect, to conduct a detailed assessment can save you from future complications. Additionally, obtaining the property’s energy certificate and preparing a preliminary sales agreement—preferably with a notary present—will help ensure that all necessary checks are completed prior to finalizing the purchase.
Purchasing a home, whether it’s your first or a subsequent investment, necessitates careful planning and attention to detail. Utilizing a TFR advance can be an effective strategy, but it’s imperative to follow the correct steps to avoid potential pitfalls. Should you have any uncertainties or require further clarification, enlisting the help of a real estate professional can provide invaluable support throughout this intricate process.
How TFR taxation works
Every employee eventually deals with TFR, and understanding how it is taxed is essential. TFR is accumulated regardless of the employment contract type—be it full-time, part-time, or temporary. When the employment relationship ends, the TFR amount needs to be calculated to determine the net sum that the employee will receive after taxes.
Calculating TFR: the basics
The gross TFR is calculated by summing up all the accrued amounts based on your salary over the years of service. This amount is then adjusted annually according to the ISTAT index for consumer prices. Understanding how to calculate both the gross and net TFR is crucial for employees, as it affects the final amount received.
Tax implications and net TFR
The taxation on TFR differs from standard income tax. Since TFR is a deferred payment, it is subject to a separate tax regime. When the TFR is paid out, the applicable tax rates are based on the average rate from the years of service, rather than the current rates. This approach aims to ensure fairness in taxation, as it prevents past earnings from being taxed at potentially higher current rates.
In conclusion, the TFR advance can be a powerful tool for aspiring homeowners. By understanding the process, from obtaining the advance to navigating the legalities of purchasing from private sellers, individuals can make informed decisions that align with their financial goals. Whether you are looking to buy your first home or invest in property, careful planning and professional guidance are key to a successful transaction.