More time to transfer residency, purchase a new home, and benefit from certain tax advantages. These are the updates proposed in the 2027 Budget Bill, which aims to standardize various deadlines related to first home benefits to two years.
This proposal could simplify some important steps for those buying, selling, or changing residences.
But what would change concretely? And what rules must be followed today?
Let's look at the main updates, distinguishing between the provisions already in force and those still under discussion.
First home benefits: how do they work today?
First home benefits allow, under specific conditions, reduced taxation on the purchase of a home.
In particular, for purchases subject to registration tax, the reduced rate is 2% instead of 9%, while for purchases subject to VAT, the rate is 4% instead of the ordinarily expected 10% for non-luxury homes.
To access the benefits, certain conditions related to the property, ownership of other homes, and the buyer's residency must be met.
An important aspect concerns residency: normally, those who purchase with the benefits must already reside in the municipality where the property is located or commit to transferring their residency there within the legally prescribed terms, except for specific exceptions.
Currently, the ordinary term is 18 months from the date of purchase.
The 2027 Budget proposes to modify this.
First home 2027: two years to transfer residency
One of the main updates proposed in the Budget Bill concerns the time allowed for the buyer to transfer residency.
Today, those benefiting from first home advantages, when required to transfer, must establish residency in the municipality of the property within 18 months from the deed.
The proposal for 2027 aims to extend this term to two years, or 24 months.
If the modification is approved, buyers would have an additional six months to complete the transfer.
This change could be particularly useful for those purchasing a home to renovate, those needing to organize a work-related move, or those planning a family change.
It's important to remember that the rule concerns residency in the municipality where the property is located, not necessarily in the purchased home.
Selling the first home before five years: what might change?
Another common situation involves those who decide to sell a home purchased with first home benefits before five years have passed since the deed.
Under current regulations, early sale can lead to the loss of the obtained tax benefits.
However, there is a possibility to avoid this: purchasing another home to be used as the main residence within one year of the sale, in compliance with the required conditions.
The 2027 Budget Bill proposes extending this term from one to two years.
Why would this change be important?
Housing needs can change even in a few years.
A couple might need an extra room, a family might decide to move, or an owner might want to change cities for personal or professional reasons.
In these situations, finding a new property suitable for one's needs often takes time.
Extending the term to two years would offer more flexibility to those needing to purchase a new home after selling the previous one.
However, to avoid losing the benefit following a sale within five years, the new property must be intended as the main residence. It's not enough to purchase just any home or merely sign a preliminary contract.
Buying a new first home before selling the previous one: the two years are already provided
There's an aspect that deserves particular attention because it concerns a change already in effect.
Since January 1, 2025, those purchasing a new home while still owning a property bought with the same benefits can have two years to sell the previously benefited home, in compliance with legal conditions.
This possibility was introduced by the 2025 Budget Law.
Previously, the term was one year.
This is therefore a provision already applicable, which should not be confused with the further changes proposed for 2027.
The distinction is important:
Buy first and sell later: the two-year term to sell the previously benefited home is already provided by current regulations. Sell before five years and repurchase later: the term to repurchase a main residence and avoid losing the benefit is currently one year; the 2027 Budget proposes extending it to two.
These are different situations, governed by different rules.
Tax credit for repurchasing the first home: proposed updates
The bill also addresses the tax credit granted, under certain conditions, to those who sell a home purchased with first home benefits and buy another using the benefits again.
This credit can allow recovery, within specific limits, of the registration tax or VAT paid during the previous benefited purchase.
Currently, when the sale of the old home precedes the new purchase, the repurchase must occur within one year to qualify for the tax credit.
The Revenue Agency, with response no. 297 of 2025, clarified that the two-year term introduced in 2025 for selling the previously owned home does not automatically extend to the different case where one sells first and buys later.
The proposal for 2027 aims to extend the term for repurchase for tax credit purposes to two years.
The bill also contemplates recognizing the credit when the sale of the previous benefited home occurs within two years of purchasing the new one.
This latter possibility has already been recognized by the Revenue Agency, with response no. 197 of 2025, under the prescribed conditions.
The objective of the legislative change is to make the various deadlines more consistent and simplify the transition from one home to another.
Could the new deadlines also apply to those who have already bought a home?
The bill also includes a particularly interesting transitional provision.
According to the proposal's text, the new terms could apply to some situations already existing at the time the law comes into force.
The condition provided is that, at that date, the previous terms have not yet expired.
This means the change could affect not only those who will buy a home in 2027 but also some taxpayers who have already completed a purchase or sale.
However, it would not be a general reopening of already expired deadlines.
To know for certain the scope of application, it will be necessary to await the final approval of the law and verify the text that actually comes into force.
What should those buying or selling a home do today?
The proposed changes could simplify time management for those changing homes, but until they potentially come into force, the current provisions remain applicable.
Those considering a sale or purchase should pay particular attention to three aspects:
Verify their fiscal situation, especially if they already own a home purchased with first home benefits. Check applicable deadlines, distinguishing between residency transfer, sale of the previous home, and repurchase. Consult with a notary and, when necessary, a tax advisor before making commitments that could affect the retention of benefits.
Every real estate transaction has specific characteristics, and the tax consequences depend on the buyer's actual conditions and the executed deeds.
Conclusion: more flexibility for those changing homes, but approval is awaited
The updates proposed for first home benefits in 2027 could represent an important simplification for those wishing to buy or change homes.
Extending some deadlines to two years would offer more time to organize residency transfer, complete a new purchase, and avoid, in applicable cases, the loss of tax benefits.
As of November 4, 2026, however, these changes are still contained in the 2027 Budget Bill and should not be considered definitive.
For those buying or selling a home in Milan and Lombardy, knowing the current provisions and following the evolution of new regulations is essential for correctly planning a sale or purchase.
At REMAX Associati Real Estate, we accompany our clients through the various stages of the real estate journey, helping them navigate choices related to buying and selling and identifying, when necessary, competent professionals for fiscal and notarial insights.
Sources and further reading
Il Sole 24 Ore, November 4, 2026, Angelo Busani, “First home benefits, unified two-year term.” 2027 Budget Bill, article 41, as reported on November 4, 2026. Revenue Agency, Guide to Home Purchase. Law December 30, 2024, no. 207, article 1, paragraph 116. Revenue Agency, responses to inquiry no. 197/2025 and no. 297/2025. Law December 23, 1998, no. 448, article 7.
Article updated to November 4, 2026. The information is for informational purposes and does not replace fiscal or notarial advice related to individual cases.