If you already own a property that is rented out and are planning to purchase another home while benefiting from Italy’s first-time homebuyer tax relief (“prima casa” tax benefits), you may need to reconsider. The Italian Supreme Court (Corte di Cassazione) has recently clarified that this is not permitted.
What Did the Supreme Court Decide?
In Order No. 3596 of 17 February 2026, the Supreme Court ruled that the fact that a previously owned property is leased to a third party does not constitute an objective inability to use the property that would justify claiming the first-time homebuyer tax benefits on the purchase of another home.
Simply put, renting out your property is a voluntary choice. It is not an objective circumstance beyond your control—such as a natural disaster—that prevents you from living in the property. As a result, it does not entitle you to purchase another home while benefiting from the reduced taxes available under the “prima casa” regime.
What Are Your Options?
In practice, there are three possible courses of action:
- Sell the existing property before, or simultaneously with, the purchase of the new home.
- Terminate the lease agreement and move back into the property before signing the deed of purchase.
- Purchase the new property without claiming the first-time homebuyer tax benefits and pay taxes under the ordinary tax regime.
Before You Proceed
This ruling comes within the context of a legislative framework that has recently evolved. In particular, the 2025 Budget Law (Legge di Bilancio 2025) has already amended several key deadlines relating to the prima casa tax relief.
👉 Read the full analysis on Fisco Oggi
