Many Dutch people cherish the dream of a (second) home in Italy. However, what is often underestimated is that the tax treatment of a home in Italy varies greatly depending on its use. The difference between a ‘second home’ (seconda casa) and an official main residence (prima casa) can amount to tens of thousands of euros.
The Italian government encourages permanent residence through the Prima Casa scheme. Those who meet the conditions pay significantly less transfer tax and also benefit from lower annual charges. In this article, we explain step by step what the Prima Casa scheme entails, which conditions will apply in 2026 and what Dutch people should be extra alert to.
1. What is the Prima Casa scheme?
The Prima Casa (literally: ‘first house’) is a tax benefit for buyers who make their Italian home their official main residence. This refers to the home in which you are officially registered and actually live for most of the year.
Key benefits
- Only 2% registration tax (imposta di registro) on the cadastral value, instead of the standard rate of 9%.
- Exemption from IMU (the annual municipal property tax) for the main residence.
- Lower rates for utilities such as electricity, gas and water because you are classed as a resident.
- In some municipalities: discounts on local charges such as waste tax (TARI).
Note: If you buy a new-build property from a developer, different rules apply (VAT instead of registration tax). Even then, the Prima Casa arrangement however, provide a significant advantage.
2. The 4 main conditions in 2026
To prevent abuse, the Italian tax authorities impose strict requirements. In 2026, the following key conditions apply:
1. Registration as a resident (Residenza)
You must be officially registered with the municipality (Comune) where the property is located within 18 months of the purchase. This is more than an administrative act: the municipality often also checks whether you actually live in the property.
2. No other property in the same municipality
You may not own another property in the same municipality, whether it is vacant, rented out or used as a second home.
3. No previous Prima Casa elsewhere in Italy
You may not own another property throughout Italy that you previously bought with the Prima Casa scheme. If you do, you can still qualify if you sell this previous property within one year of the new purchase.
4. No luxury real estate
The property must not be registered as a luxury property in the land registry. The following categories are excluded:
- A/1 - Luxury residences
- A/8 - Villas
- A/9 - Castles and historical palaces
Most regular flats, village houses and rural houses just fall within the scheme.
3. Calculation example: how much can you save?
In Italy, tax is calculated on the cadastral value, not the market value. This often makes the benefit greater than buyers expect.
Example
- Market value of property: €350,000
- Cadastral value: €120,000
| Type of purchase | Tax rate | Tax payable |
|---|---|---|
| Second home | 9% of €120,000 | € 10.800 |
| Prima Casa | 2% of €120,000 | € 2.400 |
| Saving | € 8.400 |
And this is only the one-off tax at purchase. The annual savings from IMU exemption can add thousands more to that.
4. Pitfalls and areas of concern for the Dutch
The 18-month rule
Fail to register as a resident on time? Then the scheme will expire retrospectively. You still have to pay the difference of 7%, plus a penalty of 30% and statutory interest.
Sale within 5 years
Do you sell the property within 5 years of purchase and do not buy a new Prima Casa in Italy within one year? Then the tax benefit will still be reclaimed.
Fiscal residency
Once you become an official resident in Italy, in many cases you also become a tax resident. This can affect:
- Income tax
- Wealth tax
- Your tax position in the Netherlands (emigration and tax treaties)
5. How to apply for the Prima Casa scheme?
The application is not through a separate form, but through the notary. During the signing of the Atto di Vendita (final deed of sale) you officially declare that you meet all the conditions and that you intend to use the property as your main residence.
The notary will process the reduced tax rate directly in the final statement. Subsequent application is not possible.
Conclusion: from holiday home to real home in Italy
The Prima Casa scheme makes it much more financially attractive to actually settle in Italy. For those looking to make the move from ‘holiday home’ to ‘home’, this tax benefit can make all the difference. At the same time, the scheme requires careful planning, realistic timing and a good understanding of the tax implications.
In doubt whether your situation is suitable for the Prima Casa scheme?
Take contact up with MijnHuisinItalie. We will be happy to advise you.