The government commits to making 59,000 homes available over the next six years, with 33,000 new units to be built with funding from the Recovery and Resilience Plan (PRR).
Under a recently signed agreement with the European Investment Bank (EIB), the construction of 12,000 new homes is planned to be part of the Rental Support Program.
Regarding public housing supply, an investment of 930 million euros is slated by 2026 for public promotion and rehabilitation programs aiming to house 22,000 people.
The administration pledges to repurpose public assets (real estate and land) for housing projects, promote affordable rental options for more vulnerable families, and continue the rehabilitation of housing blocks for accommodating GNR military personnel and PSP police officers at the start of their careers, when they are assigned away from their home areas.
On the fiscal front, the government announced at the end of September the reduction of the VAT rate to 6% for the construction of homes for sale or rental at “moderate” prices (2,300 euros monthly for rent and 648,000 euros for construction for rent).
Increasing the IRS tax deduction to 900 euros for “moderate” rental costs and reducing the IRS rate from 25% to 10% for rental contracts for homes valued at up to 2,300 euros monthly are also part of the government’s fiscal measures package.
The end of capital gains taxation from IRS on the sale of homes, when the amount is reinvested in properties for rent at “moderate” values, and the temporary exemption from IMT and IMI for the same type of properties were also announced.
The government acknowledges in the budget proposal that the housing stock shortage is “one of the country’s greatest plagues,” particularly affecting the youth.
For young people up to 35 years old, a 350 million euros increase in the Public Guarantee amount for purchasing a first home was announced, along with the continuation of the IMT exemption for property acquisition up to 330,539 euros.
The Porta 65 Program and support for student housing to reduce barriers to accessing higher education are also mentioned in the budget proposal.
