Buying Your First Home in Umbria: 2026 Guide

Buying your first home is, for many people, a once-in-a-lifetime decision, and one worth approaching calmly and with the right information. This guide takes you through it step by step: from the requirements for first-home tax benefits to purchase taxes, from the State Guarantee Fund to the mortgage interest deduction, and on to the process that leads from the purchase offer to the deed of sale.

Why Todi and Umbria? Because here, quality of life is measured in villages that have kept their soul, in hills that change colour with the seasons, and in a property market that is still on a human scale, where a stone farmhouse or an apartment in the historic centre remains a sound investment as well as an everyday pleasure. Overlooking the Tiber valley, Todi is the ideal starting point for those seeking authenticity without giving up on services.

Interspersed throughout the text, you will find a number of interactive tools to estimate costs, check whether you are eligible for the Guarantee Fund and calculate your mortgage payment: indicative figures, intended to give you an order of magnitude before speaking with the bank and a professional.

Requirements for a first home

First-home tax benefits are not granted automatically: they depend on certain conditions that must be met at the time of purchase and in the months that follow. Knowing them in advance helps you avoid unpleasant surprises when signing the deed of sale.

The first requirement concerns residency. You must already reside in the Municipality where the property is located, or transfer your residency there within eighteen months of the purchase. This is a commitment made before the notary and must then be honoured in practice: the alternative is to have your place of business in the same Municipality.

The second requirement concerns the nature of the property, which must not be a luxury property. In practice, homes registered in the cadastre under the luxury categories are excluded from the tax benefits: A/1 (high-end residences), A/8 (villas) and A/9 (castles and buildings of historic or artistic value). By contrast, the vast majority of homes, from apartments to renovated farmhouses, fall within the ordinary categories and are eligible for the benefit.

The third requirement concerns your personal situation: you must not already own another home in the same municipality, and you must not own, anywhere in Italy, another property that you previously purchased with first-home tax benefits. If you still own your previous first home bought with these benefits, you generally still have the option of selling it within a set deadline so that you do not lose the benefit on your new purchase.

Purchase taxes

How much you pay in taxes when buying a home depends mainly on who the seller is. The key distinction is between buying from a private individual and buying from a business (typically a builder).

If you buy from a private seller, the main tax is the registration tax. With the first-home benefits, it applies at a reduced rate and, above all, you can request the "price-value" mechanism: the tax is calculated not on the agreed price but on the property's cadastral value, that is, on the revalued cadastral income. Since the cadastral value is normally much lower than the market price, the savings are substantial. The mortgage tax and the cadastral tax are added to this, and in this case they are due as fixed amounts.

If you buy from a construction company, however, the transaction is subject to VAT at the reduced first-home rate, calculated on the sale price; in this case, registration, mortgage and cadastral taxes are payable as fixed amounts.

A worked example helps clarify the point. Imagine an apartment in Todi being sold by a private individual for 200,000 euros, with a cadastral income that results in a cadastral value of around 55,000-60,000 euros. Thanks to the "prezzo-valore" mechanism, the first-home registration tax is calculated on that reduced base rather than on the 200,000 euros: indicatively, we are talking about just over a thousand euros, to which the mortgage and cadastral taxes are added at a fixed rate. If, on the other hand, the same property were purchased from a builder, first-home VAT would apply to the full price and the order of magnitude would change considerably. These figures are purely illustrative and serve only to show the relative weight of the two options.

Please note: tax rates and specific rules change over time and depend on the individual case. The figures shown here are purely indicative. Always verify the exact amount with a professional (a notary or an accountant) before signing, and bear in mind that granting the mortgage remains at the bank's discretion.

The First Home Guarantee Fund (Consap)

One of the most practical obstacles for first-time homebuyers is the down payment: banks typically finance up to 80% of the property's value, leaving the buyer to cover the remaining 20% plus taxes and notary fees. The First Home Guarantee Fund, managed by Consap on behalf of the Ministry of Economy and Finance, exists precisely for this purpose: the State guarantees to the bank a portion of the principal of the mortgage. Consap does not lend money, and the guarantee is not a grant paid to you: the mortgage is still granted by the bank, which continues to assess your income and the property.

Since 1 January 2025, the Fund is no longer open to everyone: it is reserved for specific categories. These include young couples who have been married or cohabiting for at least two years, where at least one partner is under 36; single-parent families with minor children; those renting IACP housing; young people under 36; and large families (three children under 21 with an ISEE of up to €40,000, four with an ISEE of up to €45,000, five or more with an ISEE of up to €50,000). Since 3 August 2026, under Law no. 116 of 2 July 2026, which converted Decree-Law no. 66 of 7 May 2026, access is also open to people with a certified permanent disability under Article 3, paragraph 3, of Law 104/1992, and to households in which a son, daughter, brother or sister of the applicant who has the same condition has lived for at least two years.

The standard guarantee covers 50% of the principal amount of the mortgage. For the new disability-related categories, it rises to 80% with an ISEE not exceeding €40,000. For priority categories, it can reach 80% when the mortgage exceeds 80% of the purchase price and the income requirements are met, and for large families it is 80%, 85% or 90% with three, four, or five or more children. The enhanced guarantees have been extended until 31 December 2027. The eligible mortgage may not exceed €250,000, the property must become the primary residence, and properties in cadastral categories A/1, A/8 and A/9 remain excluded.

You don't submit the application to Consap: you hand it to a participating bank together with your mortgage application, and the bank forwards it. Being admitted to the Fund does not mean you will get the mortgage, and you still need the down payment and the money for taxes, notary and other costs. Finally, the "under 36" tax exemptions ended in 2025: the standard first-home rules now apply, while the Fund remains in operation under the rules described here.

Requirements in detail, a worked example with figures, and what the guarantee does not cover: the 2026 First Home Fund guide.

Mortgage interest tax deduction (19%)

Anyone buying their main residence with a mortgage can recover part of the interest paid to the bank each year through their tax return. The deduction equals 19% of the interest and related charges, and works as a reduction of the IRPEF (personal income tax) owed.

The benefit is not unlimited: it applies up to a maximum amount of interest set by law. In practice, once annual interest exceeds a certain threshold, the excess is no longer included in the calculation. The advantage is therefore concentrated mainly in the early years of the mortgage, when the interest portion of each instalment is higher.

To keep the deduction, a few details matter: the property must become your main residence within the required timeframe, the mortgage must be taken out to purchase that home, and payments must be traceable. As with the rest of this guide, the exact amounts and thresholds should be confirmed with a professional when you file your tax return: here you will find the principle, not the final calculation.

The step-by-step buying process

From the property you like to the moment you get the keys, the process goes through three main stages. Knowing them lets you move forward with confidence and know, at every step, exactly what you are signing.

The first step is the purchase offer. This is the document with which, usually through the agency, you formalise your offer to the seller at a given price and on given terms, accompanied by a small payment as a deposit. The offer is generally irrevocable for a set period: if the seller accepts it within that time, it becomes binding on both parties.

The second step is the *compromesso*, i.e. the preliminary sale and purchase agreement. This is where all the elements of the deal are set down in black and white (price, timing, condition of the property, and any conditions such as obtaining a mortgage), and the confirmatory deposit (*caparra confirmatoria*) is paid. The preliminary agreement must be registered and, where appropriate, may also be recorded in the public property registers (*trascrizione*) to protect the buyer. This is the right time to have the mortgage application process already under way with the bank.

The third step is the deed of sale: the notarial deed that officially transfers ownership. Before the notary, the price and taxes are paid in full, the mortgage funds are disbursed, and the final documents are signed. The notary verifies that the property is free of mortgages and encumbrances, ensures the transaction is carried out correctly, and handles the registration and transcription formalities. From that moment on, the house is yours.