Italian Supreme Court rules on prima casa tax benefit and purpose‑loan criteria

The Italian Supreme Court clarified that holding even a minimal 1 % share of the naked ownership (nuda proprietà) of a dwelling can invalidate the “prima casa” tax benefit. The Court ruled that the mere acquisition of such a fractional right, even if it does not allow habitation, is sufficient to constitute an obstructing condition when the share was previously obtained with first‑home incentives.

In a separate ruling, the Court defined the requirements for a loan to be qualified as a purpose loan (mutuo di scopo). It held that a loan must contain a specific clause linking the financing to the purchase of a particular property and that the contractual purpose must be clearly established; otherwise, the loan cannot be treated as a purpose loan and related contracts may be declared void.