Update from our company in Italy – Realmente in Italia and Additaly in Firenze
1.1 House Renovation tax breaks
Italy introduced new schemes to boost the renovation of properties, these schemes grant a tax break on qualifying expenses. Qualifying expenses grant a tax credit to be claimed against your taxes in 5 or 10 equal annual instalments; however, if you don’t’ pay tax to Italy those tax credits were wasted. D.L. 34/2019 introduced the 110% Superbonus and two innovative tools to
- Contractor Invoice discount;
- Third party sale.
In the first scenario, your contractor gives you a discount equaling the tax credit right in the invoice payable, leaving you to pay the difference.
The second scenario requires you to pay the invoice, and then trade it to a third party (most notably bank and financial institutions or the post).
Tax credits apply to non-residents and non-citizens as well.
50% General Renovation Bonus
Should you perform general renovations of your property you are rewarded a 50% bonus on qualifying expenses up to € 96,000 per house unit; therefore, the maximum credit you can be rewarded is € 48,000. The most common expenditure items are:
- Ordinary maintenance;
- Gates, CCTV, and other surveillance system installation;
- Basic energy efficiency renovations;
- Water heater replacement;
- Acoustic improvement investments;
The bonus applies over a 10 years period.
65% Energy Efficiency Bonus
Should you perform any of the following renovations, a 65% bonus on the qualifying expenditure is rewarded:
|
QUALIFYING EXPENDITURE |
MAXIMUM expenditure |
|
General Energy efficiency improvements |
€ 100,000 |
|
windows and wall improvements |
€ 60,000 |
|
SOLAR PANELS |
€ 60,000 |
|
WINTER HEATING SYSTEMS |
€ 30,000 |
|
SOLAR SHADING |
€ 60,000 |
|
BIOMASS BOILER |
€ 30,000 |
|
HOME AUTOMATION SYSTEMS |
No cap |
|
micro cogenerator |
€ 100,000 |
The bonus applies over a 10 years period.
70%-80% Seismic Bonus
The legislator has introduced this tax break to tackle the adverse consequences due to earthquakes. Italy is divided into 4 seismic risk areas, being 1 the lowest risk and 4 the highest risk; therefore, if your property is located in areas 2 to 4 (Greve in Chianti is classified as 3) you can benefit of this regime if you perform Seismic renovation improvements (new roof, foundations etc.)
If you increase of seismic 1 category you are rewarded a 70% tax credit, whereas if you increase 2 categories, the tax credit is lifted to 80%. The maximum expenditure is € 96,000 per house unit.
The bonus applies over a 5 years period.
90% Façade Bonus
This bonus refers to residential building façade improvements. The qualifying residential properties must be located in town centres, or unincorporated municipalities of the same Comune. Remote areas and independent houses outside of town centres, might be disqualified from this bonus.
There is no cap on the maximum qualifying expenditure.
The bonus applies over a 10 years period.
110% Superbonus
Should you perform any investment classified as:
- Seismic Bonus;
- Energy efficiency Bonus.
You can apply the 110% superbonus if you pay any of the following expenses on/before December 31st 2022:
- Insulated coating;
- Central heating system;
- E-cars charging stations;
- Solar panels;
- Double/triple glazed windows;
- Any seismic improvement.
In order to claim any energy efficiency investment at 110% rate, you must improve the Energy efficiency category of your property of at least two categories (Attestato Prestazione Energetica – APE).
The bonus applies over a 5 years period.
