In December 2021 the Italian government has approved the Italian Budget Law (Legge di Bilancio) for 2022. Lots of property related tax incentives, which were valid in 2021, have been reconfirmed for 2022. If you are a taxpayer in Italy, now is the time to start those home improvement jobs or renovations on your property, that you have been putting off. Most of these tax credits are to be used over the next 10 years, and in case you sell your house, the tax credit balance (for some types of incentives) can be transferred to the new owner. Let’s have a look at the different property related tax incentives.
Bonus ristrutturazione (Renovation bonus)
All taxpayers who are subject to personal income tax (IRPEF), or those who are residing in Italy, are entitled to the Renovation bonus, for renovation expenses incurred in 2022. The right to this tax credit is not limited to the owners only. Family members, who live with the owner, can also opt for this tax credit, if they hold the invoices and bank transfers related to the renovation work.
Those who renovate a property can take advantage of an IRPEF deduction of 50% with a maximum spending limit of 96,000 euro per real estate unit. The deduction is divided into 10 annual instalments of the same amount. The first instalment can be deducted in the year in which the expenditure was incurred.
Those who renovate a property can take advantage of an IRPEF deduction of 50% with a maximum spending limit of 96,000 euro per real estate unit. The deduction is divided into 10 annual instalments of the same amount. The first instalment can be deducted in the year in which the expenditure was incurred.
Ecobonus
Ecobonus is an income tax credit (IRPEF) for expenses incurred for the energy efficiency of your home in 2022. The deduction of the Ecobonus is valid for both residents and non-residents. The tax credit is spread over a period of 10 years with a maximum spending limit of 100,000 euro. You are entitled to a different percentage of Ecobonus tax deduction depending on the type of intervention. If you sell your home, the remaining tax credit has to be transferred to the new owner.The following interventions qualify for 50% tax credit: doors and windows, solar shading, biomass boilers and class A condensation boilers.
These interventions qualify for 65% tax credit: total energy requalification of the building, advanced thermal adaptation system, hot air heaters with condensation technology, heat pumps, heat pump water heaters, building envelope insulation, solar thermal collectors, stand-alone power system, micro-CHP.
SUPERBONUS 110%
This incentive is new since 2021. The above Ecobonus becomes a 110% Superbonus, if you carry out a renovation before 31 December 2023, with interventions that improve the energy efficiency of buildings with two scales and/or with interventions that reduce the seismic risk*.
The conditions of this superbonus are rather complex and the assistance of an architect or geometra and/or a tax advisor for the evaluation of the feasibility of your project is absolutely essential. The incentives for the Superbonus will gradually decrease to 70% in 2024 and 65% in 2025.
Sismabonus (Seismic Bonus)
The Sismabonus is an income tax credit for expenses incurred for seismic security interventions on buildings which are situated in high-risk areas (zone 1 and 2) and since 2019 also in zone 3. The deduction of the Sismabonus is valid for costs incurred from 1 January 2017 until 31 December 2025. You are entitled to a tax deduction of 50 to 70% of the expenses if the interventions carried out lead to a reduction of one seismic design category. If the intervention leads to the reduction of two seismic design categories, the deduction percentage is raised to 80%.
The Sismabonus has a maximum spending limit of 96,000 euro per real estate unit and must be divided into five annual instalments of the same amount. The first instalment can be deducted in the year in which the expenditure was incurred. The tax reduction concerns buildings in zones 1 and 2, those with high seismic hazard, but since 2019 also those in zone 3.
The Sismabonus has a maximum spending limit of 96,000 euro per real estate unit and must be divided into five annual instalments of the same amount. The first instalment can be deducted in the year in which the expenditure was incurred. The tax reduction concerns buildings in zones 1 and 2, those with high seismic hazard, but since 2019 also those in zone 3.
NB. The deduction of the Sismabonus has been raised to 110% for expenses incurred from 1 July 2020 to 31 December 2022.
Bonus Mobili e Elettrodomestici (furniture and home appliances bonus)
The furniture and home appliances bonus consists of a 50% tax reduction on a maximum expenditure of 10,000 euro for the purchase of furniture and class A+ home appliances (class A for ovens) in 2022. The bonus is divided into 10 equal instalments. The first instalment can be deducted in the year in which the expenditure was incurred.
The tax reduction, which applies for the purchase of furniture and appliances for the house which is being renovated. Your purchases have to be paid for by bank transfer or by credit card.
You can take advantage of the furniture and home appliances bonus for the purchase of ovens (energy rating A) and appliances with energy rating A+ like refrigerators, freezers, washing machines, tumble dryers, dishwashers and cooking hobs. Televisions are excluded.
The tax reduction, which applies for the purchase of furniture and appliances for the house which is being renovated. Your purchases have to be paid for by bank transfer or by credit card.
You can take advantage of the furniture and home appliances bonus for the purchase of ovens (energy rating A) and appliances with energy rating A+ like refrigerators, freezers, washing machines, tumble dryers, dishwashers and cooking hobs. Televisions are excluded.
Bonus Verde (Green bonus)
The green bonus was introduced in 2018 and has been reconfirmed for 2022. This bonus allows you to deduct 36% of the costs incurred for the care, renovation and irrigation of private green areas in 2022.
In detail, the interventions for which you can take advantage of the Green bonus are: arrangement of private green spaces of existing buildings, fencing, irrigation systems and construction of wells, green roofs and hanging gardens.
The tax credit is spread over a period of 10 years with a maximum spending limit of 5,000 euro per property (max. 1,800 euro tax reduction). This right to tax credit is not limited to the owners only, but also family members, who live together with the owner. They can opt for this tax credit, if they hold the invoices and bank transfers related to the expenditure.
The tax credit is spread over a period of 10 years with a maximum spending limit of 5,000 euro per property (max. 1,800 euro tax reduction). This right to tax credit is not limited to the owners only, but also family members, who live together with the owner. They can opt for this tax credit, if they hold the invoices and bank transfers related to the expenditure.
Bonus Facciate (Facades bonus)
This bonus exists since 2020. The tax benefit in 2022 consists of only 60% of the cost of work done on the facades of buildings located in historical centers or densely built-up areas, so-called zones A and B. Until 2021 the tax benefit for the Facades Bonus was 90%. The bonus only applies to facade works. Works on windows, gutters or downspouts, or electric cables are excluded. Like most other fiscal benefits, this bonus is also spread over 10 years in the form of tax credit.*
*For the Superbonus, the Seismic bonus, the Facades bonus, the Ecobonus and the Renovation bonus, there are two interesting alternatives to benefit from the tax credit. First there is the possibility to transfer the tax credit to other intermediaries. The second alternative is getting a discount on the invoice of the amount due to suppliers who have carried out the interventions, and who, in turn, can recover the discount in the form of a tax credit. If you are not a taxpayer in Italy (e.g. non-resident second homeowners) these alternatives are the only ways to benefit from these bonuses. Be careful to avoid fraud. Now there is the obligation to insert the certificate of conformity and a sworn certification of the appropriateness of expenses, which was already foreseen for the Superbonus, with some exceptions.
The following minor bonuses are new since 2022.
BONUS IDRICO (Water bonus)
BONUS CALDAIA (Heater bonus)
BONUS INFISSI (Windows bonus)
BONUS TENDE DA SOLE (Awnings and Sun blinds bonus)
For most bonuses maximum spending limits apply and all invoices must be paid by bank transfer or credit card.
It is recommended that you read the conditions of each bonus carefully before you engage a builder to do the renovation work on your home.
