Now is definitely the
time to buy to renovate, upgrade for sale or make personal home improvements! The government incentives on offer, also
applicable to international homeowners, are a range of cash back schemes with
refunds from 50% up to 110%.
Until 2019, these
incentives were only for the benefit of Italian residents because the
"discount" was deducted from income taxes in 10 annual instalments.
In 2020, a new system
was introduced whereby the accumulated "credit" /
"discount" can be sold to banks (or insurance companies), who will reimburse
the value of the credit, less a fee. This change means that even non-resident overseas
homeowners - who do not pay income taxes in Italy - can take advantage of the schemes.
1) What generates the credit? Eco-friendly
2) What discount percentages are on offer?
From 50% to 110% of the amount spent, with ceilings of expenditure for
has focused this post on the 50% refund scheme for renovations and the 65% refund
for systems upgrades.
These two schemes are
simpler to apply, have fewer time limitations and require standard procedures
and protocols which most surveyors and architects are acquainted with (as
opposed to the 110% eco-bonus which is much more complicated and has
restrictive timelines, as yet not extended).
3) What is included in the 50% bonus? Bathroom
makeovers, floor makeovers, door and window replacements, screeds, plastering,
electrical system makeovers and more. The spending limit for these
interventions is equal to Euro 96,000 per single unit.
4) What is included in the 65% bonus? Installation
of condensing boilers, replacement of heating systems, purchase and
installation of solar thermal panels, insulation of walls and more. The
spending limit for these interventions is equal to Euro 100,000 per single
5) How does the refund work? The first
step is to make advanced payment for all of the works undertaken. If you do
this on-line, ensure to pay with the simple form called a bonifico ‘parlante’ which is directly associated with renovation
works and the applicable deductions in place. Alternatively, one can make
payment directly in the bank, but again specifying that payments are being made
for renovation works.
The second step is to
initiate the ‘selling’ of the accumulated credits to the bank (or an insurance
company). No doubt there will be many forms to fill in, but the procedure is
To date (16th March
2021), the bank will reimburse you 80% of the accrued credits. For example: if
you have incurred a cost of Euro 50,000 and have applied for the 50% restoration
bonus, you will be reimbursed 80% of that 50% which would be equal to E.20,000;
a saving of E.20,000 on a total expenditure of E.50,000.
this post is intended as only a rough outline as to what incentives/deductions
are currently available. We invite you to contact a surveyor, lawyer, architect
or accountant for professional advice in order to obtain a complete and
accurate account of all the deduction possibilities present and of the
executive methods to best utilize them.