FOR MEMBERS

Budget 2022: Which of Italy’s building bonuses have been extended?

Italy's 2022 budget is set to change building projects for homeowners in Italy.
Italy's 2022 budget is set to change building projects for homeowners in Italy. Photo by Mattia Bericchia on Unsplash
The Italian government has approved next year's budget, containing reforms to Italy's various building bonuses. Here's what those planning to build or renovate need to know.

The Italian government has announced its raft of budget measures for 2022, including tax and pensions reforms, help with household bills and funds to close the gender pay gap.

What particularly stood out for those buying and renovating property was the highly anticipated news on extensions to tax breaks for home renovations.

Many construction incentives have been confirmed for next year, as “they have played a very positive role in stimulating the recovery of construction,” stated Prime Minister Mario Draghi at a press conference.

EXPLAINED: What changes in Italy’s new budget?

To encourage investment in construction and increase energy efficiency and seismic resilience of existing buildings, the Italian authorities intend to continue bonuses for building renovations, energy upgrading, the purchase of furniture and household appliances and the green bonus.

Yet, while some bonuses have been extended, the time is ticking on those schemes that have not been granted further state aid.

Here’s an overview of the building bonuses pledged for 2022 and how they’ve changed.

Renovating Italian property with bonuses.
The superbonus 110 is due to expire next June for single family homes. Photo: Sensei Minimal/Unsplash

The superbonus 110

Italy’s government launched the ‘superbonus 110‘ in May 2020, one of various measures aimed at boosting the Covid-hit economy.

Offering homeowners up to 110% deductions on expenses related to energy upgrades and reducing seismic risk, the scheme has been so in demand that homeowners are stuck amid delays on many projects as construction companies struggle to keep up.

This scheme has been extended for condominiums until 2023, but for many homeowners hoping to claim it for their single family homes, there isn’t as much time to move through the construction project as hoped.

READ ALSO:

The bonus has been granted an extension for the whole of 2022 for single family units, but with a serious caveat: you’re only eligible if it’s your first home and you have an ISEE (the social-economic indicator of household wealth) of 25,000 euros maximum.

From January 1st to June 30th 2022 it will not be necessary to comply with the ISEE limit.

If you don’t fall into this category, however, the deadline of June 30th 2022 remains. That means there are potentially just 8 months to complete all building works, as so far, there has been no mention of being able to finish a project on a single family home already started after this date.

For condominiums benefitting from 110% until 2023, the bonus will then drop in stages – to 70% for 2024 and 65% for 2025.

Italian property renovation.
Photo: reisetopia on Unsplash

Facades bonus

Another bonus extended for next year’s Budget Law is the Bonus Facciate. This scheme currently allows you to deduct 90 percent of the amount incurred for renovating the exterior facades of buildings, with no maximum spending limits.

In spite of some initial uncertainty, the facade bonus has been extended again, although in 2022 the percentage for the deduction for restoration work on external facades will drop from 90 percent to 60 percent.

It is set to be terminated in 2023.

The furniture and appliances Bonus

The state aid available for buying household appliances – the Bonus Mobili e Elettrodomestici – has also been extended.

Until the end of 2021, you could claim a 50 percent tax deduction on expenses of up to a maximum of 16,000 euros, as detailed in the Italian Revenue Agency’s guide.

You must make any purchases by December 31st 2021 to qualify for the current ceiling limit of €16,000 in expenses.

READ ALSO: How to stay out of trouble when renovating your Italian property

This bonus has now been confirmed to continue for three years until 2024, but the maximum expenditure will decrease to 5,000 euros from January 1st 2022. That’s half of what it was last year.

This scheme applies to household goods of at least A+ class (A for ovens), intended to furnish a property undergoing renovation, and other appliances such as washing machines, washer-dryers, dishwashers. refrigerators and freezers.

This subsidy is linked to the renovation bonus. To be sure you can access this one, the renovation work must have begun before buying any furniture or appliances – but expenses on restoring the property don’t need to actually be paid beforehand.

Renovation bonus

The Bonus Ristrutturazioni has been confirmed until December 31st 2024, allowing homeowners to apply for a 50 percent tax reduction on carrying out renovation work in both individual properties and condominiums.

You must be paying Italian income tax, known as ‘IRPEF’, to access this bonus.

There continues to be a maximum limit on expenses of €96,000 and the 50 percent offset to taxes is divided into annual instalments for 10 years.

There is a raft of allowances for accessing this bonus. These include making repairs on property that has been damaged, building garages or parking spaces, increasing security of the property such as installing gates, security doors and CCTV, removing asbestos and gas detection equipment.

READ ALSO: Italy’s building bonus: Can you really claim back the cost of renovating property?

Photo: Andrew CABALLERO-REYNOLDS / AFP

Ecobonus

The 50 percent and 65 percent ‘ecobonus’, a tax deduction aimed at encouraging energy upgrading in buildings, will remain in force and will exist in parallel with the ‘superbonus’.

Its extension in the 2022 Budget Law will allow taxpayers to benefit from tax discounts for works aimed at improving the energy performance of existing buildings.

READ ALSO:

The ordinary ‘ecobonus’, which has less stringent eligibility criteria than the 110 percent ‘superbonus’, is an IRPEF (income tax) and IRES tax (corporate income tax) deduction recognised for numerous expenses, including those relating to the replacement of boilers or windows and frames, for instance.

There are larger deductions of up to 85 percent on offer for works on condominiums.

First home bonus for under 36

Tax incentives for the first home bonus for young people, in this instance categorised as under 36, have been extended for the whole of 2022.

UPDATE: Under 36? Here’s how Italy plans to help you buy a house

Rent discounts for young people

Young people, classed as between 20 and 31 for this measure, could benefit from a 20 percent discount on rent up to 2,400 euros. It is intended for those who leave home and have their own income up to 15,493.71 euros.

The discount applies whether you rent an entire flat or a room and is due to remain in force for four years.

Green bonus

The Bonus Verde has also been extended into 2022 – you could get state help for landscaping your garden or private outdoor areas of existing property, supplying plants and shrubs, doing work on fences, irrigation systems, building wells, roofs or roof gardens.

There’s a 36 percent tax deduction available for jobs relating to gardens, terraces and green areas in general. Like the renovation bonus, you must be a taxpayer to benefit from this one.

The tax relief applied in the tax return must be divided into 10 annual instalments of equal amounts and must not exceed a maximum expenditure equal to €5,000 for each property.

How claiming building bonuses will change

The method in accessing these bonuses is set to shift from 2022, making it potentially trickier for as many people to claim.

The renovation bonus, the ecobonus and the other building benefits will not be available via credit transfer (cessione del credito) or a discount on the invoice (sconto in fattura).

READ ALSO: Do you have to be Italian to claim Italy’s building bonuses?

Both these options are set to expire on December 31st 2021, leaving tax deduction the only option.

As for the 110% superbonus, both credit transfer and the invoice discount are expected to continue, but this still hasn’t been confirmed by the authorities.

See more in The Local’s Italian property section.


Member comments

The Local is not responsible for content posted by users.

  1. Regarding the deadline of June 30, 2022 for the Superbonus 110%, does the work need to have started by December 31, 2021 or does it only need to be finished by June 30, 2022 regardless of start date? GRAZIE!!

Become a Member to leave a comment.Or login here.
Privacy