For members


EXPLAINED: How you can claim Italy’s auto bonus for a new car

You could get a discount worth thousands of euros if you buy a car under Italy's new auto bonus. Here's how it works.

EXPLAINED: How you can claim Italy's auto bonus for a new car
You could claim thousands of euros towards a new car with Italy's auto bonus. Photo by Obi - @pixel6propix on Unsplash

The Italian government announced on April 6th that it had approved additional funds for the next three years to encourage the purchase of new cars under its ‘auto bonus’ discount scheme.

You can apply for the new bonus to purchase older models of petrol and diesel cars within a certain limit of CO2 emissions, as well as low-emission electric or hybrid vehicles and motorbikes.

READ ALSO: Italian government announces new car discounts of up to €3,000

Between 2022 and 2024, the Italian government has allocated €650 million per year for the scheme, with a maximum of €5,000 allocated for every new car bought.

Full details of the bonus were made available as the Italian government published the decree last Monday (which you can find here, in Italian).

Based on the decree text, here’s how the scheme works and how much you can claim towards the purchase of a new vehicle.

Which cars does the bonus apply to?

The law takes two parameters into account: carbon dioxide (CO2) emissions, which cannot exceed 135 g/km, and the list price.

The maximum limits are broken down as follows:

  • €35,000 for cars in the 0-20 g/km CO2 range
  • €45,000 for the 21-60 g/km range
  • €35,000 for the 61-135 g/km range

To know how much bonus you can claim, you’ll need to be aware of the exhaust emissions – both of the car you’re buying and potentially, a car you may scrap.

The bonus refers to the six classes of vehicle emissions: Euro 1, 2, 3, 4, 5 and 6. Each class gives an emissions standard based on the registration date of the car and how much CO2 the car produces per kilometre.

You can check Italy’s Ministry of Infrastructure and Sustainable Travel website here to find out the environmental class of your vehicle.

The bonus can be used for both purchasing and leasing of cars.

Do I have to scrap a car to get the bonus on a new car?

No. You only need to scrap a car at the same time if you want to buy hybrid and thermal cars (petrol or diesel) with emissions between 61 and 135 g/km.

If you want to buy an electric car (0-20 g/km) or plug-in hybrid (21-60 g/km) scrapping is not mandatory.

READ ALSO: ‘Expect the unexpected’: What you need to know about driving in Italy

In these two situations, however, those who have a car to be scrapped can get an extra €2,000 bonus.

You don’t have to be the owner of the car to be scrapped either – but they must be living with you in the same household.

Overview of funds available

So, how much you can claim depends on the carbon dioxide emissions and whether you scrap a car at the same time.

Here’s a rundown:

  • Without scrapping
    – 0-20 g/km CO2: €3,000
    – 21-60 g/km: €2,000
  • With scrapping
    – 0-20 g/km: €5,000
    – 21-60 g/km: €4,000
    – 61-135 g/km: €2,000

Let’s look further into how that works out for different car types.

Italy’s auto bonus incentivises electric cars. AFP PHOTO / GABRIEL BOUYS

Electric car incentives up to €5,000

You can claim €3,000 for M1 category vehicles with a price of up to 35,000 euros + VAT.

According to the European Commission, M1 means a vehicle designed for the carriage of passengers and has no more than eight seats in addition to the driver’s seat – for private, non-commercial use.

The vehicle must be at least Euro 6 classification in the European exhaust emissions standard.

You can claim the full amount of €5,000 if you scrap a car at the same time as purchasing a new one.

READ ALSO: ‘How we used a government bonus to buy an electric car in Italy’

However, to be eligible for the extra €2,000, the law allows cars below Euro 5 to be scrapped. This means Euro 0, 1, 2, 3 and 4 classes.

As already indicated, it must have been registered in the name of the purchaser of the new car (or a cohabiting family member) for at least 12 months.

Hybrid car incentives up to €4,000

For the purchase of plug-in hybrid cars with a price of up to €45,000 + VAT, you can claim €2,000 if the vehicle is a Euro 6 class.

A further €2,000 may be added if you scrap a car in a class lower than Euro 5 at the same time.

Car scrapping incentives

To encourage drivers to move towards more ecological private transport, the government is incentivising scrapping older cars with poor exhaust emission ratings in favour of newer, lower emission cars.

The scrapped car, again, must be owned for at least 12 months and must be in an emission class lower than Euro 5.

There are higher discounts on offer, the lower emissions your new vehicle produces:

  • Cars 0-20 g/km CO2 (up to €35,000 + VAT): €3,000 without scrapping – €5,000 with scrapping
  • Cars 21-60 g/km CO2 (up to €45,000 + VAT): €2,000 without scrapping – €4,000 with scrapping
  • Cars 61-135 g/km CO2 (up to €35,000 + VAT): €2,000 with scrapping

There are discounts on offer for those buying mopeds and motorbikes in Italy too. Photo by Lachlan Gowen on Unsplash

Motorbikes and moped bonus

There are also funds available for those looking to buy two wheels, rather than four.

The decree provides incentives for the purchase of electric and hybrid mopeds and motorbikes (categories L1e, L2e, L3e, L4e, L5e, L6e, L7) from 2022 to 2024.

Here’s what you can claim:

  • a 30 percent discount on the purchase price of an electric or hybrid motorbike or moped, granted up to a maximum of €3,000. Or 40 percent up to €4,000 if you scrap a motorbike in an emissions class from Euro 0 to 3.
  • For brand new mopeds and motorbikes, on the other hand, you can get a a 5 percent discount from the dealer, a 40 percent discount on the purchase price and up to €2,500 with scrapping of a motorbike up to class Euro 3.

What else do I need to know?

As with all bonuses, there are some conditions you need to be aware of before claiming the auto bonus.

The vehicle purchased with the incentives must be registered within 180 days of claiming. However, this could change following calls to extend the deadline. That’s because the delivery time is not always less than 180 days, especially for cars in the 21-60 g/km emissions range.

You also can’t sell on a vehicle bought with the bonus until you’ve owned it for at least 12 months.

The bonus is in force now following its publication in the new decree. However, be aware that not all computer systems may have caught up yet should you rush to the dealer ready to sign on the dotted line today.

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For members


From renovations to cinema tickets: The Italian tax ‘bonuses’ you could claim in 2023

Italy's latest budget bill has confirmed which of the tax breaks or 'bonuses' will continue into 2023. From property purchases and renovations to cinema tickets, here's what you could save money on in Italy this year.

From renovations to cinema tickets: The Italian tax 'bonuses' you could claim in 2023

Each year, the Italian government provides a range of tax deductions to encourage residents to engage in economy-stimulating, energy-saving, or otherwise worthwhile projects.

READ ALSO: Flat tax, superbonus and wild boar: What’s in Italy’s 2023 budget?

While the paperwork involved can be a headache, it’s well worth knowing what discounts are available – in some cases they can end up saving you tens of thousands of euros.

Here are the key reductions on offer in 2023.


Italy’s popular ‘superbonus 110’, which offers homeowners the chance to claim a tax deduction of up to 110 percent of the cost of renovation work, has been extended into 2023 under the budget bill – albeit in a reduced form.

READ ALSO: Who can claim Italy’s building superbonus in 2023?

From January the maximum available rebate will drop from 110 to 90 percent, and the scheme will exclude many of those who were previously eligible to claim.

You can read more about the precise changes planned for the bonus HERE.

Furniture and appliances bonus

The 50 percent discount on the purchase of new furniture and energy-efficient appliances for properties which have been renovated will remain available in 2023. 

However, the discount will now only be applicable to expenses of 8,000 euros or less (down from the 10,000 euro limit for 2022).

Find more information on the Agenzia delle Entrate (Italian tax office) website here (in Italian).

You might be able to claim a discount on your washing machine in Italy this year.

You might be able to claim a discount on your washing machine in Italy this year. Photo by Anna Moneymaker / Getty Images via AFP

Earthquake bonus

The sisma bonus provides a reduction in costs related to reinforcing homes in parts of Italy at medium to high seismic risk (categories 1, 2 or 3). 

The incentive allows property owners to claim between 50 and 80 percent of up to 96,000 euros on improvements that will make buildings more earthquake-safe, depending on the extent to which the changes reduce seismic risk.

The extended deadline for completing the renovations and applying for the tax deduction is December 31st, 2024; after this point, the benefit will return to its original value of 36 percent of up to 48,000 euros.

READ ALSO: Six things you need to know about claiming Italy’s ‘Sismabonus’

For more details, see the Agenzia delle Entrate’s Sismabonus website here (in Italian) or get in touch with the Agenzia delle Entrate directly. Find contact information here


If you carry out work to make your home more energy efficient and eco-friendly, for example by replacing your boiler with a low-carbon alternative, improving insulation, installing solar panels, adding blackout blinds or shutters, or even adding charging points for electric cars, you can claim a significant portion of the expenses back. 

Savings of 50 percent or 65 percent can be claimed, depending on the type of work done; in common areas of condominium buildings, that figure rises as high as 75 percent. 

The current deadline for taking advantage of the bonus is December 31st, 2024; after this date, like the sisma bonus, the benefit will reportedly shrink to 36 percent of up to 48,000 euros per real estate unit.

Italy residents who install solar panels on their homes could claim a large tax reduction.

Italy residents who install solar panels on their homes could claim a large tax reduction. Photo by Bill Mead on Unsplash

First home bonus

People buying their first residential property in Italy are eligible for reductions on registration, mortgage and land registry tax, as well as a lower rate of VAT if the purchase is subject to sales tax.

They can also claim credit against personal income tax on estate agent fees and mortgage interest.

If you’re a first-time homebuyer under the age of 36, a couple with one person under the age of 35, or a single-parent family with minor children, you’re eligible for even more savings – provided your household’s ISEE doesn’t exceed 40,000 euros a year.

READ ALSO: What’s an ISEE and when will you need one in Italy?

Certain taxes are wiped out altogether, notary fees are halved, and the state will even guarantee loans of up 250,000 euros. This subsidy, which had been due to expire in 2022, was recently extended until December 31st, 2023.

For more details, see the Agenzia delle Entrate’s website here (in Italian).

‘Green house’ bonus

Back for 2023 (having briefly been trialled in 2016-2018) is the bonus case green, which provides financial incentives to people buying more energy-efficient homes.

Buyers of houses with energy class A or B ratings can benefit from a 50 percent VAT reduction on their purchase until December 31, 2022; however they must buy directly from the construction company or a real estate fund.

Renovation bonus

The bonus ristrutturazione allows you to apply for a 50 percent tax reduction on renovating your property, on expenses up to 96,000 euros, until the end of 2024.

Work might include repairing structural damage, having the wiring replaced, adding a garage, making the property more wheelchair-accessible, installing security systems, removing asbestos or adding safety features such as gas detectors. 

What you can’t claim for is ordinary upkeep and maintenance expenses; to be eligible for a subsidy, the work must involve a significant change or addition to your property.

You can claim significant discounts for making home improvements in Italy.

You can claim significant discounts for making home improvements in Italy. Photo by Stefan Lehner on Unsplash

Garden bonus

If you’re considering adding or renovating green space, you can apply for a 36 percent tax deduction on landscaping, installing irrigation systems, building a well, creating a roof garden or other significant work on your property’s outdoor areas until the end of 2024.

The bonus verde can be claimed on expenses of up to 5,000 euros per property and can be claimed on more than one home in your name. Routine maintenance and upkeep of your garden does not qualify. 

For more details, see the Agenzia delle Entrate’s bonus verde website here (in Italian).

Drinking water bonus

To incentivise people in Italy to ditch plastic bottles in favour of more environmentally friendly alternatives, the government has extended the bonus acqua potabile until the end of 2023.

A 50 percent discount will be available for the purchase and installation of products that provide tap water filtration, mineralisation, cooling or carbonation.

The tax reduction can be applied to expenses of up to 1,000 euros for private individuals, or up to 5,000 euros for businesses.

Psychologist bonus

Italy’s psychologist bonus (bonus psicologo), a voucher for residents looking to access public mental health services, will increase from 600 euros to 1,500 euros in 2023. 

The bonus, which was first introduced by Draghi’s government in July 2022, will remain available to residents with an ISEE below 50,000 euros a year.

However, with just 5 million euros allocated to the scheme this year, down from 25 million in 2022, it’s estimated that only around 10 percent of the roughly 400,000 who have applied will be able to benefit.

See more information about claiming the ‘psychologist bonus’ on the INPS website here (in Italian) 

‘Culture bonus’ for 18-year-olds 

A 500-euro payment made to young people on their 18th birthday to spend on books, museum and cinema tickets and other culture-linked items will be means-tested from 2023.

The existing 18App bonus will be replaced by two new payments: the ‘Carta della Cultura Giovani’ (Youth Cultural Card) and the ‘Merit Card’ (Carta del Merito).

The former will be awarded to 18-year-olds whose households have an ISEE under 35,000 euros, and the latter will go to those who graduated from high school with full marks.

Both bonuses will be worth 500 euros and will be applicable to the purchase of the same items encompassed by the former bonus cultura.

Bills bonus

The bonus bollette or bonus sociale, designed to offset ever-rising gas and electricity bills for lower-income households, will be available to those with an ISEE of up to 15,000 euros in 2023, the threshold having been raised from 12,000 in 2022.

Households with at least four dependent children that have an ISEE of up to 20,000 euros are also eligible.

An estimated 6.2 million people should benefit, up from 5.2 million last year. Those who qualify shouldn’t need to take any action; the discount will be automatically applied to energy bills.

Please note that The Local is unable to advise on or assist with claiming tax deductions. For more information, consult an independent financial advisor or get in touch with the Agenzia delle Entrate. Find contact information here