Last Updated on April 28, 2021 by Eleonora Rossi
Do you have an Italian property? Are you looking for a nice property for sale in Italy? If buying a house in Italy is one of your dreams, then you should learn more about Superbonus: the Italian state plan of aids for home renovations.
In this article, you will find the main things you need to know to renovate your property in Italy and save a lot of money. The scheme is quite complex, moreover, it is subject to changes. It is a good practice to get professional advice before buying a property in Italy and renovate it.
Property in Italy and the Superbonus
The Italian government launched the “Superbonus”. Owners of a house can get a tax deduction of up to 110% on the expenses for energy upgrades and reducing seismic risk. Yes, you read it right…110%! The Superbonus is also part of the “Relaunch Decree” to face the coronavirus emergency impact on the Italian economy. The bonus existed even before the outbreak of coronavirus, however, the government decided to increase the allowance. The aim is to relaunch the real estate industry, moreover, the financial injection will help to restore Italian old buildings. In fact, about 70% of properties in Italy are more than 50 years old.
Types of Bonus
Let’s make a distinction between the two types of existing bonuses in Italy. The first one is the “Ecobonus” and the second one is the “Sismabonus”. The good news is that they can also be used together. The Superbonus is valid until December 2022.
Restore a property in Italy: the Ecobonus
Which are the rules and requirements to get the eco bonus funding. First, of all, the renovation has to improve the energy efficiency of the building by two ratings. Example: from C to A. To do so you can include the installation of a thermal insulation system and the replacement of the heating system, moreover, also fixtures and windows, solar panels, boiler, and electric charging points are included. Of course, you can spend up to a certain amount of money per category. It is also possible to renovate and upgrade two homes at the same time. This can be interesting for people interested in purchasing a second property in Italy!
The access to Ecobonus
The first option is to use the tax deduction over five years, however, you must be an Italian resident and pay income tax, (IRPEF). Let’s make an example: to renovate a house you spend 60,000 euros, therefore you are eligible to get a tax credit of 66,000 euros over five years. It means 13,200 euros per year. It is important to note that you have to pay more IRPEF tax than that every year. What if you have a property in Italy, but you are not an Italian resident? In this case, you can transfer the tax credit to another party (tax credit institute or a bank) with the payment of a commission. Otherwise, you can get a discount on the invoice. In this case, the contractor will recover the bonus on your behalf and keep a part of it.
Restore a property in Italy: the Sismabonus
If your property in Italy is at risk of earthquakes, you might consider this type of bonus as well, however, the area of risk of the house has to be 1, 2, or 3. The renovation works must upgrade the reduction of risk by one or two classes. Also demolished buildings are covered, meaning that you can rebuild a new house and still benefit from the bonus.
Thanks to the bonuses, Italy is seeing an increase in properties sold to be renovated, moreover, a lot of people renovate the house they are currently living in thanks to the government’s help.