Italian home improvement tax credit incentives

Italian home improvement tax credit incentives

Published:

Maximize Your Italian Property’s Value with Home Improvement Tax Incentives

In Italy, enhancing your home can be more than just an investment in comfort and style: it is an opportunity to benefit from the government’s home improvement tax credit incentive, known as “agevolazioni per ristrutturazioni edilizie.” This initiative is designed to encourage homeowners to improve their properties by offering a substantial tax credit on renovation expenses.

Understanding the Italian Remodeling Tax Credit Incentive:

The home improvement tax credit incentive is a pivotal aspect of Italy’s commitment to improving housing standards nationwide. By offering a tax deduction of up to 85% on eligible expenses, the government aims to stimulate the construction sector, promote energy efficiency, improve handicap accessibility, and enhance residential safety. This deduction, spread over ten years, covers a wide range of renovation activities, from structural repairs to energy-saving installations.

Requirements for Eligibility:

Project Specifications: Qualifying renovations include structural enhancements like earthquake proof structures, handicap accessibility improvements, energy efficiency upgrades, or even just a simple bathroom remodeling, air conditioning installation and purchase of furniture. The more work contributes to the property’s standards or environmental sustainability the higher is the incentive. However, incentives are predicted to be much less generous for work done after December 31, 2024, unless the government approves another extension.

Property Ownership: The incentive is available to property owners and tenants regardless their citizenship or residency. Additionally, the incentive applies regardless whether the property is used as a primary residence, as a holiday home, or for rental purposes. In this article we talk about how to use the tax credit when you are not an Italian resident.

Compliance, Documentation: To secure the tax credit, homeowners or tenants must do the renovation under a valid building permit, which in many cases is represented by a simple affidavit filed with the competent authorities.

Payments method requirement: Payments must be done through an Italian bank account. It does not have to be the bank account of the property owner or the tenant. For example, we assists our clients with their property renovations including making tax credit qualifying payments through our escrow account service on their behalf.  

Navigating these requirements can be complex, requiring a deep understanding of both legal and regulatory landscapes. Our expertise not only lies in understanding the intricacies of the tax incentive but also in ensuring that our clients’ renovation projects are compliant and optimally positioned to benefit from any available tax incentive.

Our Escrow Account Service:

We offer an escrow account service that simplifies the process, managing funds securely and ensuring that payments to contractors are made in a timely and compliant manner. Our goal is to make sure that payments adhere to the necessary legal requirements.

Contact us to discuss your case and how to leverage the remodeling tax credit opportunities applicable to your project.

Related articles:

Italian Super Bonus

book a consult 2 - Italian home improvement tax credit incentives
contact us 1 - Italian home improvement tax credit incentives

Tab 2 content.

Contact us

I am interested in:

General information

Please find general information on our website using the search field at the top right corner of any page or by using any of the top dropdown menus to see information by subject.

Send us your resume

If you are fluent in Italian and have an Italian degree, please check available positions in the Italian version of this page HERE