Thursday 30 October 2025 01:10
Major Tax Incentives for Home Renovation in Italy (2024-2033)
Taxpayers carrying out renovation work on residential buildings and common areas of residential complexes in Italy are entitled to claim significant tax relief. This benefit allows individuals to deduct a portion of the expenses incurred from their Italian personal income tax (Irpef). This article outlines the rules, beneficiaries, and changing deduction rates for these home […]
#blog #news & updates #whats on #italy home renovation tax credit
read the news on blog – Expats living in Rome
Taxpayers carrying out renovation work on residential buildings and common areas of residential complexes in Italy are entitled to claim significant tax relief. This benefit allows individuals to deduct a portion of the expenses incurred from their Italian personal income tax (Irpef).
This article outlines the rules, beneficiaries, and changing deduction rates for these home improvement incentives, which apply based on the cash principle—meaning the deduction is claimed in the tax year the payment was actually made. The total deduction is then divided among all eligible parties who bore the cost.
The incentive is available to any taxpayer subject to Italian personal income tax (Irpef), regardless of whether they are a tax resident of Italy, provided they bear the costs of the renovation.
Eligible individuals include:
• Property Owners
• Holders of Real or Personal Rights (e.g., usufructuary, bare owners, users, or those with habitation rights)
• Tenants (Inquilini)
• Cohabiting Family Members of the property owner or holder (including spouses, civil union partners, relatives up to the third degree, and in-laws up to the second degree).
• Cohabiting Partners (convivente more uxorio), for expenses incurred since January 1, 2016.
The benefit is generally spread over ten equal annual installments. The maximum expenditure limit for the deduction is €96,000 per residential unit.
The applicable deduction rate varies significantly based on when the expense was paid:
High Deduction Period (2012 – 2024)
For expenses incurred from June 26, 2012, through December 31, 2024, the deduction rate is 50% of the qualifying expenditure, up to the €96,000 limit per property.
For expenses incurred from June 26, 2012, through December 31, 2024, the deduction rate is 50% of the qualifying expenditure, up to the €96,000 limit per property.
• Note: For residential properties used partly for business, art, or professional activities, the deduction is reduced by half.
New Regime & Transition Period (2025 – 2033)
For expenses incurred starting from January 1, 2025, the general deduction rate is set to decrease, with a gradual phase-out:
For expenses incurred starting from January 1, 2025, the general deduction rate is set to decrease, with a gradual phase-out:
Tax Year General Deduction Rate Principal Residence Rate Max Expense Limit 2025 36% 50% €96,000 2026 30% 36% €96,000 2027 – 2033 30% 30% €96,000
• Note: The 30% base rate applies generally from 2025 onward, but the higher rates (50% and 36%) are applicable in 2025, 2026, and 2027 if the property is the taxpayer’s principal residence (abitazione principale).
• Emergency Generators: Expenses for replacing an existing emergency generator set with a latest-generation gas emergency generator will retain a 50% deduction rate.
• Exclusion: The benefit does not apply to expenses for replacing existing winter climate control systems with boilers fueled solely by fossil fuels.
Find and Buy Your Ideal Property in Italy with Our Professional Services
Need help with Italian bureaucracy? Schedule a free call
Posted: October 30, 2025
Taxpayers carrying out renovation work on residential buildings and common areas of residential complexes in Italy are entitled to claim significant tax relief. This benefit allows individuals to deduct a portion of the expenses incurred from their Italian personal income tax (Irpef). This article outlines the rules, beneficiaries, and changing deduction rates for these home […]
Posted: October 23, 2025
Buying a first home in Italy comes with significant tax benefits and incentives designed to make property ownership more accessible. Whether you are an Italian national or a foreigner, understanding these advantages can translate into substantial savings on your property purchase. The “Prima Casa” regime is essentially a set of tax reliefs applicable to the […]
Posted: September 16, 2025
For non-EU citizens residing in Italy, having your family with you is a tangible goal. Italian law provides a framework for family reunification, allowing you to bring close relatives to live with you under specific conditions. This guide outlines the key requirements, procedures, and rights to help you navigate the process. Who Can Apply for […]
Posted: September 9, 2025
Are you a non-EU citizen wishing to work as a self-employed worker in Italy? This guide explains the conditions you must meet, the procedures to follow, and the rights you can enjoy during your stay. Conditions for Self-Employment To legally engage in independent work in Italy, non-EU citizens must satisfy several conditions and obtain the […]
Posted: September 2, 2025
September is shaping up to be a turbulent month for travelers in Italy, with more than 14 national strikes scheduled. Widespread protests are expected to cause significant disruption across trains, flights, and local public transport networks. Rail and Air Travel Disruption Commuters and long-distance travelers on trains should be aware of a major nationwide strike […]
Posted: August 25, 2025
As a resident in Italy, you may already be familiar with the dynamics of the local housing market and perhaps have contemplated purchasing property. However, there exists a lesser-known yet potentially advantageous avenue worth exploring: Aste Immobiliari, or judicial property auctions. What Are Judicial Auctions? Judicial auctions in Italy are public sales of assets, including […]
Posted: August 25, 2025
If you live in Italy and need to send packages to the United States, there are new rules you should know about. Starting August 29, 2025, all goods shipped from Italy to the U.S. will be subject to customs duties before arriving. Until now, parcels valued under $800 could be sent duty-free, but this exemption […]
Posted: August 19, 2025
The Italian passport remains one of the most powerful in the world, ranking third in the 2025 Henley Passport Index. This prestigious position is shared with passports from Germany, France, Spain, Ireland, Finland, and Denmark, allowing holders to travel to 189 out of 227 destinations without a pre-approved visa. The index, widely regarded as a […]
