A9The tax relief on building renovation is governed by art. 16-bis of Presidential Decree 917/86 and consists of a deduction from the personal income tax of 36% of the costs incurred, up to a total amount of the same not exceeding € 48,000 per housing unit.
However, for expenses incurred from 26 June 2012 to 31 December 2019, a higher deduction is available (50%) and the maximum spending limit is 96,000 euros.
The deduction must be divided into 10 equal annual amount.
An income tax deduction is also envisaged, within the maximum amount of 96,000 euros, even for those who purchase buildings for residential purposes that have been restructured.
In particular, the deduction is due in the case of restoration interventions and conservative rehabilitation and building renovation, concerning entire buildings, carried out by construction companies or real estate restructuring and building societies, which provide within 18 months from the date of completion of the works to the next transfer or assignment of the property.
Regardless of the value of the interventions performed, the purchaser or assignee of the property must in any case calculate the deduction on a lump-sum amount, equal to 25% of the sale or assignment price of the home (including VAT). This deduction must also be divided into 10 equal annual amounts.
Conditions to request the deduction
Work on residential real estate units and residential buildings for which the tax relief is due are:
- those listed in letters b), c) and d) of article 3 of Presidential Decree 380/2001 (Consolidated text of the legislative and regulatory provisions on construction). In particular, these are the extraordinary maintenance interventions, restoration and conservative rehabilitation and building renovation carried out on the individual residential real estate units of any cadastral category, even rural and on their appurtenances
- those indicated in letters a), b), c) and d) of article 3 of Presidential Decree 380/2001 (ordinary maintenance, extraordinary maintenance, restoration and conservative restoration, building renovation), carried out on all common parts of residential buildings
- those necessary for the reconstruction or restoration of the damaged building following calamitous events, even if these works are not included in the categories indicated in the previous points and on condition that a state of emergency has been declared
- those relating to the construction of garages or appurtenant parking spaces, also in common ownership
- those aimed at eliminating architectural barriers, involving lifts and elevators (for example, the construction of an elevator outside the home)
- those for the realization of every instrument that, through communication, robotics and any other means of more advanced technology, is suitable to favor the mobility inside and outside the home for people with severe handicaps, according to the article 3, paragraph 3, of law 104/1992. The deduction is valid only for the expenses incurred to carry out interventions on the buildings, while it is not for the expenses incurred in relation to the simple purchase of instruments, even if they are aimed at promoting communication and internal and external mobility. Therefore, by way of example, hands-free telephones, touch screens, computers, expanded keyboards are not included in the facilitation. These assets, however, are classifiable in the category of technical and IT subsidies for which, under certain conditions, an income tax deduction of 19% is provided
- those related to asbestos removal and execution of works aimed at avoiding domestic accidents. With reference to home security, it does not entitle the deduction of the simple purchase, even for substitute purposes, of equipment or appliances equipped with safety mechanisms, as this case does not include an intervention on the buildings (for example, no deduction is due for the purchase of an automatic shut-off kitchen to replace a traditional gas cooker). The facilitation competes, however, also for the simple repair of unsafe systems installed on buildings (for example, replacement of the gas pipe or repair of a malfunctioning socket). The eligible works include the installation of inert gas detection devices, the installation of anti-accident glasses, the installation of the handrail
- those relating to the adoption of measures aimed at preventing the risk of the performance of unlawful acts by third parties. “Unlawful acts” means those that are criminally unlawful (for example, theft, assault, kidnapping and any other offense whose realization involves the infringement of legally protected rights). In these cases, the deduction is only applicable to the costs incurred to carry out work on the buildings. The contract entered into with a supervisory institution, for example, is not included in the concession
- those aimed at cabling buildings, limiting noise pollution, achieving energy savings, adopting static and anti-seismic security measures for buildings.
In addition to the expenses necessary for the execution of the works, for the purposes of deduction it is also possible to consider:
- planning costs and other related professional services
- expenses for professional services, however required by the type of intervention
- the costs for the commissioning of buildings in accordance with Ministerial Decree 37/2008 – pursuant to law 46/90 (electrical systems) and the Unicig standards for natural gas plants (law 1083/71)
- costs for the purchase of materials
- the compensation paid for the compliance report of the works to the laws in force
- the expenses for the performance of appraisals and inspections
- value added tax, stamp duty and the rights paid for concessions, authorizations and complaints to start work
- urbanization charges
- any other costs strictly related to the implementation of the interventions as well as the obligations established by the regulation implementing the subsidized interventions (decree n. 41 of 18 February 1998).
The ordinary maintenance interventions are therefore admitted to the facilitation only when they concern the common parts and the deduction is up to each condominium on the basis of the thousandth quota.
Who is supposed to get the deductions
Beneficiaries can not only benefit the owners or holders of real rights on the properties for which the works are carried out and who bear the costs, but also the tenant or the borrower. In particular, they are entitled to the deduction:
- the owner or the bare owner
- the holder of a real right of enjoyment (usufruct, use, housing or surface)
- the tenant or the borrower
- members of divided and undivided cooperatives
- members of simple companies
- individual entrepreneurs, only for properties that are not included among the instrumental ones or goods.
They are also entitled to a deduction, provided they bear the costs and are holders of bank transfers and invoices:
- the family member cohabiting with the possessor or holder of the property subject to the intervention (the spouse, relatives up to the third degree and the like within the second degree) and the member of the civil union
- the separated spouse, assignee of the property in the name of the other spouse
- the partner more uxorio, not the owner of the property subject to the interventions or holder of a loan agreement, for the expenses incurred starting from 1 January 2016.
In these cases, without prejudice to the other conditions, the deduction is due even if the municipal authorizations are in the name of the property owner.
The condition of cohabitant or borrower must exist at the time of sending the communication of commencement of work.
For those who purchase a property on which interventions have been carried out which benefit from the deduction, the remaining shares of the “bonus” are automatically transferred, unless a different agreement is reached between the parties.
The person who carries out the work on his own is also entitled to the deduction, but only for the purchase costs of the materials used.
How and when
To take advantage of the deduction, you must:
- send, when required, to the local health authority competent for the territory, before starting the works, a communication with registered letter with return receipt, except in cases where the rules on safety conditions on construction sites do not include the obligation of prior notification to the Asl
- pay the deductible expenses by bank or postal transfer, from which the reason for the payment must appear, the tax code of the beneficiary of the deduction and the tax code or VAT number of the beneficiary of the payment.
To take advantage of the deduction it is sufficient to indicate in the tax return the cadastral identification data of the property and, if the works are carried out by the holder, the registration details of the deed that constitutes its title and the other data required for the control of the deduction.
Furthermore, the following documents must be kept and shown at the request of the offices (provision of the Director of the Revenue Agency of 2 November 2011 – pdf):
- administrative authorizations in relation to the type of work to be carried out (granting, authorization or commencement of commencement of work). If these authorizations are not provided, a substitutive declaration of the deed of notoriety in which the date of commencement of the works must be indicated and attest that the building renovation interventions in place must be among those eligible
- request for registration for buildings not yet registered
- IMU payment receipts, if due
- shareholders’ meeting resolution approving the execution of the works and a thousandth table for the allocation of the expenses for the interventions concerning common parts of residential buildings
- in the case of works carried out by the holder of the property, if different from the cohabiting family members, declaration of consent of the owner to the execution of the works
- preventive communication containing the date of commencement of the work to be sent to the local health authority, if required according to the provisions on the safety of construction sites
- invoices and tax receipts relating to actual expenses incurred
- receipts for payment transfers.
You can take advantage of an income tax deduction of 50% for the purchase of furniture and large appliances of a class no less than A + (A for ovens), designed to furnish a building subject to restructuring. The facilitation has been extended by the recent budget law also for purchases that will be made in 2019, but can only be requested by those who carry out a building renovation intervention started from 1 January 2018.
The deduction must be divided between those entitled in ten equal annual installments and is calculated on a total amount not exceeding 10,000 euros.
To take advantage of the facilitation it is necessary that the start date is earlier than the one in which the expenses for the purchase of furniture and large appliances are incurred. The start date can be proven by any administrative authorizations or communications required by building codes, from the prior communication to the ASL (indicating the date of commencement of the works), if mandatory, or for works for which no communications or qualifications are required housing, a declaration in lieu of an affidavit (Article 47 of Presidential Decree 445/2000), as prescribed by the provision of the Director of the Revenue Agency of 2 November 2011 – pdf
The tax payer who carries out renovation work on several property units will be entitled to the benefit several times. In fact, the maximum amount of 10,000 euros refers to each housing unit undergoing restructuring.
The deduction is due to the expenses incurred up to 31 December 2019 for the purchase of:
- new furniture
- large new energy class appliances not lower than A +, (A for ovens), for appliances for which the energy label is provided.
By way of example, bedding, wardrobes, dressers, bookcases, desks, tables, chairs, bedside tables, sofas, armchairs, sideboards, as well as mattresses and lighting fixtures that constitute a necessary completion of the furniture of the building are included among the facilitated furniture. object of restructuring.
On the other hand, purchases of doors, flooring (for example, parquet), curtains and curtains, as well as other furnishing accessories cannot be facilitated.
As for large appliances, the standard limits the benefit to the purchase of types with an energy label of class A + or higher, A or higher for ovens, if the energy label is mandatory for those types. The purchase of large appliances without an energy label can only be facilitated if an energy label is not yet required for that type. Examples include large appliances: refrigerators, freezers, washing machines, dryers, dishwashers, cooking appliances, electric stoves, electric hotplates, microwave ovens, electric heating appliances, electric radiators, electric fans, air conditioning appliances .
In the amount of expenses incurred for the purchase of furniture and large appliances, the costs of transport and assembly of the purchased goods can also be considered, provided that the expenses have been incurred with the payment methods required to use the deduction (bank transfer, credit or debit cards.
The realization of renovation works on the common parts of the condominium allows the individual owners (who take advantage of the relevant deduction) to deduct the costs incurred to buy the furniture of the common parts, such as guardhouses or the porter’s apartment, but does not allow them to deduct the expenses for the purchase of furniture and large appliances for your real estate unit.
The purchase of furniture or large appliances can be facilitated even if the goods are intended to furnish a different environment of the same building subject to building intervention.
To have the deduction it is necessary to make payments by bank transfer or debit or credit card. Instead, it is not possible to pay by bank checks, cash or other means of payment. If the payment is made by bank or postal transfer, it is not necessary to use the one (subject to withholding) specially prepared by banks and Poste S.p.a. for building renovation costs.
The deduction is allowed even if the assets have been purchased with a loan in installments, on condition that the company that pays the loan pays the consideration in the same way as previously indicated and the tax payer has a copy of the payment receipt.
The documents to be kept are:
- the proof of payment (bank transfer receipt, receipt of successful transaction, for payments with credit or debit card, debit documentation on the current account)
- invoices for the purchase of goods, showing the nature, quality and quantity of the goods and services acquired.
The receipt showing the purchaser’s tax code, together with an indication of the nature, quality and quantity of the goods purchased, is equivalent to the invoice.
Respecting all these requirements, the deduction can also be used in the case of furniture and large appliances purchased abroad.