By which date is it worthwhile to renovate your property in Italy
Renovation Bonus - from 2028 rate at 30% (instead of 50%)
The Renovation Bonus (i.e. “Bonus Ristrutturazione”) was introduced into the Italian legal system by Law no. 201/2011.
It envisaged the possibility for taxpayers to benefit from a 36% income tax on natural persons (i.e. IRPEF) deduction (capped at € 48,000), for renovation work in cadastral units meant for residential use and in the common parts of residential buildings.
Subsequently (as of 2012), the deduction was raised from 36% to 50%, and this, with subsequent extensions, until 31.12.2024.
The cap has been likewise increased from € 48,000 to € 96,000 for each unit subject to the works.
Despite the numerous extensions, it is still uncertain whether the deduction will be further extended as of 1 January 2025 with the current rate of 50% (capped at € 96,000) or whether it will return to the original limit of 36% deduction.
In fact, according to the amendment to the Superbonus Decree No. 30/2024 recently submitted by the Italian Government for the approval of the Parliament, from January 2028, the rate of the deduction will drop to 30%. This suggests that it is not the Government's intention to further extend for the year 2025 the increased rate of the deduction (50%), and therefore, from the end of 2024, the rate will remain at 36%.
For this reason, those who are considering renovating their property in Italy should start this renovation as soon as possible.
We will keep you posted.