Italy’s home bonuses 2024: everything you need to know

In 2024, amid various changes and confirmations, home bonuses in Italy remain a crucial incentive for encouraging the renovation and purchase of residential properties.

Italy boasts a rich housing heritage, yet much of it comprises outdated properties requiring urgent modernization. . According to data from Assoimmobiliare, over half of the nation's homes were erected prior to 1970, highlighting the need for interventions to improve safety, accessibility, comfort, and energy efficiency.

Nevertheless, renovation endeavors often encounter high costs, making it difficult for many owners to undertake such works without adequate financial support. That’s why in recent years governments have introduced a series of tax incentives, each aimed at encouraging specific types of intervention. For instance, tax deductions for energy-saving initiatives encourage the adoption of more efficient and sustainable systems, thus contributing to reduced consumption and pollution emissions. Similarly, incentives for the removal of architectural barriers foster the creation of accessible environments, enhancing the quality of life for individuals with disabilities.

To benefit from these incentives, it's essential to document the expenses and ensure payments are made through traceable methods. Additionally, beginning this year, deductions in the income tax return are the sole avenue for leveraging these bonuses, as the option for credit transfer or invoice discounts is no longer available. The only exception applies to individuals who initiated projects through the Certified Communication of Work Start (“CILA” in Italian) before February 17, 2023.

Major 2024 home bonuses available in Italy

These bonuses have been introduced to incentivize energy efficiency upgrades, enhance building standards and reinforce safety measures. Additionally, they serve as a means to stimulate the construction sector in Italy and support related satellite activities.

Superbonus 70%

The much-discussed Superbonus, offering a maximum deduction of 110% on expenses incurred for energy efficiency interventions and seismic risk reduction, sees a reduction to 70% in 2024, further decreasing to 65% in 2025. The 110% rate remains applicable solely to those who commenced works and obtained a certification from a specialized technician by December 31, 2023. Another notable change is that this year the Superbonus exclusively applies to apartment buildings, thus excluding single-family homes.

To mitigate the effects of the reduced rate on vulnerable segments of the population and facilitate the completion of already initiated projects, a special fund has been established It is available for expenses incurred from January 1 to October 31, 2024, and only citizens with an ISEE (Equivalent Economic Situation Indicator) of up to €15,000 annually, who have completed at least 60% of the works by the end of 2023, will be able to access it.

Beneficiaries of the Superbonus are required to acquire insurance safeguarding buildings undergoing interventions against potential damage from natural disasters.

For more information: link

Sismabonus

The Sismabonus is a crucial initiative to facilitate interventions aimed at improving the seismic resilience of buildings, including both residential and commercial structures, situated in Italian seismic risk zones 1, 2, and 3.

This mechanism enables a reimbursement of 50% of expenses incurred for interventions carried out between January 1, 2017, and December 31, 2024. The reimbursement is spread over a period of 5 years If these interventions result in a reduction of seismic risk by 1 or 2 classes, the tax deduction increases to 70% to 80%. Moreover, when improvements are applied to the common areas of apartment buildings, the tax deduction reaches its peak at 80% to 85%

The total expenditure eligible for the deduction is capped at 96,000 euros per housing unit. For apartment buildings, the total expenditure must be multiplied by the number of units within the building.

For further information: link

Ecobonus

The Ecobonus, designed to promote energy efficiency in existing buildings (including those used for professional purposes), remains effective this year. Among Italy’s 2024 home bonuses, this is the most complex, offering tax deductions ranging from 50% to 85%, depending on the nature of the renovation.

For instance, expenditures on window frames and solar shading qualify for a 50% deduction, whereas renovations in common areas of apartment buildings, including seismic upgrades, may obtain an 85% tax relief.

These deductions are distributed over a 10-year period. Engaging a qualified thermo-technician is mandatory to ensure compliance with established standards, and a communication must be submitted via the ENEA portal within 90 days of completing the work.

For further information: link

Renovation bonus

Among the house bonuses extended for 2024, there is also this renovation incentive, which covers a range of property improvements including building renovations, extraordinary maintenance, ordinary maintenance (limited to common areas in apartment buildings), restoration, and conservative renovation. This initiative remains a significant asset for property owners aiming to upgrade their properties, indirectly stimulating growth in the construction sector.

Under this incentive, property owners can reclaim 50% of their incurred expenses through an income tax deduction, which is spread over 10 equal annual installments. The maximum expenditure eligible for deduction is €96,000 per property unit annually, with the limit for apartment buildings calculated by multiplying this amount by the number of units. As with other incentives, it's essential to submit a communication to the ENEA portal within 90 days of work completion.

For further information: link

Furniture and appliances bonus

The furniture and appliances bonus, associated with the renovation bonus program, offers tax deductions for the purchase of furniture and appliances in properties undergoing renovation Not all purchases are eligible for this bonus, though; while items such as beds, tables, and sofas qualify for deduction, elements like doors, flooring, and curtains are excluded.

The deduction remains fixed at 50% and is distributed over a period of 10 years. However, what changes is the spending limit used to calculate the deduction rate, which decreased from €8,000 in 2023 to €5,000 this year per single real estate unit. Additionally, eligible expenses for the deduction include costs associated with the transportation and assembly of purchased goods.

For further information: link

Architectural barrier bonus

Un alAnother significant 2024 house bonus focuses on enhancing accessibility by reducing or eliminating architectural barriers in existing buildings. This initiative covers works related to stairs, ramps, elevators, stair lifts, and lifting platforms, provided certified technicians issue affidavits. Unlike the 2023 provisions, expenses for bathroom refurbishment, window replacements, and system automations (like automatic doors or shutters) are no longer eligible for deduction.

The tax benefit amounts to 75% of the expenses incurred between January 1, 2022 and December 31, 2025, and is distributed over five annual installments of equal amount. The maximum expenditure eligible for the tax deduction varies based on the building type: €50,000 for single-family properties, €40,000 for buildings consisting of two to eight units (multiplied by the number of units), and €30,000 for those with more than eight units (also multiplied by the number of units).

For further information: link

Green Bonus

This bonus supports initiatives aimed at the permanent enhancement of outdoor residential spaces, such as installing irrigation systems and creating roof gardens. It also covers expenses related to designing and maintaining these improvements. However, routine maintenance costs for existing gardens without significant innovations or equipment purchases are not included.

The incentive offers a 36% tax deduction, distributed over 10 equal annual installments, with a maximum expenditure of €5,000 per real estate unit.

For further information: link

2024 home bonuses for purchasing a property

Now, let’s take a look at the primary news regarding the key incentives available for purchasing a house in Italy.

First home bonus for buyers under 36

Starting from this year, the first home bonus for people up to 36 years of age is no longer available This benefit, designed to help young buyers with an ISEE (Equivalent Economic Situation Indicator) not exceeding 40,000 euros per year, exempted them from paying registration, mortgage, and cadastral taxes for purchasing their first home.

However, there's an exception for preliminary sales agreements signed and registered by December 31, 2023. These agreements remain eligible for the favorable tax treatment, even if the notarial deed is finalized in 2024.

For further information: link

The standard first home bonus

The standard first home benefits remain accessible to all, with no age or income restrictions. . This incentive offers a reduction in registration tax to 2%, down from the standard 9%. Additionally, fixed mortgage and cadastral taxes are set at 50 euros if the property is purchased from a private individual. On the other hand, if the seller is a company, a reduced 4% VAT applies, along with fixed registration, mortgage, and cadastral taxes set at 200 euros.

To qualify for this bonus, the purchased property must not fall under cadastral categories A/1 (luxury homes), A/8 (homes in villas), or A/9 (castles and buildings of eminent artistic and historical value). Furthermore, it must be used as the buyer's primary residence and located within the municipality where the buyer either resides or works.

For further information: link

Green home bonus

In 2024, a significant change has impacted tax benefits related to purchasing energy-efficient homes. Unlike in 2023 when deductions were granted for the purchase of both primary and secondary residences with energy classifications A or B, this benefit is no longer applicable this year.

This green home bonus, designed to promote the shift towards more energy-efficient housing in alignment with European Union directives, facilitated a 50% reduction on the VAT due on the purchase price, spread over a ten-year period

Sismabonus for property purchases

This bonus facilitates the acquisition of properties situated within buildings renovated to meet stringent anti-seismic criteria, particularly in regions designated as first-level seismic risk areas. Beneficiaries can recoup a portion of their purchase expenses over a span of five years

A 75% tax deduction is available for properties where renovations have enhanced seismic resistance by one risk class. For properties that have seen an improvement of two seismic risk classes, an 85% tax deduction is offered. The deduction is calculated on a maximum expenditure of €96,000, and, to qualify for this incentive, the property deed must be executed by December 31, 2024.

For further information: link. Home bonuses present interesting opportunities, yet maximizing their benefits demands a comprehensive grasp of the regulations and available options. To navigate this landscape effectively, it's essential to seek the assistance of competent professionals who can help in selecting the best options and dealing with bureaucratic processes with ease.