2025 Tax Incentives for Home Renovations in Italy

by Adriana ruiz

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Italy continues to offer valuable financial incentives for homeowners looking to renovate or improve the energy efficiency of their properties. Two key schemes for 2025 are the Bonus Ristrutturazioni (Renovation Bonus) and the Ecobonus (Eco-bonus). This guide explains what they are, how to apply, and the specific requirements.

Bonus Ristrutturazioni (Renovation Bonus) in 2025: Your Complete Guide

The “Bonus Ristrutturazioni” is a tax deduction (IRPEF) designed to support building renovations and the recovery of residential buildings. Article 16-bis of the TUIR (Consolidated Income Tax Act) allows for a tax deduction on expenses incurred for the rehabilitation, renovation, and recovery of the building heritage on common parts of residential buildings and individual residential units of any cadastral category, including their appurtenances.

What it is: For 2025, the Bonus Ristrutturazioni offers a 50% tax deduction on expenses up to a maximum spending limit of €96,000 per property unit, but only for interventions on main homes (abitazioni principali). For second and subsequent homes, the deduction is 36% with the same spending limit of €96,000.

Important Note for Future Years: The deduction rates are scheduled to decrease in the following years. For expenses incurred in 2026 and 2027, the deduction will be 36% for main homes and 30% for other properties, always within the €96,000 spending limit.

Requirements: The bonus applies to various types of renovations, including:

• Extraordinary maintenance: Works that renew or replace parts of the building, such as consolidating foundations, replacing fixtures, creating or modifying bathrooms, etc.
• Restoration and conservative rehabilitation: Interventions aimed at preserving the building while ensuring its functionality, like structural consolidation, eliminating architectural barriers, etc.
• Building renovation: Works that significantly modify a building, potentially including demolition and reconstruction with the same volume.
• Ordinary maintenance is generally not included unless it’s part of a larger renovation project and concerns the common parts of condominium buildings.

How to Apply: The deduction is typically claimed over ten equal annual installments in your income tax return. To apply, you need to:

• Ensure that the works carried out are eligible (see “Requirements” above).
• Pay for the works via traceable methods like bank or postal transfer, clearly indicating the reason for payment, your fiscal code, and the VAT number or fiscal code of the company carrying out the work.
• Keep all invoices and payment receipts.
• If required by the type of work, submit any necessary building permits or notifications (like CILA or SCIA) to the local municipality.
• Declare the expenses in your annual tax return (“Dichiarazione dei Redditi”).

All taxpayers, whether residents or non-residents in Italy, who own the property subject to the renovation under any legal title, are eligible for the deduction, provided they bear the expenses.

Ecobonus (Eco-bonus) in 2025: Investing in Energy Efficiency

The Ecobonus is a tax deduction for interventions aimed at the energy upgrading of existing buildings. Introduced by the Budget Law of 2007, it is currently governed by Article 14 of Decree-Law 63/2013.

What it is in 2025: The Budget Law 2025 has brought a significant revision to the deduction percentages for energy efficiency upgrades. For 2025, the Ecobonus offers a 50% tax deduction for main homes and 36% for other properties, to be divided into 10 equal annual installments.

Future Rates: These rates will further decrease in 2026/2027 to 36% for main homes and 30% for other properties. The increased rates for 2025 (50% for main homes) apply only if the expenses are incurred by the owners or holders of a real right of enjoyment over the property used as their main residence.

Important Exclusion: The replacement of winter air conditioning systems with single fossil fuel boilers is excluded from the Ecobonus for expenses incurred in 2025, 2026, and 2027.

Who Can Benefit?

The Ecobonus is available to all taxpayers who hold any type of income and own or hold the property based on a suitable title. This includes individuals (including professionals), public and private entities (not carrying out commercial activities), simple partnerships, professional associations, and those with business income.

Eligible Buildings: The Ecobonus applies to existing property units and buildings (or parts thereof) located in Italy, registered in the Land Registry (Catasto) or for which registration has been requested, of any cadastral category, including rural properties and those used for business or professional activities.

Eligible Interventions:

The Ecobonus covers interventions that reduce energy consumption for heating and improve the building’s thermal performance. These include:

• Purchase and installation of solar shading.
• Purchase and installation of windows (including frames) and replacement of winter air conditioning systems with at least Class A condensing boilers (excluding single fossil fuel boilers from 2025).
• Replacement of heating systems with biomass-fueled generators.
• Replacement of heating systems with high-efficiency heat pumps or low-enthalpy geothermal systems.
• Replacement of traditional water heaters with heat pump water heaters.
• Interventions on the building envelope (opaque vertical and horizontal structures), including the installation of solar panels for hot water production.
• Global energy requalification of buildings aimed at reducing primary energy needs.
• Purchase and installation of micro-cogeneration systems.
• Energy efficiency upgrades of common parts of condominium buildings.

How to Apply:

• Ensure the energy efficiency work is eligible.
• Pay for the works via traceable methods.
• Retain all invoices and payment receipts.
• Obtain the necessary asseveration from a qualified technician certifying the work meets the technical requirements.
• Obtain an Energy Performance Certificate (APE) after the work is completed (not required for all types of interventions).
• Prepare a information sheet about the work carried out.
• Crucially, transmit the information sheet and details from the APE (if required) to ENEA electronically within 90 days of the end of the works via their dedicated website.
• Declare the expenses in your tax return, claiming the deduction over ten equal annual installments.

Key Considerations for Foreign Property Owners
• Property Ownership: You must own the property or hold a real right over it.
• Italian Tax Liability: These bonuses are primarily tax deductions against your Italian income tax (IRPEF). If you don’t pay IRPEF in Italy, the direct benefit might be limited. While past mechanisms like “sconto in fattura” (invoice discount) and credit transfer existed, the current primary method is the tax deduction over ten years.
• Documentation is Key: Meticulously keep all invoices, payment records, and any required permits. For the Ecobonus, ensure timely submission of documentation to ENEA.
• Seek Professional Advice: Navigating the Italian bureaucracy and tax system can be complex. Consider consulting a local “commercialista” (accountant) for personalized guidance.

The Bonus Ristrutturazioni and the Ecobonus in 2025 offer valuable opportunities for foreign homeowners in Italy to reduce costs associated with property improvements. Remember to always consult official sources and a “commercialista” for advice tailored to your specific situation.

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