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Italy's 2025 Home Renovation Bonus Changes
Analysis of changes to the Italian home renovation tax bonus in the 2025 budget, including reduced rates for second homes and continued incentives for first homes, as well as other related measures.
Italian
Italy
Labour MarketLifestyleBudgetHousing MarketGovernment SpendingTax PolicyItalian Economy
Italian GovernmentAgenzia Delle Entrate
Maurizio LeoGiancarlo GiorgettiGino Pagliuca
- When and by whom was the home renovation bonus established?
- The renovation bonus was originally established by the Prodi I government in 1998 and has been used at least 19 million times, generating an estimated 176 billion euros in work over the past decade.
- What changes are being made to the Italian home renovation tax bonus in 2025?
- The Italian government's 2025 budget partially reverses the home renovation bonus, reducing the tax break for second homes to 36% next year and 30% in 2026-2027. For first homes, the 50% rate remains for 2025, then drops to 36% in 2026.
- Besides the home renovation bonus, what other incentives remain or are being added in the budget?
- The budget confirms the "Bonus Mobili" (furniture bonus) for another year and the Ecobonus (green renovation bonus) at 50% for first homes, along with Sismabonus Acquisti (earthquake-proofing bonus). The Superbonus is maintained at 65% but with restrictions.
- What measures are in place to support access to mortgages for young people and vulnerable groups?
- The budget includes a continuation of the subsidized mortgage program for young people and underprivileged groups until 2027, which is expected to boost homeownership accessibility with current low interest rates.
- What are the requirements and potential difficulties related to the new rules regarding property value increases after renovation?
- The new law specifies that the 50% tax credit for renovations applies only to homeowners, excluding family members. It also requires reporting of increased property values due to renovations, though the calculation methods remain unclear.