TAX DEDUCTIONS FOR PROPERTIES IN ITALY RELATED TO THE COSTS OF RENOVATION AND/OR OF ENERGY-EFFICIENCY UPGRADE OF BUILDINGS.
Costs incurred in interventions of building renovation and/or energy-efficiency upgrade of buildings, in the presence of all the necessary requirements set out in the relevant regulations and the completion of all the formalities required therein, may benefit from specific tax deductions to be include in your tax return.
The tax deduction related to the expense incurred for building renovation, made permanent from January 1, 2012 and included among the expenses deductible from your personal income tax, is governed by article 16-bis of Presidential Decree 917/86 and currently provides for, up to December 31 2015, the possibility of an income tax deduction equal to 50% of the maximum spending limit of EUR 96,000.00 per housing unit. To this date, it is expected that this deduction, from January 1 2016, will return to the original ordinary amount of 36% of the EUR 48,000.00 expense limit per housing unit.
The Stability Law of 2015 has instead extended until December 31 2015, the tax deduction on expenditure incurred for energy-efficiency upgrade of buildings of 65% with different maximum deduction caps depending on the type of intervention. It is currently established that this benefit from January 1, 2016 will be replaced with a tax deduction of 36% for expenditure related to building renovations.
CConsidering the many changes that the above regulations have undergone over the years and the special attention that the taxpayer who can benefit from such deductions must pay in order to avoid incurring in any total or partial adjustments of the same deductions by the Revenue Agency, we strongly advise you to refer to your tax advisor and/or to visit the website of the Revenue Agency at www.agenziaentrate.gov.it where you will find the relevant detailed guidelines.