In this in-depth article, we will clarify everything you need to know about the Italian House Renovation Bonus. The following guide applies to private individuals and, among other aspects, outlines the conditions for applying and benefiting from the available incentives.
Check out the updates introduced by the 2025 Budget Law regarding building bonuses.
Italian House Bonus: what is it?
The House Bonus (Bonus Casa) incentive consists of a 50% tax deduction on expenses incurred for units used as primary residences. These expenses must be divided into equal annual installments, within a maximum deduction limit for building renovation works (art. 16-bis of Presidential Decree 917/86 TUIR).
The 2025 Budget Law introduces several changes to the regulations governing nearly all tax incentives related to building renovation. The new provisions revise the terms of use and deduction rates, offering more favorable conditions for properties used as primary residences.
These are reductions in personal income tax (IRPEF) granted for interventions related to the restoration and conservative rehabilitation of residential units.
Take a look also at our complete guide on Italian building bonuses.
Who is eligible for the House Renovation Bonus?
All taxpayers, whether residents or non-residents, who own the property subject to the renovation under any legal title, are eligible for the deduction.
Among individuals, the following can benefit from the incentive:
- Holders of a right in rem over the property;
- Condominium owners, for interventions on common condominium areas;
- Tenants;
- Those who have the property under a loan for use (“comodato”) agreement;
A cohabiting family member or a civil union partner of the property owner can also benefit from the bonus, as well as a separated spouse to whom the property—registered in the name of the other spouse—has been assigned, and a de facto partner (“more uxorio”) for expenses incurred from January 1, 2016.
In these cases, however, it is essential that the invoice is issued in the name of the person commissioning the work, who must belong to one of these categories.
What is included in the House Renovation Bonus and what are the spending limits?
The 50% deduction concerns interventions that involve the restoration and conservative recovery of real estate units on private and common parts, which include, for example, the following expenses:
- Internal entries
- Elevator
- Balconies
- Radiators and air conditioners
- Intercoms, video intercoms and cameras
- Facade
- Electrical system
- Plumbing system
- Fixed railings
- Sidewalk
- Internal and external walls
- External flooring
- Pool
- Internal and external armored door
- Sanitary ware
- Attic
- Roof
- External painting
For the following interventions, the maximum amount of expenditure eligible for the benefit is €96,000 per single housing unit. In the event that a building procedure has been opened in the Municipality (CILA or SCIA) for structural interventions or interventions that affect the entire building, once the works have been completed and the practice has been closed with communication to the Municipality, in the event of subsequent new interventions, a new maximum will be considered if it was exceeded with the previous intervention.
Renovation Deductions Reduced From 50% To 36% From 2025
From 1 January 2025, the Budget Law has provided for a reduction in the deduction from 50% to 36% for interventions carried out on second homes and in any case on units not used as a primary residence.
This reduction also involves the following years with a gradual reduction for 2026 and 2027 to 36% for primary residences and 30% for second homes.
Another change introduced in the Chamber of Deputies regarding the House Bonus: the interventions for replacing winter air conditioning systems with single boilers powered by fossil fuels are excluded from all deductions foreseen for the years 2025, 2026 and 2027.
Italian Renovation Bonus: How to apply?
The IRPEF deduction related to Renovations is due to the person who pays the invoice by bank transfer. This person must be the holder of a right in rem, as previously stated.
The subject, owner or purchaser, even of a portion of a housing unit, can benefit entirely from the relief, provided that he or she is the one who bears the expense and is the registered owner of the invoices.
For interventions carried out on the common condominium areas, it is necessary to indicate the tax code of the condominium and that of the administrator or other condominium owner who makes the payment.
The only way for taxpayers to take advantage of the relief from this year is to use the 50% or 36% deduction in their income tax return in constant installments over 10 years.
Documentation to be kept
To benefit from the tax relief it is necessary to have the following documents:
- Invoices proving the expenses actually incurred for the implementation of the interventions;
- Receipt of the bank or postal transfer through which the payment was made;
- CILA or SCIA building procedure if requested
- Receipt of submission of the building application
- If no building permit is required, self-certification signed by the owner of the property indicating the start date of the works
- ENEA certificate drawn up by a qualified technician to be sent within 90 days of the end of the works in the case of interventions with an impact from an energy point of view;
- Information sheet relating to the interventions carried out, drawn up according to the scheme reported in Annex E or F of the implementing decree.
In the event that the interventions have been carried out on common parts of buildings, a copy of the assembly resolution and the thousandths table for the distribution of expenses must also be kept and, if necessary, exhibited.
