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Budget 2022: Which of Italy’s building bonuses have been extended?

Since the Italian government made the 2022 budget into law, many reforms to Italy's various building bonuses have been extended or changed. Here's what those planning to build or renovate need to know.

Italy's 2022 budget has changed change building projects for homeowners in Italy.
Photo by MAX BEDENDI on Unsplash

The Italian government announced its raft of budget measures for 2022 at the end of last month, effective from January 1st, including tax and pensions reforms, help with household bills and funds to close the gender pay gap.

What particularly stood out for those buying and renovating property was the highly anticipated news on extensions to tax breaks for home renovations.

After much discussion over the last few months of 2021, the authorities confirmed how the various building bonuses will be rolled on and who is eligible to access them, as published in the final Budget Law (Legge di Bilancio) on December 30th, 2021.

EXPLAINED: What changes in Italy’s new budget?

To encourage investment in construction and increase energy efficiency and seismic resilience of existing buildings, the Italian authorities have continued the bonuses for building renovations, energy upgrading, the purchase of furniture and household appliances and the green bonus.

Many of them have been extended to 2024 – however, different deadlines to claim now apply.

Here’s an overview of the building bonuses for 2022 and how they’ve changed.

Renovating Italian property with bonuses.
The superbonus 110 is due to expire next June for single family homes. Photo: Sensei Minimal/Unsplash

The superbonus 110

Italy’s government launched the ‘superbonus 110‘ in May 2020, one of various measures aimed at boosting the Covid-hit economy.

Offering homeowners up to 110% deductions on expenses related to energy upgrades and reducing seismic risk, the scheme has been so in demand that homeowners are stuck amid delays on many projects as construction companies struggle to keep up.

After much speculation and concern as to how this building bonus would continue into 2022, the superbonus on single-family homes has been approved for the whole of this year.

READ ALSO:

The previous caveat has been scrapped. Now there’s no reference to only being eligible if it’s your first home and if you have an ISEE (the social-economic indicator of household wealth) of €25,000 maximum.

The only requirement is that 30 percent of works must be completed by June 30th 2022.

Condominiums, owners of buildings consisting of two to four units and third sector organisations will be able to take advantage of the benefit until 2025, with a sliding scale: 110 percent remains valid until 31 December 2023, dropping to 70 percent in 2024 and 65 percent in 2025.

Italian property renovation.
Photo: reisetopia on Unsplash

Facades bonus

Another bonus extended for 2022 is the Bonus Facciate. This scheme previously allowed you to deduct 90 percent of the amount incurred for renovating the exterior facades of buildings, with no maximum spending limits.

In spite of some initial uncertainty, the facade bonus has been extended again – although in 2022 the percentage of the deduction for restoration work on external facades has dropped to 60 percent.

There are still no maximum spending limits for 2022 for works carried out on the restoration and recovery of external facades, balconies and railings of buildings. This applies to both independent houses and condominium buildings located in historic centres, suburbs and both large and small municipalities.

This bonus has so far been extended until the end of December 2022.

The furniture and appliances bonus

The state aid available for buying household appliances – the Bonus Mobili e Elettrodomestici – has been rolled on until 2024.

The Budget Law 2022 has doubled the maximum amount of eligible expenditure to what had been discussed, now standing at €10,000.

READ ALSO: How to stay out of trouble when renovating your Italian property

This scheme applies to household goods of at least A+ class (A for ovens), intended to furnish a property undergoing renovation, and other appliances such as washing machines, washer-dryers, dishwashers. refrigerators and freezers.

It consists of a 50 percent personal income tax deduction of a maximum €10,000 expenditure or can be applied for via credit transfer or a discount on the invoice. This applies to the purchase of furniture and household appliances to furnish a property undergoing renovation.

The subsidy is linked to the renovation bonus. To be sure you can access it, the renovation work must have begun before buying any furniture or appliances – but expenses on restoring the property don’t need to actually be paid beforehand.

Renovation bonus

The Bonus Ristrutturazioni has been confirmed until December 31st 2024, allowing homeowners to apply for a 50 percent tax reduction on carrying out renovation work in both individual properties and condominiums.

The rules remain unchanged – there continues to be a maximum limit on expenses of €96,000 and the 50 percent offset to taxes is divided into annual instalments for 10 years. Or you can apply for the invoice discount or credit transfer.

There is a raft of allowances for accessing this bonus. These include making repairs on property that has been damaged, building garages or parking spaces, increasing security of the property such as installing gates, security doors and CCTV, removing asbestos and gas detection equipment.

Not only are homeowners eligible to apply for this bonus, also tenants of properties, separated spouses of the property owner and co-habiting partners are too.

READ ALSO: Italy’s building bonus: Can you really claim back the cost of renovating property?

Photo: Andrew CABALLERO-REYNOLDS / AFP

Ecobonus

The 50 percent and 65 percent ecobonus, a tax deduction aimed at encouraging energy upgrading in buildings, will remain in force and will exist in parallel with the ‘superbonus’.

Its extension in the 2022 Budget Law will allow taxpayers to benefit from tax discounts for works aimed at improving the energy performance of existing buildings.

READ ALSO:

The ordinary ‘ecobonus’, which has less stringent eligibility criteria than the 110 percent ‘superbonus’, is an IRPEF (income tax) and IRES tax (corporate income tax) deduction recognised for numerous expenses, including those relating to the replacement of boilers or windows and frames, for instance.

The following tax deduction rates have been confirmed in the Budget Law:

  • 50 percent for window frames, biomass and solar screens;
  • 65 percent for the remaining types of expenditure.
  • If works are carried out on common condominium areas, the amount of tax deduction varies from 70 percent to 75 percent.

Sismabonus

The sismabonus is intended for renovation work in areas hit by seismic events and for making homes safe by upgrading the seismic class on parts of buildings or single property units. It has been extended to the end of 2024.

The 2022 Budget Law has confirmed that it will be possible to opt for various tax deductions if you choose to reduce the seismic risk of your home.

Depending on the type of work carried out on the property, there are different amounts of the bonus available. From a 50 percent deduction up to 85 percent bonus in some cases. This can either be claimed via tax deductions or the more rapid credit trasnfer or discount on invoice.

This bonus has been available for a number of years, and provides a maximum expenditure of €96,000 for each building unit.

First home bonus for under 36

Tax incentives for the first home bonus for young people, in this instance categorised as under 36, have been extended for the whole of 2022.

UPDATE: Under 36? Here’s how Italy plans to help you buy a house

Rent discounts for young people

Young people, classed as between 20 and 31 for this measure, could benefit from a 20 percent discount on rent up to €2,000. The deduction can also be used by under 31s, out-of-town students, who simply rent a room.

It is intended for those who leave home and have their own income up to a maximum of €15,493.71.

According to the Budget Law text, the discount applies whether you rent an entire flat or a room.

It must “be used as their own residence, provided that the same is different from the main residence of their parents or of those to whom they are entrusted by the competent bodies.”

The measure is due to last for four years. Certain properties such as luxury buildings are excluded from the bonus.

Green bonus

The Bonus Verde has also been extended into 2022 – you could get state help for landscaping your garden or private outdoor areas of existing property, supplying plants and shrubs, doing work on fences, irrigation systems, building wells, roofs or roof gardens.

There’s a 36 percent tax deduction available for jobs relating to gardens, terraces and green areas in general.

If using the tax deduction method, the tax relief applied in the tax return must be divided into 10 annual instalments of equal amounts and must not exceed a maximum expenditure equal to €5,000 for each property.

Therefore, amounts of up to €1,800 (36 percent of €5,000) can be claimed back. This bonus can also be claimed via credit transfer or a discount on the invoice.

Unlike the furniture bonus, this deduction is not linked to the incurring of expenses related to the building renovation.

How claiming building bonuses will change

Perhaps the most eagerly anticipated feature of the new Budget Law was how people could claim.

Many building tax bonuses are available via credit transfer (cessione del credito) or a discount on the invoice (sconto in fattura), the Budget Law confirmed.

READ ALSO: Do you have to be Italian to claim Italy’s building bonuses?

Both these options were set to expire on December 31st 2021 for most, leaving tax deduction the only option – making it difficult for more people to access the bonuses quickly.

Despite earlier suggestions, government aid for renovating property such as the sismabonus, ecobonus, bonus facciate, bonus mobili and bonus verde will be able to count on these important financial measures, crucial for the start of works.

The superbonus 110 will also continue to benefit from credit transfer and a discount on the invoice.

See more in The Local’s Italian property section.

Member comments

  1. Regarding the deadline of June 30, 2022 for the Superbonus 110%, does the work need to have started by December 31, 2021 or does it only need to be finished by June 30, 2022 regardless of start date? GRAZIE!!

  2. We have recently purhcased a property that needs renovating, extending, landscaping etc. etc. We have been told that as non-residents we can pay for the work to be completed and then we can claim a percentage of the costs back through our bank – does anybody else have any experience of this and could comment with advice please? Much appreciated. *no work has started yet we have only recently taken ownership of the property and land.

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FOOD & DRINK

REVEALED: How to choose the best wine in Italian supermarkets

Italian supermarkets offer a wide range of wines, but not all are as good as you might hope. Here’s how to pick the best affordable bottles.

REVEALED: How to choose the best wine in Italian supermarkets

Italy is known for being home to excellent winemakers, producing some of the best bianchi, rossi and spumanti in the entire world.

But does that mean that the shelves of all Italian supermarkets are unfailingly chock-full of top-quality wine? Well, no.

READ ALSO: From spritz to shakerato: Six things to drink in Italy this summer

Like most supermarkets in the world, Italian businesses have to cater to a wide range of consumer needs and, above all, they need to maximise their profits. 

As such, their shelves have a pretty wide spectrum of wines, from low-quality to high, and being able to tell the former from the latter usually takes some insider knowledge.

With the help of enologist Carlo Peretti, The Local has put together some advice to help you pick the right bottle off the shelf. 

Enoteca v Supermarket

Firstly, if you’re looking to buy a top-notch bottle of wine for an important social occasion, experts say you should always try to do your shopping at your local wine shop (or enoteca).

That’s because, in the words of Peretti, enoteche “are much more selective [than large-scale retailers]” and “it’s very unlikely that they might keep low-quality wines on their shelves”.

But if you’re looking for a good, affordable bottle with your weekly supermarket shop, here’s how you can have a successful wine-shopping expedition.

What’s the right price?

The first thing that shoppers should be mindful of is the price of the bottles they come across. 

Peretti says: “I would advise people to never spend less than five euros on a bottle. Wine is a product that requires a lot of hard work and expenses (water, electricity, machinery, transport, operating costs, etc.), so it’s practically impossible to get a decent product by spending less than five euros.”

READ ALSO: Prosecco wars: Italy protests Croatia’s bid for special status for its prošek wine

To sum up, anything under that threshold is likely to be what Italians love to call ‘acqua sporca’ (dirty water), i.e. a mediocre type of wine. So, aim to spend at least five euros for reds and whites, and at least seven euros for sparkling wines. 

Buy local wine

Aside from the commendable act of supporting local winemakers, buying wine that was produced in the region you happen to live in (or be visiting) comes with a couple of remarkable upsides.  

Firstly, Peretti says, “the closer the winemaker, the cheaper the transport, so the items that end up on the supermarket shelves have a higher value for money”. 

Secondly, it is often the case that “supermarkets have solid business relationships with local winemakers and, as such, the wines they put on the shelves are generally of good quality”.

But, how can you know that the bottle standing right in front of you has been produced in your region? It will suffice to look at the back label (controetichetta), which carries info on where the wine was produced and bottled. 

Bottles of red wine at Cagliero's Winery in Cuneo, Italy

As a rule of thumb, shoppers should only consider buying bottles of red wine with a vintage falling within three years of the purchase date. Photo by Marco BERTORELLO / AFP

Check out the wine’s vintage (or disgorgement date for sparkling wines)

One of supermarket wine’s biggest problems is conservation, with temperature swings and light accelerating the degradation of the product’s flavour and aromas. 

So, as a rule of thumb, Peretti recommends consumers avoid “white wines with a vintage dated over two years prior to the purchase date” and “red wines with a vintage dated three or more years before the purchase date”. 

READ ALSO: Not just Prosecco: here are the other Italian sparkling wines you need to try

This means that, if you’re looking to buy a white wine now, you should only look at bottles from either 2021 or 2020, whereas, if you’re looking to buy a red wine, you should only consider bottles from 2019 onwards. 

Once again, information on a bottle’s vintage (or anno di vendemmia) can be found on the bottle itself, usually in the controetichetta.

When it comes to sparkling wines, the rules of the game change slightly as shoppers should look for the disgorgement date (data di sboccatura), that is when bottles are closed for the last time and the classic mushroom-shaped cork stopper is put into place.

The disgorgement date is not always included in the bottle’s back label, but, if it is, “make sure that the sboccatura happened within a maximum of 18 months from when the wine is being purchased”.

Pay attention to the wine classifications 

There are three main wine classifications in Italy: IGT, DOC and DOCG. By law, they all need to appear on the bottle’s label. 

Without delving too deep into the specifics of each category, here’s what each label means. 

IGT is the broadest possible category. At least 85 percent of the grapes used in IGT wines should come from the IGT region stated on the label. Other than that, winemakers don’t have to conform to strict production standards. 

DOC is the second-best quality label. All winemakers have to abide by strict production standards and subject their products to a number of rigorous quality tests. All grapes should come from the designated DOC geographical area.

DOCG is the highest quality level. Harvesting must be made manually and all grapes must come from restricted geographical areas known for the excellence of their vineyards.

“When buying wine, look for DOCG, DOC or IGT, in this order,” says Peretti. “Anything falling outside of these classifications, feel free to avoid.”

Bottles of Ferrari displayed at the Vinitaly fair.

Very rarely does a good bottle of sparkling wine cost less than seven euros. Ferrari, pictured above, is one of the best Italian ‘spumanti’. Photo by Vincenzo PINTO / AFP

Try to buy wine that’s been produced and bottled by the same company

If you find ‘Imbottigliato all’origine da’ or ‘Prodotto e imbottigliato da’ on a bottle’s back label, that means that the entire production process (harvesting, winemaking and bottling) was controlled by one single company. 

This can be a quality marker as it means that at no point in the process has the wine in question been handed over to third parties. However, Peretti says “while it can be a quality marker, it is not as crucial a factor as some may think”.

READ ALSO: How Italy’s farms are turning to exotic fruit as temperatures rise

He says: “Granted, bottling a specific product away from the location where it was actually produced might subject that product to a certain degree of ‘stress’, which might affect its final quality.”

“However,” he adds, “if the wine is transported in accordance with the latest industry guidelines and in the most appropriate possible manner, the product should not be compromised”.

Steer clear of discounts and ‘incredible’ deals

As appealing as they might look, offers are generally marketing techniques aimed at ridding the shelves of old, unsold wine. 

So, Peretti warns, before pouncing on such deals, “shoppers should look at the vintage of the bottles included in the deal” and generally resort to their common sense. 

He adds: “An eight-euro bottle of Brunello di Montalcino with a 50-percent discount? It seems fishy. I don’t really think a good Brunello can be sold at eight euros, let alone four.”

Corks for Asti Spumante bottles, Italy

Shoppers should beware of bottles carrying synthetic cork stoppers. This (above) is what natural corks should look like. Photo by Marco BERTORELLO / AFP

How to spot a bad bottle 

Believe it or not, even Italian supermarket shelves can be home to some first-rate slop. So how can you quickly spot (and steer clear of) bad bottles? Here are some quick tips from our wine expert.

  • Avoid cardboard boxes at all costs, unless you need wine for cooking purposes.
  • Screw caps are okay as long as they’re used on bottles of white wine.
  • Avoid bottles with synthetic cork stoppers as they’re generally used for cheap, low-quality wine.
  • Beware of bottles with cheap plastic stickers for labels as they might contain low-quality wine. Look for bottles with paper labels and feel them with your hands. The coarser they are, the better.
  • Beware of light bottles, especially for sparkling wines, which need relatively thick, heavy bottles for pressurisation purposes.
  • Beware of clear, see-through bottles when it comes to white wines. They look nice and allow shoppers to see the colour of the product but do a poor job of protecting the wine from natural or artificial light. This can lead to defects in flavour and aromas.

Read more guides to Italian cuisine in The Local’s food and drink section.

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