Loan for home improvement

The home renovation loan enjoys tax incentives for asset restructuring

The Renovation Loan Benefits Act was first introduced in late 1997 to revitalize the construction industry.

The 1998 budget provides that the taxpayer will be entitled to a tax deduction of 41% of the costs incurred in 1998 and 1999, up to a maximum of EUR 77,468.53 per year for property tax, maintenance, rehabilitation and restoration of listed buildings recognise: the tax advantage (except for a small difference in maintenance) accounts for the efforts made in each apartment and in the common areas of the condominium.

The 2000 budget also pushed ahead with a number of important legislative changes, beginning with the extension of the incentive and the reduction of input tax deduction from 41% to 36% (but accompanying from 20% to 10% VAT, which is then imposed on these recovery key performance indicators)

The Incentive Environment: The need to protect the environment and defend territory against the risk of geological instability is an ally in the tool tax deduction.

Financial benefit awarded in 2002 for the recovery of 36% of the cost interventions made also in 2002 for the care and maintenance of the forests.

More news for 2003

• Tax benefits as well as for building renovations, responsibility for asbestos removal work and those useful for checking the structural integrity of buildings (to the extent required by the recent major earthquake events);

• The deductible amount must not exceed EUR 48,000

• If the holder’s taxable age is not less than 75 or 80 years, the tax benefit can be divided into five or three annual installments (usually against the ten scheduled);

BUILDING SUBJECT of establishment

The deduction relates to work carried out on buildings intended for dwelling purposes, ie excludes work carried out on land other than dwellings.

Rural dwelling expenses are also deductible, and in the dwellings concerned (ie urban or rural areas) are generally defined equipment such as basements, attics and garages.

WHO CAN deduct

On paper, the target group of potential users of the measure shows that it cannot be larger: namely, the standard does not address real estate owners, but refers to property or property.

Firstly, it is a subtraction from TAX (income tax, individuals), recipients are individuals only, whether resident in their jurisdiction or not.

Then, based on the above, are entitled to assistance as well as owners of real estate, including:

• Owners of rights of use in rem to the same (right of use, usage or home use);

• Occupiers of properties under lease, loan or government concession;

• Members of divided and undivided cooperatives;

• members of partnerships;

• Sole Proprietorship, limited to real estate not belonging to the Instruments or Commodities.

Finally, the deduction of input tax is also limited to expenses for the purchase of materials for those who carry out work on their own.

What interventions GRANTED

Law 449/97 precisely identifies the interventions responsible for the deduction and identifies them with the support for the restoration of the housing stock.

• Ongoing maintenance costs are only allowed to be deducted if they are incurred for the common parts of the condominium, unless they are not carried out at the same time as the maintenance work.

For example, the restoration of plaster and painting has a discount if the internal walls, supporting elements from individual structural parts are replaced at the same time.


Maintenance (condoms only), repainting of plaster, painting of walls, ceilings and windows, restoration of interior and exterior doors with locking, reconstruction of interior floors, interventions to maintain efficiency and integration of existing technology systems.

Special maintenance: replacement of windows and heating installations, plumbing, electrical and plumbing, closed porch or balcony for the construction of sanitary facilities, construction of toilets; Installation of elevators, modification and replacement of windows, replacement reconstruction of walls and fences, construction, removal or consolidation of stairs, demolition and reconstruction of floors, strengthening of structures.

Restoration: complete renovation of the roof and measures to eliminate or prevent deterioration, construction of elevators and sliding gates, ceilings, demolition and reconstruction of internal structures of a building.

Building renovation: works for a living roof, material changes to facades and facades; Replace attic conversion or construction, retaining wall construction, attic conversion, gable roof with solar paving; Adaptation to a basement apartment, demolition and redevelopment of the walls, construction of a balcony, opening of new windows, installation of scales, installation of plumbing.


But the tax breaks don’t just stop with building renovations on private land or condominiums. Fall under Article 1 of Law 449/97 and even enjoy the deduction:

• Expenditure on services rendered related to building renovation, including design;

• Expenditure on adapting the systems to current legislation such as Law n. 46 of March 5, 1990 on electrical systems

• Expenses for the construction of parking spaces, garages and parking spaces, also in the case of communal property;

• Expenditure on removing architectural barriers, ie barriers to mobility for people with reduced or impaired motor skills

• cost of building wiring measures;

• the cost of implementing measures to limit noise pollution, as defined in Article 2 of Law 447 of 1995;

• Expenditure to achieve energy savings. especially for the installation of renewable energy sources;

• Expenditure on earthquake measures, whereby those to ensure the stability of buildings predominate. The works must relate to the structural parts of buildings or building complexes that are structurally connected to each other and, in the case of old towns, must be carried out on a project basis and not on individual dwellings.

Since 2001:

• Adoption of targeted measures aimed at preventing the risk of potential misconduct by third parties. The term “unlawful acts” refers to the definition given by the legislature (theft, assault, kidnapping and other criminal offenses leading to the implementation of overcoming physical limits established to protect the rights protected by law).

In relation to measures taken to prevent the performance of the acts (which includes claiming the cost deduction

created), it provides an example list:

– reinforcement, replacement or installation of gates or fences of buildings;

– Installation of bars on the windows or their replacement;

– doors or reinforced;

– Installation or replacement of locks, padlocks, latches, peepholes;

– Installation of sensors for opening and breaking

on windows;

– Installation of gates;

– metal shutters with locks;

– Proof glass;

– wall safes;

– Cameras or cameras with attached private security centers;

– Devices to prevent theft detectors and related units.

• Interventions related to the execution of works aimed at preventing the occurrence of accidents in the home.

This may include, for example, installing equipment to detect the presence of inert gases, installing safety glass, or installing handrails on stairs.


For 2006 the tax deduction is 41% (for a maximum of 48,000 euros) with 20% VAT.