Who can apply for renovation tax incentives in Italy?

Both Italian residents and foreign property owners can apply, provided the property is registered and the work is done by authorised contractors with proper invoices.

What types of renovation incentives exist in Italy?

The main incentives include Ecobonus (energy efficiency), Sismabonus (seismic upgrades), Bonus Facciate (façade restoration), and Bonus Ristrutturazioni (general renovation works).

Do renovation incentives reduce property taxes like IMU?

No. Renovation incentives usually reduce income tax payable, not property taxes such as IMU. They work as tax deductions rather than direct reductions in annual property tax.

How are renovation incentives claimed?

Incentives are claimed through the annual tax return in Italy. All payments must be traceable (bank transfer, not cash), and invoices must be issued by contractors. Some works also require a technical report.

Tax Incentives for Renovating Italian Properties

Renovation can dramatically improve both the value and comfort of a property in Italy. Thankfully, there are several tax incentives for homeowners and foreign buyers aimed at making restoration more affordable.

This article walks you through what’s available, how to apply, and what to watch out for.

🔗 For a broader view on finances and legal obligations, refer to our hub article Foreign Buyer Practicalities: Residency, Visas, Inheritance.

What kinds of incentives exist

Ecobonus – A major deduction for energy-efficiency upgrades (insulation, windows, heating systems). Percentages vary depending on the work done and region.
Sismabonus – For seismic (earthquake) improvements in qualifying zones. Some municipalities in central Italy (including parts of Le Marche) offer high deductions when reinforcing structural safety.
Bonus Facciate (Façade Bonus) – This covers the cost of restoring or cleaning external façades. It’s meant to preserve aesthetic appeal of buildings, particularly in historic towns.
Bonus Ristrutturazioni – A general renovation bonus, often covering interior work like flooring, plumbing, and cosmetic refurbishments.

Who’s eligible

Any property owner, including foreign buyers, provided the property is officially registered.
Works must be realizado with authorised contractors who issue invoices. Payments must usually be traceable (bank transfers, etc.).
Must comply with local zoning and heritage regulations if the property is historic.

How to claim them

Before work begins, check with your notaio or local Comune whether specific permits or SCIA/Permesso di Costruire are needed.
Contractors must provide itemised invoices and work descriptions.
File the claim with your annual tax return. For major works you may need a technical report (perizia) attesting to compliance with standards.

Limitations & Watchouts

Not every region offers the same incentive levels; some are only available in zones declared at risk.
Some incentives expire or are adjusted by yearly budgets. Always check current government laws for the year you’re applying.
Historic buildings often face ad hoc restrictions: you might need heritage approvals or specific materials.

Interaction with Property Taxes

Tax incentives reduce how much you erase from your income tax owing, but they don’t usually reduce property taxes like IMU directly. For full understanding of property taxation, see our article Understanding Italian Property Taxes: What Buyers Need to Know.