Bonus Ristrutturazione (Renovation Bonus)

A financial incentive (usually a tax credit or deduction) for building renovation works. Italy periodically offers “bonus ristrutturazioni” allowing homeowners to deduct a percentage of qualifying renovation expenses from income taxes, typically spread over 10 years. As of recent laws, one could deduct 50% of renovation costs up to €96,000 (thus €48,000 total benefit) for works like refurbishing a bathroom, replacing floors, or upgrading electrical systems. This bonus is available to both residents and non-residents who pay Italian tax on the property, and it can sometimes be transferred or ceded (e.g. to the contractor or to a bank). The continuance and terms of the bonus are subject to yearly budget laws.