Read news from:
Austria
SHARE
COPY LINK
For members

PROPERTY

Homeowners claim €9 billion from Italy’s building ‘superbonus’

Italy has approved investments of over nine billion euros so far for works related to making energy efficiency upgrades and reducing seismic risk, new figures show.

Published: 3 November 2021 17:14 CET
Billions have been claimed under Italy's building 'superbonus'.
Billions have been claimed under Italy's building 'superbonus'. Photo by Gianluca Carenza on Unsplash

Italy launched the ‘superbonus 110‘ in May 2020 to restart a sluggish economy following the impacts of the pandemic, offering homeowners a tax deduction of up to 110 percent on renovation expenses.

Interest in the scheme has been high, with many property owners now facing delays and sometimes abandoning projects due to builder shortages and the complex bureaucracy required to access the scheme.

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

Critics have asked whether the superbonus has achieved its objectives of upgrading Italian property standards and boosting the construction sector.

But new figures from Italy’s energy and development agency, ENEA, updated to the end of October 2021, show that investments in the superbonus are considerable.

Such government-funded building projects related to energy efficiency and anti-seismic interventions have amounted to more than 9.7 billion euros to date.

The findings reveal that on a national level, some 57,664 claims have been filed to access the superbonus and that over 6.7 billion euros have already been claimed for completed renovation works.

The 3 billion euros of difference are assigned for ongoing renovation works which have not yet been completed.

The regions filing for the superbonus the most include Lombardy in first place, claiming 1.5 billion euros of investment, followed by Veneto, Lazio and Campania.

Figures show that the demand for the superbonus continues to rise, as ENEA recorded an increase of 24.8 percent in claims filed between September and October.

Photo: Mattia Bericchia on Unsplash

Overall, some 69 percent of projects have been finished out of the total works started under this building incentive.

Data are also broken down for works on condominiums, single-family buildings, and independent building units.

READ ALSO:

Condominiums accounted for almost 50 percent of the economic value of the scheme, with a total investment of almost 4.8 billion euros in this type of building.

Single-family homes accounted for the highest number of requests, with 29,369 claims filed so far worth a total of almost 3.1 billion euros.

Former Italian Prime Minister Giuseppe Conte, who initially introduced the scheme, claimed that ENEA’s figures show “growth, work and environmental sustainability”, adding that the superbonus must be extended as “it is not time to slow down the restart of the country”.

Time is running out for owners of single family homes to access the superbonus, however.

The Italian government announced its raft of budget measures for 2022 at the end of October, including extensions to tax breaks for home renovations.

EXPLAINED: What changes in Italy’s new budget?

The superbonus scheme has been extended for condominiums until 2023, but for many homeowners hoping to claim it for their single family homes, deadlines are approaching.

The bonus is set to continue for the whole of 2022 for single family units, but with a serious caveat: you’re only eligible if it’s your first home and you have an ISEE (the social-economic indicator of household wealth) of 25,000 euros maximum.

From January 1st to June 30th 2022 it will not be necessary to comply with the ISEE limit.

If you don’t fall into this category, however, the deadline of June 30th 2022 remains.

That means there are potentially just 8 months to complete all building works as so far there has been no mention of being able to finish a project on a single family home already started after this date.

For condominiums benefitting from the 110 percent deductions until 2023, the bonus will then drop in stages – to 70 percent for 2024 and 65 percent for 2025.

Other building bonuses have also been rolled on but some have been slashed in terms of the amount available to claim, meaning budgets could change considerably for those planning to carry out works in 2022.

Are you using Italy’s superbonus to renovate your property? Please get in touch or leave a comment below to tell us about your experience.

See more in The Local’s Italian property section.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

TAXES

Five essential things to know about filling out your Italian tax return

Italy's tax season begins in May, and the bureaucracy involved can be daunting. Here are some of the most important things to know about filing your tax return.

Published: 12 May 2023 09:58 CEST
Updated: 14 May 2023 09:04 CEST
Five essential things to know about filling out your Italian tax return

Tax season is now underway in Italy as the window for filing your personal income tax return opened on May 11th, 2023.

The deadline for submitting your tax return this year is October 2nd – find a detailed list of Italy’s tax dates and deadlines here.

Filing a tax return is never the most enjoyable task, but dealing with a new country’s rules and language adds another layer of complexity. And of course, Italy’s tax rules aren’t simple to begin with, so it is always a good idea to seek professional advice and assistance.

Here are a few things you’ll need to know about the process before you get started.

Which form will you need?

The first step happens to be less straightforward than you might hope.

In this article we’ll focus on the modello 730 (form 730), the newer and most commonly-used income tax return form, which most employees and retirees will need.

READ ALSO: The Italian tax calendar for 2023: Which taxes are due when?

But some people, including the self-employed, those with certain types of redditi diversi (sources of income other than employment or pension), and taxpayers who are not legally resident in Italy, might need to use the older form called the modello redditi persone fisiche instead.

It all depends on your personal circumstances, so if you’re unsure which form to use, speak to a tax professonal for advice.

The form 730 comes partially pre-filled with your personal details, which should make completing it somewhat more straightforward.

Tax season in Italy begins in mid-May.(Photo by ANDREAS SOLARO / AFP)

As tax expert Nicolò Bolla from Accounting Bolla explains on his website: “The 730 is a simplified form. It comes already filled in with your details courtesy of the Agenzia delle Entrate (Italian tax authority).

“So, when compared to the modello redditi, this form requires much less work on the part of the taxpayer. The details they provide can be changed, or not, which has its pros and cons.”

Where do you find this form?

You can download your personal 730 form from the Agenzia delle Entrate website.

You should find it already pre-compiled on a special section of the site HERE which you can log in to using your SPID (Sistema Pubblico dell’Identità Digitale) or CIE (electronic identity card) credentials.

The tax agency notes that “Italian citizens residing abroad who do not hold an Italian identification document may also use login credentials issued by the INPS (social security agency)”

READ ALSO: How to use your Italian ID card to access official services online

“You can view, edit and/or supplement your tax return within the service and then send it to the Agency.”

Unfortunately, while the Italian tax agency does have some information available online in English, the part of the website dealing with the 730 is only available in Italian, German, or Slovak.

How do you fill it out?

The form 730 can be filled out entirely online via the tax agency’s website.

According to the agency, the form should already contain “a number of automatically entered details, including deductions for health costs, university fees, insurance premiums, social security contributions, credit transfers for building renovation and energy renovation.”

As mentioned above, you may change the pre-filled details if necessary. But Bolla points out that there are some things to consider before you do:

“Changing a tax document does come with some risks, the primary one being that you become exposed to error which in turn means paying a penalty fee,” he says.

READ ALSO: The pros and cons of Italy’s five percent flat tax for freelancers

“The biggest benefit, perhaps, of not changing any information in the form is that you will not be subject to further tax checks, i.e. an audit.

“The 730 is considered changed if your alterations are related to the expenses that you have. When doing this it is recommended that you consult with an accountant to be sure of the conditions of a particular expense. It is always possible that you will have some tax deductible expenses that occur after the form is compiled by the revenue agency which will need to be added to the form.”

How and when do you submit it?

Once you or your accountant have filled in remaining details and made any necessary changes, or not, to the pre-filled sections, you can file your 730 online via the tax agency’s portal.

The deadline for submitting the completed form is October 2nd.

If instead you’re using the modello redditi PF the deadline for submitting this electronically is November 30th.

Should you ask an accountant for help?

All that famous red tape, plus the language barrier and a long list of tax-related acronyms, can make filing taxes in Italy a daunting proposition for foreign nationals. But you may be wondering whether hiring a commercialista (accountant) is worthwhile or necessary.

While the tax agency has tried to simplify the process, and even provides some Italian tax information in English, many Italians themselves Italians turn to their local tax assistance centre (Centro Assistenza Fiscale, or CAF) or hire a tax professional to take care of the process.

Getting professional advice is particularly important if you’re making changes to the pre-filled sections of the 730 or if you need to use the modello redditi PF.

See more information on the Italian tax agency’s website.

Please note that The Local cannot provide advice on tax issues. For help with filing taxes in Italy, contact your local tax assistance centre (Centro Assistenza Fiscale, or CAF) or consult an accountant (commercialista) or other qualified tax professional.

SHOW COMMENTS