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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.

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PROPERTY

Can you still buy Italy’s one-euro homes in 2024?

A lot has changed since Italy's 'one-euro' home offers first made international headlines, so are they still available - or worth considering?

Published: 14 May 2024 10:27 CEST
Updated: 18 May 2024 07:39 CEST
Can you still buy Italy’s one-euro homes in 2024?

The prospect of buying a house in Italy for less than the price of a caffè normale at the local bar caused a sensation back in 2019, when news of one-euro home schemes hit the international headlines.

There was a property stampede in Sicilian towns in particular, with local mayors reporting being overwhelmed with enquiries in English and other languages.

MAP: Where in Italy can you buy homes for one euro?

Even sceptics couldn’t contain their curiosity: Was it a joke? What condition were these houses in? And how much was this really going to cost?

Several years later, we know that these schemes are legitimate attempts to breathe new life into depopulated areas and unburden local authorities of old, unwanted properties that would otherwise be left to fall apart. And in some cases, at least, it has worked – and proved very lucrative for the towns involved.

We know most of these houses are in a very poor state of repair, requiring major investments from their new owners. And we know the costs can be high, with reports of some international buyers spending hundreds of thousands of euros on renovations – many times more than the property’s potential market value.

READ ALSO: Six things to know about Italy’s one-euro homes

But we’ve also heard from some readers who tell us that, while these homes do of course cost more than one euro, for a sensible buyer they can be a worthwhile investment.

Not only are Italy’s one-euro home offers still going strong in 2024, but new towns are joining the scheme, while others continue to announce similar ‘cheap home’ projects such as the rental programme in Ollolai, Sardinia aimed at remote workers – one scheme that’s expected to take off following the introduction of Italy’s new digital nomad visa in 2024.

So what do you need to know if you’re curious about these Italian property bargains?

As ever, if you’re interested in buying a one-euro home you’ll need to meet certain requirements which vary depending on the local authority. After all, this is not a nationwide scheme but a series of small initiatives run by local councils in each town or village, so you’ll need to carefully check the terms and conditions of every offer you consider.

Generally though, the following will apply:

  • Foreign nationals can buy one-euro houses, whether they’re EU or non-EU citizens – but remember owning one will not give you any residency rights in Italy, and visa rules will still apply to non-EU nationals.
  • The prospective buyer can’t just make vague promises about doing the place up: you’ll need to present a renovation plan within 2, 3 or 6 months depending on the village.
  • Buying a one-euro home to turn into a tourist rental business is generally allowed, but you’ll need to let the local authority know your plans when you apply.
  • The cost of the house, all renovation costs, and all notary, legal, transfer and other fees are the responsibility of the buyer.

Some things have however changed in the past few years which make buying and renovating a one-euro home less affordable than it once was.

Many buyers in recent years were further tempted by generous state subsidies available to cover the cost of renovation work – most famously the ‘superbonus 110’ which covered up to 110 per cent of qualifying expenditures.

READ ALSO: What taxes do you need to pay if you own a second home in Italy?

Though the superbonus is now winding down and is no longer open to new applications, it has had a knock-on effect which means renovations in Italy generally take longer and cost more than they used to.

The superbonus scheme’s enormous popularity led to an ongoing shortage of building contractors in Italy, who were booked up months, or even years, in advance.

And as the popularity of these offers has exploded, the most viable properties in some areas now often become the subject of a bidding war, with the sale price rising from one euro to tens of thousands.

Find a map of the towns currently offering one-euro homes in Italy here.

Have you bought a property through a one-euro home scheme in Italy? We’d love to hear from you. Please get in touch by email or in the comments section below to let us know about your experience.

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