The 2024 home deduction represents one of the most significant tax opportunities for Italian taxpayers who intend to renovate or improve their homes. In this guide, we’ll explore in detail how to access these tax breaks, providing a step-by-step analysis to facilitate the process
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Table of Contents:
What is the 2024 home deduction?
The 2024 home deduction is a tax advantage provided for by the Budget Law, which allows taxpayers to recover a percentage of the expenses incurred for renovations, energy savings and other building improvements.
This measure is aimed at encouraging the redevelopment of real estate assets, promoting energy efficiency and building security
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Who can benefit from the deduction?
All taxpayers resident in Italy who own the property subject to the intervention can benefit from the 2024 home deduction. Not only landlords, but also tenants and borrowers can access these benefits, as long as they bear the expenses for the works.
Deductions for tenants
Total income
- Total income not exceeding €15,494: deduction of €300.
- Total income between €15,494 and €30,987: deduction of €150.
Contract with agreed fee
- Total income not exceeding €15,494: deduction of €496.
- Total income between €15,494 and €30,987: deduction of €248.
Employees who transfer their residence
- Total income not exceeding €15,494: deduction of €992.
- Total income between €15,494 and €30,987: deduction of € 496.
- Condition: transfer to at least 100 km and to a different region.
Young tenants up to 31 years old
- Deduction of 20% of the rent up to a maximum of €2,000 if the total income does not exceed €15,494.
Deductions for landlords
Mortgage
- 19% deduction on interest expense paid up to a maximum of €4,000 for the purchase and up to €2,582 for the construction or renovation of the main house.
Intermediaries
- 19% deduction on a maximum expense of €1,000 if you used a real estate agency for the purchase of the main home.
House for rent
- Advice and benefits: Know the tax breaks based on the type of contract and choose the most advantageous option between the ordinary taxation regime and the dry coupon.
Eligible interventions
Building renovation
Building renovations include extraordinary maintenance work, restoration and conservative rehabilitation, as well as actual renovation. These interventions must improve the characteristics of the building, without altering its overall volume.
Energy savings
The deduction is also applicable for works aimed at saving energy, such as the installation of photovoltaic systems, the replacement of fixtures, the thermal insulation of walls and the installation of high-efficiency boilers.
Security and accessibility
Expenses for interventions aimed at improving the security of the building, such as the installation of video surveillance and anti-theft systems, as well as the necessary adjustments to make the building accessible to people with disabilities, are deductible.
Deduction rates and spending limits
The deduction rates vary depending on the type of intervention:
- Building renovation: 50% deduction on a maximum of €96,000 per building unit.
- Energy savings: deduction of 50% or 65% on a maximum of expenditure that varies depending on the specific intervention.
- Furniture bonus: deduction of 50% of the expenses incurred for the purchase of furniture and large appliances (class E or F, A for ovens with an energy label) up to a maximum of €8,000 allocated to a building subject to renovation between January 1, 2022 and December 31, 2023.
- Green bonus: 36% deduction on a maximum expense of €5,000 for “green arrangement” of gardens or outdoor areas, fences, irrigation systems, wells and includes design and maintenance related to the construction of the works (reimbursed in 5 annual installments).
- Condominium: interventions on the common parts of the condominium can also be deducted: 50% for ordinary maintenance, up to 75% for energy upgrading based on improved performance, 36% for the green bonus and up to 85% for anti-seismic interventions.
- Superbonus: 90% deduction for specific interventions aimed at energy upgrading and adoption of anti-seismic measures for buildings. 110% deduction for expenses incurred by 31 December 2023 for interventions carried out on individual real estate units if at least 60% of the total intervention had been carried out by 30 June 2023
- Facade bonus: 60% deduction of the expenses incurred in 2022 for the recovery or restoration of the external façade of existing buildings. This measure has not been extended to 2024
- Installation of charging stations for electric cars: deduction of 50% on the installation costs of charging stations for electric cars, serving condominiums or individual homes for expenses incurred in 2022.
- Emergency generator replacement: 50% deduction for the expenses incurred for the replacement of the existing emergency generator set with the latest generation of emergency gas generators.
- Drinking water bonus: tax credit of 50% of the expenses incurred — up to €1,000 — for the purchase and installation of filtration, mineralization, cooling and/or addition of dietary carbon dioxide, aimed at improving the quality of water for human consumption supplied by aqueducts.
- Insurance Expenses: 19% deduction for insurance against calamitous events.
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Procedure for requesting the deduction
1. Necessary documentation
Before starting work, it is essential to collect all the necessary documentation:
- Declaration of the start of work: to be submitted to the Municipality.
- Invoices and receipts: of all expenses incurred.
- Technical certifications: for energy saving interventions.
- Talking transfers: that indicate the reason for the payment, the tax code of the beneficiary of the deduction and the tax code or VAT number of the payee of the payment.
2. Communication to ENEA
For energy saving interventions, it is mandatory to send a communication to ENEA within 90 days from the end of the work. This communication can be made online through the ENEA website, where it will be necessary to upload all the technical information relating to the interventions carried out
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3. Tax return
The expenses incurred must be indicated in the tax return for the year following the year in which the work was carried out. It is essential to keep all the documentation for possible checks by the Revenue Agency.
Useful tips for maximizing your deduction
Planning and estimates
Before starting work, it is advisable to obtain multiple quotes to compare costs and choose the most convenient option. Careful planning allows you to optimize expenses and avoid surprises during construction
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Choosing qualified professionals
Relying on qualified professionals is essential to guarantee the quality of the work and to ensure that all bureaucratic procedures are followed correctly.
Check your login requirements
Before starting work, carefully check the requirements for accessing deductions, consulting current regulations or contacting a tax advisor.
The 2024 home deduction represents an unmissable opportunity to improve your home, saving on costs and contributing to environmental sustainability. Following the steps described in this guide carefully will ensure easy and secure access to the provided tax breaks
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