The Superbonus is an Italian tax program, providing a 110% tax credit for qualifying home renovation expenditure paid between July 1st 2020 to December 31st 2021. The following expenditure qualifies:
- Energy efficiency improvements
- Structural seismic improvements
- Solar panels
- Electric car charging stations
- Double glazed windows
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Residents and non residents of Italy, regardless of their citizenship, qualify for this tax break.
Any qualifying expenditure will attract the tax credit as long as it has been paid from July 1st 2020 to December 31st 2021.
Various qualifying expenditures attract the 110% Superbonus; the maximum qualifying expenditure varies based on the type of works performed.
Here the comprehensive list:
Insulated coating expenditure (external coating, floor insulation) cap is € 50.000 per house unit, reduced to € 40.000 per unit if the unit is located in a condominium.
INDEPENDENT HOUSE HEATING SYSTEM
It is possible to benefit of the 110% Superbonus tax credit capped at € 30.000 for your new house heating.
SEISMIC STRUCTURAL IMPROVEMENTS
Any structural improvement of your home attract the 110% superbonus. Major qualifying works include roofing, foundations, pillars and floors strenghtening.The cap for such expenses is € 96.000 per house unit.
In order to benefit of such tax credits you must own a property in a qualifying municipality, as well as improve its seismic responsiveness of at least one category.
Should you perform ANY of the aforementioned works, the following expenses will also attract the 110% Superbonus:
- E-cars charging stations
- Solar panels
- Double/Triple glazed windows
If you own more than one house unit, the cap applies for each unit.
Just like every other tax break, the qualifying expenditure is multiplied by the coefficient set by the law (i.e. 110%). The tax credit will offset any Italian income tax payable for 5 consecutive tax years.
Should you insulate your detached home, spending € 50.000, you can benefit of a € 55.000 tax credit (€ 50.000 x 110%) to be deducted in 5 years, hence € 11.000 per year.
While filing your taxes, you must include your expenses in your tax return, thus resulting in a tax credit to be refunded. Anyway, what happens if your gross tax is less than € 11.000?
Unfortunately, the unused tax credit is wasted, and you cannot carry it forward?
The taxpayer can trade the 110% tax credit to:
- Contractor company
- Banks and financial institutions
Should you trade your tax credit to your contractor, the contractor must discount the tax credit value in the invoice raised, reducing the invoice payable.
Alternatively, you can trade the credit to a Bank or any other financial financial institution which will pay directly the taxpayer. This approach requires the taxpayer to advance the whole expenses, whilst the first approach does not require to advance any payment.
Note that the tax credit can be sold either partially or in full.
In order to benefit of the 110% tax credit, you are required to obtain a SWORN STATEMENT:
- visto di conformità (accounting statement) in regards to the appropriate accounting and tax documentation. This is released by a Certified Accountant (Dottore Commercialista).
- l’asseverazione tecnica (technical opinion) certifying the energy efficiency improvements, the seismic responsiveness improvements, as well as the expenses adequacy. This is released by a Certified Engineer
Failure to acquire ANY of the two above sworn statements, automatically disqualifies you to benefito of the tax credit as well as trading it.
The sworn statement related expenses are also deductible at 110%!
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Absolutely YES! Italy provides further tax credit with reduced percentages for
FACADE BONUS 90%
Ane expense connected to the facade renovation attracts a 90% tax credit.
ENERGY EFFICIENCY 65% BONUS
Any energy efficiency improvement excluded from the 110% Superbonus, falls into the 65%.
RENOVATION 50% BONUS
Any home renovation (including furniture purchase) attracts a 50% tax credit.
All the tax credits can be combined together and traded to banks and financial institutions.
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