Italy targets housing costs with tax breaks for condo upgrades and scrutiny of social rent overcharges

The Italian government has clarified that ordinary condominium expenses such as cleaning and lighting are not tax‑deductible, while extraordinary works on common areas qualify for higher deductions. Renovations of façades, roofs, shared installations and elevators can be deducted at 50% up to €96,000 per unit. Energy‑efficiency upgrades (Eco‑bonus) and seismic safety works (Sisma‑bonus) receive 36‑50% deductions, with limits ranging from €30,000 to €136,000. The Superbonus, previously generous, is now reduced to 70% for most works until 31 Dec 2024 and 65% in 2025, with the 110% rate limited to post‑quake reconstruction of 2009 and 2015. Accessibility improvements obtain a 75% credit until the end of 2025.

Separately, lawyers highlight that many renters of formerly public social‑housing units are paying market‑rate rents far above the legally imposed caps. The practice of "affrancamento"—allowing owners to lift price limits after five years—has enabled the sale or lease of these homes at full market prices. Tenants could be overcharged by up to €80,000 and may seek reimbursement under laws dating from 2011 and 2018 that modified the original 1998 framework.