Italy to slash housing renovation tax credits from 2027

The Italian government plans a major overhaul of tax deductions for home‑renovation bonuses. Starting in 2027 the deduction for the main residence will fall from 50% to 36%, and for second homes from 36% to 30%. From 2028 to 2033 the rate will be standardized at 30% for all properties and the maximum eligible spend will be cut from €96,000 to €48,000 per unit. A modest increase to 36% is scheduled for 2034, while the spending cap will remain at €48,000.

The reforms also affect the Sismabonus and Ecosismabonus, which from 2025 will follow the same 50%/36% deduction rates and €96,000 cap as other renovation incentives, with the benefit repaid in ten equal annual installments. In 2027 the Sismabonus rates will drop to 36% for primary homes and 30% for other cases, then level at 30% for all homes through 2033. Claimants must meet documentation requirements such as spoken‑bank transfers, correct invoices and technical certifications to retain the deduction on their 730 tax return.