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PROPERTY

Which of Italy’s home renovation bonuses can you claim in 2024?

Italy’s main home renovation incentives will still be in place in 2024 but some key changes are set to affect who can claim them and how.

Published: 30 November 2023 15:58 CET
Updated: 3 December 2023 09:43 CET
Red house in Burano, Venice
A photo taken in August 2014 shows a red-coloured house in Burano, a small island in the Venetian lagoon. Photo by Gabriel BOUYS / AFP

If you own, or have your eye on, property in Italy, you may already have heard of the country’s building ‘bonuses’: a series of national schemes offering homeowners generous discounts on the cost of their property renovation work. 

Since their introduction in 2020, these incentives have been enormously popular with homeowners. The well-known ‘superbonus 110’ discount was however abruptly scaled back earlier this year, and many expected the same thing would soon happen to other discount schemes.

But the main bonuses have all remained in place in 2023 and are set to continue into next year, albeit with some key differences regarding how much homeowners can claim and how.

Superbonus

Italy’s famous superbonus scheme applies to renovation work aimed at improving the energy efficiency of a building while also reducing its vulnerability to earthquakes.

Though it is still frequently referred to as superbonus 110, the incentive no longer offers the original maximum of a 110-percent discount on the total cost of work. 

Scaffolding, central Rome

The facade of a building in central Rome is enveloped in scaffolding in February 2023. Photo by Tiziana FABI / AFP

In fact, after dropping to 90 percent of overall expenses as of January 1st 2023, the maximum claimable amount is now set to go down to 70 percent from January 1st 2024. 

Further, barring some exceptions, the bonus will only apply to condominiums and small apartment buildings (two to four residential units) in 2024.

READ ALSO: What’s happening with Italy’s building superbonus in 2024?

Finally, there will still be only one way to claim the superbonus (and all other building bonuses, for that matter) and that’s by claiming a tax rebate (detrazione fiscale) spread out evenly over multiple years. 

Earthquake bonus

Italy’s sismabonus (or ‘earthquake bonus’) allows homeowners to claim a 50- to 85- percent discount on expenses of up to 96,000 euros aimed at reducing the seismic vulnerability of their property.

The bonus can only be claimed for work on buildings located in seismic areas 1 (high seismic risk), 2 (medium risk) or 3 (low risk). Buildings located in zone 4 (very low risk) are excluded.

Ecobonus

The ecobonus offers savings of 50 or 65 percent on the cost of works that improve the energy efficiency of a property. 

These include upgrades to the building’s heating and air conditioning systems as well as the installation of wall insulation panels and solar panels. 

The maximum available discount can be higher (70 or 75 percent) in the case of renovation works carried out on communal areas of condominiums or apartment buildings. 

Renovation bonus

The bonus ristrutturazioni (or ‘renovation bonus’) offers homeowners a 50-percent discount on home improvement expenses of up to 96,000 euros. 

READ ALSO: The Italian vocabulary you’ll need when renovating property

The scheme applies to any renovation procedure falling under one of the following three categories: extraordinary maintenance, conservative restoration and building restructuring. 

Furniture and appliances bonus

The bonus mobili ed elettrodomestici (or ‘furniture and appliances bonus’) allows homeowners to claim a 50-percent reduction on expenses of up to 5,000 euros (as opposed to the previous 8,000 euros) for the purchase and installation of new furniture and energy-efficient electric appliances. 

Construction worker

A construction worker wipes the sweat off his brow during a break. Photo by Valentine CHAPUIS / AFP

The incentive can only be claimed by homeowners who carried out wider home renovation works in 2023.  

Green bonus

The bonus verde (or ‘green bonus’) offers property owners a 36-percent discount on expenses of up to 5,000 euros aimed at renovating their gardens or other outdoor spaces, including terraces and balconies.  

Architectural barriers bonus 

The bonus barriere architettoniche (or ‘architectural barriers bonus’) allows property owners to claim a 75-percent discount on expenses incurred for the elimination of architectural barriers (walls, stairs, etc.) in order to facilitate accessibility to people with disabilities or the elderly. 

READ ALSO: Everything you need to know about having a second home in Italy

The bonus applies to range of works, including the installation of lifts and wheelchair ramps.

Please note that The Local cannot advise on individual cases. For more information on claiming Italy’s building bonuses, homeowners are advised to consult a qualified Italian building surveyor or independent financial advisor.

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MONEY

What insurance is available for owners of holiday lets in Italy?

Protecting yourself and your property against unforeseen events may well be your top priority when renting out your second home in Italy – but there’s no one-size-fits-all insurance plan for owners.

Published: 2 July 2024 15:55 CEST
What insurance is available for owners of holiday lets in Italy?

If you own a second home in Italy and you’re planning on renting it out to holidaymakers when you’re not there, taking out an insurance policy to protect yourself and your property against unforeseen events is one of the first and most important things you’ll have to consider. 

Though contracting an insurance policy on a holiday let is not a requirement in Italy except in some specific cases (see more below), doing so is strongly advisable. 

Even the most mindful and considerate of guests can sometimes cause accidental damage to your property or belongings during their stay, especially if they happen to have small children or pets.

But taking out an insurance plan can also protect you from expensive claims made against you by guests in the event of injuries or damage suffered while in the property.

Though insurance policies for vacation rentals are grouped together under the umbrella term of assicurazione casa vacanze (holiday home insurance), there’s no one-size-fits-all plan and homeowners are granted the freedom to tailor their policies to their particular needs, as well as the features of their property.

Third-party liability coverage 

The polizza di responsabilità civile (literally, ‘civil responsibility policy’) is considered the most basic type of plan you can take out on your second home. 

This covers the costs associated with injury or damage suffered by guests during their stay in your property as well as any legal defence expenses you may face. 

A view of Alberobello, a village famous for its traditional 'trulli' houses in Puglia

A view of Alberobello, a village famous for its traditional ‘trulli’ houses in Puglia. Photo by Piero CRUCIATTI / AFP

To make a practical example, if a bookshelf in your home suddenly collapses, injuring one of the guests, this policy will cover the medical expenses faced by the guest as well as the costs of any legal proceedings you may be involved in.

READ ALSO: Is now a good time to buy a home in Italy?

It’s worth noting here that if you’re renting out your property through popular online platforms such as Airbnb, your home will in most cases be automatically covered by a liability policy managed directly by the platform. 

For instance, Airbnb has its own AirCover policy, which offers homeowners free-of-charge third-party liability coverage for claims of up to one million dollars.

That said, most platform-managed liability policies will only apply to bookings made directly through the platform, meaning that if you rent your property via any other channel, you’ll have to take out a separate plan. 

The cost of a basic responsabilità civile plan generally hovers around 150 to 200 euros per year.

Is a third-party liability plan mandatory?

Under Italy’s tourism laws, a liability insurance policy is only mandatory if you rent out your property as part of an ‘entrepreneurial activity’, meaning a registered business with a partita IVA (VAT number).

If you’re a private citizen occasionally renting out your second home to partly offset property costs and this is not your main professional occupation and source of income, you won’t be required to take out a liability policy (though you may still consider getting one for the reasons explained above).

If you have doubts on whether or not your activity qualifies as ‘entrepreneurial’, you’re advised to get in touch with a legal expert.

Damage insurance 

A basic liability policy won’t protect you against damage to your own property or belongings, which is why homeowners tend to complement this with a damage policy (assicurazione danni). 

This essentially covers the costs of material damage suffered by your property’s structure and contents, whether that be caused by guests or external factors. These can include fires, explosions, leakage, clogged drain pipes, burglary and vandalism acts depending on the type of plan you choose.

It’s worth noting that standard assicurazioni danni don’t generally cover damage caused by major natural disasters such as earthquakes and flooding.

Hoses pump water out of a building in Venice following a severe high tide event.

Hoses pump water out of a building in Venice following a severe high tide event. Photo by Filippo MONTEFORTE / AFP

If your property’s located in an at-risk area, most insurance providers will allow you to add natural disaster coverage to their damage plans.

READ ALSO: Reader question: Should I insure my Italian home against flood or earthquake damage?

Third-party liability coverage and damage coverage against the most common types of external factors are often sold as part of a single insurance package marketed as assicurazione multirischio (multi-risk insurance). Here, prices range from 200-250 euros per year for the most basic plans to 600-700 euros for more comprehensive plans.

Once again, if you’re renting out your property through some of the more popular online platforms, your home will in most cases be automatically covered by some type of damage policy managed directly by the platform. 

For instance Airbnb’s AirCover policy covers damage of up to 3 million dollars caused directly by guests (but does not cover damage caused by external factors).

Theft

Many standard insurance packages already provide coverage against theft. If that’s not your case, you can ask for an assicurazione furto (theft insurance) to be added to your plan.

However, this type of coverage only applies to break-ins (furto con scasso) and not to theft on the part of guests.

The presence of a short-term rental agreement (either signed in physical form or implicitly agreed upon via an online platform) between owner and guests makes it impossible under Italian law to consider acts of theft from guests as theft per se as these can only be categorised as misappropriation (appropriazione indebita).

To protect yourself against misappropriation, you can add a polizza di tutela legale (legal protection policy) to your package. This will cover legal expenses in a lawsuit for misappropriation filed against a guest. 

Picking the right provider 

It’s advisable to do at least some level of in-depth online research when choosing your second home insurance plan in Italy as there are nearly 100 different providers across the country.

Also, as appealing as it may be, simply opting for the cheapest coverage on the market may mean that you don’t get the product that’s right for you or your property.

READ ALSO: Five expensive mistakes to avoid when buying a house in Italy

When picking your insurance provider, it’s advisable to check customer reviews, feedback scores, and ratings beforehand, as well as enquire about the claims process and cancellation policies with the relevant company. 

Some providers also offer discounts or incentives for homeowners improving home safety measures or eliminating risk factors.

All forms of insurance in Italy are regulated by the Italian Insurance Supervisory Authority (IVASS). Make sure that the provider you turn to figures on the IVASS register. 

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