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PROPERTY

EXPLAINED: Are any of Italy’s building ‘bonuses’ still available?

The Italian government has abruptly restricted access to its popular 'superbonus' fund. But what does this mean for Italy's many other tax rebate schemes for homeowners?

Published: 27 February 2023 17:10 CET
Updated: 4 March 2023 08:43 CET
A view shows urban construction works on the outskirts of Rome in the Corviale-Portuense district, on February 21, 2023.
A view shows urban construction works on the outskirts of Rome in the Corviale-Portuense district, on February 21, 2023. Photo by Andreas SOLARO / AFP.

If you own – or have your eye on – property in Italy, you’ll likely have seen the recent headlines about the Italian government curtailing its popular superbonus.

Introduced in May 2020 in an effort to revitalise Italy’s pandemic-hit economy, the superbonus allowed homeowners to claim back up to 110 percent of the cost of home renovations.

READ ALSO: How Italy has changed its building superbonus – again

But the Italian government curbed the popular scheme with sweeping changes as of February 17th which have made it effectively unavailable to most new claimants.

Until this point, there were three ways homeowners could access the building superbonus funds: by selling tax credit to a bank (cessione del credito), getting a discount on their invoice from the construction company (sconto in fattura), or claiming a tax rebate (detrazione fiscale) spread out over four years.

As the Italian government has now ended the buying and selling of tax credits, the first two options are no longer available.

This leaves only the tax rebate option – which is only open to Italian taxpayers in the highest income tax brackets.

READ ALSO: ‘Out of control’: Why has Italy curbed its building superbonus?

A building site in Rome’s Corviale-Portuense district on February 21st. – Italy’s building superbonus has led to fraud and spiralling costs, the government said after it curbed the scheme on February 17th. (Photo by Andreas SOLARO / AFP)

While most media reports have focused on the superbonus as the highest-value scheme, it’s far from being the only one of Italy’s building ‘bonuses’ affected by this rule change.

According to the government’s decree dated February 16th, all the tax breaks mentioned in Article 121 of the original May 19th decree are affected, namely:

  • The ecobonus, that offers savings of 50 percent or 65 percent to make changes to your home that make it more energy efficient.
  • The earthquake bonus or sisma bonus, that allows property owners to claim between 50 and 80 percent of up to 96,000 euros on improvements to make buildings more earthquake-safe.
  • The renovations bonus (bonus ristrutturazione, sometimes also known as bonus casa), that allows owners to apply for a 50 percent tax reduction on renovating your property on expenses of up to 96,000 euros.
  • The solar panels bonus, which in reality isn’t its own form of tax relief but can be claimed as part of either the bonus ristrutturazione or the superbonus, and provides up to 48,000 euros in savings.

According to the financial news outlet Investire Oggi, two bonuses remain unaffected – but only because homeowners could never access the cessione del credito or sconto in fattura for these in the first place. These are:

  • The green bonus or bonus verde, which allows people to claim a 36 percent tax deduction on up to 5,000 euros to renovate their gardens and outdoor spaces.
  • The furniture and appliances bonus (bonus mobili e grandi elettrodomestici), through which owners can apply for a 50 percent reduction on up to 8,000 euros of new furniture and energy-efficient appliances in recently renovated homes.

In both these cases, the relief comes in the form of a tax rebate paid in installments over a ten-year period.

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.

See more in our Italian property section.

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For members

TAXES

How much should you pay your Italian accountant to do your taxes?

Italian taxes are notoriously difficult to navigate and even trickier to deal with yourself, meaning you may want to turn to a 'commercialista' for help. But how much should you pay for their services?

Published: 18 September 2024 12:42 CEST
How much should you pay your Italian accountant to do your taxes?

If you ask someone in Italy who a commercialista is, you may get several different answers: accountant, consultant, financial advisor or administrator.

In fact, they can be all of these at once as, along with the patronati, they’re residents’ first port of call when dealing with the complex bureaucratic processes surrounding almost anything official in the country.

Commercialisti are also the people who can file and submit your yearly tax returns for you. 

If you live in Italy or generate income in the country, you’ll likely need to file your taxes once a year during the so-called dichiarazione dei redditi (‘income declaration’). 

Unlike in other European countries, where it’s fairly easy for taxpayers to file tax returns independently, doing this can be very tricky in Italy, not least because of the complicated language being used. 

And mistakes can cost you dearly as the Italian taxman could charge you hundreds or even thousands of euros if you submit late, forget some details or enter the wrong information.

That’s why many around Italy choose to hire a commercialista. But how much should you pay for their services?

Overview

Commercialista fees can vary greatly depending on the type of services you need and the complexity of your financial situation.

If you’re an employee with a single source of income and are seeking help with filing taxes, or claiming tax deductions or incentives, fees will be on the low end of the spectrum. 

But if you have multiple sources of income, or have foreign income or assets and are subject to taxation in multiple countries, the commercialista will need expertise in international tax law, which may significantly raise costs.

READ ALSO: The Italian tax calendar for 2024: Which taxes are due when?

If you are a freelancer or the owner of a small business, you may need monthly consulting and regular services such as bookkeeping and VAT reporting. In this case, services may be bundled in an annual package. 

Finally, if you own a large business or corporation, you may need to hire more than one commercialista to deal with payroll management, VAT declarations, and corporate tax filings. 

Please note that the cost of a commercialista can also vary by region as prices tend to be higher in large metropolitan areas such as Milan or Rome, while you may find particularly advantageous rates in small towns and less populated areas around the country. 

Annual tax returns

According to financial advice platform Fiscozen, income tax filing services generally start at €120 but can rise to over €700 depending on your personal situation.

Generally speaking, tax filing fees are higher if you’re a VAT number holder (or partita Iva) as this entails more work on the part of the commercialista (think of all the invoices issued and claimable VAT detractions) compared to an employed individual or pensioner.

Paying taxes

Most types of taxes in Italy (from income to property taxes to waste collection charges) must be paid by completing and submitting form F24 (modello F24) with Italy’s tax office.  

A commercialista can do this for you, with services costing between €15 and €30 per form, according to online investment advisor Moneyfarm. 

Registering a new business

Freelancers and business owners in Italy are required to register with Italy’s tax office by getting a VAT number (known as partita Iva). 

If you’re starting out as a freelancer, hiring a commercialista to get your personal VAT number and set up an electronic invoicing system on your behalf will cost you €150 on average, according to Fiscozen.

Fees will be higher if you’re starting a new business as this generally involves more paperwork and compliance with a number of tax requirements. 

In this case, a commercialista’s services may cost anything between €300 and €500, though you’ll also have to factor in the payment of a number of taxes (including up to €200 for the Certified Start of Business Report, or SCIA). 

‘Year-long administration’

As mentioned earlier, if you are a freelancer or a business owner, you may need monthly consulting services, as well as regular bookkeeping, VAT reporting and – if you have employees – payroll management. 

In this case, commercialista services may be bundled in a gestione annuale (‘year-long administration’) package. 

According to Fiscozen, a 12-month package for freelancers operating under Italy’s flat tax scheme costs €60 a month on average (€720 a year). 

But costs can be much higher for freelancers working under the so-called regime ordinario (‘ordinary regime’) and business owners. 

In this case, you may pay anything from €2,000 to €4,000 a year depending on: number of clients, business size and number of employees (if applicable).

How can I find a commercialista?

All commercialisti in Italy must be registered with national association CNCDEC (Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili). 

The association’s website gives you the option to look for registered professionals in your area (see an example via the screen grab below).

A screen grab of the search tool on Italy's national 'commercialisti' association's website

A screen grab of the search tool on Italy’s national ‘commercialisti’ association’s website. Source: Consiglio Nazionale dei Commercialisti

As with most things in Italy however, word of mouth is key, so make sure to ask friends and family for recommendations if you can.

Alternatively, online forums and message boards for foreign nationals in Italy often share names of professionals that are particularly experienced in international tax law.

Finally, you can also find a list of commercialisti working in your area in Italy’s pagine gialle (Yellow Pages). 

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