In the past it was possible to reclaim 110%, and then later 90% of the costs of building work through this immensely popular rebate scheme. Unfortunately it has now been completely discontinued.
Have you heard or read the terms ‘Ecobonus’ or ‘Superbonus’ in the context of renovating a house in Italy? Sadly the brief golden era of 110% tax rebates on home improvements has now passed, but there are still ways for some property owners to claim public support towards their investment in Italian real estate.
We’ll take you through how the system works in 2023, and show you ways you can still get huge discounts on renovation work in Sicily.
If you’re new to the scheme, keep reading to discover how we got to this point. If the bonus system is old news to you, you might want to jump ahead to learn about the realities for home owners in Sicily today.
Before making any real estate purchase you should make sure you have fully understood the tax implications, whether you intend the property to be a holiday home, a permanent residence or a buy-to-let investment.
If you already know which bonus you need information on, you can head straight to the relevant section…
The signature policy that helped Italy bounce back from the pandemic to become The Economist’s Country of the Year in 2021, the bonus system was designed to encourage the general public to restore historic property in Italy rather than simply building new properties while existing structures fell into disrepair.
As a secondary goal, it was also driven by Italy’s commitment to sustainable energy use and reducing its carbon footprint.
Finally, the Superbonus was seen as an important tool in the fight against the illegal black economy, in which unlicensed traders were not only dodging their tax responsibilities, but also working outside the regulatory framework designed to protect customers and provide important safeguards to the general public.
When economic assistance packages were initially distributed around Europe in the wake of the Covid-19 pandemic, most governments funnelled the money directly into the private sector, bailing out companies who had lost revenue during the crisis. The Italian model differed, offering only a baseline furlough scheme to its corporations but seeking as a first priority to stimulate the economy through a vast network of subsidies for home improvement works.
Renovating a house in Italy – for so long a rather fanciful Hollywood dream – became, for a period, an extremely lucrative investment proposition.
There were two ways to cash in on a ‘Bonus’: You could claim the entire subsidy back through tax rebates over a period of years, but non-residents or people who didn’t anticipate paying enough tax to benefit this way were offered an alternative route. The so-called sconto in fattura (effectively ‘discount on the bill’) was a way to assign the tax credits to a third party – be it a credit institution or even the tradespeople performing the work. The sconto in fattura didn’t raise the same total sum, but it did mean that you could get home improvements at a hefty discount with real-time effects on the bottom line. Subsidising the property market was not simply a helping hand for investors. The Multiplier Effect meant that the reverberations of the Ecobonus and Superbonus were felt through the sectors of architecture, engineering, interior design, landscaping, electrical engineering, hydraulics and all manner of trades and crafts. Whether you were Ikea (other Swedish retail giants are available) or a local carpenter, this policy was a game changer.
Sadly, from 1 January 2026, the invoice discount and credit transfer mechanisms are no longer permitted for any building bonuses in Sicily. The only areas of the country where any such schemes exist are the ones affected by earthquakes in L’Aquila and Central Italy. Everywhere else, the bonuses now work exclusively as income tax (IRPEF) deductions claimed through your annual tax return. They are no longer transferrable to a third party.
In the past it was possible to reclaim 110%, and then later 90% of the costs of building work through this immensely popular rebate scheme. Unfortunately it has now been completely discontinued.
This scheme covers extraordinarymaintenance. Work which may be covered under the bonus includes:
✔︎ Structural and layout works
✔︎ Replacement of systems and installations (eg. electrical, plumbing and heating) with modern, clean technology
✔︎ Bathrooms, kitchens and fittings including changing the material of your windows
✔︎ Alarm systems, security grilles and other security infrastructure
✔︎ Accessibility improvements (previously covered by a dedicated bonus)
✔︎ Asbestos removal (bonifica amianto)
✔︎ Acoustic insulation
✔︎ Energy efficiency measures not claimed under the Ecobonus Construction of garages and parking spaces
✔︎ Purchase of renovated flats from construction firms (within 18 months of completion)
There is no possibility to receive a discount on the original outlay or to assign the credit to a tradesperson, bank or other third party. However, Italian income tax payers can reclaim money spent over ten installments, each given as an annual tax deduction.
In 2026, if your property is your primary residence, you can claim a 50% deduction (so 5% per year). If it is a secondary residence you are entitled to 36% (3.6% per year). The maximum allowable claim is €96,000 per property unit.
In 2027 these will drop to 36% and 30% respectively, and from the start of 2028 everything will be reduced to 30% regardless of residency and with a reduced cap at €48,000.
The Ecobonus tax credit scheme has survived the cuts, and allows for discounts to be claimed where the home improvement will improve the building’s energy rating.
There is no possibility to receive a discount on the original outlay or to assign the credit to a tradesperson, bank or other third party. However, Italian income tax payers can reclaim money spent over ten installments, each given as an annual tax deduction.
In 2026, if your property is your primary residence, you can claim a 50% deduction (so 5% per year). If it is a secondary residence you are entitled to 36% (3.6% per year).
In 2027 these will drop to 36% and 30% respectively, and from the start of 2028 everything will be reduced to 30% regardless of residency.
The maximum allowable claim depends on the type of work you are doing:
✔︎Comprehensive energy retrofit of existing buildings (riqualificazione energetica globale) — the building must achieve annual heating energy consumption below the values set in the relevant ministerial tables
✔︎Purchase and installation of micro-cogeneration systems (micro-cogeneratori)
✔︎ Biomass heating systems
✔︎ Smart systems for energy management
The bonus does not cover the installation of fossil fuel-burning heaters or boilers, or work on new buildings.
Remember that these are limits on what you can deduct or claim back, not on what you can spend.
The bonus covers the kind of major renovation work that makes your property resistant to the damage caused by earthquakes and tectonic activity.anti-seismic. This might be seismic risk assessment, structural reinforcement or static safety improvements on load-bearing elements.
There is no possibility to receive a discount on the original outlay or to assign the credit to a tradesperson, bank or other third party. However, Italian income tax payers can reclaim money spent over ten installments, each given as an annual tax deduction.
In 2026, if your property is your primary residence, you can claim a 50% deduction (so 5% per year). If it is a secondary residence you are entitled to 36% (3.6% per year). The maximum allowable claim is €96,000 per property unit.
In 2027 these will drop to 36% and 30% respectively, and from the start of 2028 everything will be reduced to 30% regardless of residency and with a reduced cap at €48,000.
This relatively small bonus scheme can contribute towards the cost of new furniture and large appliances, but only if they’re purchased for a property which is being renovated.
It includes large items of moveable furniture but not fixed decoration or infrastructure like curtains, doors or flooring. Second hand items and purchases with cash payments are not eligible.
There is no possibility to receive a discount on the original outlay or to assign the credit to a tradesperson, bank or other third party. However, Italian income tax payers can reclaim money spent over ten installments, each given as an annual tax deduction.
You can claim a 50% deduction (so 5% per year). The maximum allowable claim is €2,500.
This scheme is different to the ‘bonuses’, in that it can provide a direct grant and not a tax deduction. Managed by the GSE (Gestori dei Servizi Energetici), it is a subsidy of up to 65% of costs for energy efficiency and renewable energy works. The exact percentage offered will be determined by a formula which accounts for installed capacity (€/kW), surface area (€/m²), technology type, climate zone, building use, population of the municipality and more.
It can cover the installation of:
✔︎ Heat pumps (electric or gas, aerothermal, geothermal, hydrothermal and hybrid systems)
✔︎ “Add-on” heat pumps integrated with existing systems
✔︎ Biomass boilers and stoves with at least a 4-star environmental rating
✔︎ Solar thermal panels for hot water
✔︎ Photovoltaic panels with battery storage (only when combined with heat pump installation)
✔︎ EV charging points (only when combined with heat pump installation)
Crucially, it is a direct payment and not a tax credit, so it can be claimed by non-residents. Any home owner can apply, and there is no income qualification, but the fund (which was €500m in 2026) is competed for by private citizens and businesses alike. The GSE website includes a tracker of how much has been claimed.
You can submit applications through the GSE’s PortalTermico within 60 days of completing the works. The procedure is simpler if you choose a product from the pre-approved catalogue.
This scheme is different to the ‘bonuses’, in that it can provide a direct grant and not a tax deduction. Managed by the GSE (Gestori dei Servizi Energetici), it is a subsidy of up to 65% of costs for energy efficiency and renewable energy works. The exact percentage offered will be determined by a formula which accounts for installed capacity (€/kW), surface area (€/m²), technology type, climate zone, building use, population of the municipality and more.
It can cover the installation of:
✔︎ Heat pumps (electric or gas, aerothermal, geothermal, hydrothermal and hybrid systems)
✔︎ “Add-on” heat pumps integrated with existing systems
✔︎ Biomass boilers and stoves with at least a 4-star environmental rating
✔︎ Solar thermal panels for hot water
✔︎ Photovoltaic panels with battery storage (only when combined with heat pump installation)
✔︎ EV charging points (only when combined with heat pump installation)
Crucially, it is a direct payment and not a tax credit, so it can be claimed by non-residents. Any home owner can apply, and there is no income qualification, but the fund (which was €500m in 2026) is competed for by private citizens and businesses alike. The GSE website includes a tracker of how much has been claimed.
You can submit applications through the GSE’s PortalTermico within 60 days of completing the works. The procedure is simpler if you choose a product from the pre-approved catalogue.
No. The Italian Superbonus is no longer available for new applications. The scheme, which previously offered tax deductions of up to 110% for major energy-efficiency and seismic upgrades, has been fully phased out.
The incentive was gradually reduced over time and now survives only in a residual 65% form, exclusively for condominium projects that were already underway by October 2024. No new private renovation projects can access the Superbonus.
Although the Superbonus was one of the most generous renovation incentives ever introduced in Italy, its overall cost far exceeded initial government projections, leading to its discontinuation.
Three main bonuses remain on offer as of January 2026: House Renovation Bonus (Bonus Ristrutturazioni), the Ecobonus for energy efficiency and the Sismabonus for seismic protection upgrades.
Primary residences receive 36% deductions under the Bonus Ristrutturazioni, whilst secondary properties get 30%, with a maximum €96,000 spending limit per property. The Architectural Barriers Bonus at 75% expired at end of 2025. Rates will drop further in 2027. Deductions still spread over 10 annual instalments, deducted from Italian Personal Income Tax (IRPEF).
All taxpayers who own property under any legal title are eligible, provided they bear the expenses involved in the work. This includes property owners, usufruct holders, lease holders, comodato d’uso holders, cohabiting family members, civil union partners, and separated spouses assigned the property.
There are no citizenship limitations and you can be a resident or non-resident.
However, the credit is deducted from Italian Personal Income Tax (IRPEF), so if taxable income in Italy is low, the annual deduction may be partially or completely unusable.
Luxury properties (cadastral categories A/1, A/8, A/9) are excluded from the scheme.
No, Italian residency is not required to apply for a renovation bonus. Foreign property owners and non-residents can access them, although they must meet specific procedural requirements. Remember that as the credit is deducted from Italian Personal Income Tax (IRPEF), if you don’t pay that at the necessary level you may not receive the whole reimbursement.
All applicants will need to maintain documentation meeting Italian tax authority standards.