The 50% Renovation Bonus is an excellent opportunity for those who are thinking of renovating their home during this period. With circular n.28/E of July 25, 2022, the Italian Revenue Agency has confirmed that the bonus will also be available for those who carry out DIY renovation works.
What is the Renovation Bonus?
The Renovation Bonus is a tax benefit that allows you to deduct 50% of the expense for ordinary and extraordinary maintenance works on condominiums or individual buildings from your IRPEF tax. The expense will be deducted in 10 equal annual installments, with a maximum overall ceiling of 96,000 euros. This bonus can be used for works carried out until December 31, 2024.
What are DIY Works?
When we talk about DIY works, we generally refer to those private building maintenance interventions carried out directly by the property owner, that is, without resorting to companies. The client of the work, or the person on whose behalf the work is carried out, is also, at the same time, the contractor of the work itself.
50% Deduction for Material Expenses
With circular n. 28/E of July 25, 2022, the Italian Revenue Agency has confirmed that even those who carry out work on their own can benefit from the 50% Renovation Bonus. The document reiterated what had already been indicated in circular n. 121/1998 and n. 122/1999. The benefit for DIY works will cover the expenses incurred for the purchase of renovation materials, even if purchased before the start of the construction site. To access the bonus, you can transmit the appropriate communication form before the start of the works, but not before having made all the payments planned for the purchase of materials. The fact that the payment is made after the start date of the works is not relevant for obtaining the bonus.
Documentation to Collect to Access the Bonus
To access the 50% Renovation Bonus for DIY works, you need to pay with a dedicated bank transfer indicating:
- Reason for payment, specifying that the payments are aimed at the recovery of building heritage;
- Tax code of the beneficiary of the deduction (which may be different from the person ordering the bank transfer);
- VAT number or tax code of the entity in favor of which the bank transfer is made.
As for the documentation to be prepared for carrying out DIY works, the topic is very complex because in Italy there is a significant regulatory gap from this point of view. There is no single national legislation on DIY works. Local authorities legislate very differently on this matter. In some Italian municipalities, it might be forbidden to carry out DIY works, or these might be allowed only under very strict conditions.
To avoid mistakes and renovate with peace of mind, rely on professionals with long experience. We at Domidea ensure quality work at affordable prices, thanks to various solutions, such as the Zero Interest Financing for your Renovation. Contact us now to learn more and schedule a free, no-obligation inspection of the property to be renovated.
