Renovate the Bathroom with 50% Tax Deductions

tax deductions incentives

It is a good time to renovate the home bathroom by taking advantage of the 50% Renovation Bonus tax deductions.

It is a good time to renovate the home bathroom. With the latest Budget Law the Italian Government confirmed the Renovation Bonus also for 2022. However, not all bathroom renovation works allow access to tax deductions. Let’s see in detail which meet the requirements to access the 50% Renovation Bonus, who can apply for it, which documents to keep, and how to make payments.

The 50% Renovation Bonus for Bathroom Renovation

By renovating a bathroom, you can access a 50% IRPEF deduction on the total cost of expenses up to a maximum limit of €96,000. This means that it will be possible to deduct up to a maximum of €48,000 in 10 annual installments, all of equal amount. For example, if the cost of the bathroom renovation amounts to €10,000, you can deduct up to €5,000, that is €500 each year, for 10 years.
It is important to keep in mind that the deduction is a refund that you will receive at the time of the tax return. The deduction always falls within your IRPEF capacity. For example, if a taxpayer has a capacity of €9,000, faced with an annual installment of €11,000, they will receive a maximum refund of €9,000. The remaining €2,000 will be lost and cannot be obtained through other forms of reimbursement.
Do not forget that the bathroom renovation bonus can be combined with the 2022 Furniture Bonus.

Works Eligible for the 50% Renovation Bonus

The works that benefit from tax relief under the 50% Renovation Bonus are those that fall into the category of extraordinary maintenance interventions:

Extraordinary maintenance interventions of individual real estate units;
Ordinary maintenance of common parts of residential buildings;
Works for the removal of architectural barriers. The construction of bathrooms for disabled people falls into this category when masonry or system modifications are carried out;
Reconstruction interventions in areas affected by natural disasters such as earthquakes and floods, where a state of emergency has been declared;
Renovation, compliance, and refurbishment of the plumbing-sanitary system;

The mere replacement of sanitary fixtures is an ordinary maintenance work, which therefore does not allow for tax deductions. However, if the replacement of sanitary fixtures is part of the renovation of the systems, the expenses incurred can be included in the total deductible expenses.

Who Can Apply for the 50% Renovation Bonus for Bathroom Renovation

The 50% Renovation Bonus for bathroom renovation is not only available to property owners, but also to those who have the right of enjoyment or bare ownership, more specifically:

The property owner;
The bare owner;
A usufructuary;
A tenant;
Those who have the property on loan;
Businesses, freelancers, and professional associations;
Public/private entities that pay Ires.

Extraordinary maintenance works on a second or third home are also eligible for the Bonus. This is therefore an excellent opportunity to renovate an apartment by the sea, or in the mountains.

50% Renovation Bonus for Bathroom Renovation: Permits and Documents to Keep

To renovate a bathroom, it is sufficient to contact the Technical Office of the relevant Municipality, where the property is located, by submitting the CILA, the communication of the start of works.
For ordinary maintenance interventions, such as changing sanitary fixtures or repairing pipes, no official communication is needed, but in this case, these works cannot be deducted.

How to Make Payments

To access tax deductions, it is necessary that the payment expenses for the renovation are tracked with a specific bank transfer, either postal or bank. This means that the transfer must show: