Renovating your home is very advantageous right now thanks to the various renovation bonuses currently available, especially the Renovation Bonus with 50% tax deductions. A bonus like this, for example, allows you to deduct half of the renovation expenses for extraordinary and ordinary maintenance works, up to a maximum of 96,000 euros for each renovated property unit. The amount will be deducted from the personal income tax in ten equal installments over the ten years following the work. The same mechanism applies to many other bonuses.
But what happens to non-taxpayers, those who belong to the “no tax area” and whose income is therefore not subject to personal income tax? They cannot take advantage of the benefits provided by tax regulations. However, former non-taxpayers can recover the discount related to renovation bonuses in subsequent years, even if in the year the work was carried out they were exempt from personal income tax. Let’s explore the topic in more detail.
If the Owner of a Property is a Non-Taxpayer in the Year the Work is Carried Out
If the owner of a property was a non-taxpayer in the year the renovation work was carried out, they could not benefit from the bonus provided. However, non-taxpayer status is certainly not an irreversible condition. If over time the situation changes and the property owner has an income, they will be entitled to the remaining installments of the bonus. The issue will be assessed year by year, at the time of filing the tax return.
A Concrete Example
A clarification on the matter came from the Revenue Agency with circular no. 28/2022, which provided details on how to obtain the remaining installments of the renovation bonus. A taxpayer wrote to the Revenue Agency, illustrating their specific case: in 2020, they carried out renovation work without having any income. In 2021, they did not benefit from the renovation bonus. However, also in 2021,
How to Obtain the Remaining Tax Deductions
To obtain the remaining tax deduction of the Renovation Bonus at the time of filing the tax return, you will need to indicate the corresponding installment number. For example, if you were not entitled to the first installment, the following year you will need to indicate in the tax return that you will benefit from the second installment, not the first. The same principle applies to installments in subsequent years.
Other Solutions in Case of Non-Taxpayer Status
Even in cases of non-taxpayer status, you can still take advantage of facilities to renovate a home or office. At Domidea, we also offer you a Zero Interest Financing for your Renovation.
For more information, do not hesitate to contact us. Our tax and renovation experts will be happy to provide you with personalized advice, tailored to your case and specific needs.
