How to get a superbonus – Subsidy to renovate your home in Italy?
Superbonus of maximum € 250,000.00
non-Italian citizens also eligible
‘RENOVATION IS A WIN-WIN FOR EVERYONE’
One of the innovative acts (DL n.34 of 19/05/2020), approved by the Italian Parliament in 2020 is the “Superbonus 110%”. It is a 110% tax credit of the expenditure made in order to improve a home’s energy efficiency and lower its seismic risk.
Using the Superbonus to fund construction and renovation is a complex process, but it is also an opportunity not to be missed.
To understand the real opportunity of the Superbonus 110%, it is important to consider the many benefits it offers.
What exactly is the “super-bonus”, and when is it possible to obtain it?
The super-bonus is a tax advantage available for those who are willing to make property upgrades that qualify as energy renovation. It also includes seismic retrofitting. Prior to the establishment of the super-bonus, two other fiscal incentives existed, the eco bonus and the sisma bonus. The common characteristic of these incentives is the ability to deduct the amount needed for the improvement projects from your taxation, in particular form your IRPEF.
What are the main requirements?
Most importantly, the expenses must have been incurred between July 1, 2020 and December 31, 2021 and the renovation must show an improvement of at least two energy classes to obtain the tax bonus.
Who can apply for the Superbonus 110%?
According to the Communication n. 500 provided by the Agenzia delle Entrate (Italian tax agency), all persons, Italian or non-Italian, who own a house or building in Italy may become a beneficiary of this bonus. The tax discount for the work allowed by the “Superbonus”, “Ecobonus” and/or other bonuses is valid for a maximum of two separate properties. The “Superbonus 110%” is linked to work conducted to add heat insulation, air conditioning systems, efficient heating systems, and/or work to reduce the seismic risk. If one of these interventions is made, it is also possible to obtain the 110% bonus for additional work such as photovoltaic systems, replacement of doors and windows, charging stations for electric vehicles, roof repairs, etc.
Furthermore are some limits regarding the maximum expenses that are deductible:
This poses as a great opportunity for non-Italian residents to renovate and make houses more efficient from an energy and seismic point of view, with the fiscal aid provided by the Italian Government.
Luxury homes excluded:
You cannot use the Eco Bonus for buildings classed as A1 (Luxury), A8 (Prestigious Villa) or A9 (Castles, etc.). Buildings with these Cadastral Categories are not included in this law.
How to qualify?
To qualify for the 110% Superbonus the work should improve the building by at least two energy classes. If this is not possible, the highest achievable energy class must be reached and demonstrated by two specific energy performance certificates, produced before and after the work is carried out.
Only the listed renovation works qualify and there is a spending limit for each intervention.
Work included in the 110% Superbonus:
110% ecobonus is for the thermal insulation of vertical and horizontal building surfaces (so-called thermal coat) for at least 25% of its gross surface. This involves the application of insulating material on the external walls of the building.
*) 110% ecobonus for the replacement of winter heating systems with a heat pump or condensing system, micro-generation plants or solar collectors to produce hot water. The heat pump system consists of a compressor powered by electricity which pumps energy from a lower temperature environment to a higher temperature environment. Therefore, it can exploit the power of photovoltaic panels. It can be used for heating and cooling your home.
*) 110% Sismabonus for reduction of seismic risk on the building. This must improve the rating by at least one class.
Additional bonus: In addition to the main jobs listed above, the Superbonus also includes costs for other work performed together with at least one of the above.
Energy efficiency measures – installation of photovoltaic solar systems – infrastructure for charging electric vehicles. Replacement of frames, shutters, awnings, air conditioning or windows are covered by the old ecobonus with a deduction of 50% to 65%. The good news is that the deduction increases to 110% if this work is carried out in conjunction with at least one of the driving interventions.
Here is a short list of the leading works for which you can qualify for the super-bonus:
*) External insulation coating for a surface of at least 25% of the building. In this case, you need to follow the related rules and regulation regarding the material, ways to insulate the surface, etc., so our suggestion is to make sure that the works are made as per the law description.
*) Upgrades of the heating system with a heat pump: it is important to specify that the decree mentions the upgrade in place of the existing heating system, not the “addition” of a new heat pump system.
*) Seismic retrofitting of the building (sisma bonus): it involves the adoption of seismic measures, per which a specific and mandatory documentation is required for certifying that the safety is guaranteed. The works must be carried out on the structural parts of the buildings and on an entire block of buildings.
In summary, any kind of bonus is strictly connected with to improving the safety and enabling energy savings.
What are the other building works that are included in the bonus if made together with the leading works (secondary works)?
*) Solar panels: the 110% tax deduction is subject to the sale of the remaining and unused energy to GSE (GSE is the state-owned company which promotes and supports renewable energy sources in Italy).
*) Electric column installation for recharging electric vehicles.
For what kind of properties is the bonus obtainable?
*) Both first and second homes qualify.
*) Property functionally independent and with one or more independent accesses (such as townhouses).
*) Individual residential units.
*) Common parts of residential buildings, for example – condominiums.
If the main characteristics of the property meet the qualifications, the next consideration needs to be done regarding the property documentation itself. A property that has been partially built with no valid planning permission cannot obtain any of the benefits mentioned in this article.
Three possible solutions to spend the bonus:
1) The safest and most convenient way is to pre-pay the invoices yourself and then get re-imbursed for amount paid. This is the most common method for using the bonus.
The advantages of this method are:
*) No additional out-of-pocket costs for all types of applications, for loans, mortgages, etc.
*) Acting quick and finishing the request without too much bureaucratic administration,
*) Submitting the application quickly and having it approved before the bonus fund is empty, after which it is no longer possible to receive the bonus.
*) Quickly start carrying out the work and being able to quickly inhabit the property,
2) Use the fiscal bonus of 110% of the expenses incurred as a deduction.
However, this option is not valid if you are a non-Italian resident and you do not have to pay income taxes in Italy.
3) Alternatively, it is possible to opt for a contribution as an invoice discount applied directly by the suppliers. The client pays the invoice with a discount (up to 100% of the total amount) and the suppliers “buys” the fiscal credit from its client and then uses it as a deduction.
This is very complicated and there are not many suppliers willing to use this system.
What can we do for you?
It is not straightforward to obtain the bonus on your own, due to the high number of documents and licenses requested and mandated, difficulty of passing the many rules, laws and the communication barriers involved.
Therefore, it is necessary to request the support of an expert to avoid penalties.
Our collaborative office in Arezzo can analyse your specific case and provide you with the best tailor-made solution.
They are experts, thanks to their experience and professionalism, they can support you in every step of the process, from preliminary authorizations to the transfer of your tax credit to financial intermediaries.
Thanks to our experience and professionalism, we can provide support and assistance in your decisions.
Our initial work very often consists of checking the property documentation to make sure that all the legal documents are in place, in order for your property to qualify for the tax advantages.
We can help you evaluate all aspects related to the Superbonus and the renovation works required to obtain this tax benefit.
We will maintain all connections with relevant experts, such as the geometra, architect, contractors, and other organizations to guide the work in the right direction.
In addition, all renovation work can be organized and managed by us if you are not present yourself.
During the works and various steps of the renovation, we will regularly inform the owner of the progress and the work completed by means of telephone, skype, photos, videos, etc.
We also do all the paperwork.
*) You will need a technical report stating that the works comply with building laws, and that the required energy savings are possible. This must be completed by a Surveyor, Architect or Engineer.
*) You must have the works certified with an accounting validation certificate. This will need to be done by an accountant or Commercialista.
*) In regard to anti-seismic regulation (earthquake proofing), the certificate must be issued by the Surveyor confirming compliance to seismic regulations.
*) A copy of the documentation has to be sent to ENEA (National Agency for New Technology, Energy and Economic Development) as well as the Revenue Agency.
The 110% Eco Bonus can provide significant savings. However, the application and procedure must be followed very carefully to avoid any problems, especially if you are trying to encourage a bank to buy the credit and fund the work.
What are the costs of the owner?
1) Phase 1: To examine the application € 950 plus VAT.
2) Phase 2: To initiate and submit the application € 3,500 – 5.000 plus VAT.
3) Phase 3: After approval of the bonus subsidy, 15-25% of the total amount awarded plus VAT.
4) Fees for geometra, architect, construction expert, etc: For each project differently
5) Administrative fees and charges of the municipality: For each project differently
If you want us to also supervise and manage the work, our wage is € 75.00 per hour plus VAT.
If you have a house in Italy and wish to know more about your right to obtain a super-bonus, feel free to contact us for a first free consultation! firstname.lastname@example.org
For further details see the official pdf guide issued by the Italian Revenue Agency (in Italian) “L’Agienzia Entrate”.
The information in this brochure and publication and email is compiled with the greatest care, nevertheless no rights may be derived from this information and attachments.