Italian Renovation Bonus Calculator 2026

Italy's system of bonus edilizi (building and renovation tax credits) has undergone sweeping changes in recent years. After the high-profile Superbonus 110% experiment, introduced by the Decreto Rilancio (Decree-Law 34/2020) and then progressively scaled back, the government has reshaped the entire framework of fiscal incentives for property improvements. The 2025 Budget Law (Legge di Bilancio 2025, Law 207/2024) confirmed the regulatory framework that also applies in 2026, with several important updates compared to previous years. The most significant change is the distinction between primary residence and other properties: for standard renovation works, the 50% deduction rate now applies exclusively to the abitazione principale (primary residence), while for second homes and other properties the rate drops to 36%. This is a major departure from the old system, when 50% applied uniformly to all residential properties.

Another fundamental change concerns the cessione del credito (tax credit transfer) and sconto in fattura (invoice discount). Since 17 February 2023 (effective date of Decree-Law 11/2023, converted by Law 38/2023), these options have been essentially abolished for new projects, with very few exceptions tied to works already started or to properties damaged by earthquakes. This means that in 2026, the only way to benefit from renovation tax credits is, in almost all cases, through a direct IRPEF deduction on your annual tax return, split into equal annual instalments. It is therefore essential to verify that you have sufficient IRPEF tax liability to take full advantage of the deduction, because any excess portion that exceeds your tax due is permanently lost -- it cannot be carried forward to subsequent years or refunded.

Bonus ristrutturazione (renovation bonus) at 50%: requirements, limits, and eligible works

The bonus ristrutturazione (renovation tax credit) is governed by Article 16-bis of the TUIR (Testo Unico delle Imposte sui Redditi, the Consolidated Income Tax Act, Presidential Decree 917/1986) and by Decree-Law 63/2013. For 2026, the deduction equals 50% of expenses incurred for renovation works on the taxpayer's primary residence (abitazione principale), up to a maximum eligible expenditure of EUR 96,000 per property unit. For other properties (second homes, rented-out flats, etc.), the rate drops to 36% with the same EUR 96,000 cap. The deduction is split into 10 equal annual instalments.

Eligible works cover a broad range of interventions, including: extraordinary maintenance (manutenzione straordinaria) such as window and door replacement, bathroom renovation, replacement of electrical or plumbing systems; restoration and conservative rehabilitation; full-scale renovation; works needed to rebuild or restore a property damaged by natural disasters; removal of architectural barriers for accessibility; construction of garages or parking spaces annexed to the property; and asbestos removal. For common areas of condominiums (parti comuni condominiali), even ordinary maintenance works (such as repainting, replacement of flooring, gutters, etc.) qualify for the deduction.

To claim the deduction, specific procedural requirements must be met. Payment must be made via a bonifico parlante (a special "talking" bank transfer) that includes the payment reason referencing the relevant law (Article 16-bis TUIR), the codice fiscale (tax identification number) of the beneficiary claiming the deduction, and the codice fiscale or partita IVA (VAT number) of the payee. You must also keep all invoices and receipts, documentation related to building permits (CILA, SCIA, or permesso di costruire depending on the type of work), and, where required by workplace safety regulations, a notification to the local ASL (health authority).

Ecobonus: energy efficiency works at 50% and 65%

The ecobonus is the tax deduction for energy-efficiency upgrades to existing buildings, governed by Article 1, paragraphs 344-349 of Law 296/2006 and subsequent amendments. The deduction rates vary depending on the type of intervention:

The 50% rate applies to: replacement of windows and frames (infissi), solar shading systems (schermature solari), biomass boilers, and class-A condensing boilers. The maximum eligible expenditure varies: EUR 60,000 for windows, EUR 60,000 for solar shading, and EUR 30,000 for class-A condensing boilers.

The 65% rate applies to: thermal insulation of the building envelope (cappotto termico), installation of solar thermal panels for hot water, replacement of heating systems with high-efficiency heat pumps or geothermal systems, installation of class-A condensing boilers with advanced thermoregulation systems (class V, VI, or VIII), purchase and installation of micro-cogeneration units, and installation of remote-control devices for heating systems (building automation). The maximum eligible expenditure is EUR 100,000 for comprehensive energy requalification and varying amounts for individual interventions.

To qualify for the ecobonus, it is mandatory to submit a communication to ENEA (Agenzia Nazionale per le Nuove Tecnologie, l'Energia e lo Sviluppo Economico Sostenibile -- the Italian National Agency for New Technologies, Energy, and Sustainable Development) within 90 days of the completion of the works. The submission is done through a dedicated online portal and must include data on the property, the type of intervention, and the energy savings achieved, as certified by the technical data sheet or the APE (Attestato di Prestazione Energetica, Energy Performance Certificate) issued after the works.

Sismabonus and bonus mobili: specific rules

The sismabonus is the tax deduction for seismic retrofitting and earthquake-proofing works, established by Article 16, paragraphs 1-bis through 1-septies of Decree-Law 63/2013. The deduction rates depend on the effectiveness of the intervention in reducing seismic risk: 70% for works that achieve a one-class reduction in seismic risk, and 80% for a two-class reduction. For interventions on common areas of condominiums, the rates increase to 75% and 85%, respectively. The maximum eligible expenditure is EUR 96,000 per property unit and the deduction is split into 5 annual instalments (not 10, as with standard renovation). Properties must be located in seismic zones 1, 2, or 3 as defined by the seismic classification under PCM Order 3519/2006.

The bonus mobili (furniture and appliance bonus) allows a 50% deduction on expenses for the purchase of furniture and large household appliances with high energy ratings (not lower than class A for ovens, E for washing machines, washer-dryers, and dishwashers, F for refrigerators and freezers), intended to furnish the property undergoing renovation. The maximum eligible expenditure for 2026 is EUR 5,000. Crucially, the bonus mobili is tied to an ongoing renovation project: you cannot claim it independently. The start date of the renovation works must precede the date of purchase of the furniture and appliances. Payment can be made by bank or postal transfer, debit card, or credit card; cheques, cash, and other non-traceable methods are not accepted.

The bonus verde (green spaces bonus) provides a 36% deduction on expenses for landscaping private open areas of existing buildings, including irrigation systems, wells, green roofs, and rooftop gardens. The maximum eligible expenditure is EUR 5,000 per property unit, yielding a maximum deduction of EUR 1,800 spread over 10 annual instalments.

How the deduction works: annual instalments explained

The building-bonus deduction works by reducing the IRPEF (Imposta sul Reddito delle Persone Fisiche, Italy's personal income tax) that the taxpayer owes. The total deduction amount is divided into equal annual instalments: 10 for the renovation bonus, ecobonus, bonus mobili, and bonus verde; 5 for the sismabonus. Each year, the taxpayer enters the annual instalment on their tax return (Modello 730 or Modello Redditi PF) and subtracts it from their gross IRPEF liability.

Here is a concrete example: on a EUR 40,000 expenditure for a primary-residence renovation at 50%, the total deduction is EUR 20,000, divided into 10 annual instalments of EUR 2,000 each. Every year, the taxpayer reduces their IRPEF bill by EUR 2,000 on their tax return.

Tax capacity (capienza fiscale): why sufficient IRPEF liability is essential

One of the most critical -- and most misunderstood -- aspects of Italian renovation bonuses is the concept of capienza fiscale (tax capacity). The annual deduction can only be used up to the amount of the taxpayer's gross IRPEF liability for that year, net of other deductions already claimed (employment deductions, family dependant deductions, etc.). If the annual instalment exceeds the net IRPEF due, the excess amount is permanently lost: it cannot be carried forward to the next year, nor can it be refunded.

This particularly penalises taxpayers with low incomes or with many other deductions that already substantially reduce their IRPEF. For instance, a taxpayer with a RAL (gross annual salary) of EUR 15,000 has a gross IRPEF of approximately EUR 2,262, which after the employment income deduction (about EUR 1,955 for incomes up to EUR 15,000) and the supplementary benefit (trattamento integrativo) drops to nearly zero. In this scenario, the renovation deduction would be essentially unusable. Our calculator automatically checks your IRPEF tax capacity and flags any situation where deduction amounts would be wasted.

Tax credit transfer and invoice discount: current status

Decree-Law 11/2023 (converted by Law 38/2023) marked a turning point in Italy's renovation bonus system by banning the transfer of tax credits (cessione del credito) and the invoice discount option (sconto in fattura) for virtually all new projects from 17 February 2023 onward. The only remaining exceptions relate to: projects already underway before that date for which a CILAS or other building permit had been filed; demolition-and-rebuild projects in seismic zones for which the building permit application had already been submitted; and works on properties damaged by earthquakes in designated disaster areas. For all other cases, in 2026 the sole option is a direct IRPEF deduction on your tax return, making the issue of tax capacity discussed above even more crucial.

Worked example: bathroom and kitchen renovation, EUR 40,000 cost, EUR 35,000 RAL

Let us walk through a very common real-world scenario. Marco, an expat working in Italy, decides to renovate the bathroom and kitchen of his apartment (his primary residence) at a total cost of EUR 40,000. His RAL (gross annual salary) is EUR 35,000.

Calculating the deduction: the 50% renovation bonus on EUR 40,000 yields a total deduction of EUR 20,000, divided into 10 annual instalments of EUR 2,000 each.

Checking IRPEF capacity: with a RAL of EUR 35,000, INPS social security contributions borne by the employee amount to approximately EUR 3,217 (9.19%), bringing taxable income to about EUR 31,783. Gross IRPEF is roughly EUR 7,648 (EUR 28,000 x 23% + EUR 3,783 x 33%). The employment income deduction is approximately EUR 1,561. Net IRPEF is therefore around EUR 6,087, which is more than enough to cover the annual EUR 2,000 instalment. Marco will benefit from the full bonus with no waste.

Effective cost: the works cost EUR 40,000 upfront, but with the bonus Marco recovers EUR 20,000 over 10 years. The real effective cost is EUR 20,000 -- equivalent to a 50% discount on the renovation.

Documents required to claim the deduction

To benefit from renovation tax credits you must keep -- and, if audited, be able to produce -- the following documentation: the bonifico parlante (talking bank transfer) with the payment reason referencing the relevant law (e.g., Art. 16-bis TUIR or the ecobonus legislation), the codice fiscale of the person claiming the deduction, and the codice fiscale or partita IVA of the payee; invoices and receipts for all expenses incurred; building permits (CILA, SCIA, or permesso di costruire) or, alternatively, a sworn self-declaration (dichiarazione sostitutiva dell'atto di notorieta) attesting to the start date of the works and their compliance with building regulations; the ASL notification, where required by workplace safety rules on construction sites; the ENEA communication within 90 days of the end of works, mandatory for the ecobonus and for certain renovation works that produce energy savings (boiler replacement, window replacement, solar panel installation); the condominium assembly resolution (delibera assembleare) for works on common areas, together with the expense-sharing table based on millesimal proportions; the cadastral survey (visura catastale) of the property or proof of the cadastral registration application; receipts for IMU (municipal property tax) payments if applicable; and for the bonus mobili, purchase invoices showing the nature, quality, and quantity of the goods, plus proof of payment by traceable means.

The following table summarises the main bonus edilizi (building tax credits) available in 2026, with their respective deduction rates, expenditure caps, and instalment periods. All amounts refer to the maximum eligible expenditure per property unit.

These values are subject to annual confirmation through the Budget Law (Legge di Bilancio). We recommend always verifying the rules in force at the time your works begin, either by consulting the Agenzia delle Entrate (Italian Revenue Agency) website or by engaging a qualified tax professional (commercialista).

Maximum deduction amounts at a glance

Note: the maximum annual instalment represents the minimum IRPEF liability you need each year to fully utilise the deduction. If your net IRPEF is below this amount, part of the bonus will be wasted. Use our calculator above to verify your specific situation.