Italy's 2026 renovation tax deduction (ristrutturazione)

What the deduction is

The bonus ristrutturazione is the common name for the deduction in article 16-bis of the income-tax code (TUIR). It is not a cheque from the state and not a discount on the invoice: you pay the builder in full, then reduce your own income tax over the following ten years. The Agenzia delle Entrate (the tax agency) states that, as a general rule, the TUIR now sets the rate at 30% for spending from 2025 to 2033, but that the 2026 budget law (law 199/2025, article 1, paragraph 22) raised it for 2025 and 2026 and set the 2027 figures. Always use the year in which you actually pay: the deduction follows the date of payment, not the date of the contract.

A calculation on those official rates, not a quote: €50,000 of eligible works on a main home paid in 2026 gives a deduction of 50%, which is €25,000, or €2,500 a year for ten years. The same works on a holiday home give 36%, which is €18,000, or €1,800 a year.

Which works qualify

On a single flat or house, the works must fall into three categories of article 3 of the building code (DPR 380/2001): extraordinary maintenance, restoration and conservative renovation, and building renovation (ristrutturazione edilizia). The property must be residential, of any cadastral category, including rural buildings, and the deduction extends to its pertinences such as a garage or cellar. On the common parts of a residential building, each owner may also deduct ordinary maintenance, such as repainting a stairwell, which would not qualify inside a flat. See renovation permits: CILA and SCIA for how each category maps to the town-hall paperwork.

The agency also lists a variant for buyers: if you buy a home in a building that a construction or renovation company has fully restored, and the company sells within 18 months of finishing, you deduct on a flat-rate base of 25% of the sale price including VAT, whatever the real works cost.

Who can claim

The agency names any IRPEF taxpayer who owns or holds the property under a valid title and bears the cost. That includes the owner and the bare owner, a holder of usufruct, use, habitation or surface rights, a tenant or borrower, members of housing cooperatives, a cohabiting spouse, relatives up to the third degree and in-laws up to the second, a convivente di fatto (unmarried partner), a separated spouse who has the home, and a buyer under a signed preliminary contract. Because it is a deduction from IRPEF, it only helps if you have Italian income tax to set it against; the agency’s area page says it is open to residents and non-residents alike. If you owe little or no Italian tax, ask an accountant before you size the project around it.

How to claim, step by step

1. Before starting, send the local health authority (the ASL) a registered letter, unless the site-safety rules say no prior notice is needed for your works.
2. Pay by a “parlante” bank or post transfer, which states the reason for payment, the tax code of the person claiming and the tax code or VAT number of the firm or professional paid. Paying cash or by an ordinary transfer without these details puts the deduction at risk.
3. For works over €70,000 started from 28 May 2022, the deed awarding the job must say the work is done by employers applying the national and local building-sector collective agreements.
4. In your tax return, give the property’s cadastral details and, if you are a tenant or borrower, the registration details of your lease or loan agreement.
5. Keep for inspection the building permit or notification (or, if none was needed, a sworn declaration with the start date), the cadastral registration request if the building is not yet registered, IMU receipts where IMU is due, the owners’ resolution and millesimal table for common-part works, the owner’s consent if you are not the owner, invoices and bank receipts.
6. For energy-saving or renewable-energy works, report the data to ENEA (the national energy agency) within 90 days of completion; the agency says a missing or late filing does not by itself cost you the deduction.

Invoice discount and credit transfer

Since 17 February 2023, in general you can no longer choose a discount on the invoice or sell the tax credit for article 16-bis works. The agency’s page says that for spending in 2026 the options still exist for areas hit by the earthquakes of 6 April 2009 and from 24 August 2016 in Abruzzo, Lazio, Marche and Umbria, and it lists transitional cases for projects started before the ban. Treat any contractor who offers a discount on the invoice as someone who must show you which exception applies.

Which professional to consult

An accountant or tax adviser can confirm that you have enough Italian income tax to use the deduction and which year your payments fall in. A building technician (see surveyor or architect) confirms the category of work and the permit. If you are buying a property with past works, the notary can check what the deed and cadastre say.