Home bonus, rebates cut to those who renovate with a preliminary agreement

Mutilated benefits, at 36% and not 50%, for those who take possession of the property after the preliminary purchase, but before the deed, and immediately carry out renovation work. Among the many clarifications provided in recent months by the Inland Revenue Agency, after the overall reform of home bonuses as of 2025, the promissory purchaser's difficult position remains in the balance. Thus, while waiting for an opening from the administration (difficult with the current rules), many home bonuses risk going up in smoke.

The situation is the very frequent one of those who, in order to speed up access to the property, agree with the seller, after signing the preliminary purchase agreement, to start renovation work immediately. Months often pass between the preliminary and the deed, which can in fact lead to the completion of the renovation of the house being purchased. The problem is that, with the rules in force as of 2025, to avoid surprises, it will be necessary to consider the basic facilitation, at 36 per cent.

The increased rate of 50% is, in fact, due if two requirements are met: the person making the expenditure must be resident in the property and must hold a right in rem, usually ownership. On residency, the Inland Revenue, in Circular No. 8/E, explained that it is possible for the property to be used as the principal residence at the end of the works. Hence, whoever renovates and then enters the house, has the 50 per cent saved. The same clarification, however, never came on the right of ownership.

on the contrary, Circular No. 8 says: "It should be noted that, for the recognition of the increase, without prejudice to all the other requirements established by the reference legislation, it is necessary that, in relation to the expenses incurred from 1 January 2025, for the aforesaid interventions, the taxpayer is the owner of the right of ownership or a right in rem of enjoyment over the real estate unit at the time of commencement of the works or of incurring the expenditure, if prior". A sentence that closes at 50% for the promissory purchaser, since at the start of the works he certainly does not own the property.

Moreover, this very passage in the circular suggests that, in such a case, all work should be 36%, even that carried out post-deed. The verification of this requirement, according to the Inland Revenue, must be done at the opening of the building site. Those who do not have a real right at the start of the work lose the surcharge. It must be emphasised that openings are always possible, but for the sake of prudence it is better to consider these interventions at 36 per cent.