Home improvements: 50% bonus on expenses in 2025 in 7 out of 10 cases

The fact that beneficiaries now account for 73 per cent might suggest that efforts have been concentrated on first homes and that work on other properties has been postponed.

The average amount of deductible expenditure reported on Form 730/2026 by CAF operators is 472 euros for taxpayers eligible for the 50 per cent deduction and 397 euros for those who have to make do with 36 per cent.

The figures, however, vary when broken down by type of work. In the case of block-of-flats works, the average deductible expenditure is 150–160 euros and is slightly lower for first homes. When work is carried out on individual dwellings, however, the average expenditure is in the region of €1,000 and is significantly higher for owners of main residences (€1,064 compared with €939). The difference in expenditure in favour of first homes, however, does not appear to be as marked as one might have expected.

The expenditure for 2025 is lower than the total amount shown in this year’s forms (€1,394 for CAF clients), because the latter also includes instalments relating to renovation work paid in 2024 or earlier.

There is also a higher proportion of ‘second homes’ among block-wide works: 35 per cent compared with 28.9 per cent for individual units, probably as a result of the resolutions. Where the owner made the decision alone, they gave priority to their main residence.

The way the 730 form is completed does not allow the eco-bonus figure to be broken down into common areas and individual units.

However, only 1% of taxpayers who have so far approached the CAF have claimed the first instalment of the energy-saving tax credit, which demonstrates a strong preference for the renovation bonus. The proportion of those who have claimed the eco-bonus on their main residences exceeds 80 per cent, and the average claim amount is higher than that for building renovation.

The government introduced these austerity measures to reduce the cost to the Exchequer. Certainly, in 2025, fewer bank transfers were made to pay for subsidised works: 32.1 billion euros compared with 42.8 in 2024. But we can now begin to estimate just how much smaller the tax deductions on last year’s expenditure will be. By projecting the proportion of beneficiaries and subsidised expenditure at 36 per cent (and disregarding works still eligible for the accessibility bonus), it can be calculated that the annual tax relief on 2025 payments will be around 120–130 million lower than if a 50 per cent tax relief had been extended to everyone. This would amount to 1.2–1.3 billion over ten years.