50% home bonus for purchase and renovation: clarifications from the Inland Revenue Agency

Those who buy a house and then renovate it will be entitled to the higher 50 per cent home bonus. This is one of the most relevant clarifications included by the Revenue Agency in Circular No. 8/2025. It is a long-awaited document, which answers all the doubts on the subject of renovation allowances that have emerged since the Budget Law 2025. Important answers also arrive for condominiums: on common parts the discount rates, in the case of works, will be differentiated.

The manoeuvre envisages a new arrangement, which has generated several perplexities. Basically, in 2025 there is a bonus base at 36%, which becomes 50% if the taxpayer meets two requirements: he is the holder of a right of ownership (including bare ownership) or of a right in rem of enjoyment over the real estate unit (usufruct, use, dwelling); he intervenes on his main home.

This, however, had led to a first problem. What happens to someone who renovates a newly purchased property, in which he therefore does not have a main residence? The answer is that he is entitled to the full relief. The circular states: 'It is also considered that, if the property unit is not used as a main dwelling at the start of the work, the additional allowance is due for the expenses incurred for the aforesaid work provided that the same property is used as a main dwelling on completion of the work. Thus, those who renovate and then move can have 50 per cent.

Important answers also on condominiums. In this case, the problem was related to the fact that common parts cannot be qualified directly as a main residence. The Agency gives, however, an extended interpretation. "In the event that the subsidised interventions concern common parts of buildings, it is considered that the surcharge must be applied to the share of the expenses charged to the individual condominium owner, admitted to the deduction in compliance with the other requirements provided for by the rule, if the same is the owner or holder of the right in rem of enjoyment of the real estate unit intended as principal dwelling. Thus, owners get 50 per cent, others 36 per cent.

The third very important (and negative) novelty concerns the cohabitants of the owner, who if they make expenses will have to make do with the lower tax bonus. "Given the limitation made by the rule, which refers only to the owners or holders of the property subject to the interventions as holders of other real right of enjoyment, the cohabiting family member as well as the holder of the property (e.g. the tenant or the comodatario) can apply, in compliance with any other condition, the 36% deduction for the expenses incurred in 2025".