Holiday homes: six million in cuts to renovation grants
Tax relief has been reduced to 36% for these properties, but further reductions may be on the cards
Key points
Tax relief has been reduced to a minimum for nearly six million holiday homes. Installing an air-conditioner in your holiday home entitles you to a reduced tax deduction of 36 per cent, rather than the previous 50 per cent. Not only that: this applies to all other property refurbishment work, such as fitting new windows or renovating the bathroom. It also applies to properties that are let to third parties. Despite this, however, where necessary, it is best not to delay the work.
Map of holiday homes
There are, in total, around 10 million second homes in Italia, according to the latest statistics from the Ministry of Finance and the Italian Revenue Agency. These figures show that there are residential properties let out number around 3.6 million, those made available free of charge number just under 800,000 and, finally, those left at the owner’s disposal, without any specific use, number 5.7 million. In short, genuine holiday homes number just under 6 million, but the category of second homes includes many other properties. In all these cases, reduced rates will apply from 2025 onwards.
Available tax deductions
A two-tier system of tax rates of 36% and 50% has been in force since 2025; to qualify for the highest level of tax relief, you must be the owner or holder of another type of real right over the renovated property and have your main residence (and, essentially, your place of residence) in that property. This scheme applies to three tax relief schemes:
- the eco-bonus for energy efficiency, applicable to work such as replacing windows and doors or installing heat pumps;
- the basic renovation bonus, applicable, for example, to work on masonry and building services;
- the seismic bonus, dedicated to seismic safety measures, including a version for property purchases. In short, for second homes, the rate is always 36 per cent.
The furniture bonus exception
The furniture tax relief is an exception. For the purchase of furniture and large household appliances, a 50 per cent tax relief is available in 2026, subject to a spending cap of 5,000 euros. The deduction is available provided that ‘renovation work on the property began on or after 1 January of the year preceding the year of purchase’. In other words, in 2026, this means from 1 January 2025. In this case, however, there is no distinction between first and second homes, as with other tax relief schemes: the full 50 per cent applies.
Why assess the work straight away
In short, carrying out renovation work on a holiday home is less advantageous from a tax perspective. There is, however, one reason that might still prompt you to pay for the work straight away. A reduction in tax rates is already planned for 2027: 36 per cent for primary residences, down from 50 per cent, and 30 per cent for second homes, down from 36 per cent. Given the difficult state of public finances, it is unlikely that the next budget will set more favourable rates than those for 2026. If anything, the Government might decide not to maintain the current levels in order to actually proceed with cutting tax relief.
