2025 renovation bonus: how it works and how to make the most of it

In the world of building renovations, the 2025 Renovation Bonus represents one of the most relevant tax opportunities for those who want to intervene on their home, especially if it is their first home. But how does this incentive really work? What are the conditions to be met? And how does it translate into concrete advantages for those who have a budget between 50,000 and 100,000 euros?

In this article, I guide you step by step through regulatory changes and practical strategies to optimize your investment.

WHAT IS THE 2025 RENOVATION BONUS

The Renovation Bonus is an IRPEF deduction equal to 50% of the expenses incurred for building works, up to a maximum of 96,000 euros per property unit. This means that, if you spend 80,000 euros, you can deduct up to 40,000 euros, divided into 10 annual installments of 4,000 euros each.

The deduction is valid until 31 December 2025. Starting in 2026, the rate will drop to 36% (main residence) or 30% (other residences).

FIRST HOME: PAY ATTENTION TO THE CONDITIONS

The real novelty is linked to the definition of “main residence”, which allows access to the full 50% bonus only if, at the end of the work, three conditions are met:

1. Be the owner or holder of a real right on the property.
2. Have registered residence in the property.
3. To live permanently (habitual residence) in the house.

So, even if today the property is empty or not yet inhabited, it is enough that at the end of the work you transfer your residence and habitually live there to be able to deduct 50%.

If, on the other hand, even though it is your first home, you do not use it as your usual residence, the rate drops to 36%.

PRACTICAL EXAMPLE

Let’s say you are renovating an apartment to be used as a first home and you plan to spend 70,000 euros. If at the end of the work you go to live there and move your residence there, you can deduct 35,000 euros (50%). Otherwise, the deduction will drop to €25,200 (36%).

In both cases, the sums deducted will be divided into 10 annual installments.

The Bonus applies to works of:

• Extraordinary maintenance (e.g. renovation of systems, consolidation of floors).
• Restoration and conservative restoration.
• Building renovation (e.g. internal redistribution of spaces, extensions within the permitted limits).

Attention: routine maintenance (painting, replacement of floors, etc.) it is not eligible if carried out on individual property units, unless it is part of a larger renovation intervention.

In addition, from 2025 it will no longer be possible to facilitate the purchase and installation of gas boilers, not even condensing boilers. This is to steer the market towards more sustainable solutions such as heat pumps or hybrid systems.

Not only owners, but also bare owners, usufructuaries, tenants and borrowers can access the bonus, as long as they actually bear the expense.

For example, if the house is in the name of a husband and wife but the invoices are all paid by only one of the two, the deduction is due to the person who made the payment.

In order not to lose the right to deduction, you must:

• Pay by bank transfer (which shows the reason for the payment, the tax code of the beneficiary of the deduction and the company’s VAT number).
• Keep all invoices and payment receipts.
• Submit any ENEA declaration (if you intervene on elements that improve energy efficiency).
• In the absence of a building permit, attach a declaration in lieu of the affidavit explaining that the intervention is among those subsidized.

A complete renovation, with refurbishment, new fixtures, floors, false ceilings, paints and a complete bathroom, often costs between 80,000 and 100,000 euros for a 90-100 square meter apartment.

Assuming an expense of 96,000 euros:

• You will be able to deduct 48,000 euros if it is your main residence (i.e. if you eventually go to live there).
• You will receive 4,800 euros per year for 10 years as a discount on IRPEF taxes.
• If your income is very high (above 75,000 euros), be careful: there may be limits and ceilings, even cumulative with other bonuses.

Going through a renovation without detailed planning is like navigating without a compass. A well-defined preliminary project, accompanied by an estimated bill of quantities, is essential to ensure the financial sustainability of the construction site and to avoid economic surprises during the works.

The bill of quantities allows you to:

• Precisely quantify the works to be carried out;
• Estimate costs associated with materials, labor, and supplies;
• Plan the budget and monitor cost trends;
• Verify the adequacy of the offers received from companies.

In addition, it facilitates the management of tax breaks, allowing you to clearly identify the interventions that can be facilitated.