The Facade Bonus 2022: Here’s everything you need to know
All about the extension to the Italian Facade Bonus for 2022.
4 min read
In recent years, the Italian government has introduced a number of initiatives to enhance urban aesthetics, improve the condition of homes, and increase the sustainability of residential buildings. These include a range of government subsidies for the home, such as the eco-bonus 110%, the eco-bonus for energy requalification, the earthquake bonus, and the facades bonus, giving Italian taxpayers an unprecedented number of benefits.
The facade bonus was one of the most successful initiatives in 2021, which is why it has been reintroduced, with some modifications, in 2022. To help you understand how this subsidy works, and the main changes for 2022, we’ve prepared a comprehensive reference guide.
How the bonus works and what you need to apply for it
So what exactly is the facade bonus? Generally speaking, it’s a tax subsidy that covers a percentage of the expenses of restoring the facade of existing buildings in certain areas. It was originally introduced into the 2020 Budget Law and reconfirmed for 2021 and 2022.
What are the requirements to apply for the facades bonus? The subsidy can be requested by:
- Public and private entities
- Businesses and professional associations
- Taxpayers with a business income
People with special tax arrangements or with a substitute tax are excluded from this subsidy.
Which buildings are eligible for the facade bonus?
The bonus covers the facades of old and new buildings, condos, private residences, and commercial properties, located in zones A, B or their regional equivalent (more about this below), visible from the street or other public areas, including trains.
In practice, the subsidy covers improvements to visible areas in the external perimeter of a structure—not only the front, but also on the other sides of the building. Work to internal facades overlooking courtyards or parking lots are not included.
Keep in mind that buildings under construction or those that are subject to demolition and reconstruction are included covered by the bonus.
In order to receive the bonus, any improvements must be performed on:
- Opaque façade structures: walls, horizontal structures and roofs
- Balconies, decorative elements, and friezes
Improvements include renovations, cleaning, or painting.
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How do I know if my building is in zone A, B or an equivalent?
Each municipality in Italy uses their own zoning classifications in accordance with regional regulations, but many municipalities have defined areas comparable to “A” or “B” that qualify for the facade bonus.
To make sure a building qualifies for the bonus, it’s a good idea to contact your local city planning office, or contact a professional.
What is the deduction for the facade bonus 2022
With the 2022 Budget Law, the facade bonus was extended, with a number of key changes:
- The rate for improvements carried out until December 31st, 2022, will decrease from 90% to 60%
- Improvements can apply to out only on a part of the facade of a building, it is no longer necessary to restore an entire facade
This extension has on one hand lowered the percentage of the incentive, but on the other hand, made it more attainable given that partial improvements (previously excluded) apply.
How to take advantage of the facade bonus
The facade bonus can be paid in three ways:
- By deducting cost from your tax return after the improvements are completed
- Through a discount on the cost from the company or professional hired to do the work
- By passing along the credit to third parties
In the first case, the amount of the facade bonus is paid after tax. 60% of the amount you spent is reimbursed through personal income tax deductions spread over ten years. This means that taxes will be deducted over time in annual installments. Discounts on invoices are a little different—the company or professional in charge of the work directly applies a 60% reduction on the cost, allowing you to take advantage of an already discounted price for the work. In order to take advantage of the facade bonus by transferring your credit, you can contact external parties such as credit institutions or financial intermediaries (like a bank, or insurance company), who will in-turn pay you directly for the credit.
To learn more, you’ll want to read the section of the Revenue Agency relating to this year’s facade bonus.
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