Budget act 2021: news real estate

The energy saving measures, with the resulting IRPEF/IRES tax deduction in ten annual, constant instalments, have been extended to 2021 according to the previously applicable guidelines.
This benefit can be applied not only by private individuals and partnerships, but also by corporations and other entities subject to IRES. The benefit consists in the deduction of 65%/50% of the costs of energy saving measures on buildings, subject to certain maximum amounts.

The super bonus of 110%, with the consequent IRPEF deduction in five annual equal instalments, has been postponed until 30.06.2022 (in relation to the expenses paid in 2022, these can be offset in four annual equal instalments).

The structural rehabilitation measures with the IRPEF deduction in ten annual constant instalments have been extended as follows according to the previously applicable guidelines:
From 26.06.2012 to 31.12.2021 = Euro 96,000.00
= 50% (thus a maximum of Euro 48,000.00).

The purchase of furniture and electrical appliances and the related tax deduction IRPEF in ten equal annual instalments is applicable according to the previously applicable regulations:
Until 31.12.2021 = Euro 16,000.00 (this limit is independent of the limit of expenses for renovation/reclamation works on residential buildings for the purpose of IRPEF deduction).
Until 31.12.2021 = 50% (maximum amount of Euro 8,000.00).

The tax revaluation of participations and land:
Land and non-listed participations owned by private individuals (outside of a business activity), simple partnerships and non-commercial corporations as at 01.01.2021 can be revalued for tax purposes. The revaluation must take place within 30.06.2021, whereby a valuation report must be drawn up and sworn within this date, and a substitute tax of 11% (unchanged from 2020) must be paid.

The amendments to the provisions on short-term rentals:
The Budget Law amends Article 4 of Legislative Decree 50/2017 with regard to short-term rentals (considered as such the rental of residential real estate for a period not exceeding 30 days, carried out between private individuals outside a commercial activity and for tourism purposes) and introduces a legal presumption according to which, as of the taxable period 2021, the substitute tax on rental income can be applied to short-term rentals only if “no more than 4 dwellings are used for short-term rentals in a taxable period”. If 5 or more dwellings are used for these purposes, there is a legal presumption of commercial or entrepreneurial activity.

The contribution for the reduction of rents related to residential properties:
In 2021, a contribution will be granted to landlords of dwellings in municipalities with a high residential density, provided that their dwelling constitutes the main residence for the tenant and the rent is reduced.

The contribution:

  • amounts to 50% of the discount granted (the percentage could, however, be reduced if the corresponding telematic applications exceed the allocated funds, where it has been seen in the past with similar contributions that the amount actually due can ultimately also be substantially higher than the possible maximum amount);
  • up to a maximum amount of Euro 1,200.00 per landlord.
  • The landlord must telematically transmit to the Revenue Agency proof of the contractual reduction in rent that has taken place, as well as other necessary information.