Renovation Tax Deduction
Eligible expense
€20.000,00
Total deduction
€10.000,00
Annual instalment (for 10 years)
€1000,00
Indicative estimate, does not replace your accountant.
Frequently Asked Questions
Everything you need to know about renovation tax deductions
How does the building renovation tax deduction work?
The deduction allows you to recover a percentage of the expenses incurred (for example 50% for building renovation) through your tax return. The amount is split into 10 equal annual instalments deducted from the income tax due each year.
What is the maximum deductible expense limit?
Each bonus has a spending cap: €96,000 for building renovation, €100,000 (or specific ceilings) for the ecobonus, €5,000 for the furniture and appliances bonus and €5,000 for the green bonus. Expenses exceeding these limits do not entitle you to any deduction.
What happens if the deduction exceeds the tax due?
The deduction can only be used up to the amount of income tax due each year: the annual instalment exceeding the tax is neither refunded nor carried forward to subsequent years, so it is lost. That is why it is important to have sufficient tax capacity to use the full deduction.
How is the renovation deduction worked out?
The percentage of the bonus is applied to the eligible cost, up to the ceiling set for it. The amount is then recovered in ten equal yearly instalments, taken off the income tax due each year.
Which spending ceilings does the calculator apply?
It caps the eligible cost at 96,000 euro for building renovation, 100,000 euro for the ecobonus, 5,000 euro for the furniture and appliance bonus and 5,000 euro for the garden bonus.
What if the yearly instalment is bigger than the tax due?
The yearly share is used only up to the income tax due that year. The part above it is not refunded and does not carry over to later years, so it is simply lost.
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