A property in need of renovation can be an excellent opportunity — provided you know in advance which tax reliefs you are entitled to and how to make the most of them. Doing your research before buying completely changes the picture.
When looking for a home, attention is almost always focused on price, location and floor area. Tax incentives for renovation usually come into play later – often too late, when the deal has already been done and certain decisions can no longer be reversed.
Yet it is precisely these incentives which, if known before signing, can tip the balance in favour of a property that ‘needs work’, transforming it into a purchase that is strategically far more advantageous than one that is already ready.
The 2026 Budget Law has confirmed the three main building incentives for the whole year: the Renovation Bonus, the Ecobonus and the Sismabonus. They all work on the same principle: a 50% tax deduction for first-time buyers, and 36% for other properties, up to a maximum expenditure of €96,000, recouped in ten annual instalments.
It is worth taking a closer look at the Sismabonus, as it is the least well-known tax incentive among those looking for a home in this area. Milan and the entire province fall within seismic zone 3: this means that any structural work aimed at improving the property’s earthquake resistance is eligible for tax relief, with a deduction of up to 50% on a maximum amount of €96,000. For a flat in need of renovation, this can be a significant financial incentive — but it must be planned before the purchase, not after.
Be aware, too, of two factors that many people only discover too late. The first: the 50% rate applies only to those who hold a real right over the property used as their main residence — those who rent or let the property on a freehold basis are eligible for only 36%. The second: from 2026, those with an income exceeding €75,000 will be subject to a coefficient that reduces the amount actually deductible. Both have a tangible impact on the return on investment.
SERVIGO REAL ESTATE'S PERSPECTIVE
Your accountant will help you include the tax reliefs in your tax return. But figuring out whether that flat you’re viewing is the right choice to maximise them — and how to structure the purchase and renovation work accordingly — is exactly what we do, before you sign anything.
Are you considering a purchase? Contact us for advice: we can review the property and the associated tax opportunities together.
