Building renovation: everything you need to know

Renovation of a green‑building home, work in progress

Today the topic of building renovation is widely discussed—especially in these post‑Covid years. A client embarking on this kind of work can easily feel overwhelmed by technical terms, regulations, tax incentives, bureaucracy and the actual works that count as renovating a property. Let’s understand how a renovation really works.

What is building renovation?

Building renovation is defined in Italy’s Consolidated Building Act (Presidential Decree 380/01, Art. 3, para. 1, letter d) as works aimed at transforming a building organism through a systematic set of operations that may result in a building wholly or partly different from the previous one.

The term “renovation” is often misused. Carrying out building works at home does not always mean you are renovating; you may simply be performing ordinary or extraordinary maintenance. Let’s clarify the difference between true renovation, ordinary maintenance, extraordinary maintenance and restoration or conservative rehabilitation.

Renovation works: building interventions that transform existing buildings by restoring, replacing, altering or removing old architectural elements, or by adding new elements and installations.
Ordinary maintenance works: interventions needed to repair finishes and existing materials—e.g. refurbishing a bathroom or kitchen, or replacing flooring.
Extraordinary maintenance works: operations required to replace and/or renew structural parts of the building.
Restoration or rehabilitation works: restoration aims to recover, preserve and enhance buildings of particular historical value; conservative rehabilitation concerns hygienic, functional and structural upgrading.

Why renovate a house?

An industry survey found that 70 % of those who carried out renovation works saw their property value increase. This is because since 2019 the government introduced the 50 % renovation bonus, allowing half of the costs incurred to be deducted. This has encouraged many Italians who previously lacked funds to renovate.

It also improves living comfort—you’ll live better at home. Finally, as this article will examine, upgrading your property increases its resale value. Here are good reasons to renovate:

Space layout: the only limitation is the load‑bearing structure, which cannot be altered.
Property value: a refurbished, energy‑efficient and code‑compliant home is worth much more.
Energy efficiency: investing in renovation can mean a warmer, more welcoming and eco‑friendly house, leading to future savings on bills and longer‑lasting systems.

Based on these factors you can identify the essential works to ensure your home meets current regulations, also considering costs, which vary with the works, materials chosen and floor area.

Which types of renovation can be carried out?

First you must identify which types of renovation are possible. When we talk about “home renovation” we tend to lump everything together, but it’s not that simple: you need to understand and study when renovation is allowed.

You can renovate bathrooms, buildings, apartments and restaurants. Restaurants are among the most requested: many people want to invest by taking over an old venue or upgrading an existing one. Restaurant renovation can be total or partial.

Total renovation involves the whole building, so the venue is closed to the public. Partial renovation targets only certain areas. Planning is essential because the restaurant must close during works, and planning also clarifies timeframes and costs.

Which renovations are tax‑deductible?

Even in 2023 (and until 31 December 2024) you can deduct from tax the costs of refurbishment and extraordinary or ordinary maintenance up to a maximum of €96,000. The 50 % renovation bonus also applies to jobs like adjusting floor heights and adding new windows. For all works involving energy savings, notification to ENEA is compulsory within 90 days of completion.

Works that entitle you to the renovation bonus include:

Ordinary and extraordinary maintenance, restoration, conservative rehabilitation and renovation on common parts of residential buildings (condominiums).
Extraordinary maintenance, restoration, conservative rehabilitation and renovation on single residential units of any cadastral category, including rural buildings and appurtenances.

Not only the works themselves are deductible but also all professional and bureaucratic expenses connected to renovation, such as:

Design and other professional services (architect, etc.)
Building code compliance costs
Material purchase costs
Surveys and inspections
VAT, stamp duty and fees for permits and work authorisations
Urban development charges
Any other costs directly linked to the works.

How to obtain the 50 % renovation bonus

As stated, the renovation bonus is an IRPEF tax deduction for ordinary and extraordinary maintenance in condominiums or single buildings. It applies to expenditures from 26 June 2012 to 31 December 2024, is worth 50 % and is divided into 10 equal annual instalments, with a maximum eligible cost of €96,000.

How do you claim the bonus? There is no formal application; you claim it in your tax return, in three ways:

In the income‑tax return (Modello Redditi Persone Fisiche); the deductible amount is split into 10 equal annual instalments. The Revenue Agency provides specific forms.
Through an immediate discount on the invoice.
By transferring the tax credit according to authorised regulations and parties.

For the 2023 renovation bonus, works aimed at energy savings require ENEA notification within 90 days.

Which documents do you need for building renovation?

For light extraordinary maintenance you must file a CILA (as‑built start‑work declaration) with the municipality. The authority does not need to approve the works. For heavy extraordinary maintenance you need a SCIA and must await the municipality’s approval.

If you plan a completely new building or a change of use, you must request a Building Permit. Let’s see the three main documents covering 90 % of building works:

CILA: a building filing listing the works, certified by a qualified professional.
SCIA: a declaration enabling companies to start, modify or cease a productive activity (craft, commercial, industrial).
BUILDING PERMIT: an administrative authorisation issued by the municipality for urban and building transformations, in compliance with planning instruments.

For a CILA, documents must be submitted by the property owner or holder of real rights, either at municipal offices or via certified email. The same applies to the SCIA; the municipality has 30 days to reject or accept it. If no response is issued, work may start.

A SCIA is valid for three years; at completion the owner must file a notice of works completion. For a Building Permit, owners must submit a request with ownership deed, plans and a professional’s declaration of compliance. The municipality must respond within 60 days.

All documents must be prepared by a qualified professional (surveyor, architect or engineer) who certifies compliance with regulations.

In conclusion, renovating offers property advantages. Most works fall into two categories: ordinary and extraordinary renovation, governed by detailed bureaucracy—CILA, SCIA and Building Permit: three essentials for any renovation.

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