In this article you will find all the news introduced by the new budget law regarding the real estate sector. The Budget Law (No. 160 of 12/27/2019) came into effect at the end of last year, here are the main new features affecting our sector:
IMU DEDUCTIBILITY
The deductibility of IMU for real estate for business use (which, however, is not deductible for IRAP) is also confirmed at 50 percent for tax year 2020.
If you use a room or building for the practice of your profession, this deduction applies at 60 percent as of Dec. 31, 2019 and Dec. 31, 2020, and 100 percent as of Dec. 31, 2021.
These provisions also apply to the autonomous province of Bolzano (IMI) and the autonomous province of Trento (IMIS).
REDUCTION IN THE RATE OF DRY COUPON FOR CONTRACTS WITH AGREED RENTS
For contracts with agreed rents (lease agreements), the Budget Law 2020 confirms the reduction to 10 percent of the rate of the dry coupon, applied in municipalities with high housing tension.
The rate is the rate that is applied to calculate the tax to be paid.
If you want to learn more about the above list of municipalities: Article 1, paragraph 1 (a) and (b) of DL 551/1988, converted, with amendments, by Law 61/1989
ENERGY EFFICIENCY
From 01/01/2020, if you decide to carry out a "major first-level renovation" work of the value of 200 thousand euros or more for energy efficiency improvement on the common parts of a condominium building, you can ask the company carrying out the work for a contribution of the same value as the work done (in fact, the company will be reimbursed through a tax credit).
EXTENSION DEDUCTION EXTENSION ENERGY QUALIFICATION AND BUILDING REHABILITATION
1. Ecobonus
Also confirmed for 2020 is the 50% deduction from taxes if, from 01/01/2018 onward, you had expenses for interventions in the purchase and installation of:
- Windows including frames;
- sunscreens;
- And if you have replaced winter air conditioning systems:
- with systems equipped with heat generators powered by biomass fuel (deduction up to 30 thousand euros);
- with systems equipped with condensing boilers with an efficiency at least equal to product class A (provided for in Commission Delegated Regulation EU No. 811/2013 of February 18, 2013). Remember, however, that systems equipped with condensing boilers of a lower class are excluded from the deduction.
Also confirmed is the 65 percent deduction if you have replaced winter air conditioning systems (up to a maximum of 30 thousand euros):
- with systems equipped with condensing boilers of an efficiency at least equal to product class A (provided for in the aforementioned regulation and simultaneous with the installation of advanced thermoregulation systems belonging to classes V, VI or VIII of Commission Communication 2014/C 207/02);
- with systems equipped with hybrid appliances, consisting of a heat pump integrated with a condensing boiler, factory-assembled and expressly designed by the manufacturer to work in conjunction with each other.
The 65% deduction is also confirmed for the expenses of:
- Purchase and installation of condensing hot air generators (deduction up to 30 thousand euros);
- Purchase of solar panels for hot water production (deduction up to 60 thousand euros);
- Purchase of building automation systems (there is no deduction limit);
- Replacement of winter air conditioning systems with systems equipped with high-efficiency heat pumps or low-enthalpy geothermal systems (deduction up to 30 thousand euros);
- Replacement of traditional water heaters with heat pump water heaters dedicated to the production of domestic hot water (deduction up to 30 thousand euros);
- Purchase and installation of solar shading (Annex M to Legislative Decree December 29, 2006, No. 311, incurred from 01/01/2015 to 31/12/2019), (deduction up to 60 thousand euros);
- Purchase and installation of micro-cogenerators to replace existing systems, incurred from 01/01/2019 to 31/12/2019, (deduction up to 100 thousand euros).
2. Ecobonus condominiums
For 2020 and 2021:
Energy upgrades of common parts of condominium buildings allow a deduction of expenses of 70 percent if they affect the building envelope from 25 percent of its surface; if these upgrades are done to improve winter and summer energy performance (according to the average quality referred to in the decree of MISE June 26, 2015) this deduction increases to 75 percent.
The total amount of expenditure on which these deductions are calculated must not exceed 40 thousand euros for the number of housing units that make up the building.
If these energy upgrades are done on common parts of condominium buildings falling in seismic zones 1, 2 and 3, with the aim also of reducing seismic risk, they allow for the deduction of expenses of 80 percent (for upgrading to a lower risk class) or 85 percent (for upgrading to two lower risk classes).
The total amount of expenditure on which these deductions are calculated is divided into ten equal annual installments, and must not exceed 136 thousand euros for the number of building units that make up the building.
3.Sismabonus
Also confirmed for 2020 is the recognition of the SISMABONUS: it is for earthquake-resistant measures for static safety measures on the structural parts of buildings (homes and production activities) in high-hazard seismic zones (zones 1 and 2).
The deduction from the gross tax is by:
- 50% for interventions that do not achieve seismic class improvements;
- 70% for interventions that achieve the transition to a lower risk class (of 75% for interventions carried out on common parts of condominium buildings);
- 80% for interventions that achieve the transition to two lower risk classes (by 85% for interventions carried out on common parts of condominium buildings).
The total amount of expenditure on which these deductions are calculated is divided into five equal annual installments, and must not exceed 96 thousand euros per real estate unit.
4. Building renovation bonus and furniture bonus
Taxpayers who carry out building renovation work started on 01/01/2019 and have the relevant tax deductions, can also claim a deduction from the gross tax for expenses incurred in 2020 for furniture and large household appliances (class A+, class A for ovens) purchased to furnish the renovated property.
Gross tax is the total amount of income tax you owe to the state.
The total amount of expenditure on which the deduction is calculated is divided into ten equal annual installments, and must not exceed 10 thousand euros; the deduction will be given for 50% of the total expenditure.
BONUS FACADES.
Restoration work on the opaque structures of the exterior façade, balconies, or ornaments and friezes (including cleaning or painting the exterior) done in 2020 for buildings in Zone A or B provides a 90 percent deduction. The deduction is divided into ten equal annual installments from the year 2020 onward.
If these interventions are thermally influential, they must meet the established ministerial requirements.
SUBSTITUTE TAX CAPITAL GAINS ON THE SALE OF REAL ESTATE
The IRPEF levied on the capital gain (i.e., increase in value) realized on the transfer of real estate purchased or constructed within five years has increased from 20 percent to 26 percent. The transferor may instruct the notary to make this payment.
DRY COUPON COMMERCIAL PREMISES
Unfortunately, dry coupon for stores, a tax regime that could be applied for contracts signed in 2019, was not extended.
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