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Taxation in Italy of capital gains (plusvalenza) on the purchase and sale of properties renovated with the 110% superbonus

Real estate law

Taxation in Italy of capital gains (plusvalenza) on the purchase and sale of properties renovated with the 110% superbonus

Many Italians (and also Germans) have renovated their homes in Italy in recent years by taking advantage of state subsidies in connection with the 110% superbonus.

With the Budget Law 2024 (Law no. 213/23), a new tax on capital gains from the sale of second homes renovated with the 110% superbonus was introduced from January this year in order to discourage “speculative” sales of properties renovated with the 110% superbonus that are made exclusively for profit purposes.

As a reminder: “plusvalenza” is the net profit from the sale of a property whose value has increased since the time of purchase. Strictly speaking, the difference between the lower purchase price and the higher sale price is the capital gain.

Under the new legislation, anyone who sells a second home or holiday home in Italy within a period of ten years (unless it was inherited) must pay a tax of 26% on the capital gain realized from the transaction as other income. At the taxpayer's discretion, the 26% substitute tax or the progressive IRPEF rate is applied to the capital gains.

With Cicular no. 13/E of 13th June 2024, the Agenzia delle Entrate has now published the operational details of the newly introduced form of capital gain and clarified the application modalities.
- Accordingly, the new taxation does not apply to “primary residences” and to transfers before 1st January 2024.
- The tax office also clarifies that the ten years are measured from the end of the work.
- Capital gains on properties acquired by inheritance will also not be taxed.