Unlock Italy Decree, VAT cut to 4% for renovations.

The Unlock Italy Decree landed yesterday at the House for general discussion and examination is in full swing today. The highlights of measures modified at the Parliament’s Environment Commission include a VAT cut from 10% to 4% for building renovation works. Renovation works – which already profit from the "ecobonus" pending confirmation for 2015 too, with the Stability Law (50% tax credits for building renovation and 65% for energy efficiency improvement) – will be subject to the 4% VAT rate. To offset the lower collections, a reverse VAT increase is planned (from 4% to 10%) on purchases of new buildings directly from the construction company. In addition to the VAT rate decrease on renovations, IRPEF (personal income tax) also helps the estate market: the 20% IRPEF deduction on the expense for purchasing a home is no longer subject to lease of the property at regulated rent for 8 years.

The Unlock Italy Decree landed yesterday at the House for general discussion and examination is in full swing today. 

The highlights of measures modified at the Parliament’s Environment Commission include a VAT cut from 10% to 4% for building renovation works. 
Renovation works – which already profit from the "ecobonus" pending confirmation for 2015 too, with the Stability Law (50% tax credits for building renovation and 65% for energy efficiency improvement) – will be subject to the 4% VAT rate. To offset the lower collections, a reverse VAT increase is planned (from 4% to 10%) on purchases of new buildings directly from the construction company.

In addition to the VAT rate decrease on renovations, IRPEF (personal income tax) also helps the estate market: the 20% IRPEF deduction on the expense for purchasing a home is no longer subject to lease of the property at regulated rent for 8 years.