Italy’s renovation tax cut to 36% for primary homes from 2027 threatens to curb construction and furniture spending
Executive summary: The Italian government’s current legislation leaves the renovation bonus for primary residences set to fall from 50% to 36% (with a €48,000 spending cap) starting in 2027, while the furniture bonus may be abolished. The change reduces a key incentive driving residential renovation and durable‑goods purchases, affecting construction firms, building‑material suppliers and home‑furnishings retailers.
Who is involved: Italian Ministry of Economy and Finance, Parliament, homeowners, renovation contractors, furniture retailers.
Likely next: Parliament will debate the 2027 budget law later this year; if amended, the bonus rates could be revised before the end of 2026.
The Italian government’s current fiscal framework leaves the renovation bonus for primary residences set to fall from 50% to 36% (with a €48,000 spending cap) starting in 2027, while the separate furniture bonus may be abolished altogether. This change reduces a major incentive that has driven residential remodeling and durable‑goods purchases in recent years, directly affecting construction firms, building‑material suppliers and home‑furnishings retailers. Stakeholders are now watching the upcoming 2027 budget debate for any last‑minute amendments that could alter the scheduled reduction.
Timeline
- — Bonus ristrutturazioni giù al 36% sulla prima casa, stop bonus mobili: cosa cambia dal 2027 (la Repubblica — Economia)
Analysis — what this means
Likely next events
- Italian Parliament scheduled to vote on the 2027 budget law by 15 December 2026, which could modify the renovation bonus rates.
- Homeowners aiming to claim the 50% bonus must complete works and file paperwork by 31 December 2026 to lock in the current incentive.
- Construction industry association ANCE expects to release a revised 2027 output forecast in January 2027 after the bonus takes effect.
Sectors affected
- residential renovation construction
- home furniture retail
- building materials supply
Regulatory implications
- Italian Revenue Agency (Agenzia delle Entrate) will issue updated guidance on the 36% renovation bonus effective 1 January 2027.
- If parliament retains the furniture bonus, a separate decree is expected by mid‑2027 to define eligibility and spending limits.
- EU State Aid monitors may review the measure for compatibility with internal market rules, with a preliminary opinion due Q2 2027.
Historical parallels
- Ecobonus for building renovations was cut from 65% to 50% in 2020 under the Decreto Rilancio.
- The original ristrutturazioni bonus was reduced from 65% to 50% in 2018 via the Legge di Bilancio 2019.
Sources
- Bonus ristrutturazioni giù al 36% sulla prima casa, stop bonus mobili: cosa cambia dal 2027 — la Repubblica — Economia