In September 2016, I completed a renovation of a property; I wasn’t aware of the tax deduction, so I paid by check. The CAF I contacted insisted that a certified bank transfer was required, and that I would be required to repeat the payment and, in agreement with the supplier, obtain a refund of the amount paid via checks. Unfortunately, the company refused to cooperate. To avoid similar issues in the future, we recommend consulting our analysis of tax deductions for second homes for 2026 , where we outline the correct procedures to avoid losing the benefits. For a complete overview of the necessary technical requirements, you can consult the Revenue Agency’s official guide on building renovations .
Is what the CAF said correct? Is there no other way to claim the tax deduction for building renovations?
The CAF’s statement is correct, however, it is appropriate to clarify the regulations regarding building renovations. The general provisions regarding deductions for building renovations state that “Payment of deductible expenses is made by bank or postal transfer, specifying:
the reason for the payment,
the tax code of the beneficiary of the deduction, and the VAT number
or tax code of the person to whom the transfer is made.”
The same is intended to comply with the provisions of Legislative Decree 78/2010, which introduced the requirement to withhold tax upon crediting payments made via bank transfers for deductible expenses. Specifically, Article 25 of the aforementioned decree provides that “beginning July 1, 2010, banks and Poste Italiane SpA will withhold tax at 8% from January 1, 2015, as an advance payment of the income tax owed by beneficiaries, with the obligation to recover the tax, upon crediting payments relating to bank transfers made by taxpayers to benefit from deductible expenses or for which a tax deduction is due.”
The deduction is not recognized if payments are made using methods other than those mentioned above. It goes without saying that to claim the tax benefit, payments must be made via a specific “speaking bank transfer.”
The above was addressed in Circular 43 of November 18, 2016, in which the Agency deemed this preclusion obsolete in cases where:
the bank transfer was incorrectly filled out;
it is not possible to repeat the payment correctly;
and the purpose of the relief provision, aimed at ensuring the correct taxation of income deriving from building renovation and energy efficiency requalification works, is still satisfied.
The building renovation tax relief is therefore recognized even if the recipient of the payments provides a self-certification, certifying that the payments credited to them have been included in the company’s accounts for the purposes of correctly determining the recipient’s income. Therefore, in this specific case, the only viable option to claim the tax relief is to request the aforementioned documentation from the supplier. Taxpayers wishing to avail of the tax relief must present this documentation to a qualified professional or CAF (Tax Assistance Centre) when preparing their tax return, or, upon request, to the tax authorities.