In a recent response to ruling No. 550/2022, the Internal Revenue Service addresses an issue of particular interest to foreigners (individuals or companies) who own real estate in Italy or intend to invest in bricks and mortar.
The petitioner, in the present case, a company under foreign law, owner in Italy of a single-family property of cadastral category A/8 (luxury real estate), asks the Agency whether it has the right to carry out structural consolidation and static safety work on the property, taking advantage of the benefits provided by the State in this regard.
As clarified by the Internal Revenue Service, even tax residents abroad can enjoy the tax benefits provided on properties in the territory.
The clarifications contained in Circular No. 24/E of 2020 – albeit referring to the so-called Superbonus – apply to non-resident taxpayers, whereby the Internal Revenue Service noted that “[…] all taxpayers resident and non-resident in the territory of the State who incur expenses for the execution of the facilitated interventions” can access the “bonus,” since this benefit is intended for “individuals, outside the exercise of business, arts and professions activities.”
In addition, Resolution No. 78/E of December 15, 2020, reiterated that access to the Superbonus is not precluded to taxpayers residing abroad who are owners of real estate units in Italy, where they are the owner of the land income related to the property, provided that all regulatory requirements and conditions are met.
But that is not all. The Agency continues, with Resolution No. 34/E of 2020, on the seismic bonus, it was clarified that, among others, business income holders who incur expenses for earthquake-proof interventions on “buildings used … for productive activities.”
In addition, Circular No. 2/E of February 14, 2020 (to which reference is made for further clarification) explained that the subjective scope of application of the relief in question, which does not refer to specific categories of taxpayers, the deduction is aimed at all persons who incur expenses for the execution of the facilitated works, regardless of the type of income they hold.
Exclusions
Finally, the Agency specified that, as a general rule, these bonuses, by providing a deduction from the gross tax, cannot be used by individuals who exclusively own income subject to separate taxation or substitute tax by persons who would not be able to take advantage of the corresponding deduction because the gross tax is absorbed by the other deductions or is not due (such persons, however, may opt, instead of the direct use of the deduction, of the alternative ways of use provided therein) by persons with no taxable income who cannot exercise the option for invoice discount or credit assignment.
