In recent years, Italian tax regulations have undergone numerous changes, especially in relation to incentives for building renovations. A particularly interesting topic is the possibility of taking advantage of these incentives by de facto couples.
But what are the necessary conditions for a de facto partner to benefit from the deductions provided for by article 16-bis of the TUIR? And what documents are necessary to demonstrate the right to these benefits?
Let’s delve deeper into the issue with reference to a recent question posed to the Revenue Agency and the response provided.
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The reader’s question
A reader posed the following question to the Revenue Agency:
“As a de facto partner who will pay for the renovation costs of a house that my partner has just purchased, can I take advantage of the tax breaks provided for by Article 16-bis of the TUIR, even if we are currently living together in a house other than the one being renovated? I would like to point out that we are regularly registered with the Municipality as a ‘de facto couple’.”
This question raises important questions about who can actually benefit from tax deductions for building renovations and what are the conditions necessary to do so.
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Deductions for de facto partners
Since 2016, Italian tax law has allowed the de facto partner of the owner or holder of a property to take advantage of tax deductions for building renovations. This is possible as long as the partner actually pays the costs. According to article 16-bis of the TUIR, the partner is entitled to the deduction even if he or she does not have a loan for use contract, a provision that equates his or her status to that of a cohabiting family member.
This relief applies to expenses incurred for interventions on one of the homes where the cohabitation occurs, even if this is not the couple’s primary residence.
However, it is crucial to respect the requirement of “stable cohabitation”. This means that, at the time of the start of the works or when the expense is incurred, the de facto cohabitant must already be registered with the registry office as part of the “anagraphic family”.
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“Stable cohabitation”: documentation and requirements
The concept of “stable cohabitation” is fundamental to access tax deductions. Law no. 76/2016 defines the “anagraphic family” as the unit that can be demonstrated through municipal registry records. Alternatively, it is possible to use self-certification pursuant to Article 47 of Presidential Decree no. 445/2000.
Is important that cohabitation is already in place at the time of initiation of the renovation procedure or at the beginning of the works. Furthermore, it must last throughout the period in which the expenses you wish to deduct are incurred.
So what are the necessary documents? The cohabitant must provide the registry registration or self-certification attesting to his/her status, in addition to receipts and tax documentation relating to the expenses incurred.
