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Capital Gains and Superbonus 110%: a clear guide

The 110% Superbonus, introduced by the Rilancio Decree (Legislative Decree 34/2020), was one of the main tax tools put in place to incentivize the energy requalification and safety of buildings in Italy as required by the European Union so, due to the excessive expenditure incurred, the Government introduced a taxation on capital gains different from that normally applicable to properties not subject to this type of intervention so here is a clear and simplified guide capital Gains and Superbonus 110%: what they are, their positive effects and their fiscal impacts.

One of the most obvious effects of the Superbonus 110% was the increase in the value of properties and the interventions supported by the bonus include:

• Improvement of energy efficiency (e.g. thermal insulation, solar/photovoltaic panels, replacement of fixtures)
• Seismic adaptation
• Installation of advanced technological systems (such as heat pumps or charging stations for electric vehicles)

These works improve the energy class and structural safety, making buildings more attractive on the market so, as a result, the sale price can increase significantly, generating a higher capital gain.

But what are real estate capital gains and how are they connected to the Superbonus? Let’s analyze everything step by step starting from capital gains not connected to the Superbonus.

What are real estate capital gains?

Real estate capital gains represent the difference between the sale price of a property compared to the initial purchase price and any costs incurred. In tax terms, it is calculated as the difference between:

• Sale price: the amount for which the property is sold
• Purchase price (or construction cost) increased by documented expenses, for example, renovation costs and any ISTAT revaluation of the property if more than five years have passed since the purchase.

If the period between the purchase and sale is less than five years, this capital gain is considered taxable income and subject to taxation, except for some exceptions (such as first homes). However, after five years, it is not applied.

Practical example

Let’s imagine buying an apartment as a second home for €100,000 in 2021 and carrying out redevelopment work without using the Superbonus worth €50,000 and, after the work, the property is sold in 2024 for €180,000. The capital gain would be calculated as:

Sale price: €180,000
Purchase price + documented costs = €100,000 + €50,000 = €150,000
Taxable capital gain = €30,000 (180,000 – 150,000)
Taxation (26% of the capital gain) = €7,800

Superbonus Capital Gains

The taxation of the capital gain from the Superbonus depends on several factors:

Period: if the property is sold ten years after the end of the SuperBonus works, the capital gain is not taxable.

First home: the first home is excluded from the application of the new rule. This applies if the property was the main residence of the seller or his family members for most of the ten years prior to the sale, or for most of the period between the purchase (or construction) and the sale, if the property was purchased (or built) less than ten years ago.

The capital gain is implemented to all the real estate units of the condominium that benefited from it so it is not necessary for interventions carried out in the private parts.

Practical examples

Example n. 1

Let’s imagine buying an apartment as a “second home” for €100,000 in 2020 and benefiting from the Superbonus 110% for redevelopment work in 2021 with the transfer of credit worth €50,000 and, after the work, the property is sold in 2024 for €180,000. The capital gain would be calculated as:

Sale price: €180,000
Purchase price + documented costs = €100,000

Since less than 5 years have passed since the end of the work, these are not taken into account in the calculation of the capital gain.

Taxable capital gain = €80,000 (180,000 – 100,000)
Taxation (26% of the capital gain) = €20,800

Example n. 2

Let’s imagine buying an apartment as a “second home” for €100,000 in 2020 and benefiting from the Superbonus 110% for redevelopment work in 2020 with the transfer of credit worth €50,000 and, after the work, the property is sold in 2026 for €180,000. The capital gain would be calculated as:

Sale price: €180,000
Purchase price + documented costs (at 50%) = €100,000 + €25,000 = €125,000

Since more than 5 years have passed since the end of the work, these are taken into account at 50% in the calculation of the capital gain.

Taxable capital gain = €55,000 (180,000 – 125,000)
Taxation (26% of the capital gain) = €14,300

With circular n. 13/E of 13 June 2024, the Revenue Agency provided operational instructions in order to clarify the application of capital gains on properties that have benefited from interventions relating to the Superbonus 110%.

Below is a simplified summary table:

1 ) Taxed properties

• Properties subject to subsidized interventions
• Even in the case of works only on the common parts of the building
• Subsidized interventions carried out by the transferor or other entitled parties
• Regardless of the percentage of deduction
• Regardless of the methods of use (in the tax return, transfer of credit, discount on the invoice)

2) Untaxed properties

• If more than ten years have passed since the end of the works
• Properties acquired by inheritance
• Properties used as a first home by the transferor or his family members for the majority of the ten years preceding the sale
• Transfers subsequent to the first sale

Conclusions

The Superbonus 110% has not only encouraged the redevelopment of buildings but has also generated positive effects on the value of the properties. However, owners must be aware of the tax impact linked to the sale.

Before making a sale of properties that have benefited from these Bonuses, it is advisable to contact a real estate agency or a Notary directly in order to be certain of the expenses that will be incurred. The legislation in this regard is constantly evolving so there could be further changes.