Frequently Asked Question #55:
Q: What grants are available for renovating a property in Italy?
A: In theory, a number of local government grants are usually available to pay a part of your renovation costs - you can get a list from your local Camera di Commercio (Chamber of Commerce). However, before you decide to go down this route there are a number of things to consider:
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You will only be eligible for a general renovation grant if you create a facility open to the public - a hotel, agriturismo or B&B, for example. There are no public funds available for the renovation of a property for private use. Italy has so many ancient buildings - more than any other country in the world - that the state simply can't afford to preserve antiquities outside the public domain.
Note that to run an agriturismo (a farm that offers guest accommodation) you must be a registered farmer, and a large proportion of the food you offer your guests must be home-produced.
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You will not receive any money in advance; indeed, a decision will be made on your grant application only when the renovation work is at an advanced stage, or even completed. This means that a grant can't be a key component of your financial planning: you should be prepared to fund 100% of the renovation yourself, and regard any grant you receive as a bonus.
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Grant funds are paid out against receipted payments only. All suppliers and tradesmen are obliged to include IVA (Imposta Valore Aggiunto, the Italian Value-Added Tax) on any receipts that they issue.
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If you accept public funds for a commercial project, you will be expected to file annual accounts - and to pay Italian taxes.
- In many cases, you will need to have been resident for 3 years before any application for a grant will be considered. In practical terms, this rule appears to be designed to prevent foreigners obtaining grants in Italy.
When all these points are considered, it is hardly surprising that very few people renovating a property in Italy bother with trying to obtain a local government subsidy.
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