Credit transfer and invoice discount in an Italian condominium

Credit transfer in a condominium was for years, together with the invoice discount, the mechanism that made many works under the building tax incentives possible even for those without the tax capacity to absorb the deduction. Introduced by article 121 of the Rilancio decree, the two options allowed the deduction to be turned into an immediate benefit, avoiding the ten-year recovery. Since 2023 the picture has changed radically with the general block on the options.

What credit transfer and invoice discount are

The tax deduction is the ordinary mechanism: the owner recovers the expense over several years by reducing the tax due. The two alternative options change this scheme. With the invoice discount the supplier applies a discount equal to the deduction due and recovers the amount as a tax credit. With credit transfer the beneficiary transfers the credit corresponding to the deduction to a third party, typically a bank or the supplier, cashing in a sum immediately.

How they worked in a condominium

In a condominium the options applied to works on the common parts, from energy efficiency works to renovations. The deduction, allocated among owners based on the thousandths or on the criteria of the individual expense, could be turned into an invoice discount or transferred. Each owner could independently decide whether to use the deduction, apply the discount or transfer the credit, with even different choices within the same condominium.

The administrator's role

On works on the common parts the administrator plays a central role. They collect the choices of the individual owners, coordinate relations with the supplier and any transferee, and above all send the tax authority the notice of the option within the set deadlines. They must also keep the supporting documentation: invoices, traceable bank transfers, technical certifications and compliance approvals where required. A mistake or a delay in the notice can make all the involved owners lose the benefit.

Which works qualified

The options applied to a wide range of works on the common parts, each with its own rate and rules. They covered building renovation works, energy efficiency works supported by the Ecobonus, anti-seismic works under the Sismabonus and, with its own timing, the Superbonus. Each incentive had technical requirements, spending caps and specific formalities, and the choice between deduction, discount and transfer could vary from one owner to another even on the same work.

The block on the options since 2023

Decree law 11/2023 introduced the general stop to the exercise of the options for new works, with some transitional exceptions protecting works already started. Decree law 39/2024 further narrowed the scope. The stated aim is to contain the impact on public finances after the very rapid growth of the credits generated above all by the Superbonus.

The situation from 2025

From 2025 the block is the rule: for expenses incurred in the year the option for transfer or discount remains possible only in residual cases falling within the exceptions set by the decrees, typically works already under way with formalities completed by the indicated dates. Outside these exceptions the owner recovers the incentive solely as a deduction in the tax return. Given the complexity and the many rulings by the tax authority, each case should be checked with a professional.

Formalities and documentation

Even where the options remain viable, the formalities are strict. You need the meeting resolution when required, invoices addressed to the condominium, traceable bank transfers with the correct reason, technical certifications and, for the set amounts, the compliance approval. The electronic notice of the option must be sent within the deadlines, and the credit must be accepted by the transferee in the tax drawer.

• Meeting resolution on works on the common parts, where needed.
• Invoices addressed to the condominium and traceable bank transfers.
• Technical certifications and compliance approval for the set amounts.
• Notice of the option to the tax authority within the deadlines.
• Acceptance of the credit by the transferee.

Mistakes to avoid

The most costly mistakes are a late or incomplete notice, a disorderly collection of the owners' choices, and confusion between who transfers, who applies the discount and who uses the deduction. In a condominium with many units, keeping amounts, shares and options aligned is the most delicate part, because a wrong figure affects everyone's position.

Managing incentives with management software

Condominium management software helps track credit transfer in a condominium and the other options in an orderly way: who chose the deduction, who the invoice discount, who the transfer, with amounts and shares always aligned with the accounting. This reduces the risk of errors in the notice and the documentation. AmministraPro lets you manage the accounting of works, the millesimal shares and the archive of tax documents. You can see how it works on the features page or compare the plans in the pricing section.