Tax Deduction for Renovations: Financial Benefit from Replacing Frames

If you’re planning to upgrade your home in 2025 or 2026, replacing your window frames—especially aluminum ones—not only enhances functionality and aesthetics, but also brings significant financial benefits. Under Article 39B of the Income Tax Code, you can gain a tax deduction of up to €16,000, spread over five tax years—that is, up to €3,200 per year, provided the conditions are met.

What is the financial benefit?

If you spend up to €16,000 on renovations (e.g., aluminum frames, insulation, painting), your tax burden can be reduced by up to €3,200 per year for five years. This means that for projects costing €10,000, your annual tax reduction reaches €2,000 for five years.

What expenses are covered?

The measure covers expenses for:

• • Energy, functional, or aesthetic upgrades: insulation, new heating/cooling systems, frame replacement, installation of RES (e.g., solar panels, water heaters)

• • Plumbing/electrical work, painting, flooring replacement, roofing, even elevators or EV charging stations

Materials you purchase (e.g., frames or paint) are recognized up to one-third of the total project cost

Who can benefit?

• • Individuals, owners of primary or secondary residences, even in co-ownership — the deduction corresponds to the ownership share.

• • Applies to projects carried out within the years 2024–2026, with a decision covering 2025–2026 as well.

What must you do to receive the deduction?

1. 1. Provide legal documentation (receipts or invoices) stating the type of work/materials, VAT number, and the ATAK property ID

1. 1. Electronic payment — via card or bank transfer (cash not allowed). Declare the expenses in the tax return through a dedicated AADE application and apply the deduction over the next five years

How does it work in practice?

🔹 Example:

Suppose you carry out works (e.g., window replacement, painting, insulation) worth €12,000.

Of that:

• • Up to €4,000 from materials (e.g., frames, insulation, paints) is recognized.

• • The rest concerns labor (installation of frames, painting, etc.).

🔹 Your benefit:

• • Your tax deduction amounts to 40% of €12,000 = €4,800.

• • This amount is not refunded in cash, but deducted from the tax you pay annually, in five installments