Pharmacy Renovation Costs

Pharmacy Renovation Costs

Going through a Pharmacy Renovation means above all
the followings

  • Meeting the anticipated deadline for closing the works;
  • Carrying on the works allowing the Pharmacy to stay open;
  • Keeping an eye on costs in order to cope with the agreed budget;
  • Working in compliance with all the regulations foreseen by the Local Authorities in relation to the standards of safety and health, to make sure that the works are carried out flawlessly;
  • Furthermore, pharmacies have peculiar needs such as allocation of spaces, light and air circulation, together with the footage for facilities (i.e. laboratory, pharmacy drawers or automation systems, refrigerator for stocking medicines…);
  • Last but not least there is all the bureaucracy for collecting the permissions, tax benefits and the VAT facilitations for this kind of renovations.

In this article we will talk about costs for pharmacy renovations, tax benefits and timing agenda, in addition to some advice for saving money and meet deadlines.

 

Pharmacy renovation: how much does it cost?

Cost of renovation of a pharmacy can vary from 350 to 850 Euro per square meter. It means that in order to renovate for example a 100 sqm pharmacy the allocated budget can be from 35.000 to 85.000 Euro.

The building management costs is often more expensive in big cities where there is more supply but more demand as well.

A simple way to make sure to have a fair treatment can be articulated throughout three steps:

  1. Obtaining from a specialized consultant a detailed project but mostly a detailed breakdown of costs;
  2. Appointing a building manager;
  3. Comparing more quotations.

The executive project is generally made of working drawings issues by a registered technician to accurately describe all the needed steps of the project such as: demolitions and interior partitions, floor paving, suspended ceiling and lighting project, street facade and logo positioning. Thanks to an executive drawing you will be allowed to ask and compare a few quotations to be able to:

  • Understand the average prices of your neighborhood for pharmacy refurbishment;
  • Get to know timing and operational steps;
  • Find available companies.

 

The right quotation for renovating your Pharmacy, in a little time

If you are very busy and do not have not much time to compare the offers, you will be able to request quotations from companies within your area with our help.

We have arranged a template proforma HERE and you will receive a first appraisal within few days.

You will be contacted first of all to organize a meeting (also in conference call) in order to exchange all the needed info. After that you will be receiving the all-included quotation from specialized companies close by your pharmacy.  

The quotation for your pharmacy refurbishment are free of charge and not binding. In case you do not feel like committing to any of them, do not give u and keep on pushing until the right one comes over!

 

Pharmacy refurbishment: works and prices

Please find enclosed some of the works which mostly affect the final costs:

  • Remaking of Electrical system (an average of 100sqm) Euro 6.000 approx.
  • Remaking of Plumbing system (average of space with bathroom, laboratory and analysis room) Euro 4.000 approx.
  • Refurbishment of A/C system _ Euro 1000/sqm approx
  • Window frames remaking _ Euro 5.000 approx
  • New Computer System _ Euro 3.000 approx
  • Supply and installation of air recirculation system _ Euro 4.000 approx
  • Dismantling and disposal of existing equipment _ Euro 1.500
  • Remaking of non-slip porcelain stoneware tiles _ Euro 39/sqm
  • Remaking wall plaster and paint _ Euro 12 / sqm

 

Other items to be considered:

  • New Furniture costs from 350 to 750 Euro/sqm
  • Costs for pharmacy drawers and automation
  • Costs for communication study
  • Bureaucracy costs for authorization, licenses and construction management

Pharmacy renovation in big cities

Renovating in big cities can result even more complicated because of two main reasons.  

In case the activity is located within either the city centre or densely populated areas, there is the problem to contain the acoustic pollution.  In some residential neighborhoods which may have limited traffic zones, it is mandatory to request special permit for circulating in order to unload or download goods.  

Bureaucracy costs get higher and timing for permits are longer.

 

Renovating a store: samples of tax benefits within the UE panorama (year 2021)

In the European context, we generally need to distinguish two kinds of tax benefits when it comes to renovate and furnish a Pharmacy:

  • Capital Goods Tax Credit (10%)
  • Tax Credit for 4.0 Industry Material Goods (50%)

 

As far as the first tax benefit is concerned, it is related o all those products purchased for one’s own activity such as the furniture. It is a good sample of a 10% discount throughout the whole year 2021!

Such a 10% credit can be used for all those investments accomplished from the 16th Nov 2020 and up to the 31th Dec 2021 (or up to the 30th Jun 2022 as long as the order is finalized within the 31st Dec 2021 and a 20% advanced payment has been processed).

The 4.0 Industry Material Goods instead exclusively concern the purchase of robots, vending machines, lockers, electronic labels etc. A 50% tax credit is granted (which can be added to a further 45% for areas in the south of Italy).  

Beware of scams: in order to receive the 50% tax credit for the 4.0 industry goods, it is necessary a certification stating the investment compliance.

Some companies are starting to insert within the robot costs other expenditure items such as furniture or refurbishment works not compliant with the law. It is obviously a scam which the pharmacist may have a criminal conviction for!

Furthermore, people renovating a pharmacy within highly dangerous seismic areas (classified 1,2,3 areas) and activating interventions to improve the anti-seismic safety will be entitled up to the 31st of Dec 2021 with a tax reduction corresponding to 50% reimbursement of expenses incurred.

Also, people renovating the pharmacy, and inserting works for improving energy efficiency such as an internal insulation and Finishing System (useful for decreasing the acoustic pollution too) or the existing heating system replacement to opt for a low consumption one, are entitled to an “eco bonus” equal to 65% of expenses incurred (there is a new “eco bonus” giving a 110% deduction concerning exclusively residential private user).

On top of that, companies located within a condominium and participating in expenditures for building refurbishments (i.e. premises building structure) are entitled to have a 90% reimbursement of expenditures incurred in accordance to the degree of energy efficiency improvement obtained.  

 

Pharmacy Renovation: preferential VAT system

People refurbishing their pharmacy are entitled to have a 10% preferential VAT system on labor costs and significant assets (provided that the premises have a private residential destination).

A 10% reduced VAT rate is foreseen for all those interventions of restoration, extraordinary maintenance or town-planning refurbishment.  

 

Pharmacy Renovation: timing and mode

Average times for a pharmacy renovation span from two to four weeks. It is not necessary to suspend the pharmacy activity. Sartoretto Verna™ has got a consolidated and long-standing experience in organizing all the activities also keeping the pharmacy open.  

Deciding to rely on a single refurbishing company, with the “turnkey” formula, can shorten the timing since the company is in charge of coordinating the different artisans’ activity, from the electrician to the door manufacturer, in addition to cope with all the bureaucracy matters in order to work in compliance with building safety regulations.

Specialized companies such as Sartoretto Verna™ generally guarantee the new pharmacy delivery meeting deadlines and budget, and avoiding surprises.  

Still wishing for more info? Book a conference-call now with one of our consultants

Click here  => https://www.sartorettoverna.com/free-consultancy 



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