Mortgage Interest Deduction: Who Qualifies and What You Get
Learn how to claim a deduction on the interest paid for your primary home mortgage in Italy.
This scheme allows you to reduce the amount of tax you owe by deducting a portion of the interest paid on your home loan.
Who it's for
This benefit is specifically designed for homeowners who have a mortgage on their primary residence. To qualify, the property must be used as your main home rather than a secondary property, a holiday rental, or an investment.
What you get
When you file your taxes, you can claim a 19% deduction on the interest portion of the payments you made on your mortgage throughout the year. This deduction helps lower your overall tax burden by allowing you to subtract a percentage of those interest costs from your taxable income.
What it costs you
There is no upfront fee to apply for this deduction. However, it does require your time and careful record-keeping. To benefit from this, you must include your mortgage interest expenses in your annual tax return, specifically within the Modello 730. You will need to have all your bank statements and mortgage documents ready to ensure the figures reported to the Agenzia delle Entrate are accurate.
The catch to know
The most important thing to remember is that this deduction is strictly limited to your primary residence (abitazione principale). If you have a mortgage on a second home, a vacation house, or a property that you rent out to others, you cannot claim the 19% deduction on the interest for those specific loans.
How to apply
- Gather all your official mortgage documentation and bank statements for the tax year.
- Identify the specific amount of interest paid on your loan during that period.
- Report these interest payments in the correct section of your Modello 730 tax return.
- Consult with a tax professional or use the official resources provided by the Agenzia delle Entrate to ensure your filing is correct.