As of 3 September 2026, the Italian Revenue Agency (Agenzia delle Entrate) has published updated guidance on the deduction of mortgage interest expenses (interessi passivi) in the 2026 tax return (Modello 730/2026 and Modello Redditi PF). The deduction allows a 19% Irpef credit on interest paid, but the limits and eligibility criteria vary significantly depending on the loan purpose—whether for primary residence acquisition, renovation, or other qualifying purposes. The guidance clarifies the documentation required, including loan agreements and interest payment certifications, and highlights the interaction with other home-related tax benefits.
Key Takeaways
- Variable Deduction Limits: The 19% Irpef deduction applies to interest on loans for purchasing or constructing a primary residence, with a maximum deductible amount of €4,000 annually. For renovation loans, the limit aligns with the “Bonus Ristrutturazione” rules, while other loan types may have different caps or may be excluded entirely.
- Documentation and Compliance: Taxpayers must retain the original loan contract, bank statements showing interest payments, and the lender’s annual certification. The pre-filled 730 form may auto-populate some data, but verification is essential to avoid discrepancies during audits.
- Interaction with Other Incentives: The mortgage interest deduction coordinates with the “First Home” tax credit and renovation bonuses. Taxpayers cannot double-dip on the same expenses, and the Agency’s guidance outlines the hierarchy of benefits to optimize overall tax relief.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement