Italy Mortgage Interest Tax Deduction Calculator
Calculate your IRPEF tax credit on mutuo interest — 19% credit on up to €4,000/year for primary residence. Maximum saving: €760/year. Free.
Current loan principal
From your mortgage statement
How Italian Mortgage Interest Tax Credit Works
Italy provides a 19% tax credit (detrazione IRPEF) on mortgage interest — not a deduction from income, but a direct reduction of your tax bill. The credit applies on up to €4,000 of annual interest for your primary residence (abitazione principale), giving a maximum annual benefit of €760.
Because it is a credit (not a deduction), the saving is the same regardless of your income or tax bracket — it's always exactly 19% of eligible interest up to €4,000.
Effective tax reduction per year: max €760 (~€63/month).
Key Rules for the Detrazione
- Only applies to loans for the primary residence (abitazione principale) — not second homes or investment properties
- The mortgage must be a mutuo ipotecario (mortgage loan) — not a personal loan
- Must be contracted within one year before or after the property purchase date
- The €4,000 cap applies per property, split proportionally if the loan is jointly held
- Certain accessory costs (bank fees, appraisal costs, notary fees for the mortgage) also qualify at 19%
How to Claim the Detrazione
The detrazione is claimed in the modello 730 (employees, deadline September 30) or modello Redditi PF (self-employed, deadline November 30) via the Agenzia delle Entrate website.
Your bank sends an annual certificazione degli interessi passivi showing total interest paid. Enter this in quadro E of the 730. With the 730 precompilato (pre-filled return), the data is often already populated.
Frequently Asked Questions
Why is Italy's benefit so much smaller than the Netherlands?
The Netherlands offers a full deduction at 36.97% with no cap on interest — on a €500k mortgage the saving can be €7,000+/year. Italy has a fixed credit of max €760/year. Italy is the weakest mortgage tax benefit in the calculator by a large margin.
Does it apply to renovation loans?
No — the 19% detrazione applies specifically to mortgages for the purchase or construction of the primary residence. Renovation loans fall under a separate regime (Bonus Ristrutturazione at 50%) which has different rules and caps.
Is BeastyTax free?
Yes, completely free — no account, no hidden costs.