Tax Deductions in Italy: What You Can Claim and How
Medical bills, rent, mortgages, kids, renovations — here's what you can recover each year through your Italian tax return, and how to do it without costly mistakes.
In a Nutshell
Every year you can get money back on expenses you've paid — medical bills, rent, mortgage interest, children's costs, home renovations — by filing an income tax return (dichiarazione dei redditi). Italy uses two mechanisms: a detrazione (a direct discount off the IRPEF — Italian personal income tax — you owe) and a deduzione (a reduction of the taxable income on which your tax is calculated). If you're an employee, the refund typically lands in your July pay packet.
At a Glance
| Cost | Pre-filled online return: free. CAF (free assistance offices for tax forms and benefit applications): €30–80. Accountant: €80–200. |
| Timeline | Filing window: 15 April – 30 September. Refund: July–August (employees), October–November (pensioners). |
| Where in Rome | CAF ACLI Via Marsala 109, CAF CGIL Via Buonarroti 12, CAF CISL Via Po 162, CAF UIL Via Lucullo 6. |
| Documents | Itemised pharmacy receipts (with your tax code), invoices, dedicated bank transfers, registered lease, employer's income certificate (CU), mortgage deed and statements. |
How Deductions and Tax Credits Work
Italy's tax system gives you two tools to reduce what you owe:
- Detrazione (tax credit): subtracted directly from the IRPEF you owe. If you spent €1,000 on medicines, the 19% credit on the amount above the €129.11 threshold gives you back roughly €165.
- Deduzione (deduction): subtracted from your taxable income before tax is calculated. If you earn €25,000 and deduct €5,000 in pension contributions, you're taxed only on €20,000.
Both tools are available to all IRPEF taxpayers resident in Italy: employees, self-employed workers, pensioners, and anyone with similar income. If you're a foreign national with Italian tax residency (at least 183 days a year in Italy), you have exactly the same rights as an Italian citizen.
The Most Common 19% Tax Credits
Medical expenses — The credit is 19% on the portion above the €129.11 threshold. Eligible items include: GP and specialist visits, NHS (SSN — Italy's national health service) co-payments, prescription medicines (the pharmacy receipt must show the patient's Codice Fiscale — Italian tax ID — your personal 16-character code used for almost everything), glasses, hearing aids, physiotherapy, lab tests, and CE-marked medical devices. From 2020 onward, payment must be traceable (card, bank transfer) — cash is not accepted, except for medicines, NHS co-payments, and public or accredited private facilities. If your medical expenses exceed €15,493.71 in a year, you can spread the credit over 4 annual instalments.
Rent (residential leases) — The credit here is a fixed amount, not a percentage, and depends on your contract type and income. For an open-market 4+4 contract with income up to €15,493.71 you recover €300; for a regulated-rent 3+2 contract at the same income level you recover €495.80. Young tenants aged 20–31 with a registered lease get €991.60 back for the first four years. One non-negotiable condition: the lease must be registered with Agenzia delle Entrate (Italy's tax-revenue agency). Without registration, you get nothing.
Mortgage interest on a primary home — 19% of the interest paid, on a maximum of €4,000 per year, giving a maximum annual saving of €760. The mortgage must fund your primary residence, and you must register your address there within one year of purchase.
Education costs — For nursery school through secondary school, the credit is 19% on up to €800 per child (tuition, school meals, transport, field trips). For day nurseries (asili nido) the cap is €632 per child. For state universities you deduct 19% of what you actually paid; for private universities a government-set cap applies, determined by area of study.
Children's sport activities — 19% on up to €210 per child aged 5–18, for enrolment in recognised amateur sports clubs, gyms, swimming pools, or dance schools accredited by CONI (Italy's national Olympic committee).
Other 19% credits include: veterinary expenses (19% above €129.11, capped at €550), life and accident insurance premiums (max €530), public-transport season tickets (max €250), donations to registered charities (ONLUS) and cultural institutions, funeral expenses (max €1,550 per death).
The Most Useful Income Deductions
Deductions lower your taxable income before IRPEF is calculated — and the higher your tax bracket, the more valuable they are.
Mandatory pension contributions to INPS (Italy's social-security agency — pensions, unemployment, family benefits), professional funds, or degree-course buyback (riscatto della laurea) are fully deductible with no cap. Voluntary supplementary pension fund contributions are deductible up to €5,164.57 per year. If you employ a home carer or domestic worker (colf or badante), you can deduct their social contributions up to €1,549.37. Periodic maintenance payments to a legally separated or divorced spouse are fully deductible (excluding any child-support portion).
For people with severe disability under Law 104/1992, art. 3 para. 3, medical and specialist care expenses are 100% deductible with no threshold and no ceiling.
Home Renovation and Energy Bonuses
The 50% Renovation Bonus (art. 16-bis TUIR) lets you deduct 50% of costs for extraordinary maintenance, restoration, and renovation work, on a spending cap of €96,000 per residential unit — recovering up to €48,000 spread over ten annual instalments. Payment must be made via a dedicated bank transfer (bonifico parlante) with a specific description referencing art. 16-bis DPR 917/86, plus the beneficiary's Codice Fiscale and the contractor's Partita IVA (Italian VAT number — required to invoice as a self-employed worker). Using a standard transfer invalidates the entire deduction.
The Furniture Bonus lets you deduct 50% of spending on new furniture and high-energy-class large appliances for the renovated property, up to a €5,000 spending cap in 2026.
The Ecobonus (50–65%) covers energy-saving upgrades: condensing boilers, external wall insulation (cappotto termico), window replacement, solar thermal panels.
How to Actually File Your Claim: Step by Step
From 15 April you can access your pre-filled return (730 precompilato) on the Agenzia delle Entrate website using SPID (Italy's digital identity for accessing online public services), CIE (Italian electronic ID card), or a CNS smart card. You'll find salaries and pensions already loaded, along with medical expenses reported by the Sistema Tessera Sanitaria (Italy's health-insurance card system), mortgage interest, insurance premiums, and pension contributions.
Check everything is correct and add any missing items (rent credits if not pre-loaded, children's sports, vet bills). If you accept without changes, the agency won't audit the pre-filled data. Choose your sostituto d'imposta (employer or INPS) to receive your refund or settle any balance. The deadline for the Modello 730 (Italy's simplified annual tax return for employees and pensioners) is 30 September; for the Modello Redditi PF (used by self-employed workers without a withholding employer) it's 31 October.
Keep all supporting documents for 5 years: Agenzia delle Entrate can request an audit until 31 December of the fifth year following submission.
Mistakes to Avoid
- Paying medical expenses (beyond pharmacy counter and NHS co-payments) in cash. Since 2020, payment must be traceable or the deduction is denied entirely.
- Losing the pharmacy receipt or not having your tax code printed on it. The itemised receipt (scontrino parlante) showing your Codice Fiscale is the only valid proof for medical expenses.
- Using a standard bank transfer for renovation work. You need the dedicated bonifico parlante with specific wording — without it, the entire renovation deduction is forfeited.
Special Cases
Medical expenses incurred abroad are deductible if supported by an invoice translated into Italian and, within the EU, signed by the treating doctor. Payment must be traceable. University tuition paid abroad is deductible within the ceilings set for equivalent Italian state universities.
Non-EU citizens: following Law 207/2024, it is no longer possible to claim deductions for family members resident abroad. EU/EEA citizens can still do so if their family members' income does not exceed €2,840.51 per year.
Civil partnerships and same-sex civil unions (unioni civili under Law 76/2016) have exactly the same deduction and credit rights as married couples.
From January 2025, the old "Renzi bonus" has been replaced by a new employee bonus for incomes up to €28,000, credited directly in the monthly pay packet without any application needed.
Official Sources
- Agenzia delle Entrate — Pre-filled return 2025
- Agenzia delle Entrate — Medical expenses
- Agenzia delle Entrate — Rent deductions
- Agenzia delle Entrate — Deductions for dependent children
- Agenzia delle Entrate — 50% Renovation Bonus
- Agenzia delle Entrate — Home tax benefits
- Sistema Tessera Sanitaria
Legal references: DPR 917/1986 (TUIR) arts. 10, 12, 15, 16, 16-bis; Law 207/2024 (2025 Budget Law); DL 39/2024; Agenzia delle Entrate Circular no. 14/E/2023.