When tackling renovations on your primary home, many people wonder what tax breaks are available, particularly regarding the mortgage interest deduction.
The answer provided by the Revenue Agency on TaxTodayin relation to a specific question from a taxpayer, clarifies the main regulatory aspects and the conditions for benefiting from this relief.
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The taxpayer’s question
A reader, struggling with planning the renovation of his main home, asked:
“I intend to ask for a mortgage to renovate my home. Can I deduct the mortgage interest since it is my first home? Are there any other requirements or conditions that need to be met?”
This question is particularly interesting because it touches on a central topic for many Italian families who, faced with the need to improve or adapt their property, find themselves evaluating the costs and opportunities linked to mortgages. The Revenue Agency, via the portal TaxTodayresponded by detailing the possibilities offered by the tax legislation and precisely indicating the requirements to be met to access the Irpef deduction provided by law.
The answer represents a useful guide not only for those who have the same needs as the reader, but also for all those who intend to finance their building projects through a mortgage loan.
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The response of the Revenue Agency
The Revenue Agency responded promptly to the question, highlighting that the current legislation offers the possibility of benefiting from the Irpef deduction of 19% on the interest paid on mortgage loans stipulated for the construction or renovation of the main residence.
This benefit applies to a maximum amount of 2,582.28 euros per year and represents an important benefit for those who intend to face the costs of a mortgage necessary to improve or transform their home.
The deduction is, however, subject to compliance with some fundamental conditions, which the Agency has summarized in four main points:
- Timing of the mortgage with respect to the works
The loan contract must be stipulated within a specific time frame from the start of the works. The legislation provides for this to happen in the previous six months or in the following eighteen months at the opening of the construction site. This rule guarantees that the mortgage is closely linked to the building project, avoiding abuse or improper use. - Ownership of the mortgage contract
The deduction is granted exclusively if the loan contract is registered in the name of the person who will own the property, whether by way of ownership or other real right. This requirement ensures that the tax benefit is reserved for those who actually use the property as their primary residence. - Use as a main residence
The property being renovated must be used as the habitual residence of the taxpayer or his family members. This condition is central, as it excludes from the deduction interventions carried out on second homes or on properties intended for rent or other use. - Adequate building documentation
The possibility of taking advantage of the deduction is linked to the possession of a municipal building authorization which clearly specifies that the works fall within the building renovation interventions envisaged by the art. 31, paragraph 1, letter. d), of Presidential Decree no. 380/2001. If this indication is missing, it is possible to present a substitute declaration signed by the manager of the competent municipal office, which certifies the conformity of the works with the regulations.
Finally, the Revenue Agency recalled that further details, clarifications and insights are available in the official guide “Interest expense on mortgages”published on its website. This document represents a valid support for understanding in depth all the technical and regulatory aspects related to the deduction.
