permesso.loveTax deductions in Italy: 730, medical costs
How to get a tax refund in Italy via 730 and Redditi: 19% deductions for medical costs, children, mortgage and renovations, documents, deadlines, mistakes.
Author: permesso.love editorial team- updated - how we verify
Tax deductions in Italy are two mechanisms: detrazioni reduce the IRPEF tax itself (for most expenses by 19 percent of what you spent), while deduzioni reduce the tax base before the tax is calculated (the main example is INPS contributions). According to the community, they can be claimed by a tax resident of Italy who pays IRPEF under the ordinary progressive scale - an employee or a self-employed person on the regime ordinario; on forfettario the deductions do not apply. Below: which expenses are refunded, which documents are needed and where immigrants lose money. All amounts and rates in the article are reference points from the community and open sources, indexed and revised every year: verify the current ones on agenziaentrate.gov.it. This is not tax advice.
Part of the tax cluster
What are tax deductions in Italy: detrazioni fiscali and deduzioni
What is the difference between detrazioni and deduzioni - and why do immigrants in Italy lose hundreds of euros every year by not knowing about tax refunds?
Tax deductions in Italy (detrazioni fiscali) are a mechanism that allows you to get back part of the taxes paid or reduce the tax base. Tax refunds in Italy are available to every tax resident, but most immigrants simply do not know about it. According to the community, the possible refund can range from several hundred to several thousand euros per year - this is a reference point; amounts and rates are indexed every year.
In the Italian system, there are two types of tax benefits, and it is important to distinguish between them:
Detrazioni vs Deduzioni
Two mechanisms for reducing taxes for residents of Italy
- Detrazioni - Reduce the IRPEF tax itself (subtracted from the tax amount)
- Deduzioni - Reduce the tax base (subtracted from income before calculating the tax)
- 19% - Standard rate for most detrazioni
- 730 - Declaration for obtaining deductions
Detrazioni - directly reduce the tax amount. For example, if you owe 5,000 EUR in IRPEF and you have a detrazione of 500 EUR - you pay 4,500 EUR. Most deductions in Italy work this way: medical expenses, rent, mortgage, education.
Deduzioni - reduce the taxable base before calculating the tax. Example: income of 30,000 EUR, deduzione of 5,000 EUR - tax is calculated on 25,000 EUR. The main deduzione for immigrants is INPS contributions and pension contributions.
Some family expenses allow you to reduce the tax amount or receive a refund. Many of us did not know about this in the first years in Italy and lost real money.
Forfettario is NOT entitled to deductions
If you work under the Forfettario regime - tax deductions (detrazioni) are not available to you. Forfettario is already a favorable regime with a fixed rate (5 or 15 percent, according to the community) and an expense coefficient - see the forfettario article. Deductions are only available to those who pay IRPEF under the regular progressive scale: employees and self-employed individuals on ordinario.
In forfettario, there is a profitability coefficient. 33% or 22% automatically become your expenses (that is, a coefficient of 67 or 78 percent). Everything you do not spend from this remains with you and is not taxed. However, there are no deductions on top.
Who can receive tax deductions in Italy
Tax refunds in Italy are available if the following conditions are met:
Requirements for obtaining deductions
- Tax resident of Italy - You live in Italy for more than 183 days a year and are registered in the anagrafe (residenza).
- Pay IRPEF under the regular scale - Employees (lavoro dipendente) or self-employed individuals on regime ordinario. Forfettario - does not qualify.
- Have supporting documents - Receipts, invoices, contracts with your codice fiscale. Without documents - no deduction.
- Submitted a tax declaration - Model 730 (employees) or Redditi PF (self-employed). Without a declaration, money will not be refunded.
The higher your income and IRPEF rate, the more noticeable the effect of the deductions. The progressive IRPEF scale itself and the regional surcharges are covered in the article on the ordinary tax regime - here it is only about what is refunded and how much.
Medical expenses: how to get back 19% in Italy
What medical expenses can be refunded through the tax declaration and why is the scontrino parlante so important?
Medical deductions are the most popular type of detrazioni fiscali among immigrants. You can get back 19% of medical expenses exceeding the threshold of 129.11 EUR per year (the threshold has not changed for a long time, but verify it). The threshold is called franchigia - this is the part that you pay entirely without a refund.
Example calculation: you spent 1,000 EUR on medicine for the year. Subtract the threshold: 1,000 - 129.11 = 870.89 EUR. Refund 19% of this amount: 165.47 EUR. This is real money that will come back to you through your salary or declaration.
What counts as medical expenses for detrazioni
- Visits to the doctor - general practitioner, specialists (including private), medico di base for paid services
- Medications - only with scontrino parlante (receipt indicating codice fiscale and name of the medication)
- Tests and diagnostics - blood tests, MRI, ultrasound, X-ray - in public and private clinics
- Dentist - treatment, prosthetics, cleaning - all with fattura
- Glasses and lenses - by prescription from an ophthalmologist, with a receipt from the optics
- Hearing aids - by prescription from an ENT specialist
- Psychologist and psychotherapist - sessions with a licensed specialist
- Physiotherapy - by doctor's prescription
Scontrino parlante - mandatory!
The pharmacy receipt must be "speaking" - it should contain your codice fiscale, the name of the medication, and the cost. A regular cash register receipt without codice fiscale is not suitable for deductions. When purchasing medications, always present your tessera sanitaria or state your codice fiscale.
Data from CUD, fiscal receipts, and invoices confirming expenses are used to fill out the form. All of this needs to be collected throughout the year, not just remembered in May.
Rules for paying medical services for deductions
Since 2020, to receive a 19% deduction, medical services and purchases must be paid electronically - by card, bank transfer, or check. The exception is medications and medical devices: they can still be paid in cash and still receive a deduction.
Expenses for family members also count
You can include medical expenses for family members who are dependent on you (familiari a carico) - according to the community, a spouse with an income of up to 2,840.51 EUR/year and children up to 24 years old with an income of up to 4,000 EUR/year (verify the thresholds on agenziaentrate.gov.it).
Rent deduction in Italy
Can you get some money back for renting an apartment and what conditions need to be met?
Renting a home in Italy is one of the main expenses for immigrants. There are several deductions for rent, and they depend on your situation. The rental contract must be registered with the Agenzia delle Entrate - without this, there is no deduction. How the contract itself works - in the article on the rental contract.
Rent deductions by categories
The amounts below are a community reference point; the limits are revised:
| Category | Maximum deduction | Conditions |
|---|---|---|
| Young people (under 31 years) | up to 2,000 EUR | Income up to 15,493.71 EUR, contract for primary residence |
| Workers who moved to another region | up to 992 EUR (first 3 years) | Transfer for work or new contract in another region, income up to 30,987 EUR |
| Students outside their region of residence | up to 2,633 EUR | Studying at a university in another region (at least 100 km from home) |
| General rent deduction | 300 or 150 EUR | 300 EUR for income up to 15,493 EUR, 150 EUR for income 15,493-30,987 EUR |
Rent deductions are small compared to the rent itself, but it's still worth applying for them - the money is returned automatically through salary or declaration.
Refunds usually go through salary, typically starting from the summer period. You submit 730 in May - by July-August, you already see the refund in your payslip.
The contract MUST be registered
If you rent an apartment under a "black" contract (without registration with the Agenzia delle Entrate) - the deduction is impossible. Moreover, an unregistered contract deprives you of the right to residency (residenza) and may create problems with renewing your residence permit.
Deduction for young people - the most beneficial
If you are under 31 years old and have just moved to Italy - be sure to apply for the deduction of up to 2,000 EUR for renting your primary residence. This is a significant amount, especially with low incomes in the first year.
Children: tax deductions for education and sports in Italy
What expenses for children can be refunded through taxes - and how much can a family with two children realistically receive?
For families with children in Italy, there is a whole set of deductions. Starting from 2022, the main child benefits were consolidated into Assegno Unico, but several detrazioni fiscali still apply (verify the amounts on agenziaentrate.gov.it).
Deductions for dependent children
Children are considered dependents (familiari a carico) if their annual income does not exceed 4,000 EUR (for children up to 24 years) or 2,840.51 EUR (for older children).
| Type of deduction | Maximum base (refund is 19% of it) | Conditions |
|---|---|---|
| School expenses (scuola) | up to 800 EUR per child | 19% of expenses for school activities, meals, transport, after-school care |
| Asilo nido (nursery/kindergarten) | up to 632 EUR | 19% of expenses for nursery (public or accredited private) |
| University | up to 800 EUR | 19% of tuition fees (public - full amount, private - according to regional limits) |
| Sports sections | up to 210 EUR per child | 19% of expenses for sports for children aged 5-18 |
Important: the table shows the maximum expenses accepted for the deduction, and the refund is 19% of that base. Deductions for children are cumulative: a family with two schoolchildren can get back over 300 EUR just for education and sports.
Our first year in Italy we didn't collect any receipts for school and activities. When we found out all of it can be refunded, it stung. From the second year on we keep every piece of paper.
Assegno Unico - this is separate
Do not confuse tax deductions with Assegno Unico - the universal child allowance. Assegno Unico is paid monthly based on ISEE (see ISEE and DSU) and does not depend on the tax declaration. Deductions (detrazioni) are an additional refund through 730.
What exactly is refunded for school
Expenses for school that qualify for a deduction:
- Tassa di iscrizione - enrollment fee upon admission
- Mensa scolastica - school cafeteria
- Trasporto scolastico - school bus
- Gite scolastiche - school excursions
- Doposcuola - after-school care
- Assicurazione - school insurance
Payment only cashless
All educational expenses to obtain detrazioni fiscali must be paid cashlessly - via bank transfer or card. Cash payments do not qualify for deductions. Keep payment receipts.
Mortgage: how to get tax refunds on loan interest in Italy
How much can you really get back from mortgage interest on prima casa and what documents are needed?
If you bought your first home (prima casa) in Italy with a mortgage, you are entitled to a deduction of 19% of the interest paid on the loan. The maximum base for calculation is 4,000 EUR of interest per year. This means the maximum refund is 760 EUR per year (19% of 4,000). On the mortgage itself for a foreigner - see the separate article.
Mortgage deduction: 760 EUR
Maximum annual refund on mortgage interest
- 19% - Deduction rate from the amount of interest
- 4,000 - EUR - maximum base for calculation per year
- Prima casa - Only the first home, primary residence
- + - Related expenses (notary, perizia) are also included
You can get back 19% of the mortgage interest amount. Your employer will withhold less tax from you in the next pay period. The deduction is not huge, but over 20 years of mortgage, it adds up nicely.
Conditions for obtaining the mortgage deduction
Requirements for the mortgage deduction
- Prima casa - The property must be your primary residence. The deduction does not apply to a second home (seconda casa).
- Residenza within 12 months - You must transfer your residenza to the purchased property within a year after the purchase.
- Mortgage for purchase or construction - The loan must be targeted - mutuo per acquisto abitazione principale or costruzione.
- Documents: certificazione interessi - Each year, the bank sends a certificate with the amount of interest paid. This document is needed for the declaration.
Related expenses are also deductible
In addition to interest, the base for the deduction (the same 4,000 EUR) includes: notary fees for mortgage processing, property valuation (perizia), mortgage registration tax. These expenses can be claimed in the first year.
Renovation and energy efficiency: bonus ristrutturazione and ecobonus
How does the refund of part of the cost of an apartment renovation work and what is bonifico parlante?
Italy offers some of the most generous deductions in Europe for renovation and improving the energy efficiency of housing. These bonuses are also applicable to immigrants - if you are an owner or a tenant with the owner's consent. A general overview of benefits and bonuses is in the article bonus and agevolazioni.
Main renovation bonuses: the mechanism
Bonus percentages are a reference point and are being reduced
The rates and limits of the renovation bonuses are revised with every budget year: according to the community, in 2024 the bonus ristrutturazione refunded about half the cost of the works, while in 2025-2026 the rates for most properties were reduced, and for a second home they are lower than for the primary one. Below is the mechanism only; verify the current percentages and the maximum base for the year you need on agenziaentrate.gov.it or with a commercialista.
| Bonus | For what | How it is refunded |
|---|---|---|
| Bonus ristrutturazione (renovation) | Renovation and remodelling of housing | A percentage of expenses within the maximum base, 10 years in equal installments |
| Ecobonus (energy efficiency) | Works that reduce energy consumption | A percentage of expenses, limits depend on the type of work, 10 years |
| Bonus mobili (furniture during renovation) | Furniture and appliances bought in connection with the renovation | A percentage of expenses within the limit, 10 years |
| Bonus verde (greening) | Greening of terraces and plots | A percentage of expenses within the limit, 10 years |
All renovation bonuses are refunded not in one lump sum, but in equal installments over 10 years through the annual tax declaration.
An illustration of the mechanism (notional rate): with a 50% bonus, a renovation of 30,000 EUR gives a refund of 15,000 EUR over 10 years - 1,500 EUR each year as a tax reduction. At a lower rate the amount is proportionally smaller.
Bonifico parlante - mandatory condition!
All payments for renovations must be made through a special bank transfer - bonifico parlante. This is not a regular transfer, but a special form indicating: the law basis for the deduction, your codice fiscale, and the codice fiscale/P.IVA of the contractor. A regular transfer or cash will result in losing the deduction.
Bonifico parlante is not just a transfer. The bank withholds part of the amount as an advance tax for the contractor. Without the correct bonifico, the deduction will not be granted, even if the work has actually been done.
Ecobonus: improving energy efficiency
Ecobonus provides a deduction for work aimed at improving energy efficiency; the percentage and the base limit depend on the type of work and the year (verify on agenziaentrate.gov.it):
- Replacement of windows and doors
- Insulation of walls and roofs
- Replacement of boiler with a condensing one - the percentage depends on the class
- Installation of solar panels
- Heat pumps
Bonus mobili works only with renovation
The deduction for furniture and appliances can only be obtained if you have already started the ristrutturazione. You cannot buy furniture without renovation and receive the bonus. The appliances must be of an energy-efficient class; the base limit and the percentage are on agenziaentrate.gov.it.
How to obtain a tax deduction in Italy: 730, Redditi PF, CAF
Where to go for tax refunds - and can everything be done online through precompilata?
How to practically return taxes in Italy? The procedure depends on your type of income. For employees - model 730, for self-employed on the ordinary regime - Redditi PF (formerly Unico).
There are three ways to file: on your own online through the pre-filled dichiarazione precompilata on the Agenzia delle Entrate website (SPID or CIE needed; medical expenses, mortgage interest and insurance are usually already pulled in, while rent, renovation and education are entered manually), through a CAF or patronato (free or for a symbolic fee, enough for a simple employee's 730; book in advance - the spring queues are long), or through a commercialista (paid; makes sense with multiple sources of income, real estate, foreign income, and is practically mandatory for Redditi PF). Whom to choose and what it costs - in the article how much a commercialista costs.
CAF can also be private. Patronati are from trade unions, the state pays money to the unions. Therefore, they are semi-public. For a simple 730, it's quite enough.
The filing deadlines for 730 and Redditi PF, when the refund arrives through salary and what to do if you missed the deadline - in the article income tax return: deadlines and penalties. The general rule: the earlier you submit 730, the sooner the refund arrives.
Deduction of INPS contributions: deduzione from the tax base
Why are INPS contributions a deduzione and not a detrazione, and how does this affect your actual tax?
Paid pension contributions to INPS are fully deductible from the tax base. This is a deduzione - not a detrazione. The difference is fundamental: INPS contributions reduce not the tax itself, but your taxable income. With the progressive IRPEF scale, this can lead to significant savings.
Pension contributions paid in the current year reduce net income. That is, first we deduct from income everything that went to INPS, and then we calculate IRPEF on the remainder.
Example calculation with INPS deduzione (illustration)
The figures are notional: the gestione separata rate is taken as around 26 percent (according to the community), the IRPEF scale is a reference point, and both are revised.
Annual income: 40,000 EUR. Paid INPS contributions (gestione separata, around 26%): roughly 10,400 EUR.
Tax base after deduzione: 40,000 - 10,400 = 29,600 EUR
IRPEF on 29,600 EUR: 23% of 28,000 + 35% of 1,600 = 6,440 + 560 = 7,000 EUR
Without deduzione, IRPEF would be: 23% of 28,000 + 35% of 12,000 = 6,440 + 4,200 = 10,640 EUR
Savings: around 3,600 EUR - solely due to the deduction of INPS contributions.
For employees - automatically
If you are employed (lavoro dipendente), your employer already takes your INPS contributions into account when calculating withholdings. You do not need to declare anything additionally - everything is reflected in the CUD. For self-employed individuals on the ordinary regime (regime ordinario) - you need to enter it in the declaration yourself.
Voluntary pension contributions are also deductible
If you make contributions to previdenza complementare funds (fondo pensione, PIP) - they are also a deduzione, up to an annual limit that open sources cite as 5,164.57 EUR (verify the current one). This is additional tax savings plus savings for retirement.
Read more about INPS contributions and the pension system in the article pension in Italy: INPS and record.
Immigrant mistakes: how not to lose tax refunds in Italy
What typical mistakes do immigrants make and how much money do they lose each year?
Most immigrants in Italy lose significant amounts in the first 1-2 years simply because they are unaware of the deduction system or incorrectly gather documents. Here are the most common mistakes.
- Do not collect receipts and fatture - without documents, it is impossible to confirm expenses. Create a "taxes" folder from day one in Italy.
- Do not know about scontrino parlante - buy medicines without presenting codice fiscale and lose the right to a deduction.
- Pay for repairs in cash - this is a complete loss of the deduction. Even if the worker asks for cash "with a discount" - the state bonus is usually more beneficial.
- Do not submit 730 - employees think "the employer pays for everything" and do not submit a declaration. As a result, they lose refunds for medical expenses, rent, and education.
- Live with an unregistered contract - cannot claim a deduction for rent and risk problems with residence permits.
- Confuse detrazioni and deduzioni - do not understand how different expenses work and do not utilize all opportunities.
- Miss deadlines - do not submit the declaration on time and lose the right to the simplified 730 procedure (the dates are in the deadlines article).
- Do not include expenses for family members - the wife does not work but goes to the doctor - these expenses can be claimed for oneself.
In my first year in Italy, I worked officially, received a salary, and thought that was it. Then my neighbor told me that I could get refunds for doctors, for my child's school, even for rent. I went to CAF - they refunded almost 400 euros. Since then, I submit every year.
Repairs in cash: loss of tens of thousands
The worker offers "without VAT, for cash" and gives a 20% discount. But the state bonus is a noticeable share of the cost! Even with VAT and through bonifico parlante - you are better off. Illustration at a notional 50% bonus rate: repair for 20,000 EUR. Cash "with a discount" - 16,000 EUR. Through bonifico - 20,000 EUR, but a refund of 10,000 EUR over 10 years. In total, you pay 10,000 EUR instead of 16,000. At a lower rate, recalculate for your year.
End-of-year checklist
In December, check: are all medical receipts collected, have expenses been paid electronically, is there a CUD from the employer, is a visit to CAF planned for spring? A prepared immigrant is a wealthy immigrant.
Conclusions: tax deductions in Italy
Detrazioni and deduzioni - two different mechanisms for tax refunds
Detrazioni reduce the tax itself (medical expenses, rent, mortgage), deduzioni reduce the tax base (INPS contributions). Both mechanisms can save hundreds and thousands of euros.
Forfettario deprives the right to most deductions
If you are on the Forfettario regime - detrazioni are not available to you. This is the price for a low fixed rate. Deductions only work for IRPEF under the regular scale.
Collect ALL documents from day one
Scontrino parlante from the pharmacy, fatture from doctors, receipts for school, bank statements for the mortgage. Without documents - no refund.
Pay all electronically
Since 2020, cash has deprived the right to most deductions (except for medicines). Bonifico parlante is mandatory for repair bonuses.
Submit 730 every year through CAF
Even employees should submit the 730 declaration to receive refunds. CAF helps fill it out for free. Submit earlier - get the money earlier.
Repair bonuses are the most generous, but the rates change
Bonus ristrutturazione and ecobonus refund a noticeable share of the cost of the works, but the percentages are reduced from year to year - verify the current ones. Even with the discount from cash workers - the state bonus is usually more beneficial. Always pay through bonifico parlante.
All amounts, limits and rates in this article are reference points from the community and open sources, indexed and revised every year: verify the current values on agenziaentrate.gov.it and with a commercialista. This is not tax advice.
Related articles
- Forfettario: rates, coefficient and INPS - the favorable regime for the self-employed, with no deductions
- Ordinary regime: IRPEF and the scale - how the tax the deductions apply to is calculated
- Double taxation Russia-Italy - the treaty is suspended, the credit is not automatic
- Pension in Italy: INPS and record - pension contributions and the system
- Impatriati vs forfettario - the benefit for those who relocated
- Income tax return: deadlines and penalties - when to file 730 and Redditi PF
- How much a commercialista costs - CAF, patronato or an accountant
- ISEE and DSU - the basis for benefits, including Assegno Unico
- Rental contract - the contract registration without which there is no deduction
Related materials - Money, taxes and daily life
Was this page helpful?
Add permesso.love to your preferred sources on Google