Mortgage Tax Deductions: Joint Ownership and Deductible Expenses

Italian taxpayers can claim deductions for mortgage interest payments on their primary residence when filing the 2026 Modello 730 tax return, according to updated guidance from the Agenzia delle Entrate released in April 2026. The deduction applies to interest paid on loans used to purchase, construct, or renovate the property where the taxpayer resides, subject to specific limits and documentation requirements.

The Agenzia delle Entrate confirmed that eligible mortgage interest can be deducted at a rate of 19 percent of the amount paid, up to a maximum annual cap of €4,000, resulting in a maximum tax benefit of €760 per year. This ceiling applies regardless of the loan amount or the number of properties owned, as long as the mortgaged property is the taxpayer’s principal residence.

To qualify, taxpayers must retain documentation including the loan contract, payment receipts or bank statements showing interest payments, and a self-certification declaring the property as their primary residence. The deduction is claimed in Section RP of the Modello 730 form, specifically under line RP13 for mortgage interest expenses.

The 2026 guidelines clarify that only the interest component of mortgage payments is deductible. principal repayments, insurance premiums, notary fees, and other accessory costs associated with the mortgage are not eligible for this particular tax relief. However, certain ancillary expenses related to the property purchase — such as notary fees, registry taxes, and agency commissions — may be deductible separately over a four-year period under different provisions of the Italian tax code.

Taxpayers with joint mortgages can each claim a proportional share of the deductible interest based on their ownership percentage in the property, provided both are listed as borrowers and fiscally dependent on the same household. In cases where only one spouse is the legal borrower but both contribute to payments, only the borrower named in the loan agreement may claim the deduction unless a formal assignment of rights is established.

The Agenzia delle Entrate emphasized that the mortgage interest deduction is compatible with other housing-related tax benefits, such as the ristrutturazione (renovation) bonus and the ecobonus for energy-efficient upgrades, as long as the expenses are distinct and properly documented. However, double-dipping on the same expense across multiple incentives is prohibited.

For the 2026 tax year, the filing deadline for the Modello 730 is September 30, 2026, for those submitting through an employer or tax intermediary, and November 30, 2026, for self-filers. Taxpayers are advised to consult with a certified commercialista or tax advisor to ensure accurate completion of the form and compliance with current regulations, particularly if they have multiple properties, recent renovations, or changes in marital status affecting household composition.