Italy Tax Credits Guide 2026 — Bonus Edilizi, 19% Detrazioni

Overview of Italian Tax Credits

Italian tax law provides a wide range of tax credits (detrazioni d'imposta) that directly reduce the amount of IRPEF owed, rather than reducing taxable income (which is what deductions — oneri deducibili — do). Tax credits are generally more valuable than deductions because they reduce the tax bill euro-for-euro (subject to certain limitations).

Tax credits are claimed on the annual tax return (Modello 730 or Modello Redditi PF) and, if the credit exceeds the tax due, the excess may be refunded (rimborso) or carried forward, depending on the type of credit. Some credits are available only for specific expenses (e.g., medical, renovation), while others are automatic (e.g., employee/family tax credits calculated by the employer).

19% Tax Credits (Detrazione del 19%)

The most common category of tax credits allows a 19% deduction of eligible expenses exceeding certain thresholds. The 19% credit is calculated on the portion of expenses exceeding an annual deductible (franchigia) of €129.11 for most categories (except where a different threshold applies). The total eligible expenses subject to the 19% credit are capped at specific amounts depending on the type of expense.

Medical Expenses (Spese Sanitarie): 19% of medical expenses exceeding €129.11 per year. Eligible expenses include: doctor visits (visite mediche), specialist visits, surgery, dental care (including implants and prostheses), diagnostic tests (blood tests, X-rays, MRI), hospitalisation (including hospital accommodation and meals), medical devices (glasses, contact lenses, hearing aids), medicines purchased with a prescription (farmaci), and transportation for medical appointments (ambulance or taxi). The credit is available for expenses incurred by the taxpayer and their dependent family members. There is no cap on medical expenses (the 19% applies to the full amount above €129.11).

Education Expenses (Spese per Istruzione): 19% of school and university tuition fees, up to specific annual limits: primary and secondary school — €800 per student; university — the full tuition fee (no explicit cap, but the fee must be paid to a recognised institution); master's degrees, PhD programmes — up to specified limits depending on the institution type.

Mortgage Interest (Interessi Passivi sui Mutui): 19% of interest paid on a mortgage for the purchase of your primary residence (prima casa), up to a maximum of €4,000 of interest per year. The mortgage must be secured against the property and the loan must have been taken out to purchase, construct, or renovate the primary residence. Only the interest portion qualifies, not the principal repayment.

Life Insurance Premiums: 19% of premiums paid on life insurance policies (assicurazione sulla vita), up to a maximum premium of €530 per year. The policy must have a minimum duration of 5 years. Health insurance premiums (assicurazione sanitaria) are also eligible within the same limit.

Sports for Children: 19% of fees paid for sports activities (palestre, piscine, campi sportivi) for children aged 5-18 years, up to an annual limit of €210 per child. The sports organisation must be recognised by CONI (Comitato Olimpico Nazionale Italiano).

Funeral Expenses: 19% of funeral costs (spese funebri), up to €1,550 per death (regardless of the number of taxpayers contributing). The expenses must be supported by invoices from the funeral home.

Rental Expenses for University Students: 19% of rent paid by university students living away from home (studenti fuori sede), up to €2,633 per year. The student must be enrolled at a university located at least 100 km from the student's residence (50 km for students in mountain or disadvantaged areas).

Renovation and Construction Credits (Bonus Edilizi)

Italy offers generous tax credits for building renovation and energy efficiency improvements. These credits are among the most generous in Europe and have been a major driver of the construction sector.

Ristrutturazione Edilizia (Renovation Bonus — 50%): A 50% tax credit on renovation expenses (ordinary and extraordinary maintenance, restoration, restructuring) for residential properties, up to a maximum total spending of €96,000 per property unit (refunding up to €48,000 in tax credits over 10 years). Eligible expenses include: labour costs for construction work, materials, professional fees (architect, engineer), and VAT on the work. The credit is available for renovations to the taxpayer's primary residence or secondary homes. The work must be authorised by the municipality (permesso di costruire or SCIA or CILA) if required. The credit is claimed over 10 equal annual instalments (10% per year).

Ecobonus (Energy Efficiency — 65%): A 65% tax credit on expenses for energy efficiency improvements (coibentazioni — insulation, caldaie a condensazione — condensing boilers, pompe di calore — heat pumps, pannelli solari — solar panels for hot water, schermature solari — solar shading). The maximum spending limit depends on the type of work: up to €60,000 for insulation, up to €30,000 for windows and fixtures (infissi), up to €30,000 for condensing boilers, up to €30,000 for solar panels. The credit is claimed over 10 equal instalments.

Sismabonus (Earthquake Safety — 50-85%): A tax credit for seismic retrofitting of buildings to improve earthquake resistance. The credit ranges from 50% to 85% depending on the number of seismic risk classes reduced. The maximum spending limit varies based on the work type. The credit is claimed over 5 equal instalments.

Superbonus (110% — phased out): The Superbonus 110% (which allowed up to 110% credit for specific energy efficiency and seismic works) was progressively phased out and is no longer available for most new projects as of 2025-2026. Only works that had already started (with CILAS filed by specific dates) may still benefit from the reduced rates in 2026 (60-70% depending on the category). New projects should refer to the standard ecobonus (65%) and renovation bonus (50%). The Superbonus generated significant controversy and has been largely wound down.

Furniture Bonus (Mobili — 50%): A 50% tax credit on the purchase of new furniture (mobili nuovi) and large appliances (elettrodomestici — classe A+ or higher for furnaces, A for washing machines/dryers, etc.) intended to furnish a property being renovated. The maximum spending limit is €5,000 per property (for purchases made in 2026, if linked to a renovation project started in 2025 or 2026). The credit is claimed over 10 instalments.

Green Bonus (Verde — 36%): A 36% tax credit on expenses for the design and maintenance of private gardens, terraces, and green areas, up to a maximum spending of €5,000 per property unit (refunding up to €1,800). Eligible expenses include: creation of green areas, replacement of plants, irrigation systems, green roofs, and fencing. The credit is claimed over 10 instalments.

Family-Related Tax Credits

Detrazioni per Carichi di Famiglia (Family Dependants): Tax credits for supporting dependent family members. These are calculated automatically by the employer or during the tax return filing:

Spouse (Coniuge a Carico): A tax credit for supporting a spouse with annual income under €2,840.51. The credit amount ranges from €690 to €800, decreasing as the spouse's income increases. If the spouse earns no income, the full credit applies.

Children (Figli a Carico): Tax credits for each dependent child with annual income under €2,840.51 (€4,000 for children under 24). The credit is €950 per child for children under 3 years, €950 per child for children aged 3 and older (but not exceeding the number of children specified in the law). For four or more children, the credit increases. The credit is reduced proportionally if the taxpayer's income exceeds certain thresholds.

Assegno Unico e Universale (Universal Child Allowance): Since 2022, the universal child allowance (AUU) replaced most child-related tax credits and family allowances. The allowance is paid monthly by INPS directly to families with dependent children up to age 21 (with no age limit for disabled children). The amount varies by income (ISEE): from approximately €50 to €200 per month per child. The AUU is not claimed on the tax return — it is applied for through INPS and paid directly. The old child-related tax credits (detrazioni per figli) have been largely replaced by the AUU, but residual credits may still apply for certain categories.

How to Claim Tax Credits

Tax credits are claimed by including them in the annual tax return:

Modello 730: Most employee and pensioner taxpayers claim tax credits on the Modello 730 (sections for oneri detraibili). The credits are calculated by the CAF or commercialista and result in a lower tax balance or a higher refund. For renovation and energy efficiency credits, the claim is entered in the specific sections of the 730 form (quadro E for building expenses, quadro G for energy efficiency). The 10-year instalments are tracked automatically by the tax authority.

Modello Redditi PF: Self-employed taxpayers and those who cannot use the 730 claim credits on the Modello Redditi PF (quadro RP for personal expenses, quadro RL for building expenses). The same supporting documentation requirements apply.

Documentation Requirements: To claim any tax credit, you must retain supporting documentation: invoices, receipts (ricevute fiscali), proof of payment (bonifico parlante — traceable bank transfer for amounts over €77.47 for building expenses, bank statements, credit card receipts). For renovation and energy efficiency credits, payment must be made by bonifico parlante (qualified bank transfer or postal order that includes the tax code of the beneficiary and the VAT number of the payee). The Agenzia delle Entrate may request documentation during audits.

FAQs

Can I claim the renovation bonus on a secondary home?

Yes. The renovation bonus (50% up to €96,000 total spending) is available for renovation work on any residential property, including secondary homes (seconde case) and holiday homes. The property must be located in Italy and the work must be authorised by the municipality. The credit is available to the property owner, the holder of a real right (usufruttuario, superficie), or the tenant with the owner's consent. The property can be rented out during or after the renovation — the credit is not affected by the rental status. However, if the property is used as a business asset (strumentale), different rules apply.

What is the deadline for claiming renovation credits?

The renovation credit (50%/65%/etc.) must be claimed over 10 equal annual instalments starting from the tax year in which the expenses were incurred. If you fail to claim an instalment in a given year, you cannot claim it in a later year (it is lost). The Agenzia delle Entrate does not automatically track your credits — you must include them each year in your tax return (Modello 730 or Redditi PF). The 10-year period starts from the year the expense was incurred. For expenses incurred in 2025, the first instalment is claimed in the 2026 tax return (filed in 2026), and subsequent instalments in each following year until 2036.

Can I transfer my tax credit to another person?

For certain building credits (superbonus, ecobonus, sismabonus, renovation bonus), Italy allowed the option to transfer the credit (cessione del credito) or obtain a discount on invoice (sconto in fattura) from the contractor. However, these transfer options were significantly restricted from 2023 onwards due to fraud concerns. As of 2026, the transfer of renovation and energy efficiency credits is available only in limited circumstances (e.g., for certain works performed by condominiums, for low-income taxpayers, or for specific categories of eligible persons). The standard method is now to claim the credit as a direct 10-year instalment on your own tax return. Purchasing pre-existing transferred credits is still possible through the Agenzia delle Entrate's credit transfer platform (Piattaforma Cessione Crediti), but with increased due diligence requirements for buyers.

Disclaimer

This guide is for informational purposes only and does not constitute tax advice. Italian tax credit rules are complex and subject to frequent legislative change. Consult a qualified commercialista or tax advisor for advice specific to your situation. Rules for 2026 are based on legislation enacted by June 2026.