On the subject of first home mortgage for Italians residing abroadthe interest expense deductions for which properties are they possible? The tax authorities provide the answer directly. Please remember that you can benefit from one Irpef deduction of 19% on the interest paid to the credit institution for the first home mortgage, as well as on additional charges, for a maximum of 4,000 euros per year. To benefit from the deduction, the property must be used as the main residence of the taxpayer who holds the mortgage and from the date of purchase of the property the owners have 12 months to transfer their residence there, a necessary condition for the house to be considered the main residence.
TO Tax Today, the online magazine of the Revenue Agency, was asked: “I am writing to you because I have a doubt as to whether or not it is possible to deduct the interest paid for mortgage loans for the main residence as a deduction in the tax return. I am an Italian citizen, resident in Germany, who works for an Italian ministry and receives my salary from Italy. I bought a house in Germany and I pay the mortgage. Am I entitled to the deduction?”.
In providing its response, the Tax Office clarified that, in this case, it is not possible to make a deduction in the tax declaration interest expense for the mortgage loan for the main residence. This is because the house was purchased abroad, in this specific case in Germany.
The Tax Office explained that, “as specified by the same instructions for completing the tax return of non-resident natural persons (Income Pf 2024 form – file 2 – Part Three), Interest paid on some mortgages and loans is deductibleincluding those for mortgage loans for the purchase of a main residencebut only ‘with reference to properties located in Italy‘”.
Consequently, the Tax Office underlined that “for mortgages contracted to purchase a real estate unit located in a foreign country, the deduction of interest expense, pursuant to art. 15, paragraph 1, letter. b), of the Tuir, is not up to. This applies both to taxpayers who are tax resident in Italy, for whom the main residence is, as a rule, in relation to properties located in Italy, and to non-residents, for whom the tax is determined according to the provisions reported. in article 24 of the TUIR”.
