Since you can `01/01/1998 to deduct the interest expense paid in respect of mortgage loans for the construction of the property to be used as a principal residence
For main house `s mean one in which the taxpayer and / or his family normally resident there. The deduction is allowed to the extent of 19%, for a maximum amount of Euro 2,582.28 for each year `s tax, interest expense and related charges paid in respect of loan agreements entered into with persons resident in Italy or in a state `member of the European Union or with permanent establishments in Italy. In the case of joint proprietorship of a mortgage or in the presence of more than one contract, the amount referred to above `refers to the` maximum total amount of the deduction subject `s tax.
For construction and renovation means all the actions taken in accordance with the provision that authorizes a new municipal building, including building renovations of according to Art. 31, c. 1, letter. d) of the Law of 5 August 1978 n. 457.
To qualify for this deduction must co-exist with the following conditions:
a) the contractor of the mortgage must be the one who will be receiving the home by way of ownership or other real right;
b) the mortgage must be signed not more than 6 months before or after the date of commencement of the work;
c) the realty must be used as a principal residence within 6 months of completion of the work;
d) the work must be finished within the deadline provided by the administrative department which allowed the construction.
You will also need to keep the following documents:
- Receipt of payment of the interest paid on the mortgage;
- Mortgage contract;
- Administrative authorizations required by building regulations;
- Invoices and tax receipts as proof of expenses actually incurred for construction of the property.
In the event that the realty object after the deduction is no longer used as a principal residence, the deduction is less effect from the year following the change; does not detect, however, the `possible relocation for work.
The deduction of an amount not exceeding € 2,582.28. In the case of joint proprietorship of a mortgage or more contracts, the limit refers to the total amount `(Euro 1,291.14 per person for spouses co-owners).
The deduction is limited to `the` amount of the interest on the loan amount actually used during each year for the construction of the property and is added to that referred to the interest expenses related to loans contracted for L `buy` s principal residence only the duration of the construction works of the property and for the 6 months following the end of the works. Failure to target a principal residence `s real estate unit within 6 months after the conclusion of the construction works of the same result in the loss of the right to deduct.
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