Tax Credits

Individuals benefit from tax credits or allowances which depend upon their taxable income and are increased in respect of dependent relatives. In addition credits are given in respect of certain expenses (e.g. mortgage interest payments and medical costs) and the credit is calculated as 19% of the expense.

If an individual is resident in Italy for a part year then any tax credits or allowances are pro-rated based upon the period of time the individual is resident in the country during the year.