Deduction of medical expenses: the Inland Revenue guide

Deduction of medical expenses is one of the most sought-after tax benefit in Italy. In the light of that, the Inland Revenue Office has recently published on its website a guide to the medical expenses (PDF) [2.5 mb] highlighting the tax treatment of the different kinds of expenses.

Expenses that can be deducted from an Irpef perspective (at a 19% rate) relate to:

• medical assistance rendered by a general practitioner (including homeopathic treatments)
• purchase of prescription and over-the-counter drugs and medications (including homeopathic remedies)
• purchase of food for special medical purposes, excluding baby food products
• medical assistance rendered by specialist physicians
• tests, scan analyses, research, therapies
• medical assistance rendered by surgeons
• hospital stays and hospitalization after surgery
• organ transplantation
• thermal care (with the exclusion of travel and accommodation expenses)
• purchase or lease of medical instrument and equipment (including prostheses)

Additionally, the following specific medical assistance can be deducted at a 19% rate:

• nursing and rehabilitation care (i.e. physiotherapy, kinesiatrics, laser-therapy etc.)
• assistance rendered by qualified care workers and social workers focusing on people care
• assistance rendered by nurse case managers
• assistance rendered by qualified professional educators
• assistance rendered by qualified recreation workers and occupational therapy

The guide also clarifies the deductibility of medical expenses incurred abroad (with the exception of travel and accommodation expenses). These can be claimed for reimbursement in the same way as the expenses incurred in the home country. If the supporting documents are in a foreign language, a sworn translation is necessary for all languages other than English, French, German and Spanish. In the latter cases, a courtesy translation is accepted.

Deduction can be divided into four annual installments of the same amount when the annual aggregate amount of expenses exceeds Euro 15,493.71 gross of the excess established in Euro 129.11.

For further information, please contact Sergio Montedoro.