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A look at the flat tax on rent

Posted by linda on 24 July 2018
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What is the flat tax on rent and how does it work?

The flat tax on rent is an optional scheme, which is based on the payment of a substitute tax of IRPEF and additional.

For contracts under “cedolare secca” are not paid:

  • the registration tax
  • stamp duty

The flat tax does not replace the registration tax for the transfer of the lease.


Who can take advantage of the flat tax on rent?

Persons entitled to the right of ownership or of the real right of use can opt for the flat tax scheme, which do not lease the property in the exercise of business activities or arts and professions.

For which properties do you apply?

The option can be exercised for the real estate units belonging to the cadastral categories from A1 to A11 (excluding the A10) leased to residential use or with a separate contract and subsequent to that relating to the residential property. All this on the condition that the lease relationship is between the same contractual parties and that in the lease of the pertinence reference is made to the lease of the residential property and the existence of the pertinential bond with the housing unit already leased is highlighted.

In the case of joint ownership of the property, the option must be exercised separately by each lessor.

How does the substitute tax work and how much do you pay?

The substitute tax is calculated by applying a rate of 21% on the annual rent established by the parties.

A reduced rate is also provided for the agreed rent leases, which relate to houses located:

  • in municipalities with housing shortages. In practice, these are the municipalities of Bari, Bologna, Catania, Florence, Genoa, Milan, Naples, Palermo, Rome, Turin and Venice and the municipalities bordering the same and the other provincial capitals
  • in high-voltage housing communes (identified by “Cipe”).

From 2013 the rate for these contracts is 15%, reduced to 10% in the years from 2014 to 2017. The Decree Law 47/2014 has established that the same rate is also applicable to the lease agreements stipulated in the municipalities for the in the 5 years preceding the date of entry into force of the law converting the decree (28 May 2014), the state of emergency following the occurrence of disastrous events has been resolved. Finally, with the Budget Law 2018, the reduced rate of 10% for the agreed fee contracts has been extended for another 2 years (2018 and 2019).

What are the effects of flat tax on income?

The income subject to flat tax:

  • is excluded from total income;
  • on the income subject to coupon and on the coupon itself can not be deducted deductible charges and deductions;
  • the income subject to coupon must be included in the income for the purpose of recognizing the right or the determination of deductions, deductions or benefits of any security related to the possession of income requirements (determination of the ISEE, determination of income to be considered charged).
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A look at the flat tax on rent
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What is the flat tax on rent and how does it work? The flat tax on rent is an optional scheme, which is based on the payment of a substitute tax of IRPEF and additional. For contracts under “cedolare secca” are not paid: the registration tax stamp duty The flat tax does not replace the registration tax for the transfer of the lease.
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