Tax regime: “standard” or “flat tax (cedolare secca)”?

The landlord can choose the tax regime that best suits their needs.
They can opt either for the standard tax regime or for the flat tax regime (cedolare secca), regardless of the type of contract (open-market or agreed rent).

Under the standard tax regime, the following taxes are paid separately:

• Registration tax, due at the start of the contract, as well as in the case of termination, transfer, or renewal;
• Stamp duty, payable when the contract is signed;
• Personal income tax (IRPEF).

The flat tax (cedolare secca) replaces:

• personal income tax (IRPEF);
• regional and municipal surtaxes;
• registration tax and stamp duty on the lease, as well as on renewals and terminations.

The tax is calculated by applying a fixed rate to the annual rent:

• 21% for open-market contracts
• 10% for agreed rent contracts relating to properties located in municipalities with high housing demand, such as Bologna.

You can opt for the flat tax either when registering the contract or, in the case of multi-year leases, in the following years.

Landlords who choose the flat tax must waive any rent increases, and this must be communicated to the tenant by registered letter. This notification is not required if the contract already clearly states that no rent increases will be applied.

We recommend consulting a trade association or a tax advisor to determine which tax regime is most suitable for your situation.