Lease Agreement, what is it?

Lease contracts stipulated regarding real estate, house or land, must be registered with the Revenue Agency. Types of Lease Agreements: what are they?
Different types of rental agreements can be stipulated:
• housing with free rent, the amount of which is freely decided by the landlord, or is decided in agreement with the tenant
• housing with agreed rent, established on the basis of certain thresholds that are the result of territorial agreements between associations of landlords and tenants
• temporary housing, for which no transfer of residence is envisaged (the duration can range from a minimum of one month to a maximum of eighteen)
• transitional rental contract for off-site students
• for use other than residential use.
Taxation on Lease Agreements: cedolare sicca and Irpef
Income received from a lease must be taxed. Taxation on this income can be applied in the ordinary form or in an alternative form. The choice, therefore, of the lessor must be made between these two options:
• classic taxation through personal income tax
• substitute taxation through dry coupon.

The classic taxation gathers all income under a single tax (Irpef in fact), including rental income, which, to be exact, are subject to Irpef to the extent of 95% of each annual rent, starting from a minimum rate 23%.

Vice versa, the taxation on the Lease Agreement with coupon is subject to fixed rates of 21 or 10 percent – depending on whether it is a free or agreed contract – 100% of the annual rent alone.

 

Requirements

 

The registration obligation falls indifferently:
• on the lessor, ie on the owner of the immovable property
• on the tenant, ie on whoever rents the immovable property.

 

 

Lease Agreement: how to get it?

 

PWS will provide assistance and advice on the most convenient choice in terms of taxation.

Registration of the Lease Agreement
The registration of the Lease Agreement is carried out at the Revenue Agency within 30 days from the date of signing the contract, or from its effective date, whichever is earlier.

PWS’s assistance on Lease Agreements is not limited to the simple drafting of the contract. PWS assists the lessor:
• informing him about the various options available in terms of taxation, in order to allow him to decide the tax regime most suitable for him
• in preparing and registering the contract
• in calculating the Istat update
• in preparing subsequent periodic communications to the tenant
• in preparing the forms for the purpose of paying the taxes due in relation to all other subsequent obligations (for example renewal, transfer or termination of the contract).