The 3+2 rental contract is a generic contract lasting 3 years, extendable for another 2 years. Generally, it provides for more subsidized and contained costs compared to those envisaged for the stipulation of free-fee contracts and this fee is established on the basis of local and national agreements.
What is the 3+2 rental contract
The 3+2 rental contract is a generic contract that has a minimum duration of 3 years, extendable for another two years. This type of contract, unlike free-fee contracts, provide a fee that is determined by local or national agreements. Based on the fluctuation bands provided for in the agreements, the parties can agree on the amount.
These contracts include the option of dry coupon which allows you to benefit from a reduced rate of 10%. The option can be exercised by private individuals who rent properties exclusively for residential use and which fall within the appropriate cadastral categories. If you choose the flat rate tax, it is best to inform the tenant and fill out the 3+2 rental contract form with flat rate tax.
Tax breaks
Signing a 3+2 rental contract with an agreed fee is an advantageous choice for both landlords and tenants: both can, in fact, benefit from some tax breaks. Property owners can:
- use an Irpef taxable income reduced by almost 67% (compared to the traditional 85%);
- benefit from a registration tax reduced to 1.4% and a rate of 10% with a 3+2 flat rate rental contract.
Tenants who, however, use the property as their main residence can benefit from tax breaks on a 3+2 rental contract for Irpef purposes for:
- €495.80, if the total income does not exceed €. 15,493.71;
- €247.90, if the total income is between €. 15,493.71 and €. 30,987.41.
How to agree on the fee for a 3+2 rental contract
The rent of the 3+2 rental contract is determined by national agreements established every 3 years by the Ministry of Public Works and consequent local agreements established by Municipalities and organizations representing owners and tenants. These establish fluctuation bands within which the two parties can agree on the annual rent. Furthermore, to calculate the agreed rent for a 3+2 rental contract, you must take into consideration:
- the size of the property in m2;
- the cadastral category of the property;
- the location of the property (whether it is located in a central or peripheral area);
- the presence of any ancillary services (such as a parking space) and any technical services (such as air conditioners).
Renewal and cancellation
Following the expiry of the first 3 years, the renewal of the 3+2 rental contract model occurs automatically if no cancellation is given by one of the two parties. At the end of the following two years, the landlord and tenant can decide whether to renew again with new conditions or renounce and terminate the contract according to the pre-established times.
As regards cancellation, the procedures are different for the landlord or tenant. If the tenant wants to cancel the 3+2 rental contract model before the deadline, he can do so by registered letter sent 6 months in advance. If the lessor wants to withdraw from the contract, he can only do so at the end of 3 years for the reasons provided by law.