---
title: "Dry coupon: how it works and what advantages it offers"
description: La cedolare secca è un regime fiscale agevolato riservato ai proprietari privati che affittano immobili a uso abitativo.  Invece di pagare l
url: https://www.grimaldi.casa/en/news/dry-coupon-how-it-works-and-what-advantages-it-offers
---

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# Dry coupon: how it works and what advantages it offers

15 October 2025

0 minutes read

The dry coupon is a **preferential tax regime reserved for private owners who rent properties for residential use**. Instead of paying IRPEF on rental income, the owner pays a fixed tax on the rent: Single rate: 21% for rent-free contracts. 

## **Rental contract with flat rate tax: what it is**

When we talk about a rental contract with flat rate tax, we are referring to a rental contract subject to a tax regime alternative to the ordinary regime which provides for the payment of a substitute tax for Irpef and additional income tax.

Furthermore, this option*free from the obligation to pay registration tax and stamp duty*, generally due for registration,*the termination and extension of rental contracts.*

The dry coupon can be activated, regardless of income, by the natural persons who own the rented property, at the time of registration of the contract. Anyone who wishes to renounce the dry tax option must notify the Revenue Agency at least 30 days in advance of the expiry of the contract.

## **To which rental contracts can flat rate tax be applied?**

The dry coupon ***it can be applied to all rental contracts and has a duration that varies based on the duration of the contract itself***. Specifically, the rental contracts with flat rate tax that can be signed are:

- rental contract with flat rate tax a ***free fee***: also known as a "4+4 rental contract" due to its duration, it allows the landlord to freely define the amount of rent to be paid by the tenant. In this case, the rate applied to the annual rent is 21%;
- rental contract with flat rate tax a ***agreed fee***: also known as a "3+2 rental contract" due to its duration, it provides that the amount of the rent is defined between the tenant and the lessor based on specific territorial agreements. In this case, however, the rate applied to the annual rent is 10%;
- rental contract with flat rate tax ***transitory***: flat rate tax can also be applied to rental contracts that have a minimum duration of 30 days and a maximum duration of 18 months.

It should be noted that i contracts of ***short term rental*** can benefit from the flat rate tax, but the***rate is 21% only for the first property***e. Starting from the second property rented briefly, the rate becomes **26%**. It is essential to indicate which property you wish to tax at the reduced rate in your tax return. 

## **Advantages and disadvantages of a rental contract with flat rate tax**

Signing a rental contract with flat rate tax brings with it numerous advantages, both for the landlord and for the tenant:

- savings: the flat tax exemption relieves you of the payment of stamp duty and registration tax which, normally, is necessary to pay to register, terminate and extend rental contracts at the Revenue Agency;
- blocked taxation: the taxes to be paid on the income deriving from the rental are blocked at 21% or 10% for the entire duration of the agreement.

For an informed choice, it is necessary to also know the disadvantages of such a solution:

- rent freeze: the rent remains fixed for the entire duration of the contract and cannot be changed;
- no tax bonuses: it is not possible to benefit from any benefits deriving from tax bonuses.

The dry tax applies to rental contracts for residential properties (land registry categories from A/1 to A/11, excluding A/10). Commercial properties and offices are therefore excluded. However, it is good to remember that if the property is for residential purposes, the dry tax can be applied even if the tenant is a company or a professional who rents the property for its employees or collaborators, as clarified by the Court of Cassation.

## **Dry coupon rental contract: the advantages for the tenant**

The advantages for the tenant are many:

- in rental contracts with flat rate tax, registration tax and stamp duty are not paid for registration, extensions or termination of the contract.
- the rent remains fixed, in the sense that the lessor undertakes not to increase the rent for the duration of the contract.